Financial Capital
July 9, 2022
What Is Financial Capital?
Financial capital refers to a company’s purchasing power in cash, credit, or other
funding. Corporations and individual entrepreneurs use it to invest in, create, or
expand a business. Hence its purpose is to acquire or purchase the physical capital
necessary for the production of goods and services.
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For eg:
Source: Financial Capital (wallstreetmojo.com)
To generate income and achieve capital profits, financial capital is required. It allows firms
to exploit profitable investment possibilities without setting aside cash. It refers to a
company’s monetary resources. Financial Capital mainly comprises two sources, debt
and equity; retained earnings, if any, are also a part of it.
Key Takeaways
Financial capital refers to a company’s cash, credit, or other funding purchasing
power.
Two principal sources of financial capital are debt and equity; retained earnings
can also be considered a part of it.
1/4
July 9, 2022
What Is Financial Capital?
Financial capital refers to a company’s purchasing power in cash, credit, or other
funding. Corporations and individual entrepreneurs use it to invest in, create, or
expand a business. Hence its purpose is to acquire or purchase the physical capital
necessary for the production of goods and services.
You are free to use this image on your website, templates, etc., Please provide us with an
attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Financial Capital (wallstreetmojo.com)
To generate income and achieve capital profits, financial capital is required. It allows firms
to exploit profitable investment possibilities without setting aside cash. It refers to a
company’s monetary resources. Financial Capital mainly comprises two sources, debt
and equity; retained earnings, if any, are also a part of it.
Key Takeaways
Financial capital refers to a company’s cash, credit, or other funding purchasing
power.
Two principal sources of financial capital are debt and equity; retained earnings
can also be considered a part of it.
1/4
