capital

Definition:

1. A stock of money or other assets for use in a business enterprise, which will be increased by the profits of that enterprise (to the extent that they are not taken by the owners of the enterprise) and diminished by the losses of the enterprise. Money that is provided as a long-term loan to a business enterprise is sometimes described as ‘debt capital’ because, like capital, it is a long-term resource of the enterprise. 2. Another term for ‘owners’ equity’. See also the entries for ‘equity capital’ and ‘working capital’.



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