Distinguish is a synonym of Tell. Tell is related to Report. Report is related to Short. 
Capital is related to House. you are likely to find Carpet in/at/on House. you are likely to find Concrete in/at/on Carpet. 
Distinguish <--Synonym--> Tell <--RelatedTo--> Report <--RelatedTo--> Short 
Capital <--RelatedTo--> House <--AtLocation-- Carpet <--AtLocation-- Concrete 