Understanding Capital in Business
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Questions and Answers

Which term refers to funds used by a business for daily operations and future growth?

  • Revenue
  • Expenses
  • Cash
  • Capital (correct)
  • From which sources can a business's capital originate?

  • Sales revenue alone
  • Only from internal profits
  • Loans exclusively
  • Shares, debentures, or bonds (correct)
  • What is NOT considered a source of capital for a business?

  • Shares
  • Goodwill (correct)
  • Bonds
  • Debentures
  • Which of the following is essential for a business's operational sustainability?

    <p>Capital</p> Signup and view all the answers

    What role does capital play in a business?

    <p>It provides funds for operations and growth</p> Signup and view all the answers

    Study Notes

    Capital

    • Capital is essential for businesses to function and grow.
    • Businesses obtain capital from owners or external sources.
    • External sources of capital include shares, debentures, or bonds.

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    Description

    This quiz explores the concept of capital and its critical role in business operations and growth. It highlights how businesses acquire capital from owners and various external sources such as shares, debentures, and bonds.

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