Question

Distinguish between physical capital and human capital with suitable examples.

05 Jul 2020
Answer :
Word Count : 738
BASIS FOR COMPARISON PHYSICAL CAPITAL  HUMAN CAPITAL
Meaning Physical capital implies the non-human assets of the company, such as plant and machinery, tools and equipment, office supplies etc. that help in the process of production. Human capital refers to stock of knowledge, talent, skills and abilities brought in by the employee, to the organization.
Nature  Tangible  Intangible 
Formation  Economic and technical process.  Social process and conscious decision of the possessor.
Formation  It can be traded in the market.  Only the services of human capital can be sold.
Separability   It is separable from its owner.  It is not separable from its owner.
Financial Statement  Shown in financial statement.  Not shown in financial statement.
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