A new startup is planning to establish a restaurant in Savannah that emphasizes sustainable and locally sourced ingredients.

Question

Which of the following would be an example of a capital investment?

Land was purchased through s deal with the Savannah government as part of the revitalization project.

The investors that are the risk takers in starting this new restaurant
The pans, oven and stove that was purchased direct from the manufacturer in Pooler, GA

3 Sous-chefs in addition to 6 line cooks are hired from local restaurants

Answer 1

In the context of a startup restaurant emphasizing sustainable and locally sourced ingredients, a capital investment refers to the purchase of long-term assets that will be used to operate the business.

Among the options provided, the example of a capital investment is:

The pans, oven, and stove that was purchased direct from the manufacturer in Pooler, GA.

This is because these items are tangible assets that will be used by the restaurant to prepare food and operate on a day-to-day basis.

The purchase of land is also a capital investment, but it is not explicitly mentioned as a long-term asset in the context of operational assets for the restaurant. The other options refer more to funding sources or labor and do not qualify as capital investments.