Physical resources are the material assets that a business owns, including buildings, materials, manufacturing equipment and office furniture. Physical resources can be sold if a business is facing a cash flow issue.
A company's physical resources, particularly raw materials, are subject to depletion, shrinkage and obsolescence. Physical capital resources, such as expensive industrial equipment, is subject to depreciation.
In addition to physical resources or assets, a business also has intangible resources, human resources and financial resources. Intangible resources include a company's goodwill, reputation, brands and intellectual property. Human resources include the knowledge and skills of a company's workforce, and financial resources include cash assets and credit lines.