Capital refers to financial assets like cash that are used to generate wealth through investment rather than just consumption. It is more durable than money and can be used in production or rented out to earn a return. Capital must be combined with labor to create wealth, as when people invest in capital by delaying current consumption, they can enjoy greater prosperity in the future. Capital derives its value from property rights that allow individuals and companies to own and control how they use their capital assets.

1. GET THE AT THE BACK
Submitted by:
WEI TSIEN TAN &
AIRYS DOLLARINE BAUSON
Grade 8-B
“ Tara na simulan na
natin ang negosyo”

2. CAPITAL
Capital is the financial assets or the financial value of assets, such as cash. Capital is different
from money. Money is used simply to purchase goods and services for consumption. Capital is
more durable and is used to generate wealth through investment. Besides being used in
production, capital can be rented out for a monthly or annual fee to create wealth.
Capital itself does not exist until it is produced. Then, to create wealth, capital
must be combined with labor, the work of individuals who exchange their time
and skills for money. When people invest in capital by foregoing current
consumption, they can enjoy greater future prosperity.
Capital has value because of property rights. Individuals or companies can claim
ownership to their capital and use it as they please. Government regulations limit
how capital can be used and diminish its value.
REFERENCE: http://www.investopedia.com/terms/c/capital.asp