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Capital

Capital (Definition)

Capital refers to financial resources available for use in the production of further assets.

Key aspects of capital include:

  1. Can be in the form of money, assets, or other resources
  2. Essential for business operations and growth
  3. Can be obtained through various means such as investments, loans, or retained earnings
  4. Often classified as working capital, debt capital, or equity capital
  5. Plays a crucial role in determining a companys financial health and capacity for growth
  6. Can be used to purchase assets, fund operations, or invest in new opportunities
  7. Proper management of capital is essential for long-term business success

Effective use and management of capital are crucial for a companys financial stability and growth potential.