what is the capital in a business 
the capital of a business is the money it has available to fund its day to day operations and to bankroll its expansion for the future the proceeds of its business are one source of capital capital assets are generally a broader term the capital assets of an individual or a business may include real estate cars investments long or short term and other valuable possessions a business may also have capital assets including expensive machinery inventory warehouse space office equipment and patents held by the company many capital assets are illiquid that is they can t be readily turned into cash to meet immediate needs a company that totaled up its capital value would include every item owned by the business as well as all of its financial assets minus its liabilities however an accountant handling the day to day budget of the company would consider only its cash on hand as its capital 