Difference between revisions of "Financial Capital"

Revision as of 10:20, 11 February 2018

People in enterprises spend and generate money. Financial capital decreases when it is spent on acquiring resources, equipment and labour. It increases when goods/services are sold, or fundraising efforts are successful. This type of capital is relatively easy to measure because accounting practices are currently based on tracking rises and falls in funding levels, changes in cash flows and the nett value of surpluses/profits from trading activities. When asked about financial capital, think of the money used and/or created by your enterprise/project, and the people who contribute to the creation or contribution of funds to sustain activities.

Return to Capital