SQA Higher Business Management Practice Exam 2026 - Free Business Management Practice Questions and Study Guide

The concept of 'capital' in business refers to the various assets that are used to generate wealth and facilitate production. This includes not only financial resources but also physical tools and facilities that are essential for operations. By selecting the option that encompasses resources like tools and facilities, it recognizes that capital is a broader term that incorporates various types of assets contributing to the business's ability to produce goods and services.

Financial assets represent merely one aspect of capital, while human skills and labor, although critical, are generally categorized separately as human resources rather than capital. Similarly, focusing solely on physical goods for sale excludes other crucial resources that a business needs to operate effectively. The chosen option correctly highlights the comprehensive nature of capital as involving multiple forms of resources that all play vital roles in a business setting.