In business, the term ‘business funds (capital)’ has two very important meanings. One refers to the initial resources of the business and serves as the standard for measuring profit, while the other indicates that the owner of the business funds owns the business. If the profit rate is high, it shows the business is strong, and the amount and type of business funds needed depend on its size or nature. To start a large-scale business, you need substantial funds. If your funds are not enough, you will have to borrow from someone else or close the business. Until you pay it back, it’s not truly your own business. Business funds reveal everything about the business. In other words, the source is capital, meaning ‘root.’ It’s false to claim the business was successful without any of its own funds. A business must have some form of funds—cash or otherwise—to survive. - Joseph’s “just my thoughts”
What if you could fulfill your transaction benefits (considerations) in various ways, including fiat money ? Have you ever wondered what the consequences for your business would be if you could fulfill your benefits in ways other than cash? For instance, let’s say you are a shoe manufacturer . To make shoes, you must purchase raw materials like leather and process them into finished products known as shoes. At this time, if you can pay for raw materials with the finished shoes you made instead of fiat currency , you wouldn’t need to take out a loan with interest from the bank. However, the world’s economic system has limited the standard of value exchange to ‘cash,’ commonly referred to as fiat money. We need to understand precisely why banking is so important to entrepreneurs. This is one of the reasons the industry does not surpass finance. After all, money is among the goods whose value is determined by supply and demand . - Joseph’s “just my thoughts”