Financial Capital is the money or wealth needed to produce goods and services. In the most basic terms, it is money. Capital can also refer to money invested in a business to purchase assets.
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Understanding Accounting for Capital Assets
The primary objective of a business entity is to make profit and increase the wealth of its owners. The wealth grows many fold when the business starts to build capital assets. To find the true value behind the capital assets across time, understanding accounting for capital assets is important for any entrepreneur.
Bootstrapping Vs. Equity Funding: Which Financing Will Help You Start a Business?
In any business, you often have to spend money to make money. By bootstrapping one can spend his own money or sell a part of his equity through equity funding to raise capital and start a business.