1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.




The term Capital has several meanings and it is used in many business contexts. In general, capital is accumulated assets or ownership. More specifically,

  • Capital is the amount of cash and other assets owned by a business. These business assets include accounts receivable, equipment, and land/buildings of the business.
  • Capital can also represent the accumulated wealth of a business, represented by its assets less liabilities.
  • Capital can also mean stock or ownership in a company.

Capital Used in Other Business Terms
Other associated terms which relate to the term "capital" are:

  • Capital gains are increases in the value of stock and other assets when they are sold.

  • Capital assets, which sounds like a redundancy

  • The capital structure of a business is the mix of debt and equity in the business balance sheet.

  • Capital improvements are improvements made to capital assets.

  • Venture capital is private funding (capital investment) provided by individuals or other businesses to new business ventures.

  • A capital lease is a lease of business equipment which represents ownership and is reflected on the company's balance sheet as an asset.

  • A capital contribution is a contribution of capital, in the form of money or property, to a business by an owner, partner, or shareholder. The contribution increases the owner's equity interest in the business.
A common cause of business failure is not having enough capital.

©2014 About.com. All rights reserved.