Definition of Capital goods:
Capital goods are tangible assets that one business produces that is in turn used by a second business to produce consumer goods or services. Capital goods include tangible assets, such as buildings, machinery, equipment, vehicles, and tools that an organization uses to produce goods or services.
Goods that are used in producing other goods, rather than being bought by consumers.
Capital goods are tangible assets that an organization uses to produce goods or services such as office buildings, equipment, and machinery. Consumer goods are the end result of this production process. Manufacturers of automobiles, aircraft, and machinery fall within the capital goods sector because their products are subsequently used by companies involved in manufacturing, shipping, and providing other services.
Heavy equipment (such as excavators, forklifts, generators, metal-forming or metal-working machines, vehicles) which (in contrast to consumer goods) require a relatively large investment, and are bought to be used over several years. Also called producer goods.
How to use Capital goods in a sentence?
- If you will be working on many projects that have the need for expensive capital goods you should probably buy them yourself,.
- When a company is starting up, they will want to make important upfront purchases, such as capital goods , to help them run smoothly.
- If you know you will work on a project for only a short time you should just rent your capital goods instead of purchasing them.
- It must be noted that the reasoning just quoted hypothesizes an unmonopolized supply of consumer and capital goods.
Meaning of Capital goods & Capital goods Definition