INITIAL CAPITAL Meaning and
Definition
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Initial capital refers to the starting or beginning amount of money invested or contributed to a business or project. It represents the initial financial resources utilized to launch or establish a venture, typically excluding any outside or additional funding received thereafter. Initial capital is an essential component of any business start-up, as it provides the necessary funds to cover initial expenses and investments required.
This initial capital can come from various sources, such as personal savings, loans from friends or family, or investments made by the business owners themselves. It is often used to finance activities like purchasing equipment, securing office or production space, hiring staff, developing prototypes, conducting market research, or creating a marketing strategy.
The amount of initial capital required varies depending on the nature and scale of the business. It is usually determined through careful financial planning and estimation of the costs involved in launching the venture successfully. Proper allocation and management of initial capital are crucial to ensure smooth operations during the early stages of the business until it becomes self-sustainable or starts generating profits.
In summary, initial capital refers to the initial investment made to start a business or project. It represents the starting amount of money required to cover essential expenses and form the foundation for the venture's operations.
Common Misspellings for INITIAL CAPITAL
- unitial capital
- jnitial capital
- knitial capital
- onitial capital
- 9nitial capital
- 8nitial capital
- ibitial capital
- imitial capital
- ijitial capital
- ihitial capital
- inutial capital
- injtial capital
- inktial capital
- inotial capital
- in9tial capital
- in8tial capital
- inirial capital
- inifial capital
- inigial capital
- iniyial capital
Etymology of INITIAL CAPITAL
The word "initial" comes from the Latin word "initialis" which means "of the beginning" or "pertaining to the beginning". It is derived from the Latin word "initium" meaning "a beginning".
The word "capital" comes from the Latin word "caput" meaning "head". In this context, it refers to the first letter of a word which was traditionally written in a larger size, often in a decorative style, at the beginning of a sentence or major section.
Therefore, the term "initial capital" refers to the first letter of a word, typically larger and more ornate in appearance, that is used at the beginning of a sentence or major paragraph to mark the beginning of a new section or to enhance the visual appeal of the text.
