Final answer:
Assets include financial, physical, and intangible properties owned by an organization. While money serves as financial capital to acquire various assets, it does not fulfill the role of capital, which is used directly in the production of goods and services. Capital includes tangible goods like machinery and intangible assets like software.
Step-by-step explanation:
The properties an organization owns, such as financial assets, physical, and sometimes intangible assets, play a crucial role in its operations and financial health. Assets are items of value that a firm or individual owns, which can help support and enable the production of goods and services. However, it's important to understand that not all assets can be categorized as capital. Capital principally refers to man-made resources used in production, excluding money itself, which is regarded as financial capital. Money does not meet the criteria necessary to be considered capital, as it cannot be used directly in production processes. Firms often raise the financial capital they need for various projects like purchasing machinery or investing in research and development that are expected to generate future profits. This financial capital includes money and other 'paper' assets like stocks and bonds which are essential for business operations.
Capital can take many forms; from physical objects like tools and machinery to intellectual property such as software programs. Tangible assets such as housing not only serve as a financial investment offering returns in the form of capital gains, but can also provide nonfinancial returns such as personal use and utility.