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What does capital mean in business?

Answer and explanation

Correct answer: Money invested to start or run a business

Capital is the money or other financial resources committed to starting and operating a business. It may be used to buy equipment, purchase materials, pay wages, maintain stock, or meet other business expenses. Thus, option A gives the intended meaning. Customer praise, an employee holiday, and a shop name are not financial resources used to conduct business.

Related tags

CapitalInvestmentBusiness-FinanceConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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