Final answer:
An asset is an item of value owned by a firm or an individual, ranging from physical items like real estate and equipment to intangible ones like patents and software. Bank capital is the net worth of a bank based on its assets and liabilities. Venture capital and shareholder investments can be used to raise funds for acquiring assets.
Step-by-step explanation:
The term that is best defined as an item of value owned by a firm or an individual is an asset. This can be anything that holds worth and is owned by the business or person, such as real estate, equipment, patents, or investments. An asset is recorded on the balance sheet and contributes to the owner's net worth.
Unlike money which is a financial capital used to obtain assets, an asset itself is a tangible or intangible item that provides value. For example, a company's office building is an asset because it can be used for operations or sold for money. Items like coins, art, or software that serve a business purpose or can be sold for value also constitute assets.
Bank capital refers to the difference between a bank's assets and liabilities, essentially representing the net worth of the bank. Assets and liabilities are key elements of a firm's balance sheet, reflecting what the firm owns and owes, respectively.
Various forms of capital acquisition include raising funds through shareholders, who own shares of stock in the firm, or through various forms of venture capital. However, such financial instruments are not themselves capital but can be used to acquire capital, such as when purchasing goods, services, or production factors.