Capital
Capital refers to the financial assets or resources that a business or individual uses to fund operations, investments, and growth. It can take the form of cash, equipment, buildings, or other assets that can be used to generate wealth. In business, capital is essential for starting, expanding, and maintaining operations. There are several types of capital, including equity capital (funds raised by issuing shares), debt capital (borrowed funds), and working capital (used to cover day-to-day expenses).
Example
A startup may raise capital by securing venture capital investment, using the funds to develop its product, hire employees, and expand its market presence.
Key points
• Capital includes financial assets or resources used to fund business operations and investments.
• Can take various forms, such as cash, equipment, or buildings.
• Essential for business growth and operations, including equity and debt capital.