7 Secrets About Capital Resources That Has Never Been Revealed For The Past 7 Years | capital resources

The four fundamental types of capital are fixed capital, circulating capital, liquid capital, and personal capital. Fixed capital is comprised of plant, land, buildings, and other fixed assets. Examples of fixed capital are trees, air, water, mines, and raw materials. Circulating capital is comprised of accounts receivable, inventory, backlog, retained earnings, depreciated value of depreciated assets, and credit. Liquid capital is comprised of bank deposits, marketable securities, accounts payable, and financial instruments guaranteed by the United States government.

A company's capital resources can be categorized as permanent or variable. Permanent capital resources include goods in inventory, plant, buildings, machinery, supplies, and assets like livestock, crops, and livestock income. On the other hand, assets that are variable include liabilities, rights to acquire new goods, capital assets, accounts receivable, inventory, accounts payable, and inventory level. These categories are further subdivided into three classes: permanent personal capital resources, variable personal capital resources, and equities.

The category of human capital resources refers to the skills, abilities, knowledge, and capabilities possessed by an individual or group of people. Examples of human capital resources include education, knowledge, skills, work experience, and values. A company's capital resources also include the means of producing goods, such as machinery, buildings, and supplies. The means of producing goods includes the innovations and research of human mind.

Another subcategory of capital resources is the variable capital resources. Variable capital resources refer to any variable existing or potential within a firm. Some examples of variable capital resources existing within a manufacturing facility are raw materials, energy, supplies, labor, and technology. One important example of a variable capital resource is the factory overhead. Every business should keep in mind that capital resource is a key factor that should never be overlooked.

On the other hand, one must also be wary of the term raw materials. Materials are included in capital resources for the sole purpose of enabling production to take place and make goods, such as steel, iron, coal, cement, wheat, oil, etc. Capital tools, machines, and the man power used to make them are also included in capital resources. When talking about man-made resources, it means materials which are synthetic in nature and can be extracted from the earth in question. Such examples of man-made resources include petroleum, coal, gasoline, natural gas, and rubber.

Capital is the means or instruments used to produce goods. Capital is divided into two categories, namely, fixed and circulating capital resources. Fixed capital resources include goods produced in the factory or warehouse, while circulating capital resources refer to . . . . . . the goods that enter into circulation after being produced in the factory or warehouse. A good example of circulating capital resource would be money. Money is a circulating capital resource.

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