Question

Define Capital. How can a producer raise capital when he wants to start a factory?

Answer 1

Capital refers to the wealth in the form of money or assets which can be used to produce goods and render services in an economy.

A producer can raise capital in various ways:-

1) Loan from commercial banks.

2) Issuing shares in the financial market.

3) Borrowing from other financial institution.

4) Availing government incentives.