ECONOMICS

Detailed explanation-1: -Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods include buildings, machinery, equipment, vehicles, and tools.

Detailed explanation-2: -Capital assets are tangible and generally illiquid property which a business intends to use to generate revenue and expects its usefulness to exceed one year. On a balance sheet, capital assets are represented as property, plant, and equipment (PP&E). Examples include land, buildings, and machinery.

Detailed explanation-3: -Financial capital most commonly refers to assets needed by a company to provide goods or services, as measured in terms of money value. Economic capital is the estimated amount of money needed to cover possible losses from unexpected risk.

Detailed explanation-4: -A well-run firm manages its short-term debt and current and future operational expenses through its management of working capital, the components of which are inventories, accounts receivable, accounts payable, and cash.