A business's capital is best defined as:

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The definition of a business's capital primarily revolves around the resources that a company utilizes for its operations and growth. The correct answer refers to the equity owned by shareholders, which directly relates to the capital structure of a business.

Capital in a business context encompasses funds that the company raises to develop its operations, which includes investments from shareholders in the form of equity. This equity represents ownership interest in the business and contributes to its overall financial health.

Options that focus on other aspects, such as total income from sales or cash available for operations, do not capture the broader scope of capital. The capital is not strictly limited to what is generated through sales, nor does it solely pertain to liquid cash that could be used in immediate operations. Rather, it embodies the investments that provide long-term stability and sustainability for the business, reflecting the financial commitment of shareholders to support the company’s initiatives and growth potential. Additionally, the amount invested in long-term assets addresses only one component of capital, while capital itself encompasses a wider range of resources, including both equity and debt financing.

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