As a factor of production, capital is created by adding human labor to land. Thus, option B is correct.
In the corporate sector, capitalization refers to the total sum of financial resources required to create goods or services. These funds could be used to launch operations, pay ongoing expenses, or grow and expand the business.
Capital allows a business to grow and provide the tools it needs to boost sales. If a business expands physically, adopts new technology, or relocates, it can need more money to buy new facilities or recruit new personnel.
If the company or a firm has added any sort of land or building to generate more capital, then that person has to maintain and earn more money by combining the labor and the land. Therefore, option B is the correct option.
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