Finance Raised to Operate a Business is

Finance Raised To Operate A Business is : (a) Labour (b) Enterprise (c) Land (d) Capital?

Answer: (d) Capital

Note: The Finance raised to operate a business is the capital. Hence from all of the options, the correct answer is Capital. So, capital is a comprehensive term for a business or an individual as it is a financial asset of the company.

All the businesses may require capital for the setup of the company. It is essential to increase finance for a lot of various reasons, such as funding a change in business strategy, improving cash flow, funding growth via joint venture and acquisition, and refinancing current term debt, or operations.

Hence, capital is the main source of raising the finance for running a business. 

What is Capital?

Capital is a wide term. It is a fixed asset of a company, business, or individual. Before starting a business, the first requirement for each company is capital. Any businessman can arrange the capital by raising the finances. Its examples are by reinvesting profits, from early-stage investors, selling stock, and by borrowing through banks or bonds. Apart from this, the capital is a benefit or confers value to its owners, like intellectual property like patents, the financial assets of a business or an individual or factory, and its machinery.Capital is one of the best sources that are more durable than money. It is essentially used to build wealth, generate revenues, and produce something.

Following are the examples of the capital:

• Equipment

• Machinery

• Patents

• Goodwill

• Trademarks

• brand names 

• Buildings and land

• Debtors 

• Other Fixed assets