Humanities

What is capital? »Its definition and meaning

Anonim

Capital is a word that has several facets and from them various meanings are broken down that are related, but have different ways of application. The region in which the main governmental entities are concentrated is called capital and it serves as a reference point to talk about a country. It is the representation to the world of the civic spirit of a country, the vast majority of the inhabitants of a country are in the capital, since it is believed that in the capitals of the countries, there are greater opportunities to emerge, for these reasons and many more population growth in capitals is high.

Now, the term capital also refers to the elemental factor with which a production is developed, it consists of the money and goods necessary to buy machinery, real estate and other types of fundamental things to start a business, start and be sustained. In general, capital must be configured and managed in a way that reproduces itself, generates profit pairs. Capitals are divided into several, circulating, it is one that does not generate profit, so it must be constantly renewed; fixed, the expenses are not seen until a longer term, what is produced by a fixed capital is not exhausted; variable, it is the best known, it is like the salary that is given in exchange for a job; finally theconstant, is the one that is invested, develops and corresponds to large amounts of money by these movements.