capital

Vocabulary Word

Definition

'Capital' is a versatile term. Geographically, it identifies the city where a country's government is located. In the economy, 'capital' refers to the financial assets or the resources necessary for generating profit, including cash, buildings, and machinery.

Examples in Different Contexts

In finance, 'capital' means the financial resources a company has. A CFO might state, 'We need to raise more capital for our expansion plans.'

Practice Scenarios

Business

Scenario:

Our company is planning to increase investments next year. We need more resources to pull this off.

Response:

Agreed, we need more capital to invest. A possible approach could involve attracting additional investors.

Economics

Scenario:

Countries need to invest wisely in their infrastructure. It forms the backbone of a robust economy.

Response:

A country's capital, both monetary and physical, is indeed crucial. But efficient utilization is equally important.