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What is the primary difference between capital and capital formation?
  • a)
    Capital refers to physical assets, while capital formation involves the process of creating financial assets.
  • b)
    Capital includes both physical and financial assets, while capital formation focuses on increasing the stock of physical assets.
  • c)
    Capital refers to money, while capital formation refers to the process of generating income.
  • d)
    Capital and capital formation are synonymous terms.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What is the primary difference between capital and capital formation?a...
Capital refers to the total stock of physical and financial assets in an economy. Capital formation, on the other hand, is the process of increasing the stock of physical assets, such as machinery, equipment, and infrastructure, with the aim of boosting production and economic development. Therefore, the primary difference is that capital encompasses both physical and financial assets, while capital formation specifically targets the growth of physical assets.
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What is the primary difference between capital and capital formation?a)Capital refers to physical assets, while capital formation involves the process of creating financial assets.b)Capital includes both physical and financial assets, while capital formation focuses on increasing the stock of physical assets.c)Capital refers to money, while capital formation refers to the process of generating income.d)Capital and capital formation are synonymous terms.Correct answer is option 'B'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary difference between capital and capital formation?a)Capital refers to physical assets, while capital formation involves the process of creating financial assets.b)Capital includes both physical and financial assets, while capital formation focuses on increasing the stock of physical assets.c)Capital refers to money, while capital formation refers to the process of generating income.d)Capital and capital formation are synonymous terms.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary difference between capital and capital formation?a)Capital refers to physical assets, while capital formation involves the process of creating financial assets.b)Capital includes both physical and financial assets, while capital formation focuses on increasing the stock of physical assets.c)Capital refers to money, while capital formation refers to the process of generating income.d)Capital and capital formation are synonymous terms.Correct answer is option 'B'. Can you explain this answer?.
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