What is the most correct meaning of capital?
Answer and explanation
Correct answer: Money or resources invested in business
Capital refers broadly to funds and other productive resources committed to a business for starting, operating, or expanding it. Money, equipment, tools, and some other business resources can serve as capital depending on the context. A customer’s name, unused paper, or shop colour is not capital merely because it is associated with the business. Thus, A gives the correct general meaning.
Frequently asked questions
What is the correct answer to this question?
Money or resources invested in business
Why is this the correct answer?
Capital refers broadly to funds and other productive resources committed to a business for starting, operating, or expanding it. Money, equipment, tools, and some other business resources can serve as capital depending on the context. A customer’s name, unused paper, or shop colour is not capital merely because it is associated with the business. Thus, A gives the correct general meaning.
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.
