![]() An organiser is the most important factor of production. The man behind organizing the business is called as ‘Organizer’ or ‘Entrepreneur’. The prime aim of it is to a mass wealth in terms of profit. It is normally raised through debt and equity issues. The examples for intangible capital are investment on advertisement, expenses on training programme etc.įinancial Capital means the assets needed by a firm to provide goods and services measured in term of money value. For example, buildings, plants and machinery, factories, inventories of inputs, warehouses, roads, highways etc are tangible capital. Capital is a passive factor of production.Ĭapital may be tangible or intangible.Capital is mobile between places and persons.It cannot be termed as capital for that period. ![]() For example, tractor is a capital asset which can be used in cultivation (production) of farm, but due to some reason the same is kept unused (idle) for some period. All capital is wealth but all wealth is not capital. For example, the entire mango is not eaten a part of that (its nut) is used to produce more mangoes. It refers to that part of production which represents ‘saving used as investment’ in the further production process. As said earlier, capital is a secondary means of production. Marshall says “capital consists of all kinds of wealth other than free giftsofnature,whichyield income”. Bohm-Bawerk defines it as ‘a produced means of production’.
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