Types of capital
- Real capital is the physical assets used in the production of goods and services for example machines, buildings, roads etc. It is also called fixed capital.
- Liquid (money/financial} capital is capital which is in cash form. It is used as a means of payment for capital goods.
- Floating (circulating/operating/working) capital is capital used in the day to day running of the business activities for example buying raw materials.
- Human capital is the productive qualities found in human beings for example skills and knowledge. Such qualities are attained through training and education.
- Overhead capital is the social and economic infrastructure or assets which facilitate in the production process for example roads, banks, insurance etc.
- Public (social) capital is capital owned by the government on behalf of its citizens for example government hospitals, schools, roads etc.
- Private capital is the type of capital owned by private individuals. It includes private cars, schools, businesses etc.
CATEGORIES Economics
TAGS Dr. Bbosa Science
