Final answer:
Intellectual capital is the skill and knowledge possessed by the (Option c) small business employees, representing the human capital which is essential for the productivity and success of a company.
Step-by-step explanation:
Intellectual capital is the skill and knowledge possessed by the small business employees. This type of capital refers to the human capital, which includes the accumulated skills, knowledge, education, and health of workers. Human capital is crucial for businesses as it determines the ability of employees to produce work and contribute to the business's success. For example, providing proper nutrition in childhood can lead to more productive adults with higher wages, as they have invested in their human capital.
For many small businesses, the owner initially funds the company by using personal savings or loans, often securing with personal assets such as a home. In some cases, angel investors may provide financial support in exchange for equity in the company during its early development stages. These funding sources are separate from the intellectual capital provided by the employees.