Distinguish between physical capital and human …

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Distinguish between physical capital and human capital

Posted by Deepanshu D 5 years, 8 months ago

Yogita Ingle 5 years, 8 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
Restriction on Mobility	Befalls due to trade restrictions	Befalls out of nationality and culture

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