Question

what are the need of capital​

Answer 1

Answer:

A proper capital budget results in the optimum investment instead of over investment and under investment in fixed assets. The management chooses only most profitable capital project which can have much value. In this way, the capital budgeting maximize the worth of equity shareholders.

Answer 2

In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. In classical economics, capital is one of the four factors of production. The others are land, labor and organization.

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