Final answer:
Tangible assets such as equipment and machinery are classified as physical capital in Business. They are essential for businesses to operate and grow.
Step-by-step explanation:
Tangible assets such as equipment and machinery are classified as physical capital within the field of Business. Physical capital refers to the amount and kind of machinery and equipment available to help a person produce goods or services.
These tangible assets are used to enhance production and generate income. For example, a manufacturing company may use machinery to produce goods for sale, while a construction company may use equipment to build houses.
Unlike financial assets like stocks or bonds, tangible assets have a physical form and can be seen and touched. They are essential for businesses to operate and grow.