Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

capitalize

Read a random definition: junior writ

A quick definition of capitalize:

Capitalize: To turn money earned into money that can be used to grow a business. It can also mean to treat a cost as a long-term investment instead of a regular expense. Another meaning is to figure out how much money you will make in the future and how much it is worth now. Lastly, it can mean to give money to a business to help it grow.

A more thorough explanation:

Definition: To convert earnings into capital, treat a cost as a capital expenditure, determine the present value of long-term income, or supply capital for a business.

  • When a company earns profits, it can choose to capitalize those earnings by reinvesting them into the business instead of distributing them as dividends to shareholders.
  • If a business purchases a new building, it may choose to capitalize the cost of the building by treating it as a long-term asset rather than an expense that is deducted from revenue.
  • An investor may capitalize the future income from a rental property by determining its present value and using that value to make investment decisions.
  • A venture capitalist may choose to capitalize a startup by providing the necessary funding to get the business off the ground.

These examples illustrate the different ways in which earnings, costs, and income can be capitalized to benefit a business or investor. By converting earnings into capital, treating costs as assets, determining the present value of income, or supplying capital for a business, individuals and companies can make strategic decisions that help them achieve their financial goals.

capitalization ratio | capitalized expense

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
14:33
@WorthlessAttractiveZombie: 4
LSD+ is ad-free, with DMs, discounts, case briefs & more.