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”
If a New Zealand fisherman catches a seabream in New Zealand, he makes a profit of $9 per kilogram, but if a tourist catches it, $88 goes back to New Zealand. This is because to fish a seabream, the tourist has to spend money on flights, hotels, and all sorts of rentals. The opportunity cost and value-added will change as B2B becomes B2C. - Joseph's "just my thoughts"