Capital:

Capital is a man-made resource which is used in production of goods and services.  It is wealth which is set aside for the creation of further wealth.  It includes machines, factory buildings, vehicles, etc.  it may be classified into fixed capital and circulating capital.        Fixed  capital  includes  any  man-made  item  (such  as  machines,  factory buildings, vehicles, etc.) used in the production process but does not get exhausted in the process.   The circulating capital, unlike the fixed capital, is used up in the production process and includes the stock of raw materials, partly finished goods (known commonly as work-in-progress and stock of finished goods waiting to be sold.

The reward or the price of capital is interest. Capital is accumulated over a period of time and is subject to depreciation (wear and tear).