What does capital mean in an enterprise?
Answer and explanation
Correct answer: Money or resources used to start or run a business
Capital refers to funds and productive resources committed to starting, operating, or expanding an enterprise. It may include owner’s money, borrowed finance, machinery, equipment, and sometimes other assets used in operations. A complaint, shop colour, or holiday is not a resource invested for business activity. Therefore, option A gives the appropriate basic meaning of capital.
Frequently asked questions
What is the correct answer to this question?
Money or resources used to start or run a business
Why is this the correct answer?
Capital refers to funds and productive resources committed to starting, operating, or expanding an enterprise. It may include owner’s money, borrowed finance, machinery, equipment, and sometimes other assets used in operations. A complaint, shop colour, or holiday is not a resource invested for business activity. Therefore, option A gives the appropriate basic meaning of capital.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
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