Final answer:
Bonnie and Bret's $20,000 contributions to start a new bagel business is considered capital or startup capital, which is the financial assets used to fund a company's operations.
Step-by-step explanation:
When Bonnie and Bret each contribute $20,000 to start their bagel breakfast business, this money is considered capital or startup capital. In business, capital refers to the financial assets or funds that a company uses to fund its operations and growth, especially in the early stages. For many small businesses, owners use their personal savings or secure loans using personal assets as collateral to finance their venture. In some cases, angel investors provide funding in exchange for ownership equity in the business.
Angel investors are affluent individuals that back small startups or entrepreneurs with their own funds during the early development stages of the company, usually in return for convertible debt or ownership equity. Another term also often used is venture capital, but this usually represents financial capital provided by investors to startups and emerging companies that are believed to have long-term growth potential.