Question

The proportion in which old partners make a sacrifice is called ______.

• A. capital
• B. gaining
• C. sacrifice
• D. new

Answer 1

Answer: (A)

capital

Capital is a large sum of money which you use to start a business, or which you invest in order to make more money. You can use the capital to refer to buildings or machinery which are necessary to produce goods or to make companies more efficient, but which do not make money directly.

While money is used to purchase goods and services for consumption, capital is more durable and is used to generate wealth through investment. Examples of capital include automobiles, patents, software and brand names. All of these items are inputs that can be used to create wealth.