Human capital refers to valuable employees in a workforce. Human capital systems manage and control employees through predetermined processes, integrating each employee’s skill set. Human capital management focuses on economic value and getting more value for money spent on an employee. The software used in human capital systems replaces some of the human resource management […]
A new city is being built in the desert between the River Nile and the Suez Canal to replace overcrowded Cairo as Egypt’s capital. The high-tech metropolis will have state-of-the-art services, green spaces, a mega-mall, residential districts, a science and technology campus, and a cultural complex. The government plans to move all ministerial activities there […]
Small businesses have access to various sources of capital, including commercial bank loans, personal funds, angel investors, and venture capitalists. The type of capital may depend on the stage of the project, and collateral may be required for loans. Angel investors are more flexible than venture capitalists. Small businesses can access multiple sources of capital […]
Fixed capital and working capital are both important assets for businesses. Fixed capital is long-term and includes physical facilities and equipment, while working capital is short-term and includes cash flow for day-to-day operations. Both are necessary for a business to function and grow. Fixed capital and working capital are two very important assets in the […]
Investments in human capital go beyond education and include imparting skills, health considerations, and good manners. Governments and companies prioritize education and health facilities, while good morals lessen the burden on society and improve productivity. When talking about investments in human capital, education usually comes to mind; however, investments in human capital go beyond mere […]
Equity lease financing allows lessees to control an asset while finance companies retain legal ownership. Companies should seek low startup fees, no administration costs, specific terms, and an advantageous purchase option. Avoid down payments and negotiate security deposits and purchase prices. Lease finance is a purchase method that allows the lessee to control an asset […]
Capital inflow refers to usable funds from external sources, such as loans, investments, or gifts, used to finance large purchases. Loans and investors are common sources, while grants and gifts are associated with non-profits. The term may also refer to money received from foreign countries in national economies. Capital inflow is a business term used […]
Physical capital refers to non-human assets used in the production process, including machines, buildings, and vehicles. It is important to define and classify these assets for accounting and tax purposes. Physical capital is a type of asset used in the production or manufacturing process that allows a company to create goods and services for sale […]
Measuring human capital involves looking at factors like turnover, recruitment, and training costs, as well as productivity and revenue generation. However, calculating an average revenue per employee can be misleading due to external factors. Staff absenteeism and turnover also impact human capital, as does the efficiency of the human resources department. Human capital can be […]
Natural capital includes means of production that come naturally from the land, such as plants, animals, soil, minerals, water, and air. It can be divided into renewable and non-renewable capital, with sustainability being a concern when using natural means of production in business. Bioeconomics focuses on studying how much natural capital is needed to sustain […]
Washington, DC became the US capital in the 1800s, after eight other cities. Philadelphia was the first capital, with Lancaster serving for one day. Other cities, including York and Princeton, also served as capital at different times. The United States declared independence in 1776, but Washington, DC did not officially become the nation’s capital until […]
Capital outflow is when domestic assets are moved out of a country with no return generated, which can lead to economic and political disturbances. Capital controls are laws enacted to minimize capital flight, but they can also negatively impact the rate of capital inflows. Capital outflow is a term used to describe the flow of […]
Investing in human capital leads to human development, as it improves a person’s experience, knowledge, health, and morale. This enables individuals to create a better life and contribute to society, with examples including scientists developing vaccines and individuals using their knowledge in community development. The relationship between human capital and human development is the fact […]
Seed capital is used to cover expenses until a business generates revenue. It’s often generated by multiple investors, and repayment may involve interest or shares. Investors must assess the venture’s organization, efficiency, feasibility, demand, and competition before investing. Startup capital is money invested in a project or business that is in the process of being […]
Growth capital is funds set aside to help a business grow or expand its current operation, often sought through venture capital or issuing preferred shares. It allows for expansion without putting stress on other revenue streams and can be managed with lower interest rates than commercial loans. Sometimes referred to as growth capital or expansion […]
Starting a business without capital is possible by choosing service-oriented businesses, finding alternative funding sources, cutting costs, and relying on word-of-mouth promotion. Aspiring entrepreneurs must be creative and determined to succeed. There are methods that aspiring entrepreneurs can apply to start a business without capital, even if it seems like something difficult to achieve. The […]
Risk-adjusted return on capital is a financial ratio that measures the return on an investment, taking into account the risks involved. It allows for comparison of investments with different risk profiles and is used by companies to evaluate projects or investments with a high level of risk. The index can be modified to incorporate each […]
Capital improvements add or replace major items in buildings or structures, increasing their value or usefulness. Individuals, companies, and government entities use them for different reasons, such as improving homes, expanding business operations, or attracting new residents. However, they must carefully account for costs as projects can quickly go over budget. A capital improvement is […]
Choosing the best working capital policy depends on your risk tolerance. A conservative policy is low risk, while a matching policy balances risk and cash availability. An aggressive policy can lead to rapid growth but involves high risk. It can be difficult to choose the best working capital policy, and the policy that works best […]
Slipped capital femoral epiphysis is a hip injury that occurs in adolescents due to rapid bone growth, causing the head of the femur to slip or fracture. It can be caused by growth spurts, high-intensity sports, obesity, or rheumatoid arthritis. Symptoms include pain, limited range of motion, and difficulty supporting weight on the leg. Surgery […]
