Capital can sometimes be a difficult word to understand in the business world thanks to the fact that it is used in a couple of similar—but different—ways.
Perhaps the most common definition of capital refers to the total number of assets that a business has at its disposal that will be able to help generate income for the organization. When referring to capital, a person may be mentioning physical assets—such as crops or appliances; however, they also may be speaking about financial assets, like those found in investments.
Others may speak about capital in ways in which they are referring to the money that a company has invested into the process of buying assets. In this instance, an organization might raise capital if they receive donations or other contributions.
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