{"id":271729,"date":"2023-12-20T11:19:23","date_gmt":"2023-12-19T23:19:23","guid":{"rendered":"https:\/\/www.reckon.com\/nz\/?page_id=271729"},"modified":"2025-01-30T18:12:00","modified_gmt":"2025-01-30T06:12:00","slug":"capital","status":"publish","type":"glo","link":"https:\/\/www.reckon.com\/nz\/glossary\/capital\/","title":{"rendered":"What is capital?"},"content":{"rendered":"

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Capital refers to assets that hold value and can be put to work in a business as a form of investment.<\/p>\n

Understanding what capital is and how it works is crucial for those who run their own business.<\/p>\n

Capital (definition)<\/h2>\n

The term capital refers to financial resources<\/a>, such as money or assets, that are used to start, operate, and grow a business.<\/p>\n

While valuable assets or cash are classed as \u2018capital\u2019 in and of themselves, the term is more often used to describe resources that are being put to work in a business for the sake of growth, purchasing inventory or hiring staff.<\/p>\n

Examples of capital include:<\/p>\n

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What are capital assets?<\/h2>\n

Capital assets are generally long-held assets that a business can use to generate profit<\/a>. Capital assets are usually long-term investments and are not intended for resale as part of your regular business operations.<\/p>\n

Examples of capital assets include:<\/p>\n