Capital

Capital refers to financial Assets or resources that can be utilized for the production of goods and services. It encompasses funds used to purchase equipment, invest in Infrastructure, or support operations that generate income. Capital can also refer to physical Assets such as machinery or property, as well as Human Capital, which includes the skills and knowledge of the workforce.

Examples:

• Financial Capital: Cash reserves held by a business to invest in new projects.
• Physical Capital: Machinery used in a factory to produce products.
• Human Capital: The expertise of employees that contributes to the company’s success.

Cases:

• Startup Business: A new tech startup might seek Venture Capital to develop software.
• Manufacturing: A factory upgrades its machinery, enhancing production capacity with new Capital Investment.
• Education Sector: A university invests in research facilities, recognizing the value of Human Capital in advancing knowledge.