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Which of the following best describes the role of “capital?”

A. The functioning of laws in business.

B. What goes into making a product.

C. What is not needed to make a product.

D. An individual economic choice.

Which of the following best describes the role of “capital?” A. The functioning of-example-1

1 Answer

4 votes

Answer:

B.

Step-by-step explanation:

Capital, in general term, can be defined as a sum of money used to start a firm or invest to earn more money. Talking in broader terms, capital is anything that adds value or profit to the owner of the firm.

A capital can be machinery, factory, patents, buildings, etc. Capital is a sum of money used to pay or invest in the making of products.

Therefore, the statement that best describes the role of capital is what goes into making a product. Thus option B is correct.

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