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capital in economy term


Offshore Agent
Sep 13, 2009
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In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed (though they may depreciate) in the production process. Capital goods may be acquired with money or financial capital. In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business.
Thank you, you should make an article about this topic, sounds like you know something you only hardly want to share :D
Okay and your point for wanting to share this tidbit is? capital is a relative term, that goes beyond the dictionary sense. To sum it up in the easiest way, it has to do with what you or your business is actually worth.
You are absolutely right in your concept to define the word "Capital" in economical terminology.But your post needs more description about the words, you have used . Base Capital needs to be protected at all times for smother inflow of revenues to boost further Capital spending.So while making an Annual Action Plan all companies should focus on capital expenditure on macro economic point of views.

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