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

Chibson

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Expansion is actually something that increases the capital of a business venture. The more a business expands the more their income increases.
 

Magnus2022

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The capital of a company can be changed by making profit or making losses. In actual sense, a capital of a business can never remain the same. There is a constant fluctuation of capital of a business organization, though not physical possible to enumerate. If the company's vehicle breaks down, it is a debit to the company's capital.
 

Niyi Briggs

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Inflation can just drastically shoot up the working capital of a business in dramatic fashion. Three years ago, to start a tricycle business in my country was barely NGN400, 000. Now, it is about 1.2 million naira.
 

IB D

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If you don't factor in inflation when budgeting, you would realize that at the point of execution, the capital might even double or triple.
 

Springtime

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The capital of a business may change in the following circumstances.
1. When there is a new investor putting money in the company.
2. When the company is making a profit /loss
3. When the company has a lot of bad debts, affecting the cash flow of the company.
 

Smalto

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The capital of business may change due to economic factors. For instance, inflation could drastically change the initial capital of a business.
Yes, you are very correct, and I agree with you, especially inflation is a major factor when it comes to affecting the capital of businesses, and it really needs to be examined and curved, because it poses a very big challenge economically.
 

IB D

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Production methods can significantly alter the business capital. If you switch from a labour intensive production method to a capital intensive production method, the capital is bound to change in an increasing manner.
 
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