answersLogoWhite

0


Best Answer

Capital Contributions can be made up of contributed cash, property (any contribution of property must include a description of the property), promissory note or services rendered. Capital contributions can also consist of other obligations to be contributed by Limited Partners(s) in the future, cash, property (any contribution of property must include a description of the property) and services to be performed. Typically, the General Partner's Capital Contribution may be a nominal amount, such as one percent (1%) of the total Capital Contribution. Also, the General Partner's Capital Contribution may consist of future services.

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the definition of a capital contribution to a start up company?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

Why do companies need capital?

Companies need capital in order to get their companies working. The company will sell shares to it's members or to the public (in the case of a public company) and when the shares are bought, the company shall have capital to start going again.


Characteristics of capital as factor of production?

capital is a money to start a business


Why was Pemco Mutual Insurance Company Started?

Because the founder, Robert J. Handy, needed to raise 400,000 dollars in capital required by the state to start a business at that time.


What is the economic definition of capital?

money that is used to fund the daily activities of a business


What are the advantages of venture capital?

The primary advantage of venture capital is that they allow entrepreneurs to build their company with OPM (other people's money). If you need financing to build your technology or product and don't have the money to do it yourself, the idea is that the ventue capitalists provides the capital to allow you to build. In exchange, the venture capitalist takes some ownership in your company. The venture capitalist then hopes that your company increases in value and ultimately has a liquidity event (e.g. IPO or sells to another company) so that they can get a return on their invested capital. In addition to capital, venture capitalist can be an invaluable source of information, resources and contacts to help you be successful. More times than not, venture capitalists have experience building companies themselves so they can really help you think strategically about how to grow and be successful.

Related questions

How do you account for the inventory of a start-up construction company?

Inventory at start-up is a capital contribution of the owners, actual costs, not market values.


How do you account for the inventory of a start up construction company?

Inventory at start-up is a capital contribution of the owners, actual costs, not market values.


What is the dictionary definition of bain capital?

Bain capital is an equity start up and leveraged buy-out fund company that helps provide capital to both public and private companies to help them grow.


How do you start your own rolling paper company?

You need capital and the basic materials of you want to start your own rolling paper company.


How share capital shown in balance sheet?

Capital is the owner contribution towards business at the start of business as well as during the business as well.


You need money to start your own company this known as?

seed capital


You need money to start your own company this is know as?

A Capital Investment.


How do I use capital in a sentence?

Madrid is the capital of Spain. The company needed to raise more capital in order to expand. A sentence should start with a capital letter.


How do you start a megamart having the capital only in six digits but want to collect the capital from public '?

Go public (sell stock in your company).


Why do companies need capital?

Companies need capital in order to get their companies working. The company will sell shares to it's members or to the public (in the case of a public company) and when the shares are bought, the company shall have capital to start going again.


You need money to start your own company this is known as?

A. debt financing. C. equity financing. B.seed capital. D. venture capital. B seed capital PG 202


Is 'mister' upper case or lower case when addressing a man?

It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.It would normally start with a capital M.