Financial Capital

3 types of capital

• human capital, financial capital, entrepreneurial capital

• capital city, capital state, capital letters

• physical capital, financial capital, human capital

• physical capital, working capital, entrepreneurial capital

What is financial capital?

• Money used for investment

• Natural resources

• Human skills and labor

• Government policies

Which of the following is an example of financial capital?

• Machinery

• Stocks and bonds

• Employee skills

• Land

How does financial capital differ from human capital?

• Financial capital is tangible, human capital is intangible

• Financial capital is intangible, human capital is tangible

• Both are tangible

• Both are intangible

What role does financial capital play in economic growth?

• It is used to purchase goods and services

• It is used to invest in businesses and infrastructure

• It is used to pay taxes

• It is used to regulate markets

Which of the following is NOT a source of financial capital?

• Bank loans

• Equity financing

• Natural resources

• Venture capital

What is the primary purpose of financial capital in a business?

• To pay employee salaries

• To invest in growth and expansion

• To purchase raw materials

• To comply with regulations

How can financial capital be increased in a company?

• By reducing employee benefits

• By issuing more shares

• By cutting down on production

• By increasing taxes

What is the relationship between financial capital and risk?

• Higher financial capital always means lower risk

• Higher financial capital can lead to higher risk if not managed properly

• Financial capital and risk are unrelated

• Financial capital eliminates all risks

Which financial statement is most associated with financial capital?

• Income statement

• Balance sheet

• Cash flow statement

• Statement of retained earnings