Problem 16

Introduction

Everything that provides value or advantage to its owners, such as a firm and its equipment, copyrighted content such as trademarks, or a company's or person's financial assets, is referred to as capital. While money is a form of capital, it is more typically associated with wealth that is used for economic or investment objectives. Capital is essential for a company's day-to-day operations as well as its long-term growth prospects. The cash for capital investment can originate from the company's operations or from borrowed monies.