Capital

Definition

Capital in the context of business refers to the financial assets needed for a company to produce the goods and services it offers. It can include funds held in deposit accounts, machinery, buildings, and technology.

Related terms

Investment: The action of using resources such as capital with the expectation of achieving a profit or material result.

Asset: An item of value owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Equity: The value of an owner’s share in an asset or business, after subtracting liabilities from assets