Physical Capital

Physical Capital

Physical Capital Jonathan Poland

Physical capital refers to the tangible assets that are used to produce goods and services. This term is commonly used in economics to describe one of the three factors of production, along with labor and natural resources. Examples of physical capital include machinery, equipment, buildings, and infrastructure.

These assets are essential for businesses to be able to carry out their operations and create value for their customers. Unlike financial capital, which is a measure of a company’s financial resources, physical capital refers to the tangible assets that the company owns and uses to generate revenue. The following are common examples of physical capital.

Agricultural Equipment Aircraft
Appliances Buildings
Computers Containers
Energy Infrastructure Equipment
Facilities Factories
Fixtures Furniture
Heating, Ventilation and Air Conditioning Inventory
Land Improvements Machines
Materials Media Equipment
Mobile Devices Musical Instruments
Purchased Software Robots
Safety Gear Satellites
Ships Signs
Supplies Technology Infrastructure
Theme Park Attractions Tools
Transportation Infrastructure Unfinished Goods (work-in-progress)
Uniforms Vehicles

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