Capital

Capital is a factor of production that consists of man-made goods, which are used in the further production of wealth. It is the man-made productive asset, which assists or enhances the production, or manufacturing of goods and services. It is the wealth employed in the production of further wealth. Capital can be in different forms, for example, equipment, liquid assetsLiquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. Liquid assets refer to cash on hand,... More (cash), etc. 

Capital is wealth but wealth is not capital, for example, Health is wealth but not capital. Capital may also mean money (capital fund)

In many business organizations, money used to buy materials, and to pay workers’ wages and salaries, is termed as working or circulating capital.

Characteristics of Capital:

1. Capital depreciates over time.

2. Capital is durable and accumulated for further production of wealth. 

3. Capital takes various forms, examples include securities, money, machine, seedlingsA seedling is a young plant that has been grown from a seed. More, etc.

4. Capital may