Question

John wants to buy a cow and sell milk. Which of John's needs are considered capital resources?
- Barn, five acres, milking machine
- Fencing, veterinarian, milk bottles
- Investment money, milking stool, cowbell
- Farmhands, grass, permitting and licensing

Answer 1

Investment money, milking stool, cowbell

Answer 2

Answer:

Barn, five acres, milking machine

Explanation:

Capital resources are all man-made resources used in the production of goods and services. Capital resources can also be seen as wealth set aside for the creation of more wealth. example of capital resources are machines, building, barns, equipment, motor vehicles used in production e.t.c.

Capital resources are resources used in the production process. it must be noted that assets that is acquired by a businessman for personal or private use is not to be considered capital resources, only the ones used in production.

Therefore Barn, five acres, milking machine used for milk business are all capital resources.