Question

Capital refers to

A. Expenditure on monthly / annually identified in the production or
operation budget.
Source of finance or fund needed to cover the material
procurement only.
Source of finance or fund needed or required to operate a
business or project.
Expenditure that needs to be added to total cost of other
components based on percentage.​

Answer 1

ANSWER: Capital is the money which is required to commence or operate a business. So, the answer is (C).

Explanation: Business requires huge amount for the start up and for other major investments. The amount in this case is known as capital. Without capital no business can start and conduct its day to day activities. Machinery, plant, land, resources, etc., are all covered under capital.