- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 03 Dec 2020
The factors of production (FOP) are:
So, in this respect, strictly speaking, ‘capital’ amounts to those items that further the production process, such as tools, machinery, plant and equipment. (Some economists cite a fourth FOP: the entrepreneur, who takes the risks to organise the three factors and direct them to create new goods and services.)
However, a more contemporary definition might be the wealth (money or assets) that reveals the financial viability of an individual, organisation, or nation, and which is assumed to be available for development or investment. This may be further broken down into:
 Capital investment
This is the amount of money (funds) that has been invested in a business (or project) to help achieve its objectives. The investment may come from the owner, shareholders, bondholders, equity investors, banks, venture capital, angel investors and lenders.
 Capital employed (or funds employed)
This is the total amount of capital being used in a firm to allow it to continue as a revenue-generating business. It is the total value of all the assets employed in the business and can be calculated by taking total assets and subtracting current liabilities (or fixed assets plus current assets minus current liabilities).
This is the excess of the total current assets over the total liabilities of the firm (or current assets minus current liabilities). The formula measures a firm’s short-term liquid assets that remain after short-term liabilities have been paid off. An example would be as follows:
Accounts receivable £30,000
 Current liabilities
Accounts payable £15,000
Short-term borrowings £10,000
Liabilities accrued £5,000
So, the working capital is £70,000 - £30,000 = £40,000
Capital expenditure (sometimes abbreviated as Capex, CAPEX or CapEx) is one-off expenditure that results in the acquisition, construction or enhancement of significant fixed assets including land, buildings and equipment that will be of use or benefit for more than one financial year.
For more information see: Capical expenditure.
 Related articles on Designing Buildings Wiki
- Capital allowances.
- Capital costs.
- Capital gains tax.
- Capital value.
- Cost plans.
- Enhanced Capital Allowance scheme.
- Net Present Value.
- Working capital
 External references
Featured articles and news
From inns and coaching houses to boutiques.
Survey reveals green skills gap.
America's economic collapse produced scores of PWA Moderne projects.
The benefits of glowing aggregates and cement.
Urgent need for open communication to address mental health issues.
Guidance offered on COVID-19 green recovery, building safety and more.
Providing strength and support above the joists.
Enforcer will test and investigate product safety.
Underfloor air conditioning comes to 24 St James's Square.
Consultation on public right to buy unused public property.
IHBC resource offers improved consistency.