Capital 
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Business capital is any asset that can be reasonably expected to produce future revenue. The following are the basic types of business capital with examples of each.Current AssetsCurrent assets are assets that can quickly be converted to cash.Accounts Receivable | Cash | Inventory | Marketable Securities | Prepaid Expenses | Supplies |
Capital that physically exists. Often referred to as fixed assets or property, plant & equipment (PP&E).Commercial Buildings | Computers | Data Centers | Equipment | Facilities | Factories | Furniture | Infrastructure | Land | Machines | Office Buildings | Robots | Vehicles |
Productive assets that have no physical presence. These are difficult to value and often do not appear in the financial statements of firms. The value of intangible assets can be used to explain the difference between the book value of a firm and its market capitalization.Brands | Contractual Rights | Data | Goodwill | Human Capital | Intellectual Property | Knowledge | Relational Capital | Software | Trade Secrets |
Goodwill occurs when you purchase another firm for more than the value of its tangible assets.Human capital are the talents of your employees.Relational capital is the value of relationships such as loyal customers.Financial Capital From a finance perspective, the capital of a business is broken into three categories according to its source and liquidity:
Equity Capital Equity capital is cash paid into a business by investors. This is often the primary type of funding for a business.
Debt Capital Capital that has been raised as a debt to creditors.
Working Capital Working capital is current assets minus current liabilities. This is a measure of the liquidity of a firm.
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Type | | Definition | Assets under the control of a business that can be reasonably expected to produce future revenue. | Related Concepts | |
Capital
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Assets are divided into various categories for the purposes of accounting, taxation and to measure the value or financial health of an entity.
The definition of tangible with examples.
The definition of fixtures with examples.
The definition of asset tracking with examples.
The definition of fixed asset with lists of examples.
A list of the common types of current asset.
The basic types of capital with examples of each.
The origins of money explained.
An overview of physical capital with examples.
An a-z list of personal assets.
A list of common types of capital.
The definition of public capital with examples.
A list of countries by GDP.
A list of countries by GDP.
The definition of capitalist with examples.
The definition of central planning with examples.
The definition of individual capital with examples.
The definition of the financial sector with examples.
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