Question

Differentiate the following with examples:

Real capital and debt capital

Distinguish between real capital and debt capital with the help of suitable examples.

Answer 1

	Real Capital	Debt Capital
1.	Real capital refers to the physical stock of goods which are used as inputs in the production process.	Debt capital refers to invested funds and yield income, to their investors.
2.	E.g. Mchines, raw materials building, etc.	E.g. Shares, debentures and government promissory notes.