Running head: COMPANY CAPITAL 1
Company Capital
Braxton Dell
HCA375
COMPANY CAPITAL 2
The Capital of a company is easily the most important thing when running a business
because simply it is the income earned and what is used to take care of financial expenses and to
pay employees. If capital is not earned the business is going to fail. Capital is defined as
“produced means of production”. For instance “I have $300,000 of capital invested in my
business.” She means that if she sold all of the business’s assets and paid off all of its liabilities
(such as a mortgage on the property held by the bank); she would be left with $300,000 in
money. [ CITATION Mur14 \l 1033 ] This demonstrates that capital is the money left over that is
purely profit and is used to reinvest into the company to make improvements as well as to better
build the business to new heights.
In a for profit organization capital is earned by performing services or by the selling of
products. In the case of a hospital or medical facility capital is earned by providing medical
services. For instance in the case that a patient is sick and comes in to receive treatment the
patients insurance will pay an amount for the service and the patient will have to pay the rest. In
cases where a patient does not have insurance the patient will be expected to make the payments
out of pocket and as quickly as possible. This is the sole basis of capital that is earned in a
