What is referred to as money available for business use, often sourced from various places?

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Capital is a term used to describe the financial resources that are available for business use and can come from a variety of sources. This may include money from investors, loans from financial institutions, retained earnings, or other forms of financing. Capital is essential for business operations, as it enables companies to purchase assets, invest in new projects, and maintain liquidity for day-to-day expenses.

In finance and accounting, capital is often distinguished from revenue, which refers to the income generated from normal business operations, and profit, which is the difference between revenue and expenses after all costs have been paid. Expenses, on the other hand, describe the funds that a business spends in order to generate revenue. Therefore, capital serves as the foundational bedrock that allows a business to operate, grow, and leverage opportunities.

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