Capital
From Wikicpa
A business requires capital to procure the assets and services it needs to start and to remain in operation. The business entity can raise start-up capital by borrowing funds or selling part if itself to outside interests (also known as equity capital).
Two categories of equity capital are common stock and preferred stock. The categories are distinguished by their shareholder rights. Two additional categories that often appear in the equity section of the balance sheet are paid-in capital and retained earnings.
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