What is a capital?

In politics, a capital (or capital city) is the principal city or town associated with a country's government. The word capital is derived from the Latin "caput" which means "head," and the related term capitol refers to the building where government business is conducted. The capital naturally attracts the politically motivated and those whose skills are needed for efficient administration of government such as lawyers, journalists, and public policy researchers. In business, Capitalized cost represents the cost of owning a company. Read also: venture capital for small business.