Capital: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Category added 8/10/13 and spacing) |
imported>Doug Williamson (Expand for the economics factor of production. Source: ACT ESA exam solution, April 2015, Q3.) |
||
| Line 12: | Line 12: | ||
More narrowly in the company law context, the component of the total equity represented by the share capital of the company. | More narrowly in the company law context, the component of the total equity represented by the share capital of the company. | ||
4. ''Economics''. | |||
One of the 'factors of production' in economics, the others classically being labour, land and enterprise. | |||
In this context, 'capital' refers to the things that have been created to help in the production process, like machinery, factories and transport facilities. | |||
| Line 21: | Line 28: | ||
* [[Debt capital]] | * [[Debt capital]] | ||
* [[Equity cost of capital]] | * [[Equity cost of capital]] | ||
* [[Factors of production]] | |||
* [[Labour]] | |||
* [[Land]] | |||
* [[Enterprise]] | |||
* [[Finance ]] | * [[Finance ]] | ||
* [[Investment bank]] | * [[Investment bank]] | ||
Revision as of 08:18, 22 June 2015
1. Financial accounting.
Money the business owes the owner. This is equal to assets minus liabilities (including debt). In other words, the equity.
2. Corporate finance.
More broadly, the total amount of funding available for the operations of a firm. This would include both its debt and its equity.
3. Company law.
More narrowly in the company law context, the component of the total equity represented by the share capital of the company.
4. Economics.
One of the 'factors of production' in economics, the others classically being labour, land and enterprise.
In this context, 'capital' refers to the things that have been created to help in the production process, like machinery, factories and transport facilities.
