As far as i am concerned, difference is only in the name.
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
what is the defference between physical concept of capital and financial concept of capital
Accounting is creating and managing financial statements which record transactions for businesses. Finance is initiating transactions to aid in cash, investment and other working capital management.
Gross working capital is the amount company invested in current assets while net working capital is the difference between current assets and current liabilities.
The way to calculate the Return on Capital (ROC) or Return on Investment (ROI) is dividing net earning between the total capital. The result is multiplied by 100, and you get the percentage.
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
return on capital = earnings before interest and tax / capital employed * 100
"Net investment" deducts depreciation from gross investment. Net fixed investment is the value of the net increase in the capital stock per year.
The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment is known as the capital gain or loss. When the capital gain or loss is then compared to the initial investment (through division), the result is the capital gains yield or return on investment (assuming there are no cash flows such as coupon payments or dividends).
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
The Keynesian transmission mechanism is the process whereby changes in the monetary sector (increase or decrease in the interest rate i) have an impact in the real sector, by increasing or decreasing Investment (I), otherwise known as Capital Formation. There is an inverse or negative relationship between the two - this means that as the interest rate i increases, the capital formation or investment in the economy I decreases.
capital fromation, or investment, is funded by savings. Low incomes and high consumtption rates result in low savings rates hence a scarcity of funds for capital formation
In economics, to simplify, labor and capital. Light industry is labor intensive industry while heavy industry is focused on capital investment.
A capital cost is an ammount of money that the owner of a business, spends that he/she will not get back. EG: Paying hydro bills, etc. A capital investment is spending money on something that can, in turn, make you money someday. Eg: Purchasing a building or vehicle for your business. Hope this helped!
Market capital is teh total turn over of the market in a perticular period .Where as Turn over is the single business activity"s investment and return .
optimal capital structure means using the resources of capital optimally, at is where they can utilised properly. target capital structure means investment made in the certain project so that they can utilise the resource of capital properly.
teeth