Week 7 was different from my other weeks so far. I did not do as much hands on independent research, but I spent my time learning new concepts in the field of finance. I learned mostly about the acquisition, usage, and retention of capital. Financial capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, corporate, investment banking, etc.
Financial capital or just capital/equity in finance, accounting and economics, is internal retained earnings generated by the entity or funds provided by lenders (and investors) to businesses to purchase real capital equipment or services for producing new goods/services. Real capital or economic capital comprises physical goods that assist in the production of other goods and services, e.g. shovels for gravediggers, sewing machines for tailors, or machinery and tooling for factories.
Financial capital or just capital/equity in finance, accounting and economics, is internal retained earnings generated by the entity or funds provided by lenders (and investors) to businesses to purchase real capital equipment or services for producing new goods/services. Real capital or economic capital comprises physical goods that assist in the production of other goods and services, e.g. shovels for gravediggers, sewing machines for tailors, or machinery and tooling for factories.
Financial capital generally refers to saved-up financial wealth, especially that used to start or maintain a business. A financial concept of capital is adopted by most entities in preparing their financial reports. Under a financial concept of capital, such as invested money or invested purchasing power, capital is synonymous with the net assets or equity of the entity. Under a physical concept of capital, such as operating capability, capital is regarded as the productive capacity of the entity based on, for example, units of output per day. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power.
Financial capital is provided by lenders for a price: interest. Also see time value of money for a more detailed description of how financial capital may be analyzed.
Furthermore, financial capital, is any liquid medium or mechanism that represents wealth, or other styles of capital. It is, however, usually purchasing power in the form of money available for the production or purchasing of goods, et cetera. Capital can also be obtained by producing more than what is immediately required and saving the surplus.
Financial capital can also be in the form of purchasable items such as computers or books that can contribute directly or indirectly to obtaining various other types of capital.
Financial capital has been subcategorized by some academics as economic or "productive capital" necessary for operations, signaling capital which signals a company's financial strength to shareholders, and regulatory capital which fulfills capital requirements.
First!!! It's great that your're learning something new. Can you take your method of research to other sectors? I remember that you wrote about RVUs and other sorts of jargon. Lastly, what do you feel about your research now that you've gone so far?
ReplyDeleteHi, Manu. Thanks for the lesson; I had no idea what financial capital is. It's really cool that you are getting to work with this. How hard have you found it to learn all the jargon?
ReplyDeleteHi Manu. It was very interesting to read your blog this week. So where do you think you'll go with the stuff you learned this week? Do you plan to determine how money can be better spent in the healthcare sector?
ReplyDeleteHi Manu. It's nice to see you are learning a lot from this experience. So with this information, are you going to apply it to Banner in your research project? Have fun!
ReplyDeleteHey Manu. This project is already nearing the tenth week, and it still feels like we just started! I'm fascinated by the amount of progress you have made concerning both your financial and medical interests. Your research is very fascinating but there's always the question of: what's the endgame concerning financial capital? How's it going to be integrated into your project and how important do you think it will be for the next few weeks? Hope you enjoy!
ReplyDeleteHey Manu! It is so exciting how you have gotten so far in your project! I have a few questions. How is financial capital integrated in your project? Also are you going to integrate this information into the hospital or no? Hope you continue to enjoy your project!
ReplyDeleteIt seems as if you are getting deeper into the economic system every week, which is good! Does the system of financial capital exchange work any differently inside the medical industry than other businesses, or does it work practically the same universally?
ReplyDeleteHi Manu!! My question is, Is financial capital what the hospitals use for their equipment? And if so do they get the money from the government or do they have another source of income? Thank you! Hope you have another great week.
ReplyDeleteHey Manu, thank you for letting us know all the specific interpretations of financial capital and what its uses are. Can government funded grants or government benefits in the form of assets also be counted as "the saved wealth" element of financial capital?
ReplyDeleteHi Manu, reading about something outside your independent research was very interesting!
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