Which of the following best defines 'capital income'?

The definition of 'capital income' is best captured as the funds invested by owners to start a business. This type of income refers to the initial funding that individuals or groups contribute at the inception of a business venture and is crucial for covering start-up costs and operational expenses. It typically involves investments in the form of cash injections, equity, or other financial contributions made by owners or investors to facilitate the business's growth and sustainability.

In the context of a business's financial structure, capital income can take various forms, such as equity financing or retained earnings. Such funds differentiate from operational income, which comes from day-to-day business activities like selling products or services. The distinction is important for understanding the sources of funding and how they contribute to the overall financial health of a business.