She coerced her younger brother into making a $5 profit by selling in front of the house. The first $20 serves as an illustration of capital.
Capital is a type of economic resource that is used to finance the growth, development, and expansion of businesses, organizations, and other entities. Generally, it refers to money or other financial assets that are used to purchase goods and services for the purpose of producing more goods and services. Capital can also be used to purchase equipment, land, buildings, and other assets. Capital is often referred to as “investment” or “working capital” as it is used to fuel the production of goods and services. Generally, capital is used to purchase resources or assets that can be used to generate income or profit.
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