A company has to exercise the utmost care in structuring its capital commitments, since an inordinately high amount will put undue strain on its finances. It would need to ensure that operating cash flow is sufficient to meet capital expenditures, and if it is not, make arrangements to ensure that it can raise the additional funds on the capital markets. Capital commitments are generally the highest for companies in capital-intensive industries such as power generation.
Investment dictionary. Academic. 2012.
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capital commitment — UK US noun [C or U] ► STOCK MARKET the shares that a financial organization has for sale at a particular time ► ACCOUNTING an amount of money that a company plans to spend over a period of time on such things as buildings, equipment, etc.:… … Financial and business terms
capital commitment — commitment to execute a capital expenditure at a future date … English contemporary dictionary
capital commitment — Fin the estimated amount of capital expenditure that is contracted for, but not yet provided for, and authorized by the directors of a company but not yet contracted for … The ultimate business dictionary
capital call — USA A demand by a company for payment of any part of the balance committed to it by an investor under an existing capital commitment. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
commitment — n 1: an act of committing: as a: placement in or assignment to a prison or mental hospital petition for commitment compare incompetent, interdiction ◇ Commitment to a mental health facility is called … Law dictionary
commitment fee — England, Wales commitment fee, Also known as commitment commission. A fee payable by the borrower to the lender under a loan agreement calculated by reference to the amount of the undrawn and uncancelled loan during the availability period. In a… … Law dictionary
commitment commission — England, Wales commitment fee, Also known as commitment commission. A fee payable by the borrower to the lender under a loan agreement calculated by reference to the amount of the undrawn and uncancelled loan during the availability period. In a… … Law dictionary
commitment — noun 1 willingness to give time/energy to sth ADJECTIVE ▪ absolute, complete, full, total ▪ clear, deep, firm, genuine, great … Collocations dictionary
Commitment to Development Index — The Commitment to Development Index (CDI), published annually by the Center for Global Development, ranks the world’s richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Rich and poor… … Wikipedia
Capital accumulation — Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. Capital can be generally defined as assets invested with the expectation that their… … Wikipedia