> In the business world, what does capital mean?

In the business world, what does capital mean?

Posted at: 2014-12-08 
money the business has on hand to purchase inventory, be it finished commodities or raw materials for manufacturing.

Capital means the funds used to run the business, including the purchase of Inventory, the amount carried in Accounts Receivable, Fixed Assets, etc.

Working Capital means the excess of Current Assets, including Cash, over Current Liabilities.

Contributed Capital means the amount invested by shareholders. But Capital can also be obtained by borrowing from banks or investors. So Debt + Stockholders' Equity = Total Invested Capital

cash

money.