What term means the amount of money the business owner puts into the business?

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Multiple Choice

What term means the amount of money the business owner puts into the business?

Explanation:
Capital means the money the business owner puts into the business; it’s the owner’s investment and becomes part of the business’s equity. It’s not profit (which is earnings after expenses), not services (the things the business provides), and not a consumer (the buyer). For example, if you start a small business with $40,000 of your own funds, that money is capital. As the business earns profits, those earnings increase the owner’s equity, but the initial investment remains capital.

Capital means the money the business owner puts into the business; it’s the owner’s investment and becomes part of the business’s equity. It’s not profit (which is earnings after expenses), not services (the things the business provides), and not a consumer (the buyer). For example, if you start a small business with $40,000 of your own funds, that money is capital. As the business earns profits, those earnings increase the owner’s equity, but the initial investment remains capital.

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