Definition of Disposable Income Disposable income is the amount of money that an individual or household has available to spend or save after taxes, and other deductions have been taken out. That means it is the amount of money that is left after all necessary expenses have been paid. Example […]
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Business Activities
Definition of Business Activities Business activities are the activities that a business undertakes in order to generate revenue and profits. That means they include all the activities that are necessary to produce and sell goods and services. These activities can be divided into three main categories: operating, investing, and financing […]
Read moreCapital Budgeting
Definition of Capital Budgeting Capital budgeting is the process of evaluating and selecting long-term investments that are expected to generate value for a company. That means it is used to determine which projects a company should invest in and which ones it should avoid. To do this, companies use a […]
Read moreBoom And Bust Cycle
Definition of Boom and Bust Cycle A boom and bust cycle is a period of economic expansion followed by a period of contraction that happens repeatedly. That means it describes a situation in which an economy experiences a period of rapid growth followed by a period of decline, which is […]
Read moreCapital Employed
Definition of Capital Employed Capital employed is a financial term that describes the total amount of capital that is used by a company to generate revenue. That means it includes all the assets that are used to generate income, such as cash, inventory, accounts receivable, and fixed assets. It can […]
Read moreCapital Expenditure (CapEx)
Definition of Capital Expenditure Capital Expenditure (or CapEx for short) is an expenditure that is made to acquire or upgrade physical assets such as property, buildings, or equipment. That means it is an investment in the long-term assets of a company and is usually made with the expectation of generating […]
Read moreCapital Gain
Definition of Capital Gain A capital gain is the profit that an investor realizes when they sell an asset for more than they paid for it. That means it is the difference between the purchase price and the sale price of an asset. Capital gains can be realized on a […]
Read moreCapital Gains Tax
Definition of Capital Gains Tax A capital gains tax is a tax on the profits from the sale of an asset. That means it is a tax on the difference between the purchase price and the sale price of an asset. It is usually imposed on investments such as stocks, […]
Read moreCapital Goods
Definition of Capital Goods Capital goods are physical assets used to produce goods and services. That means they are used in the production process to manufacture products and services and are not sold directly to consumers. Examples of capital goods include machines, tools, buildings, and other production equipment. Example To […]
Read moreCapital Investment
Definition of Capital Investment Capital investment is the use of money to purchase physical assets such as buildings, machinery, or equipment in order to increase the productive capacity of a business. That means it is the process of investing in long-term assets that will generate income or profits over a […]
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