What does circulating capital mean?

Definitions for circulating capital
cir·cu·lat·ing cap·i·tal

Here are all the possible meanings and translations of the word circulating capital.

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  1. Circulating capital

    Circulating capital includes intermediate goods and operating expenses, i.e., short-lived items that are used in production and used up in the process of creating other goods or services. This is roughly equal to intermediate consumption. Finer distinction include raw materials, intermediate goods, inventories, ancillary operating expenses and. It is contrasted with fixed capital. The term was used in more specialized ways by classical economists such as Adam Smith, David Ricardo and Karl Marx. Where the distinction is used, circulating capital is a component of capital, also including fixed capital used in a single cycle of production. In contrast to fixed capital, it is used up in every cycle. In accounting, the circulating capital comes under the heading of current assets. Building on the work of Quesnay and Turgot, Adam Smith made the first explicit distinction between fixed and circulating capital. In his usage, circulating capital includes wages and labour maintenance, money, and inputs from land, mines, and fisheries associated with production. According to Karl Marx the turnover of capital influences "the processes of production and self-expansion", the two new forms of capital, circulating and fixed, "accrue to capital from the process of circulation and affect the form of its turnover". In the following chapter Marx defines fixed capital and circulating capital. In chapter 9 he claims: "We have here not alone quantitative but also qualitative difference."

How to pronounce circulating capital?

  1. Alex
    Alex
    US English
    Daniel
    Daniel
    British
    Karen
    Karen
    Australian
    Veena
    Veena
    Indian

How to say circulating capital in sign language?

  1. circulatingcapital

Numerology

  1. Chaldean Numerology

    The numerical value of circulating capital in Chaldean Numerology is: 8

  2. Pythagorean Numerology

    The numerical value of circulating capital in Pythagorean Numerology is: 8

Images & Illustrations of circulating capital

  1. circulating capitalcirculating capitalcirculating capitalcirculating capitalcirculating capital

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"circulating capital." Definitions.net. STANDS4 LLC, 2019. Web. 20 Nov. 2019. <https://www.definitions.net/definition/circulating+capital>.

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