Post by account_disabled on Mar 13, 2024 6:06:42 GMT
Share Activities to increase business assets can also aim to expand in order to gain increased market share. Expansion to gain market share is generally carried out on existing products. The expansion carried out could be in the form of adding assets by opening new branches or it could also be by increasing the number of employees so that the production process is more efficient, for example. What is often done is to open a new branch or office in the city or region you want to target. All matters related to opening a new branch include adding building assets for office and warehouse purposes or purchasing assets such as computers. All funds related to these needs are classified as capital expenditure.
Also read: Capital Structure Theory and Various Determining Factors . Expansion to Release New Products In order to increase revenue, a company certainly needs new, fresher innovations. Fresher innovation aims to attract new or old markets with new products or updated products. To carry out this innovation, the company needs several additional assets, such as a new factory, for Bulk Lead example. In building a new factory, a company certainly needs land that will be used for factory construction. Then the company also needs various kinds of construction materials as materials for building the new factory. Sometimes, companies also collaborate with contractors who will build their new factories.
All these needs can also be classified as capital expenditure . . Projects that arise as a result of applicable law Incidents like this usually occur in companies operating in the mining sector. Considering that in carrying out its activities, companies operating in the mining sector take things that can damage nature, then the government issues certain regulations as an effort to protect nature. This effort will not increase company profits, but must be carried out because it is related to applicable laws. For example, a mining company that produces hazardous waste must create a waste processing site. This waste processing site is important for the environment and society even though it is not related to company profits.
Also read: Capital Structure Theory and Various Determining Factors . Expansion to Release New Products In order to increase revenue, a company certainly needs new, fresher innovations. Fresher innovation aims to attract new or old markets with new products or updated products. To carry out this innovation, the company needs several additional assets, such as a new factory, for Bulk Lead example. In building a new factory, a company certainly needs land that will be used for factory construction. Then the company also needs various kinds of construction materials as materials for building the new factory. Sometimes, companies also collaborate with contractors who will build their new factories.
All these needs can also be classified as capital expenditure . . Projects that arise as a result of applicable law Incidents like this usually occur in companies operating in the mining sector. Considering that in carrying out its activities, companies operating in the mining sector take things that can damage nature, then the government issues certain regulations as an effort to protect nature. This effort will not increase company profits, but must be carried out because it is related to applicable laws. For example, a mining company that produces hazardous waste must create a waste processing site. This waste processing site is important for the environment and society even though it is not related to company profits.
