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Question

How can one classify the capital?


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Solution

Capital can be named under:

(I) Fixed and Circulating Capital:

Fixed capitals are consistently utilized during the time spent creating. For example, machines, apparatuses, equipment, and so on. Then again, the capital which is utilized for a single time, i.e., once utilized capitals is called flowing capital. For instance coal, petroleum and crude material, and so on

(ii) Sunk and Floating Capital:

The capitals which stay fixed and can’t be moved to start with one spot then onto the next are called sunk capital. Industrial facilities, machines, and so on are sunk capital. Be that as it may, coasting capitals are those, which can be utilized for a few purposes or by a few businesses. For instance, cash and other crude materials are cases of drifting capitals.

(iii) Domestic and Foreign Capital: Domestic capital is that capital that remembers all private and public capital for a country. The structures of the relative multitude of plants, both private and public, are the instances of homegrown capital. Then again, an unfamiliar capital is that capital that is possessed by at least two nations. The Kosi project claimed by India and Nepal, International Monetary Fund (IMF), World Bank, and so on are instances of Foreign Capital.

(iv) Personal and Social Overhead Capital:

Capital having individual or private proprietorship is called individual capital. The large manufacturing plants claimed by numerous industrialists are the case of individual capital. Then again capital which is claimed by the entire society is known as friendly overhead capital. For instance, streets, clinics, railroads, parks, colleges, and so on are the social overhead capital,

(v) Human and Non-Human Capital:

Human resources allude to those individual characteristics which can neither be seen nor have any shape or size. Henceforth, can’t be moved from one individual to another. Subsequently, expertise, capacity, proficiency, and so forth of a specialist, instructor, athlete, pilot, and so on are the instances of human resources. Unexpectedly, non-human resources are the capital that can be moved from one spot to another, for example, machines, devices, plants, equipment, and so forth.


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