Capital Employed, Return On

The relation of profit to the estimate of average capital employed to yield a ratio, commonly called the primary ratio, as follows:Primary ratio = Profit/Capital

Capital Employed

The term used for the capital in use in a business; it consists of the total assets minus the current liabilities.

Capital Expenditure

Expenditure of a non-recurrent nature resulting in the acquisition of assets.

Capital - Authorised, Nominal or Registered

Synonymous terms for capital fixed by the Memorandum of Association of a company.

Capital Asset

The term used for an asset, which is not bought or sold as part of the everyday running of a business. Examples include real estate, plant equipment.

Capital

Capital is one of the factors of production and has been defined as wealth used in the production of further wealth. For business purposes, capital generally has to be considered in terms of money.