What does capital mean in business?
Answer and explanation
Correct answer: Money used to start and run a business
In a basic business context, capital refers to funds invested or made available to start and operate the enterprise. It may finance assets, inventory, wages, rent, technology, and working expenses. Capital can come from the owner or external sources; a shop name, customer opinion, or holiday is not capital.
Frequently asked questions
What is the correct answer to this question?
Money used to start and run a business
Why is this the correct answer?
In a basic business context, capital refers to funds invested or made available to start and operate the enterprise. It may finance assets, inventory, wages, rent, technology, and working expenses. Capital can come from the owner or external sources; a shop name, customer opinion, or holiday is not 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.
