Forms of capital as indicators of financial viability of the enterprise

click fraud protection

There are so many classifications of capital, for example, it is divided into physical and human, constant and variable, authorized, additional and reserve.But in the capital market types have only two basic shapes that determine the development of basic sectors of the economy.This is the real and financial capital.

Real capital directly form the company.It is a collection of all the assets and needs in order to provide productive activities and development of the company in order to create profit.

Types of venture capital can also be fixed and working.Fixed capital includes tangible and intangible assets.To him rank as all of the major funds in the form of machinery and equipment, buildings and structures, and other species that are included in the cost of production parts, referred to as depreciation.Intangible assets - an intellectual value of the enterprise, for example, the acquisition of technology or software invention, supported by the patent do not have a real tangible form, but are of particular importance for the production process and the establishment of production, therefore they are also an asset are included in the cost of goodsin the form of pieces.

working capital of the enterprise - a source of raw materials, materials and other tangible assets, which include the cost of the goods in full, which is required for their production.

capital of the company can be expressed in monetary terms.A certain part of the capital reflects the value of fixed and current assets, while the other is in the form of retained earnings and funds in the account.That is due to the profit may be created other types of venture capital, such as a backup or insurance.

order to systematically develop the company, are investment projects that require some investment.In this case, it has a value of capital investment, and its species are divided into two categories, which differ from other sources of funding: own and borrowed.Investments may include the following types of capital, the real and financial.In most cases, the investment is carried out with the help of financial capital, but in some cases more effective to use a real example in the form of a contract with a potential investor for the supply of necessary equipment.

Companies prefer to be financially independent, but some major investment projects for the successful and timely implementation require significant additional capital.The ratio of debt to capital is a financial leverage, that it displays the degree of financial dependence.

All kinds of capital reflect the real value of the company and its attractiveness to investors.