What does capital mean in business?
Answer and explanation
Correct answer: Money needed to start or run a business
In this basic business-finance context, capital means money or financial resources invested or made available to start operations, buy assets and stock, pay expenses, and continue the business. It may come from the owner or external sources. A customer’s name, lack of time, or an unused object does not by itself represent business capital. Hence, option A is correct.
Frequently asked questions
What is the correct answer to this question?
Money needed to start or run a business
Why is this the correct answer?
In this basic business-finance context, capital means money or financial resources invested or made available to start operations, buy assets and stock, pay expenses, and continue the business. It may come from the owner or external sources. A customer’s name, lack of time, or an unused object does not by itself represent business capital. Hence, option A is correct.
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.
