capital

Examples of capital in the following topics:

• The Imperative of Liquidity

  • If I have capital, I can spend it.
  • Cash flows must take into account not only amounts of capital, but the time value and availability of said capital.
  • When an organization has an opportunity to fund, or a debt to pay, they need capital on hand (i.e. capital available now) to provide funding.
  • Capital A has the majority of their money wrapped up in inventory (i.e. holding products for sale) which they expect to sell within 4 weeks, while Company C has their capital in a savings account.
  • Company C will capture the opportunity, as the capital they are using is more liquid.

• Capital Expenditures

  • The following capital expenditures are capitalized:
  • Costs that are capitalized, however, are amortized or depreciated over multiple years.
  • Capitalized expenditures show up on the balance sheet.
  • Capitalized interest, if applicable, is also spread out over the life of the asset.The counterpart of capital expenditure is operational expenditure ("OpEx").
  • The funds used to construct and put a building into use are capital expenditures.

• Free Enterprise

  • This is an example of capitalism in which government policies generally target the regulation and not the money.
  • There are multiple variants of capitalism, including laissez faire, mixed economy, and state capitalism.
  • Economists, political economists, and historians have taken different perspectives on the analysis of capitalism.
  • Capitalism gradually spread throughout the Western world in the 19th and 20th centuries.
  • Explain how free enterprise leads to the economic system of capitalism

• Equity Finance

  • The equity, or capital stock (or stock) of a business entity represents the original capital paid into or invested in the business by its founders.
  • Firms need to acquire capital from others to operate and grow.
  • Firms obtain capital from two kinds of sources: lenders and equity investors.
  • From a firm's perspective, they must pay for the capital it obtains from others, which is called its cost of capital.
  • If an investment's risk increases, capital providers demand higher returns or they will place their capital elsewhere.

• Capitalism in the U.S.

  • Democratic capitalism is a political, economic, and social system with a market-based economy that is largely based on a democratic political system.
  • Most liberals and conservatives generally support some form of democratic capitalism in their economic practices.
  • The ideology of "democratic capitalism" has been in existence since medieval times.
  • The relationship between democracy and capitalism is a contentious area in theory and among popular political movements.
  • Demonstrate how capitalism in the US is controlled by its democratic political system

• Owners' Equity

  • In an accounting context, shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock.
  • This creates a liability on the business in the shape of capital as the business is a separate entity from its owners.
  • Ownership equity is also known as risk capital or liable capital.
  • In financial accounting, equity capital is the owners' interest on the assets of the enterprise after deducting all its liabilities.

• Ethical Barriers

  • Capital markets involve the raising and investing money in various enterprises.
  • Although some argue that the increasing integration of these financial markets between countries leads to more consistent and seamless trading practices, others point out that capital flows tend to favor the capital owners more than any other group.
  • Likewise, owners and workers in specific sectors in capital-exporting countries bear much of the burden of adjusting to increased movement of capital.
  • The anti-globalization movement is a worldwide activist movement that is critical of the globalization of capitalism.
  • This event came to symbolize the increased debate and growing conflict around the ethical questions on international trade, globalization and capitalization .

• The Five Cs of Credit

  • Capacity to repay, capital, collateral, conditions, and character, are referred to as the "Five Cs of Credit".
  • How might a potential lender use information about a debtor's capital?
  • Capital is the value of assets that a debtor currently holds.
  • Will the money be used for working capital, additional equipment, or inventory?
  • Capital is the value of assets that a debtor currently holds.

• Commercial Banks

  • Commercial banks are financial institutions that focus on enabling the exchange of capital and currency via a variety of services.
  • Enabling bank accounts, used to store, exchange, send, and receive capital electronically (generally via the internet)
  • Raising capital (i.e.
  • IPOs and other forms of commercial capital raising)
  • Market Risk – Virtually any capital asset has a market, and is therefore subjected to the risks of it's respective market.

• Return on Investment

  • Return on investment (ROI) is one way of considering profits in relation to capital invested.
  • Return on investment (ROI) is one way of considering profits in relation to capital invested.
  • Return on assets (ROA), return on net assets (RONA), return on capital (ROC) and return on invested capital (ROIC) are similar measures with variations on how 'investment' is defined .
  • Marketing decisions have obvious potential connection to the numerator of ROI (profits), but these same decisions often influence asset usage and capital requirements (for example, receivables and inventories).
  • Return on assets (ROA), return on net assets (RONA), return on capital (ROC) and return on invested capital (ROIC) are similar measures with variations on how 'investment' is defined.