Question

which of the following statements about financial capital is true?

a. financial capital includes the physical facilities of a company.

b. financial capital is not used to operate a company.

c. financial capital is something an entrepreneur does not have to worry about.

d. financial capital is used to facilitate a business enterprise and can come from both investors and savings.

e. financial capital is not important.

Explanation:

• Option A: Physical facilities are part of physical capital, not financial capital. So A is false.
• Option B: Financial capital is essential for operating a company (e.g., for buying assets, paying employees). So B is false.
• Option C: Entrepreneurs need to secure financial capital for their businesses, so C is false.
• Option D: Financial capital (like money from investors or personal savings) is used to start and run a business. This matches the definition of financial capital.
• Option E: Financial capital is crucial for business operations, so E is false.

Answer:

D. Financial capital is used to facilitate a business enterprise and can come from both investors and savings.