Types of capital

Capital is the basic element required to produce all kinds of goods for consumption . These can be: machinery, real estate or any type of installation. This seeks to satisfy needs and generate economic revenue. There is another type of concept about capital: It is an accounting entity in which the assets and rights of a company are taken into account and the debts and credit obligations of the same are subtracted and thus a capital is obtained.

Types of capital

Subscribed capital

This is how the capital is defined that is made up of the contributions that the partners or shareholders of a variable capital corporation have agreed to deliver.

There is a certain similarity with the type of capital called “social”. Especially when they are formed under a tax regime for the formation of fixed capital. Only that in this case, there is a signed commitment in the contributions to present.

Social capital

Defined as the total sum of the contributions contemplated in the subscribed capital, carried out by all the partners and shareholders of the company or for-profit organization.

With the above, the fiscal, operational, financial and accounting assets of the company are shaped, which during the fiscal year will generate profits or losses. And each of the shareholders will answer for the result.

The social capital, depending on the characteristics of the company and its operations, will form a capital of any of the following types: by social funds, preferred capital, limited partnership, among others.

Global economy, social capital.Risk capital

It is the amount of money that the shareholders of the company decide to reinvest with the knowledge that there is the possibility of ending the fiscal year with losses in the company and therefore, they will assume the risks.

This type of reinvestment, unlike other types of financial investment operations, does not have any type of mortgage guarantee or lien. It only reinvests the initial capital of the operations that make up the company’s own initial capital.

Human capital

It is the most important capital in the operations of a company. It is difficult to calculate the value of it immediately since it does not represent a direct monetary value. For the simple reason that the human being is part of it.

As a whole, it is the sum of the skills, knowledge, aptitudes, attitudes and any other type of contribution that in the future can give a monetary return to the company itself.

Having this type of capital, by a company, requires long-term work, which is focused on a timely basis in charge of human resources or a similar department. And there is an implicit remuneration in it.

Computer worker, example of human capital.

Floating capital

It is a part of the social capital that the shareholders have decided to take to operations in the stock market in order to generate a certain return, in the best of cases. The part they decide to “risk” should not be high to guarantee the solvency or liquidity of the company if necessary.

Physical capital

It is the part of the total capital that represents the infrastructure of the company itself, both in the administrative and operational part. In addition to the goods or services that it provides in its business operations.

Office and machines, examples of physical capital.

Financial capital

It represents the monetary value of the shares that make up the company’s capital stock. They are normally represented as shares and both the total amount and its value is determined by the same company that makes up the company’s articles of incorporation and its individual contributions.

Stock market, financial capital.

Constant capital

It is the capital that the shareholders have invested to develop the operational or productive part of the company, made up of raw materials, all types of machinery, real estate and everything that helps the production process.

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