Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital. The tools,
machines, buildings which can be used in production over many years are called fixed capital.Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production.
Working Capital
Working capital is a financial metric that is the difference between a company's curent assets and current liabilities. As a financial metric, working capital helps plan for future needs and ensure the company has enough cash and cash equivalents meet short-term obligations, such as unpaid taxes and short-term debt.
Answers & Comments
Verified answer
Answer:
Physical Capital
Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital. The tools,
machines, buildings which can be used in production over many years are called fixed capital.Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production.
Working Capital
Working capital is a financial metric that is the difference between a company's curent assets and current liabilities. As a financial metric, working capital helps plan for future needs and ensure the company has enough cash and cash equivalents meet short-term obligations, such as unpaid taxes and short-term debt.