Business Finance

Capital employed refers to the total amount of capital invested in a business to generate profits. It represents the long-term funds utilized by a company in its operations, including both equity and debt. Understanding capital employed helps businesses assess their efficiency in utilizing resources to generate returns. Key Aspects of Capital Employed 1. Definition and […]

Capital gain refers to the profit earned from the sale of a capital asset that has appreciated in value over time. It represents the difference between the sale price of the asset and its original purchase price. Key Aspects of Capital Gain 1. Definition and Concept a. Profit from Asset Sale 2. Types of Capital

Capital growth refers to the increase in the value of assets or investments over time. It is a fundamental concept in finance and investing, indicating the appreciation or growth of the initial capital invested. Key Aspects of Capital Growth 1. Definition and Significance a. Asset Appreciation 2. Factors Influencing Capital Growth a. Economic Conditions 3.

Capital Markets are financial markets where individuals, institutions, and governments trade financial securities, such as stocks, bonds, and derivatives. These markets facilitate the buying and selling of long-term debt and equity-backed securities, enabling businesses and governments to raise funds for investment and growth. Key Concepts of Capital Markets 1. Components of Capital Markets 2. Types

Capital Movement refers to the flow of funds or investments between different assets, sectors, or countries. It encompasses various financial activities where capital is transferred from one entity to another, often with the aim of achieving investment returns, financing projects, or adjusting portfolio allocations. Key Concepts of Capital Movement 1. Types of Capital Movements 2.

Capital risk, also known as financial risk, refers to the potential loss of capital due to adverse movements in financial markets or poor financial management decisions. This risk is inherent in investing and managing capital, affecting both businesses and investors alike. Key Concepts of Capital Risk 1. Types of Capital Risk a. Market Risk b.

A capital share refers to the ownership interest in a company that is represented by shares of stock. These shares signify ownership of a portion of the company’s assets and earnings. Understanding capital shares is crucial for investors and stakeholders to comprehend their ownership rights and financial stake in a corporation. Key Concepts of Capital

Capital stock refers to the total amount of shares issued by a corporation, including both common and preferred shares, that represents ownership in the company. It is a fundamental component of a company’s capital structure and plays a crucial role in determining the rights and privileges of shareholders. Key Concepts of Capital Stock 1. Types

Capital structure refers to the mix of sources from which a company raises funds to finance its operations and growth initiatives. It represents the combination of debt and equity that a company uses to fund its activities, manage its financial obligations, and determine its overall financial health and stability. Key Components of Capital Structure 1.

Capital Surplus refers to the excess amount of money or assets that a company raises through sources other than its normal business operations, such as the issuance of shares at a premium or proceeds from the sale of assets above their book value. It represents funds that are not generated from day-to-day business activities but