capital expenditure
(noun)
Funds spent by a company to acquire of upgrade an asset.
(noun)
Funds spent by a company to acquire or upgrade a long-term asset.
Examples of capital expenditure in the following topics:
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Defining Productivity
- The biggest gains often come from adopting new technologies or concepts, which requires capital expenditures for new equipment, computers, or software.
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Culture-Specific Nuances of Human Resources Management
- Human resources management (HRM), or the strategic initiatives that govern human capital within a company, are one of the central components of any business.
- Indeed, human capital is quite often one of the highest capital expenditures business anticipate.
- As a result, analyzing both the way in which the internal human resources (HR) department at a given business approaches international hires, alongside the external consideration of the way in which international companies pursue human capital, is a critical strategic and competitive consideration within most industries.
- Coupling a rapidly globalizing economy with these advantages places significant pressure on HR to find effective and efficient ways to maximize human capital investments across new, and sometimes unfamiliar, cultures.
- The HR department is responsible not only for recruiting and onboarding, but also in creating a synergistic environment for all human capital on a macro level .
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Fulfilling the Organizing Function
- For instance, a production manager may have the line authority to decide whether and when a new machine is needed, but a controller with functional authority requires that a capital expenditure proposal be submitted first, showing that the investment in a new machine will yield a minimum return.
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Operations-Management Tools
- Lean is a production theory that considers the expenditure of resources for any goal other than the creation of value for the customer wasteful, and thus a target for elimination.
- The overarching theme is simply to minimize time expenditures on behalf of employees and maximize output with the same amount of input.
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Introduction to Corporate Social Responsibility
- Measures include amount of expenditures or investment, degree of executive engagement, impact of implementation, and CSR outcomes relative to objectives.
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The Importance of Leverage
- Management roles are defined by the capacity to motivate and leverage human capital in the organization to achieve efficiency in operations.
- By effectively combining this motivational understanding with the expectations and responsibilities of managing employees, managers effectively leverage human capital to achieve high levels of efficiency and employee satisfaction.
- A business with high liquid capital may invest in information structure to reduce the cost of production and increase automation.
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Introduction to Entrepreneurship
- Many high-value entrepreneurial ventures seek venture capital or angel funding (seed money) to raise capital for building the business.
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The Importance of Productivity
- Productivity is the ratio of total output to one unit of total input; high productivity means larger capital gains.
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Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-Benefit
- Non-profits' lack of free-flowing capital means they rarely have the resources to staff the organization sufficiently.
- A mutual is therefore owned by its members and run for their benefit; it has no external shareholders to pay in the form of dividends, and as such does not usually seek to generate large profits or capital gains.
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Trends in Organizational Diversity
- To capitalize on ethical and economic benefits, businesses are promoting increased diversity in the workplace.