Definition provided by Nolo’s Plain-English Law Dictionary.
commercial activities
Cap
Definition from Nolo’s Plain-English Law DictionarySlang for maximum, as the most interest that can be charged on an adjustable rate promissory note.
Cap and Trade
See cap-and-trade
Cap-and-trade
Cap-and-trade is a system that limits aggregate emissions from a group of emitters by setting a “cap” on maximum emissions. It is characterized as a market-based policy to reduce overall emissions of pollutants and encourage business investment in...
Capital
The available assets of a business, including liquid assets (cash) and/or physical assets (machinery, buildings, and equipment).
Capital Account
A shareholder's or owner's account indicating the individual owner's investment plus net income from business operations, minus any net losses from operations, and minus any withdrawals of funds by the owner for personal use.
Capital Asset
Tangible and generally illiquid property used by a business to generate profit, such as equipment and buildings. The usefulness of the asset is expected to extend beyond one year.
Capital Expenditure
Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits. In the accounting context, capital expenditures are...
Capital Gains
Capital gain, for income tax purposes, is the gain realized from sale of capital assets. The difference between the original purchase price and the sale price is the gain realized. The tax on capital gains only occurs when an asset is sold or “...
Capital Investment
Money invested into a business with the expectation that the money will be recovered through future profits. Generally, the money is used for capital expenditures as opposed to daily working capital.
Capital Stock
Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. A corporation’s charter establishes the amount of shares the corporation may issue, and the board of...