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Capital Requirements: Definition & Explanation

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What are capital requirements?

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1. Why should a business calculate capital requirements?

2. What is working capital in a business?

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About This Quiz & Worksheet

Capital requirements alter how a business owner allocates funds. Become well versed in the different types of capital requirements and learn how they are calculated.

Quiz & Worksheet Goals

These assets will teach you:

  • What capital requirements are
  • Why a business should calculate capital requirements
  • Working capital in a business
  • Outflows that should be included in a capital requirements calculation

Skills Practiced

This worksheet and quiz let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related capital requirements lesson
  • Critical thinking - apply relevant concepts to examine information about financial considerations of businesses in a different light
  • Distinguishing differences - compare and contrast topics from the lesson, such as working capital

Additional Learning

Once you've got the basics down, move on to the connected lesson on Capital Requirements: Definition & Explanation. This lesson's objectives will prepare you to:

  • List methods for obtaining additional capital
  • Describe why and how a business tabulates capital requirements
  • Identify the four basic categories of capital requirements and what should be included in each
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