BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer
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Seller
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Capital
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Demand
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Detailed explanation-1: -According to Oxford Dictionaries, capital is: “Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing, ” or “A valuable resource of a particular kind.”
Detailed explanation-2: -Wealth measures the value of all the assets of worth owned by a person, community, company, or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources.
Detailed explanation-3: -Answer and Explanation: C) Capital is any form of wealth used to produce more wealth.
Detailed explanation-4: -Wealth can be categorized into three principal categories: personal property, including homes or automobiles; monetary savings, such as the accumulation of past income; and the capital wealth of income producing assets, including real estate, stocks, bonds, and businesses.
Detailed explanation-5: -When budgeting, businesses of all kinds typically focus on three types of capital: working capital, equity capital, and debt capital.