Since ancient times, scientists argue that such capital.At the moment, there is no single definition that would suit everyone.Some hold the view that capital is a stock of goods or services or wealth.Others, responding to a question about what the capital, argue that it is the totality of the means of production, is actively used in the process of production.
In any case, it means the availability of resources with which the entrepreneur receives the income.Often people consider capital from monetary position, that is - is the amount of money that provides the acquisition of all necessary equipment to start production activity.It is important to understand that the capital can be considered as the only resource that brings profit to the owner.For example, you have a good sewing machine - a reserve, resource value, but not the capital.They will only get it after the machine goes into the hands of a professional sewing shop, that is, after the introduction of industrial activity.
In addition, every entrepreneur is to understand what assets in accounting.It is expressed in monetary terms, it can be calculated as the difference in the amount of assets and liabilities balance.The capital of any company or organization can be divided into two main groups:
- basic;
- negotiable.
first group includes those resources that are involved in the manufacturing process more than a year, gradually shifting their value to the cost of the goods, which subsequently are transferred to the rates in the market.Fixed capital does not change its physical form, as noted in the financial statements under "Fixed assets".Examples of such resources include the construction, transport, equipment, various buildings, and even inventory.Under the working capital meant that group of the means of production, which is involved in the manufacture of a new product during one cycle, usually less than a year, changing the its tangible form.The cost of these resources is fully included in the price of finished products.As the working capital are the semi-finished products, raw materials, money and so on.
Answering a question on what is the capital, it is understood that this means being the property of the entrepreneur.But this is not always true, as the capital can be divided into its own and borrowed funds.Actually, in turn, is divided into:
- reserve;
- reserve.
The first type is called the authorized, since it is formed during the formation of the company as a legal entity.And the term "reserve" due to the fact that it may consist of individual contributions.For example, the bank's authorized capital, which is a joint stock company consists of individual shares of shareholders who invested funds in return receive shares.Subsequently, they bring investors a stable income in the form of dividends.
Under current law, every business in the normal course of business is obliged to create a reserve fund.It collected funds intended to cover possible losses upon the occurrence of adverse situations.Reserve capital gives confidence to the head of the company that production will continue to work effectively even in the event of unexpected losses.This fund serves as a kind of guarantee, so its formation is considered to be an important part of the organization of the company.
recently become used such a thing as the entrepreneurial capital.It includes all the tools and resources at the disposal of a businessman and designed to ensure the stable operation of the company.Business capital at the same time satisfy the needs and desires of investors, staff of the organization, the leader, and even state.
