Which of the following best defines capital in the context of business?

In the context of business, capital primarily refers to the financial resources that are utilized to fund the operations and growth of the business. This includes the money that is invested to start the business or to enhance it through improvements. Capital can take various forms, such as cash, equipment, and property that can be leveraged for generating profits.

The correct choice emphasizes the importance of having adequate funds available to initiate business activities, whether through initial setup costs or subsequent investments necessary for expansion and development. By understanding capital in this way, one can grasp its critical role in ensuring a business has the necessary resources to operate effectively and compete in the market.

The other choices, while related to business finances, focus on different aspects. For instance, assets owned by a business refer to various types of resources but do not specifically highlight the financial aspect that is essential for initiating or improving a business. Debt obligations denote liabilities that are owed to creditors, which is the opposite of capital and suggests an outflow rather than resources that can be used for growth. Lastly, inventory pertains specifically to the goods available for sale and doesn't encapsulate the broader financial resources needed to support a business's operation and growth.