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Answer Posted / sanmilan
For Each & Every Business, you need Funds to start and run a
Business. So this amount (Whether contributed by the Owners
(Director/Stakeholder) or Financed from elsewhere) is called
as Initial Capital. Later on, the meaning of Capital get
Broadens into the Amount of Assets including Cash & cash
equivalents which can be bifurcated into Current Assets and
Fixed Assets.Net Capital can be calculated by deducting
Liabilities from the Assets available. It shows the overall
capacity of the Business Entity.
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