Final answer:
A major with a contingent interest in capital refers to an individual or entity that has the right to inherit or own capital assets under certain conditions but does not benefit from its income earlier.
This contingency is often observed in trust funds or inheritance situations. Shareholders in a company are an example of stakeholders with a potential contingent interest in the capital growth of a firm.
Step-by-step explanation:
The term 'major with a contingent interest in capital' refers to an individual or entity that stands to inherit or assume ownership of capital assets under specific conditions, but does not have any interest in the income generated by those assets until the conditions are met.
This concept often relates to trust funds or inheritance scenarios where the remainderman, or the person with the contingent interest, receives the principal or capital only after certain events occur, such as the death of the life tenant.
In business terms, stakeholders such as shareholders have a claim on partial ownership through shares and may gain financially if the company grows or is sold, which can be akin to a contingent interest in capital.
Businesses acquire capital to start or expand their operations through various means, including personal savings, credit cards, or from private investors such as angel investors and venture capital firms.
These funds are essential for early-stage companies that have the potential to grow substantially. In the broader spectrum of financial instruments, entities can invest in Treasury bonds or take part in a sole proprietorship, which contrasts with the concept of a contingent interest.