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. |
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Capital can also represent the accumulated wealth of a business, represented by its assets less liabilities. |
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Capital can also mean stock or ownership in a company. |
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Capital Used in Other Business Terms |
Other associated terms which relate to the term "capital" are: |
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Capital gains are increases in the value of stock and other assets when they are sold. |
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Capital assets, which sounds like a redundancy |
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The capital structure of a business is the mix of debt and equity in the business balance sheet. |
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Capital improvements are improvements made to capital assets. |
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Venture capital is private funding (capital investment) provided by individuals or other businesses to new business ventures. |
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A capital lease is a lease of business equipment which represents ownership and is reflected on the company's balance sheet as an asset. |
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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. |
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1. Cash or goods used to generate income either by investing in a business or a different income property. |
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2. The net worth of a business; that is, the amount by which its assets exceed its liabilities. |
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3. The money, property, and other valuables which collectively represent the wealth of an individual or business. |
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