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.
Frequently asked questions
What is the correct answer to this question?
Money invested to start or run a business
Why is this the correct answer?
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.
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.
