Concept:The capital that finances a business's everyday trading activities is known as working capital.
Explanation:Working capital is the amount available to meet the regular operational expenses of a business, such as buying stock, paying salaries, and covering rent.
It is calculated as:
Working Capital=Current Assets−Current LiabilitiesCurrent assets include cash, debtors, and inventory, while current liabilities include creditors and short-term loans.
A positive working capital shows the business can cover its short-term obligations easily.
In contrast, nominal capital, paid-up capital, and authorized capital relate to the shares issued or registered by a company, not to its daily running needs.
Therefore, among the given options, working capital is the correct term for the capital used in day-to-day business operations.
Answer:B. working capital