Which of the following is closest to the definition of capital?
A) c and e.
B) c and d.
C) Tools, equipment, means of transportation
D) Factories and machinery.
E) Borrowed money.

Question

Quizplus · Accepted Answer

Capital refers to assets that are used in the production of other goods or services. Factories and machinery fall under this category, as do financial assets like stocks and bonds (which can be used to generate income). Borrowed money is not considered capital, as it is a liability rather than an asset. Tools, equipment, and means of transportation are all examples of physical capital, but they do not encompass the full definition of capital.

Which of the Following Is Closest to the Definition of Capital