Legal Definitions - capital assets

Definition: Capital assets refer to the equipment, property, and funds that a business owns and uses to generate income.

Examples:

• A manufacturing company's machinery and equipment
• A restaurant's building and kitchen appliances
• A software company's patents and copyrights

These examples illustrate how capital assets are essential to a business's operations and revenue generation. Without these assets, a business may not be able to produce goods or services, resulting in a loss of income and potential failure.