CAPITAL
ANCHETA, Kenzie M.
BSED 3F-1
Capital
Capital can represent
the monetary resources
companies use to
purchase natural
resources, land and
other capital goods.
It also represents
the major physical
assets individuals
and companies use
when producing
goods or services.
Capital
Different
Types of Capital
PHYSICAL CAPITAL
• These are all Long-lasting
physical goods that are
used to make other things.
• Consist of things like
machinery and equipment,
factory buildings and even
hand tools.
HUMAN CAPITAL
• Consist of skills and
knowledge possessed
by workers.
• Product of education
and training
Different
Factors of Capital
FIXED CAPITAL
• This includes
machinery, factories,
equipment, new
technology, buildings,
computers, and other
goods.
WORKING CAPITAL
• includes the stocks of
finished and semi-
finished goods
• Also used to refer to
liquid assets (money)
needed for immediate
expenses linked to the
production process
FINANCIAL CAPITAL
• This is simply the
amount of money the
initiator of the business
has invested in it.
• It also refers to his or
her net worth tied up in
the business
INFRASTRUCTURE
• It is a stock of
capital that is used
to maintain the
whole economic
system .
REFERENCE
• http://smallbusiness.chron.com/economic-
definition-four-factors-production-3941.html
• https://en.wikipedia.org/wiki/Factors_of_production
• http://study.com/academy/lesson/four-factors-of-
production-land-labor-capital-entrepreneurship.html
• http://www.investopedia.com/video/play/factors-
production/
• https://simple.wikipedia.org/wiki/Capital_(economic
s)

SS2 - Capital

Editor's Notes

  • #4 include buildings, production facilities, equipment, vehicles and other similar items. Individuals may create their own capital production resources, purchase them from another individual or business or lease them for a specific amount of time from individuals or other businesses. TANGIBLEs
  • #9 that are designed to increase the productive  This type of capital does not change due to the production of the good.
  • #10 These are often called inventory to pay salaries, invoices, taxes, interests..
  • #12 Such as roads, railway tracks airports