What is Capitalization?
With a new corporation, the term generally refers to the amount of money that a corporation has when operations begin. Some states have minimum capitalization requirements to insure that corporations have a bare minimum of assets before starting operations. Since shareholders are somewhat insulated from lawsuits against a corporation, these assets provide a means to pay any potential lawsuit winners. Minimum capitalization requirements also make it a little more difficult to start a corporation. Today, only a few states have minimum capitalization requirements.
(back to top) Capitalization is a term that requires a knowledge of accounting to understand, and can have different meanings. With a new corporation, the term generally refers to the amount of money that a corporation has when operations begin. Some states have minimum capitalization requirements to insure that corporations have a bare minimum of assets before starting operations. Since shareholders are somewhat insulated from lawsuits against a corporation, these assets provide a means to pay any potential lawsuit winners. Minimum capitalization requirements also make it a little more difficult to start a corporation. Today, only a few states have minimum capitalization requirements.
Easy to explain by an illustration. An EJGE paper has a capitalized title as follows. High-Temperature Plasma Vitrification of Geomaterials The same title may appear as follows in other publications: High-temperature plasma vitrification of geomaterials i.e., as if it were some insignificant gossip column heading. The message EJGE is giving is “the following document is important.” Why Capitalization? The EJGE’s capitalization practice is based on the following concepts/principles: • The work itself is important—It takes a great deal of time and effort by the authors to create a scientific/engineering paper, it is not a lazy summer chat. • The author has to be respected—We won’t lose anything by showing it. • The contribution to humanity is to be honored—The least we can do is to be respectful. • The presentation of the work in the form of a well organized paper is significant—We should show our appreciation. These guiding principles automatically follow the fact that EJGE has been cre
Related Questions
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