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You can encourage people to invest capital into your business. People should invest capital in a business when they believe the business will either be profitable or fill a social need which is important to the investor.
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∙ 9y ago
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What are capital in business?
The amount of money invest in business is called capital.
What is money known as that is used to invest in business?
Money invested in business is called capital
Why is interest allowed on capital?
to encourage the partner invest more capital in the business
Why would business owners want to invest in capital goods?
because
When the owner invest cash in a business the owners capital account is?
debit
What do you understand of share capital?
Share capital is that amount which invest by shareholders of company in business and which a business acquires from general public to fulfil its working capital requirement as well as to enhance the business as well.
What is capital profit?
An operating business may be able to invest its money which makes it as the profits back in the business.
Is capital stock considered a liabilities on an adjusted trial balance?
no.capital is not a liabilities .capital is a amount which is invest in a business
Does profit add to capital?
Profit is earned by the business in fiscal year and it is part of capital of the owner that's why it increases the capital of business because owners invest money to earn profit so it is shown in capital portion of balance sheet as an addition to capital.
Define Venture Capital?
where people invest and help the business to grow, for example 'dragons den' the dragons invest money for equity and then they help the business grow to thriving success !
Your capital is your major asset and so should be shownas an asset on the balance sheet?
It is the basic concept of accounting that business is a separate entity from it's owner. So when owner invest capital in business its now the liability of the business to return back that amount of capital to owner of business at the time of liquidation of the company that's why it is not asset but liability of the company and shown under liability side.
Why do you believe Farmers should invest its capital into your training?
Why should farmers insurance ivest into my training
