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
Learn More
Types of Win-Win Jonathan Poland

Types of Win-Win

Win-win, also known as mutually beneficial, refers to a situation or plan that has the potential to benefit all parties…

Business Objectives Jonathan Poland

Business Objectives

Business objectives are specific targets or goals that an organization, team, or individual strives to achieve within a certain time…

Tribes Jonathan Poland

Tribes

Tribes are groups of people who self-organize around common interests, values, communities, professions, needs, or aspirations. The concept of tribes…

Customer Need Examples Jonathan Poland

Customer Need Examples

Customer needs refer to the specific desires or requirements that a customer has for a product or service. These needs…

What is a Trade Show? Jonathan Poland

What is a Trade Show?

A trade show is an industry-specific event where businesses in a particular sector showcase their products, services, and innovations to…

Customer Needs Jonathan Poland

Customer Needs

Customer needs are the factors that make a product or service valuable to a customer. These needs can be functional,…

Service Quality Jonathan Poland

Service Quality

Service Quality is determined by the value it holds for customers. This value can vary from person to person and…

What is Avoidance? Jonathan Poland

What is Avoidance?

Avoidance is the act of avoiding something that one finds unpleasant or inconvenient. This can involve a variety of different…

Network Infrastructure Jonathan Poland

Network Infrastructure

Network infrastructure refers to the hardware and software components that are used to build and support a computer network. It…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

What are End Goals? Jonathan Poland

What are End Goals?

End-goals, also known as long-term goals or ultimate goals, are the desired outcomes or results that an organization or individual…

Capitalism Jonathan Poland

Capitalism

Capitalism is an economic system based on the principles of economic freedom, private ownership, and the creation of wealth through…

Human Resources Jonathan Poland

Human Resources

Human resources is the department within a business that is responsible for managing and coordinating the people who work for…

Relationship marketing Jonathan Poland

Relationship marketing

Relationship marketing is a type of marketing that focuses on building long-term, mutually beneficial relationships with customers, rather than just…

Change Resistance Jonathan Poland

Change Resistance

Change resistance is the act of derailing, slowing down, or preventing a change that is underway. This can often cause…

Needs Identification Jonathan Poland

Needs Identification

Needs identification is the process of discovering and understanding a customer’s needs, constraints, pain points, and motivations. This is a…

Gold is Money Jonathan Poland

Gold is Money

Overview The history of gold as money spans thousands of years and has played a pivotal role in the economic…

Price Optimization Jonathan Poland

Price Optimization

Price optimization is the process of using data and analytical methods to determine the optimal price for a product or…

Root Cause Analysis Jonathan Poland

Root Cause Analysis

Root cause analysis (RCA) is a method of identifying the underlying causes of a problem or issue in order to…