The Agricultural Credit Corporation Ltd (ACC) is a corporation established in 1964 to extend the availability of medium-term bank credit for buildings, equipment, livestock, and working capital to farmers, growers, and co- operatives. The ACC offers a guarantee to the farmer's bank for such loans and promises to repay the bank should the farmer fail to do so. In return for this service the farmer pays a percentage charge to the ACC. Research Agricultural Credit Corporation Ltd
Circulating capital (working capital) is an economics term for the part of the capital of a company or other organization that is used in the activities of trading, as distinct from its fixed capital. The circulation of this capital occurs thus: suppliers provide stock; the stock is sold to customers who become debtors, eventually paying cash; the cash is used to pay suppliers, who provide more stock, etc. The concept was introduced by the economist Adam Smith and is popular with judges in tax cases. Research Circulating Capital
In economics, an economy of scale is the situation in which an equal proportional increase in all inputs leads to a more than proportional increase in output. This implies that (with given input prices) average costs fall with increased output.
Economies of scale may be internal to a firm or external. Internal economies of scale result from, for example, the division of labour or indivisibilities (minimum efficient size) of fixed or working capital. They commonly arise only over a certain range of output. Since it is large firms which tend to profit from economies of scale, this causes the emergence of oligopoly or monopoly, where a few firms or a single firm dominate the market. External economies of scale are of two kinds. Firstly, technological economies exist when an industry benefits from the shared experiences or facilities of its member firms. Secondly, financial advantages occur when there are industry-wide savings in the expenditure needed to create demand, carry out market research, or otherwise maintain profitability. Diseconomies of scale (in which output increases less than proportionately with inputs) may arise if an organization becomes too unwieldy or bureaucratic. Research Economies of Scale
Working capital is the part of the capital of a company that is employed in its day-to-day trading operations. It consists of current assets (mainly trading stock, debtors, and cash) less current liabilities (mainly trade creditors). In the normal tradecycle - the supply of goods by suppliers, the sale of stock to debtors, payments of debts in cash, and the use of cash to pay suppliers - the working capital is the aggregate of the net assets involved, sometimes called the working assets. Research Working Capital
The Probert Encyclopaedia was designed, edited and programed by
Matt and Leela Probert
Abbreviations
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