- THE ACCOUNTANT POINT OF VIEW
Accountants define capital as the original fund or money with which a person used to start a business. He considers capital as synonymous with money. Capital in this wise is the owner’s equity assets over liabilities.
- THE ECONOMIST POINT OF VIEW
Economists must define capital as the resources or wealth made by men that are used for producing further wealth.
- THE LAYMAN’S UNDERSTANDING
To the layman, capital is the total amount of money for running a business.
SOURCES OF CAPITAL
- SOLE PROPRIETORSHIP
The sole proprietor can obtain his capital from the following sources.
- Personal savings
- Loan from friends
iii. Trade credit
- Loan and overdraft from bank
- Grants/Loans from government.
- Loan and overdraft
- Trade credit
iii. Personal contributions from partners.