What is referred to as cash used to either start or improve a business?

The term that refers to cash used to either start or improve a business is capital. Capital encompasses the funds necessary for a business to operate, which includes not just the money to start up the business but also the money needed for ongoing improvements and expansions. This can involve investments in new equipment, refurbishment of facilities, paying for initial inventory, and covering various operational costs that contribute to the growth and sustainability of the business.

Operating funds typically refer to the cash needed for daily expenses and operational costs rather than capital intended for starting or improving a business. Investment capital, while it aligns with the idea of funding improvements, is a more specific term often used in the context of acquiring assets or investments rather than general business enhancement. Business equity represents ownership in the company and can relate to the value of the business, but it doesn't directly refer to the cash used for starting or enhancing it. Thus, capital is the most accurate and broad term that encapsulates the cash used for these purposes.