Definition:
The term Capital has several meanings:
- Capital is the amount of cash and other assets owned by a 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.
In general, capital is accumulated assets or ownership. Other associated terms which relate to the term "capital" are:
- Capital gains, which 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, which are improvements made to capital assets.
Examples:
A common cause of business failure is not having enough capital.
