Physical Capital Definition In economic theory, physical capital is one of the three main factors of production, along with human capital and land/natural resources. Physical capital means, an organisation’s non-human assets such as buildings, land, plant and machinery, furniture, electronic items, office supplies, etc. Physical capital Definition from Encyclopedia Dictionaries & Glossaries.   In economics, capital includes durable goods such as machinery, equipment, and tools which are used to create other products. Physical capital is of two type:-Fixed capital- It includes tools and machines ranging from simple tools like - farmer's plough and machines like - generators, turbines, computers. Financial Capital vs. Capital in Economics . Social capital. In physical capital maintenance concept, the capital is only maintained whenever the physical productive or operating capacity, or the funds or resources required to achieve this capacity at the Closing, is equal to or greater than the physical productive capacity at the Opening of the period, after excluding any distributions to, or contributions from, owners during the financial period. It consists of those goods which are produced by the economic system and are used as inputs in the pr oduction of further goods and services. The impact of social capital turns from being insignificant in the 1980s and the 1990s to be positive in the 2000s, suggesting its rising importance in recent decades. 2 Mental capital and mental wellbeing explained: their critical importance An individual’s mental capital and mental wellbeing crucially affect their path through life. Also see time value of money for a more detailed description of how financial capital may be analyzed. The three factors of production include land/natural resources/real estate, human capital, and physical capital. Definition of 'Physical Capital' The machinery, equipment and buildings used in production. It means a variety of inputs required at every stage during production. Social capital has been shown to be of great importance for societal well-being. Tools, machines, buildings can be used in production over many years and are called fixed capital. Physical capital : It is one of the requirement neccerary for crop production It means a variety of of inputs required at every stage during production . Physical capital is the apparatus used to produce a good and services. Our knowledge, skills, habits, and social and personality attributes all form part of the human capital that contributes to the creation of goods and services. For Bourdieu, physical capital refers to the embodied state of cultural capital, although some researchers have called for a broader understanding that recognises the body as a form of capital in its own right (Shilling, 1991). It includes fixed capital and working capital. Physical capital is divided into two types they are:1 . Financial capital, on the other hand, is the legal ownership of all physical capital, as well as the monetary value of any asset that could be liquidated for cash. Definition of Physical capital in the Definitions.net dictionary. that is owned by a company and used to produce…. Since this form of capital encompasses the facilities and the equipment used in the business operation, care must be taken to ensure that the facilities are safe, improving the chances that employees can function efficiently. This is where the company’s physical capital comes into play. 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