capital (noun, cap-i-tal, \ ˈkæpɪtl \) budget (noun, budg-et, \ ˈbʌdʒɪt \)
Definition:
- a) is a company’s plan on how to acquire substantial and long-term funds intended for investing into machinery or building a new factory or other industrial establishments for the duration that is longer than the one included in the operation budget. To develop a capital budget organizations use such methods as internal rate of return and payback period.
- b) is a company’s budget that contains capital receipts and fees as well as transactions that occurred in the public account.
In a Sentence:
- One of the primary responsibilities of a large corporation is to have as much of a capital budget as possible to able to invest funds whenever a promising deal may arise.
- We’ve been working on a capital budget idea that will require quite a substantial amount of money but should prove to be extremely profitable in the long run.
- The auditor’s that they’ve hired said that the capital budget is professionally planned and updated on a regular basis.
Synonyms and related words: capital receipts, capital payment, net present value, payback period, market loan
