What does capital mean in self-employment?

Correct answer: Money or resources to start a business

The direct answer is D, money or resources to start a business. In self-employment, capital means the money, equipment, materials, premises, or other resources needed to begin and operate one’s own work. Step by step: self-employment means working for oneself; a business needs resources before it can produce or sell anything; those starting and operating resources are called capital. Option A, only rest, does not create or run a business. Option B, only leisure, means free time and is not a business resource. Option C, conflict without reason, has no productive or financial role. Option D is correct because money may buy a sewing machine, stock, tools, transport, or raw materials, while non-money resources such as equipment may also be capital. Capital is not the same as profit: capital is put into the activity, while profit is what may remain after income and expenses are considered. Memory cue: capital is the “starting fuel” of an enterprise.