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7 Examples of Capital

 , July 03, 2020 updated on May 23, 2023
Capital is an asset that can be reasonably expected to produce future value. In other words, it is a productive entity that is used by societies, firms and individuals to create economic value. The following are basic types of capital with examples of each.

Human Capital

Human capital are the talents and health of people that allows them to produce future value. Generally speaking, people don't like to be referred to as capital. However, this is an important concept of economics that encourages investment in quality of life such as education and healthcare.
Cultural Capital
Health
Knowledge
Talent
Cultural capital
is the ability to influence within a culture. For example, the ability to speak a language or to follow the norms of a culture.

Relational Capital

Relational capital is the value of relationships and social structures. For example, a firm with a million loyal customers has more productive potential than a firm with zero loyal customers. Likewise, social structures and systems such as society, culture and community all increase the economic prospects of people.
Community
Culture
Investor Relationships
Loyal Customers
Organizations
Partnerships
Society
Talented Employees

Natural Capital

Natural capital is any natural resource that has value. This is often destroyed due to a situation known as tragedy of the commons whereby firms and individuals don't pay for their damage to these resources.
Air
Ecosystems
Forests
Geological Features (e.g. rocks)
Land
Minerals
Organisms
Water

Tangible Capital

Physical things build by humans that have productive potential.
Buildings
Computers
Equipment
Infrastructure
Machines
Vehicles

Intangible Capital

Non-physical things that have productive potential. This includes relational capital listed separately above.
Brands
Data
Knowledge
Patents
Software
Trademarks

Current Assets

The assets of a business that can be quickly converted to cash or that are intended to be sold or used within a business cycle.
Accounts Receivable
Cash
Inventory
Marketable Securities
Prepaid Expenses
Supplies

Financial Capital

Financial capital is cash, cash equivalents and assets with cash value. For a business, financial capital is often classified according to its source. Equity capital is cash that was raised by the investors who own the business. Debt capital are loans from creditors that are used as capital by the business.
Current Assets
Debt Capital
Equity Capital
Working Capital
Overview: Capital Examples
Type
Definition
An asset that can be reasonably expected to produce future value.
Related Concepts
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