Capital Income and Value: An Inseparable Triplets in a Business Organization

Oko Journal of Business Studies, Vol. 3, No. 1, November 2004

8 Pages Posted: 12 Apr 2011

See all articles by Emmanuel Ikechukwu Okoye

Emmanuel Ikechukwu Okoye

Nnamdi Azikiwe University - Department of Accountancy

Date Written: April 7, 2011

Abstract

According to Oxford Advanced Learners Dictionary (2001:148) "business means the activity of making, buying, selling or supplying goods or services for money". Therefore, any Institution or establishment that is involved in the process of production or buying or selling or supplying of goods or services or a combination of these may be referred to as a Business Organization. The central goal of such an organization is to exchange its output with money as a consideration. In order for the organization to get ready its output in goods or services form there is bound to be an investment in capital. It is this investment that is transformed into goods or services which is ultimately exchanged for a higher value.

The difference between the expenses and the revenue generated gives rise to income. Ordinarily, investors/shareholders are concerned with the worth of their investments in two senses. First, they are concerned with maintaining and increasing the value of their capital. Secondly, they are concerned with maintaining and increasing the income which is derived from the capital. Therefore, financial reporting is concerned with the valuation of investor's capital and income. Hence these three concepts capital, income and value suggest an inseparable triplet in any business organization. It is the expectation of this paper to analyse their relationship and highlight their impacts in a business organization.

Keywords: Capital, Income, Value, Business Organization

Suggested Citation

Okoye, Emmanuel Ikechukwu, Capital Income and Value: An Inseparable Triplets in a Business Organization (April 7, 2011). Oko Journal of Business Studies, Vol. 3, No. 1, November 2004, Available at SSRN: https://ssrn.com/abstract=1804835 or http://dx.doi.org/10.2139/ssrn.1804835

Emmanuel Ikechukwu Okoye (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
45
Abstract Views
571
PlumX Metrics