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Capital

Discuss what can go right along the way with capital, what can go wrong, and what has to happen to achieve business objectives and to increse or preserve options. Please use peer-reviewed journal articles and book to support your 150-200 word response. Be sure to use APA 5th edition guidelines for in-text citations and the reference list.

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Capital

Capital, one of the four factors of production refers to the wealth in the form of property or money owned by a person or business. In a start up business, capital is the amount of money required to initiate and operate a business before borrowing from others. It is a financial asset used to generate money. If there is sufficient capital with the business then the amount of borrowing is low and hence there is a low level of liabilities in the business. Sufficient capital reduces the debt equity ratio of the company and there by results in larger safety margins for creditors. This also ensures satisfactory long term financial position of the concern (Agarwal, L.N., & Chaturvedi, C.L., 2002).
On the other hand if the large portion of money ...

Solution Summary

The expert examines capital business objectives. What has to happen to achieve business objectives and to increase or preserve options is determined.

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