WHAT IS THE DIFFERENCE BETWEEN PHYSICAL CAPITAL AND A WORKING CAPITAL
Answers
Capital (economics) ... In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. In classical economics, capital is one of the four factors of production. The others are land, labor and organization. is called capital
difference between working capital and physical capital are as follow :
Working capital: The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
Physical capital is fixed capital, which is any kind of real physical asset that is not used up in the production of a product.
Answer:
Working capital: The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities. Physical capital is fixed capital, which is any kind of real physical asset that is not used up in the production of a product.