What Is Capacity? Capacity is the maximum level of output that a company can sustain to make a product or provide a service. Planning for capacity requires management to accept limitations on the production process. Depending on the business type, capacity can refer to a production process, human resources allocation, technical thresholds, or several other
What Is Capacity Management? Capacity management refers to the act of ensuring a business maximizes its potential activities and production output—at all times, under all conditions. The capacity of a business measures how much companies can achieve, produce, or sell within a given time period. Consider the following examples: A call center can field 7,000 calls
What Is Capacity Requirements Planning (CRP)? Capacity requirements planning (CRP) is the process of discerning a firm’s available production capacity and whether it can meet its production goals. The CRP method first assesses the company’s planned manufacturing schedule. Then, capacity requirements planning weighs this schedule against the company’s actual production capabilities to see if the
What Is Capital? Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual. While money itself may be construed as capital, capital is more often associated with
What Is Capital Allocation? Capital allocation is about where and how a corporation’s chief executive officer (CEO) decides to spend the money that the company has earned. Capital allocation means distributing and investing a company’s financial resources in ways that will increase its efficiency, and maximize its profits. A firm’s management seeks to allocate its
What Is a Capital Blockade? A capital blockade is an economic sanction that limits or prevents investment capital from flowing offshore from a country that may use it for possibly questionable purposes. A capital blockade may be combined with freezing foreign bank accounts that belong to the target country’s citizens to add pressure. Key Takeaways
What Is Capital Control? Capital control represents any measure taken by a government, central bank, or other regulatory body to limit the flow of foreign capital in and out of the domestic economy. These controls include taxes, tariffs, legislation, volume restrictions, and market-based forces. Capital controls can affect many asset classes such as equities, bonds, and foreign exchange
2023 Tax Rates for Long-Term Capital Gains Filing Status 0% 15% 20% Single Up to $44,625 $44,626 to $492,300 Over $492,300 Head of household Up to $59,750 $59,751 to $523,050 Over $523,050 Married filing jointly and surviving spouse Up to $89,250 $89,251 to $553,850 Over $553,850 Married
What Is a Capital Account? The capital account, in international macroeconomics, is the part of the balance of payments which records all transactions made between entities in one country with entities in the rest of the world. These transactions consist of imports and exports of goods, services, capital, and as transfer payments such as foreign
What Is Capital Accumulation? Capital accumulation refers to an increase in assets from investments or profits and is one of the building blocks of a capitalist economy. The goal is to increase the value of an initial investment as a return on investment, whether that be through appreciation, rent, capital gains, or interest. Key Takeaways
