What is another term for a company’s capital?

The term "capital" in the context of a company's finances refers to the financial resources that the company can use to fund its operations and growth. Capital can take various forms, but it is most commonly associated with the investment from owners or shareholders in the business.

In this context, "equity" is the correct term that directly relates to a company's capital. Equity represents the ownership share in the company, which is calculated as the difference between the company’s assets and its liabilities. It signifies the residual interest in the assets after deducting liabilities, thus representing the net worth of the business from the owners' perspective. This ownership interest can increase as the company performs well and generates profits, further contributing to the capital available for investment in operations and expansion.

Revenue, on the other hand, refers to the income generated from normal business operations, and while it contributes to the overall financial health of a company, it is not synonymous with capital. Assets represent what the company owns, including cash, inventory, and property, but they encompass more than just the capital invested. Liabilities denote what the company owes to others, which are obligations or debts and do not reflect the company’s ownership resources.

Thus, in the context of capitalization and ownership within the