I’ve googled the definition of capital and it seems to have different meanings depending on the situation or context (business, economics, finance). The main thing that confuses me is whether it refers to money/funds or assets, or both… It would be great if someone could share a few definitions here, and describe how they are relevant to each situation, and how they relate to each other. Sorry for the noob question but really want to see if anyone could clarify this!
In: Economics
It refers to all assets, be those cash, property, equipment, buildings, etc. Basically, anything of value on the business’s balance sheet. We use it as a short hand for cash – e.g. “I need capital to start this business” – but that is just shorthand; capital doesn’t have to mean _just_ cash.
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