Question

What is the difference between financial capital, physical capital and human capital?

What is the difference between financial capital, physical capital and human capital?

Homework Answers

Answer #1
Financial Capital Physical Capital Human Capital
Financial Capital is can be defined as the net worth of an individual or organization. Arithmetically, it is the sum of all his/her assets minus his/her debts. The non human assets of an organization that helps it derive production value generally constitutes its physical capital, namely machines,etc The economic value that other people are willing to pay for a person's skills, abilities, knowledge and how he/she applies these aspects to derive value for an employer
Financial capital is intangible in nature Physical capital is tangible in nature Human capital is intangible
Examples - Money used to buy stocks , Bank credits. Examples - Inventory, equipments. Examples - Money earned by a student after graduating from a college

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