What Is The Meaning Of Capital?


Simple Definition:

Capital refers to any form of wealth or assets [things of value, like money or property] that can be used to generate income or make investments. It can include money, property, machinery, equipment, or any other resources that can be utilized to produce goods or provide services. Capital is typically used to finance business operations [running a company] and expand economic activities [increase the amount of production, sales, etc.].

For example, a company may use its capital to purchase new equipment, hire more employees, or invest in research and development. Similarly, an individual may use their capital to start a new business or buy stocks and bonds.

Very Simple Definition:

Capital is money or resources that are used to make more money or to invest in things like businesses and property.

For example, when people save money to start a business or buy a house, they are using their capital.

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