What does capital mean in entrepreneurship?
Answer and explanation
Correct answer: Money or resources used to start and run a business
Capital refers to the funds and useful resources committed to establishing and operating a business. It may support the purchase of equipment, materials, technology, premises, or working requirements. Customer opinions and advertising colours may assist other business activities, but they are not capital by themselves. Therefore, money or resources used for the venture is the correct meaning.
Frequently asked questions
What is the correct answer to this question?
Money or resources used to start and run a business
Why is this the correct answer?
Capital refers to the funds and useful resources committed to establishing and operating a business. It may support the purchase of equipment, materials, technology, premises, or working requirements. Customer opinions and advertising colours may assist other business activities, but they are not capital by themselves. Therefore, money or resources used for the venture is the correct meaning.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Owner’s Funds.
