Capital Definition

In business, capital refers to the funds available to a company to grow, expand, and create tangible assets. It is also used as a term for the value of a company or enterprise. The funds that make up capital can come from many sources, including shareholders, lenders, and investors.

Capital can also be used as a synonym for assets. In this context, it represents everything that a company owns and can use to generate revenue. This includes cash, investments, property, equipment, and inventory.

When starting a new business venture, it is important to have a clear understanding of what capital is and where it will come from. This will ensure that you have the resources you need to get your business off the ground and make it successful.