What is Capital? | Definition (2024)

FAQs

What is a simple definition of capital? ›

Capital is a broad term for anything that gives its owner value or advantage, like a factory and its equipment, intellectual property like patents, or a company's or person's financial assets. Even though money itself can be called capital, the word is usually used to describe money used to make things or invest.

Real Capital or Economic Capital comprises physical goods that assist in the production of other goods. In other words, real capital is the assets used to produce some goods. Farmland is a major example of real capital: the farmer uses this asset to produce commodities, which he then sells to make a profit.

capital in American English

1. the city or town that is the official seat of government in a country, state, etc.

Introduction. The capital means the assets and cash in a business. Capital may either be cash, machinery, receivable accounts, property, or houses. Capital may also reflect the capital gained in a business or the assets of the owner in a company.

Any financial asset that is being used may be capital. The contents of a bank account, the proceeds of a sale of stock shares, or the proceeds of a bond issue all are examples. The proceeds of a business's current operations go onto its balance sheet as capital.

Capital is a large sum of money which you use to start a business, or which you invest in order to make more money. [business] Companies are having difficulty in raising capital. A large amount of capital is invested in all these branches. 2.

Capital is the money used to build, run, or grow a business. It can also refer to the net worth (or book value) of a business. Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.

Capital letters, also called upper-case letters , are larger than, and often formed differently from, lower-case letters . Capital letters are used at the beginning of a sentence or a proper name and may be used to show respect. Some examples are: “ T he dog barked,” D aniel, the L ord, and Q ueen E lizabeth.

Capital is also referred to as capital assets, which fall under two types: long-term assets, assets held for more than a year before converting to cash; and short-term assets, assets held for less than a year before converting to cash, often central to the day-to-day workings of a business.

Capital is any asset used for a productive purpose. It can include tangible items, such as cash or machinery, or intangible items, such as intellectual property or human capital.

What makes something a capital? ›

A capital is a city where a region's government is located. This is where government buildings are and where government leaders work. A region can be defined as a nation, state, province, or other political unit. At the county level, capitals are usually called "county seats."

Capital. The first known use of the word capital is in early Middle English, in which it was used as an adjective meaning "of or relating to the head." It is derived from the Latin adjective capitalis, of the same meaning, which is based on the Latin name for "head," caput.

Capital refers to the total amount of money invested in a company by its owners, shareholders or investors. On the other hand, equity pertains to the ownership interest of an individual or group in a business entity. It represents the value of assets minus liabilities that is attributable to the owners or shareholders.

Capital in business refers to the sum of financial assets that are required to produce goods or services. These funds can be used to initiate operations, meet daily expenses, or grow and expand the business. Business capital has three broad categories: Seed capital.

Capital assets may be tangible or intangible, though most capital assets are related to buildings, land, or FFE. Capital assets are different than ordinary assets in that capital assets are more useful in the long-term whereas ordinary assets primary value is in the day-to-day operations of the company.

A capital is a city where a region's government is located. This is where government buildings are and where government leaders work. A region can be defined as a nation, state, province, or other political unit.

Capital goods are physical assets a company uses to produce goods and services for consumers. Capital goods include fixed assets, such as buildings, machinery, equipment, vehicles, and tools. Capital goods differ from consumer goods, which are the end product of production and manufacturing.

Simple. capital is an investment platform that provides early-stage funding for hyper-growth companies. The platform offers investors access to pre-screened and pre-vetted startups, and provides them with the opportunity to invest in companies with the potential to become the next big thing.