Capital is all the resources made and used by people to produce and distribute goods and services. Capital comprises one of the four major factors of production, the others being land, labor and entrepreneurship. For example, tools, machines, buildings and factories are all forms of capital. Capital differs based on the worker and the type of work being done. For instance, a doctor may do a medical test to provide some medical services. However, a teacher may use a textbook to produce some education services. In summary, capital is all of a producer's physical resources HUMAN CAPITAL There is also another version in this factor which is human capital. This includes the knowledge and skills gained through experience. College degrees or good job training are all examples of human capital. For example, if a worker has a lot of college degrees, skills and experience, it means that he is very productive. FINANCIAL CAPITAL Financial capital is the money, credit, and other forms of funding that build wealth. Individuals use financial capital to invest, by making a down payment .on a home or creating a portfolio for retirement PHYSICAL CAPITAL This factor includes manmade goods that enable the production process such as machinery, buildings, computers and other goods that helped turn the raw materials into finished products or services. It is all of the equipment and all of the other physical things that a business owner or company invests money into when they want to produce something CAPITAL RESOURCES Capital resources are goods produced and used to make other goods and services. Basic categories of capital resources include tools, equipment, buildings, and machinery. However, any good used by a business to produce other goods and services is classified as a capital resource, including mundane items such as shipping boxes, invoice forms, pens, or file cabinets. Goods can often be classified as either consumer goods or capital goods. For example, when a person buys a truck for personal use, the truck is a consumer good. When a business buys a truck to transport products, the truck is considered a capital good. . Capital is an important factor of production because it's what allows labor and land to be purchased. Steady streams of capital are often required in order to keep a business going.