What is the term for the money needed to start and run a business?

What is the term for the money needed to start and run a business?

• A. Revenue
• B. Capital
• C. Assets
• D. Liabilities

Answer: (B)

Capital is the money a business needs to start and keep operating. It covers start-up costs like buying equipment, paying for premises, and funds needed to run day-to-day activities until the business can cover expenses from its sales. This differs from revenue, which is the income earned from selling goods or services. Assets are items the business owns with value, such as cash or equipment, and liabilities are debts the business owes. So the money required to start and run a business is called capital.

Capital is the money a business needs to start and keep operating. It covers start-up costs like buying equipment, paying for premises, and funds needed to run day-to-day activities until the business can cover expenses from its sales. This differs from revenue, which is the income earned from selling goods or services. Assets are items the business owns with value, such as cash or equipment, and liabilities are debts the business owes. So the money required to start and run a business is called capital.