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Difference between physical and human capital

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Difference between physical and human capital

    • Posted by Baljeet Singh 4 years, 7 months ago

    CBSE > Class 09 > सामाजिक विज्ञान
    • 1 answers

    Yogita Ingle 4 years, 7 months ago

    Basis Physical Capital Human Capital
    Meaning The term ‘physical capital’ is used to indicate the data (factor of product) or man-made commodities, which are maintained by the firm such as machinery, computers, tools, equipment and many more. It is used in the manufacturing procedure to allow the change of raw material into finished goods. Human Capital implies the knowledge which a worker brings to the company in the manner of education, talents, abilities, talents, knowledge, preferences etc., which he or she has gathered over time. As a consequence, the employees are regarded as an asset, whose value can be enhanced, by spending in their coaching and improvement, like any other asset of the firm.
    Nature Tangible Intangible
    Formation Technical and economic procedure Conscious ascertainment and social process
    Tradability Can be traded in the marketplace. Services rendered by the human capital can be sold.
    Separability Can be separable from its owner. Cannot be separable from its owner.
    Financial Statement Shown Not shown

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