An owner to start a business is called:Question 15Answera.Loanb.Capitalc.Investmentd.Drawings
Question
An owner to start a business is called:
- Question 15
- a. Loan
- b. Capital
- c. Investment
- d. Drawings
Solution
The owner of a business is typically referred to as the "capital" because they provide the financial resources necessary to start and run the operation. In this context, capital refers not only to the money the owner invests but also to the total value of assets available to the business.
Here's a brief analysis of each option:
- Loan: This refers to borrowed money that must be repaid, typically with interest. It is not directly related to ownership.
- Capital: This is the financial assets or resources that the owner invests in the business to fund its operations and growth. This term encompasses money, equipment, and other resources.
- Investment: While this term refers to putting money into the business with the expectation of a return, it does not specifically denote the owner of the business.
- Drawings: This indicates money taken out from the business by the owner for personal use and does not represent a starting point for ownership.
Final Answer
b. Capital
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