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What is the correct difference between capital and income?

Answer and explanation

Correct answer: Capital is invested in business and income is received from business

Capital refers to funds or other resources committed to starting or operating a business, such as money invested in equipment or working operations. Income is money earned from business activities, commonly through sales or services, before relevant expenses are considered. Thus option A gives the intended distinction; the other options confuse financial terms with objects or opinions.

Related tags

CapitalIncomeFinanceConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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