The distinction between physical and financial capital is that
A) financial capital is used to purchase and operate physical capital.
B) physical capital is equal to financial capital plus depreciation.
C) physical capital is equal to financial capital minus depreciation.
D) the value of financial capital depends on the amount of available physical capital.
E) financial capital depreciates and physical capital does not.

Question

Quizplus · Accepted Answer

Financial capital refers to the funds that businesses use to buy physical capital, such as machinery, buildings, and equipment, which are essential for producing goods and services.

The Distinction Between Physical and Financial Capital Is That