Money invested into a business with the expectation that the money will be recovered through future profits. Generally, the money is used for capital expenditures as opposed to daily working capital.
Profit on the sale of a capital asset, such as stock or real estate. If a person sells a primary residence, current tax law lets the seller exclude $250,000 in profit from capital gains tax. A couple can exclude $500,000.
Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits. In the accounting context, capital expenditures are listed to an asset account.
Tangible and generally illiquid property used by a business to generate profit, such as equipment and buildings. The usefulness of the asset is expected to extend beyond one year.
The available assets of a business, including liquid assets (cash) and/or physical assets (machinery, buildings, and equipment).
A shareholder's or owner's account indicating the individual owner's investment plus net income from business operations, minus any net losses from operations, and minus any withdrawals of funds by the owner for personal use.
An option to buy a particular commodity or security at a fixed price for a certain amount of time. Sometimes simply called a "call." Compare: put option
Any activity carried on with the intent to make a profit or any enterprise engaged in such activity. A business does not have to have a formal organization; it can be a corporation, partnership, sole proprietorship, or any other type of entity, ranging from a street peddler to General Motors.
A person who enters commercial premises for the purpose of doing business. A business is liable to a business invitee for injury caused by dangerous conditions of the premises, such as wet floors.