What are the circumstances under which the capital of business may change

[Stardom22]

When the business makes a profit
When the business makes losses
When the owner draws cash/ goods for personal use

 

[cherry123]

Increase or decrease in profit. high profit will increase the capital, low or no profit will decrease it.

 

[Bisolami]

When the business makes a profit
When the business makes losses
When the owner draws cash/ goods for personal use

And I think bad budgeting may change the capital of the business because if they do not purchase very well, they will have to spend higher or lower

 

[cherry123]

And I think bad budgeting may change the capital of the business because if they do not purchase very well, they will have to spend higher or lower

Exactly, budgeting and not being able to stick to it is a big problem people really have.

 

[Enxx]

Another thing is when there 8s inflation

 

[cherry123]

Yeah inflation change the price of the market. The price of goods become very high.

 

[flower]

The capital of business may change due to economic factors. For instance, inflation could drastically change the initial capital of a business.

 

[hastral45]

The financial status of a business would determine the position of its capital. When it's making gains, automatically, its capital would be increased and vice-versa.

 

[Shavkat]

It will surely change when the company starts to operate. The cashflow will varies from circumstances to another. We cannot make the capital stagnant because the inflow and outflow of cash are starting to change during the company's operation.

 

[cherry123]

Capital will change when the business grows or expands and needs more input. That's why it is always good to have profit kept away so that you can invest it back into the business

 

[Heatman]

When the business makes a profit
When the business makes losses
When the owner draws cash/ goods for personal use

The capital of a business can also change when you have some investors coming to the business in order to improve its profit-making as well.

 

[Reedex]

The capital of a business may change based on the fact that you are dipping hands into the business capital.

 

[nomad]

If you want to scale your business, you will need more money, so you will have to build your capital. if you are at loss, you need to bring in more money to pay your debt.

 

[eldavis]

Yes this are definitely good reasons why the cash flow might change, another situation is where the price of things goes up. It means the company would definitely have to spend more on production.

 

[Niyi Briggs]

The capital of a business changes if the business decides that it wants to alter the capacity of the production. The capital would either increase or reduce as the case may be.

 

[Shavkat]

I think the starting capital of the business will not change. The only thing that would change is the other financial statements: balance sheet, cashflow, and so on. This is what I know.

 

[Johnson2468]

The capital of business can increase when the business is growing and it can also reduce when the owner of the business have to use it for his or her personal reasons

 

[Etini Willie]

The capital of a business may be altered if the business is able to attract an investor that would invest to expand the business so that more profits can be made.

 

[Chibson]

The capital of a business may be altered if the business is able to attract an investor that would invest to expand the business so that more profits can be made.

Yeah, attracting investors is always important and necessary for the success of any business. That is why some business ventures always look for investors.

 

[Yohanna]

The capital of a business will change if there is bound to be an expansion.