Identify sources of capital.

Identification should include

• definition of capital
• cost of capital (e.g., interest rates)
• sources of capital, including private, public, and governmental.

Process/Skill Questions:

• What is capital?
• What are some sources of capital?
• What factors determine the source of capital an agricultural business should use?
• What are the differences among private, public, and government sources of capital?
• What purpose do government subsidies serve?