What does the term 'investment capital' refer to?

The term 'investment capital' specifically refers to the funds necessary to launch and sustain a business during its early stages. This capital is crucial for covering operating expenses, acquiring assets, and facilitating growth initiatives until the business becomes self-sustaining. It's the financial foundation that entrepreneurs rely on to turn their ideas into viable ventures, allowing them to invest in infrastructure, workforce, and initial marketing efforts.

Understanding this concept is essential for anyone looking to start a business, as having adequate investment capital directly influences the likelihood of success during the critical startup phase. It ensures that the business can operate effectively while generating revenue. The other choices do not capture this specific context or the importance of capital in supporting a business's early activities.