What is Capital?
A definition of Capital
“Capital refers to financial assets or resources that businesses use to fund their operations and growth. It can include cash, machinery, buildings, and other investments required to sustain a business.”

Business Glossary > What is Capital?
Examples of Capital in a Sentence:
The company raised capital to expand its manufacturing facility.
Strong capital resources are essential for business success.
Investors contribute capital to startups expecting future returns.
Why is Capital Important in Business?
Understanding capital is crucial for businesses as it determines their financial strength and ability to invest in new opportunities. Sufficient capital allows companies to innovate, expand, and remain competitive in a dynamic market.
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Associated Terms
Here are some associated business terms and synonyms for “Capital”:
- Financial Resources
- Equity
- Funds
- Assets
- Investment
Apple Capital
Apple Inc. utilizes its vast capital resources effectively to invest in R&D and new technology markets. Its capital strength has enabled it to maintain market leadership and continue revolutionizing consumer technology.
Final Notes on Capital
When businesses assess their capital needs, they should consider:
- The availability and cost of capital
- The return on investment
- The flexibility in using different capital sources
Effective capital management is key to ensuring long-term business sustainability.
This has been a definition of Capital meaning.
Explore more from our Business Term Glossary for Entrepreneurs