Capital
Capital is the sum of the material and intellectual assets that the company invests for a longer period of time in order to start and maintain its operation.
Capital is a very broad term: we typically mean investable funds, but in reality it is much more than that. That's them material and intellectual by capital we mean goods that the company invests or contracts for a longer period of time in order to start and maintain its operations.
In essence, therefore, capital is everything that we use for the sake of our company's activities. If you like, we ourselves are a part of it, as we dedicate our minds, talents and working hours to it. This is the human capital of a business, which is perhaps the most important of all. The capital also includes all the asset we work with, even if they are owned by the company and also when they are rented by the company. And, of course, capital is also the money that we invest or, let's say, do not take out of the company in order to continue to operate and grow our business.
Within the capital of a company, the equity. It is an important economic, accounting concept. equity is the part of the capital that the owners made available to the business, or that the owners from taxed profit they left it at the business. The company can freely use the capital amount definitively transferred by the founders and owners in the course of its business activities.
Equity plays a prominent role in the presentation of the level of indebtedness (equity ratio), as well as in assessing the company's ability to generate profit (ROE). It is a good indicator of their development indicators is watched with a jealous eye startup ecosystem also investors operating at different levels who are one capital raise can enter a promising, developing company with new liabilities.
Last edited: August 26, 2022