Capital and Profitability
Capital is essentially the financial value of assets. You can think of it as monetary funds. The only caveat is that in order to be categorized as capital, the goods or money have to continuously provide a service to the business. Whether that's paying salaries, or purchasing assets to create value. when you invest, you're making a capital investment. You're helping a company or product reach its business goals by giving it money. profitability is the Last but not least component of investment.