Which of the following items is part of a firm's financial capital as distinct from its real capital?
A) a $500 000 balance in a bank account
B) a fleet of delivery trucks
C) a network of personal computers
D) inventory of goods valued at $1 000 000
E) a new bulldozer

Question

Quizplus · Accepted Answer

Financial capital refers to money or monetary assets owned by a firm, while real capital refers to physical assets like machinery, buildings, and equipment. A balance in a bank account represents financial capital, whereas options B, C, D, and E all represent real capital.

Which of the Following Items Is Part of a Firm's