This article will focus on capital, the meaning of this term, its importance for a market economy and the production of goods and services.
Definition of capital
What is capital, or net assets? This term originates from the Latin word capitalis and means the main amount, the main property or simply the main. This is a short notation. In addition, net assets mean a group of goods, property, which are used for profit and wealth. In a narrower sense, capital is a source of profit in the form of means of production. This definition is most fully disclosed in the meaning of physical net assets. At the same time, money capital is allocated, which is the amount of money with which physical capital is acquired. The investment of material values and money in the economy is called investment, or investment. By the way, it will be emphasized that the resources consumed are not net assets. In world practice, the concepts of capital and equity are often identified.
Capital in the economy
What is capital in the economy? These are resources that are used in the manufacture of goods or the provision of services. Any means of production in this case is physical capital. At the same time, the means of production become physical assets only in conjunction with the owner of labor. An example is a metal cutting machine. By itself, this unit is not able to bring its owner any income. Such equipment becomes part of its own funds subject to the hiring of a worker who will work for this machine, or the lease of it by the owner.
In economics, physical assets appear when the owner of the means of production finds free labor on the labor market and employs a person to labor for the equipment he owns. It is important to emphasize what capital is. This is not a thing or object, but rather a specific and public production equivalent related to a particular historical form of society, which is embodied in an object that assigns specific public characteristics.
It should be emphasized that capital is an indispensable element in a market economy. This resource is mandatory and necessary for the implementation of production. By economic own funds can include all material values and property. These include units, equipment, structures, raw materials for the production of final goods, etc. In addition, own funds include production created by people, the purpose of which is to increase the volume of production of goods and services.
In a general sense, capital is an economic resource that brings income to the owner. At the philistine level, own funds can be called everything that allows you to make a profit. As a rule, the amount of capital is estimated in cash. Using your own funds, you can open a business so that you can later earn income and profits. In addition, net assets are used to increase production at an existing enterprise. The source of the emergence and change of capital is profit and accumulation.
Registered capital
What is company capital? Different business entities have their own initial funds, which are called the authorized capital.The authorized capital is formed by the contributions of all the founders of the company, or rather, their amount. The capital of an organization may include various assets. Depending on the form of ownership, these can be:
- Cash or means of production allocated by state or local authorities.
- Stocks.
- Investments of the founders.
- Mutual deposits.
In addition, in the course of education, additional and reserve own funds can be formed and work. Nevertheless, the amount of the authorized capital remains unchanged. In order to increase or decrease the amount of the authorized capital, it is necessary to hold a meeting of the board of founders and, after making a specific decision, enter new data into the authorized capital.
The main types of capital
What kind of capital happens? There are several main types.
- Fixed assets - for a certain period of time transfer their value to the goods produced with their help.
- Current assets - transfer all their value to goods and services.
- Permanent equity - have a fixed cost. This kind of capital transfers its value to the product of production.
- Variable assets are used to recruit labor and change their value.
- Worker own funds are an indicator of the speed at which a company’s assets are transferred to a cash equivalent.
- Physical capital is a source of income or a means of production, during the operation of which the owner receives cash.
- Cash equity is money through which access to physical capital is made. Money lying in a drawer of a desk does not generate income and, accordingly, cannot be money capital.
- Financial own funds - are formed in the process of combining banking and industrial monopolies.
Maternal capital
What is maternity capital? This is a certain form of state assistance to families with children. In the Russian Federation, similar financial support has been provided since 2007. It is allocated to those families in which the second and next child were born or adopted. At the same time, one of the family members is issued an appropriate certificate, which gives the right to receive state assistance. Cash can be received exclusively by bank transfer.
Parents receive the right to manage the child’s money after they reach the age of 3. At the same time, in situations where state aid is planned to be spent on treating a child with special needs or his social adaptation, as well as on paying a mortgage loan or buying a house, it is allowed to submit an application for the disposal of maternity capital from the very birth of the child. By the way, it will be said that the amount for which the certificate was issued is indexed according to macroeconomic indicators in the state. For example, for 2015-2016. installed maternity capital in the amount of 453.026 thousand rubles.
Child capital
Throughout 2015, some media outlets spread rumors that the government would stop giving cash assistance to children.
Nevertheless, the Russian government retained the capital of the child until 2018. In addition, a number of changes should be noted that should please parents. So, now the right to cash part of the funds in the amount of 20 thousand rubles will be granted. For this, it will be necessary to send an application to the Pension Fund of the Russian Federation at the place of residence of the parents. Also, from the new year, state payments for children will increase by 22 thousand rubles and amount to 475.02 thousand rubles.
