There are a great many classifications of capital, for example, it is divided into physical and human, constant and variable, statutory, incremental and reserve. But in market conditions, the types of capital have only two fundamental forms that determine the development of the main sectors of the economy. This is real and financial capital.
Real capital is formed directly by enterprises. It represents the totality of all assets and is necessary in order to ensure the production activities and development of the company in order to create profit.
Types of capital of the enterprise can also be fixed and circulating. Fixed capital includes tangible and intangible assets. It includes all fixed assets in the form of machinery and equipment, buildings and structures, and other types that relate to the cost of manufactured products in parts, they are called depreciation. Intangible assets are the intellectual value of an enterprise, for example, acquired technology or software, an invention supported by a patent, do not have a real tangible form, but are of particular importance for the production and creation of products, therefore they are also assets and are related to the value of goods in the form of parts.
The working capital of the enterprise is the raw material base, materials and other types of material values, which are attributed to the value of goods in full, which is necessary for their production.
The capital of an enterprise may be expressed in cash. A certain part of the capital reflects the value of fixed and current assets, while the other is in the form of retained earnings and funds in the account. It is at the expense of profit that other types of enterprise capital can be created, such as reserve or insurance.
In order for the enterprises to systematically develop, investment projects are created that require certain investments. In this case, capital investment matters, and its types are divided into two categories that differ from each other by sources of financing: own and borrowed. Investments may include such types of capital as real and financial. In most cases, investment is carried out using financial capital, but in some cases it is more efficient to use real, for example, in the form of a contract with a potential investor for the supply of necessary equipment.
Enterprises prefer to be financially independent, but some large investment projects for their successful and timely implementation require significant additional capital. An indicator of the ratio of own and borrowed capital is financial leverage, it reflects the degree of financial dependence of the company.
All types of capital reflect the real value of the enterprise and its attractiveness to the investor.