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Questions
Differentiate the following with examples:
Real capital and debt capital
Distinguish between real capital and debt capital with the help of suitable examples.
Solution
| 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. |
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