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The term "capital" is used in two basic values: as a yardstick throughout the property (property) of the enterprise and how the name a factor of production.
Capital as a factor of production expresses the sum production resources, created by human beings, to their using the implement manufacture of future economic benefits to gain profit.In the composition of capital flows include: buildings, structures, equipment, tools, technology, design, materials, raw materials, semi-finished goods.
various elements capital in the production process are involved in different ways.One integral part of capital are used once and fully consumed during each cycle of production.The other part is functioning within a few years, and is gradually consumed over a number of production cycles. The first part of the capital is known as working capital, and the second - the main.
The working capital are classified as raw materials, materials, fuel, energy, raw materials, etc.
market working capital is a typical market resources.In the principles and in the organization of the mechanism for setting the balance has much in common with the labor market.Maximization of profit on the market working capital is achieved at point equality limit product in form of cash and marginal costs of the material resource. In other words,When optimizing enterprise demand for working capital rule is MRP = MRC.
An important feature of the working capital is the fact that its elements are transformed into money.It is therefore working capital is called working capital.
the creation of any values implies the use of capital assets. The new production is not possible without investment in construction,The buildings and equipment. The functioning of the enterprise also requires costs to upgrade and restore the capital.
Since the main capital is involved in business activities in a few years, of particular importance in the functioning of the capital market is the factor of time.
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