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September 12, 2023

Which of the Following is an Example of a Capital Resource?

In a bakery, the cake pans, mixing machines and oven are all examples of capital resources because they are man-made and used over again. These are the tools of the trade for a baker and are essential for producing a finished product.

A hairdressing salon also has many tools that can be classified as capital resources. The scissors, hair straightener, blow-dryer and spray bottle are all tools that help to produce a final product. They are all man-made and help to create a service for customers. However, the hairdressing brushes and the shampoo are not examples of a capital resource because they are used only once. The hairdressing salon would have to invest in new brushes and shampoos again to continue providing a service for their customers.

If you are considering buying a car for your business then you would have to consider it as an example of a capital resource. This is because the car will be able to generate profits for the company over the long-term and provide value to the customer. It will also help to create employment and will contribute to the economy.

A company will have to invest in various types of capital resources over the course of its lifetime in order to grow and compete with other businesses in its sector. Capital resources are man-made elements that a company uses in the production of goods or services and can be found in both manufacturing and service industries. These are one of the main factors of production along with natural resources and human capital.