Subject: Operating Expenses Capital 9 views

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Thus it is important to use punitive measures to curb the growth of the illicit economy. What do you think about the growth of black economy in the countryCapital employed definition meaning and formula Capital employed refers to the total cost of capital that a company uses to support its operations and implement its business strategies. This term can include different types of capital such as equity debt and other forms of financing actively involved in the companys business processes. Main aspects of capital Equity This is the portion of working capital that represents a companys equity including share capital and retained earnings.

Borrowed capital Includes debt financing such as loans and borrowings that a Brunei Email List company uses to support its operations. Working capital Working capital also includes current assets such as inventory accounts receivable and current liabilities. Investments in assets Capital invested in fixed assets technological solutions and other assets needed to produce goods or provide services.  employed can also be used to cover operating expenses such as wages rent energy costs and other operating expenses.



Capital employed is essential to ensure the continued operation of the enterprise and its ability to implement growth strategies innovation and other business objectives. Monitoring the effective use of capital is an important aspect of the companys financial management. What is capital Definition Capital employed is defined as a type of financial calculation that tells how a company spends its money. It shows how much capital it uses to run the business and therefore how the company spends its money. In general it is the capital used by the company to make a profit.