Which of the following is NOT a source of capital?

Capital is essential for the operation and expansion of any business, including healthcare practices. It typically comes from various sources that can be classified as either equity or debt.

Equity from earnings, equity from donations, and long-term debt are all recognized sources of capital. Equity from earnings, also known as retained earnings, represents the profits that have been reinvested into the business rather than distributed to shareholders. Equity from donations pertains to funds received from charitable contributions, which can significantly support a healthcare organization's initiatives and expansion. Long-term debt, on the other hand, refers to loans or financial obligations that are due over an extended period, providing a method for obtaining capital without immediately diluting ownership.

Short-term investments, however, do not serve as a source of capital in the traditional sense. These investments are typically used for liquidity management rather than long-term funding for operations or growth. They are assets that the organization might employ to generate returns, but they are not a direct source of capital intended for business operations or development.

Understanding the differences among these sources of capital is crucial for effectively managing a physician's practice, making informed financial decisions, and strategizing for future growth.