Meaning of Capital:

In ordinary the term capital means cash or money, but in economics capital does not means only cash it means wealth that is used for producing additional wealth in other what it refer to all manmade wealth .It includes cash, raw material, tools implements, machines, vehicle, furniture, building etc. The properties of capital are like passive factor, manmade, destructive etc.

Properties of capital:

1. Productive: Capital is productive because it helps in production of wealth and goods.
2. Produced means: Capital is not an original factor of production as land it is produced means of factors of production it is a product of land and labor.
3. Source of Capital: Capital is a source of income it has revenue yielding capacities separable and mobile: capital can be separated from its owner and capital is mobile because it moves easily from one place to another.
4. Destructive: Capital is destructive as it can be exhausted or used up.
5. Variable: Capital is variable in other words the amount of capital can be increased or decrease.
6. Passive factor of production: Capital is a passive of production because it cannot produce anything on its own.
7. Stored up labor: Capital is stored up labor when a man earns by putting his efforts and saves a part of his earnings. The saving when invested becomes capital. That means a part of earnings of labor becomes capital or can say that capital is stored by labor.
8. Capital depreciates and appreciates: Capital differentiates that is the value of capital example: capital goods like machinery depreciates on account of successive use. Capital is also subject to appreciation for example; gold.
9. Capital entails cost: Capital entails cost as capital is a produced factor in entails cost both economic cost and social cost.  That is payment for the factors of production and pain, loss of health Etc. involved in earning income and saving.
10. Manmade: Capital is known for passive factor made by man, use by man and destroy by man.

Meaning of Organization:

Land, labor and capital cannot produce anything unless they are brought together in a proper proportion and make to work homogeneously. The work of bringing together these three factors of fraction in proper proportion making them works harmoniously. So as to obtain the best result is called organization or entrepreneur.  This is clear from the definition of organization given by Haney; according to him organization is a harmonious adjustment of specialized parts for accomplishment of some common purpose or purposes.

Properties of organization:

• Planning: the primary task of an entrepreneur is to plan that is to decide all the aspects of production beforehand. He must decide in an advance the product is to be produced, a quality to be produced, the place of production and the time of production, the technique of production etc.
• Starting: after all the details of production are decrease the entrepreneur must make the necessary arrangement for starting the production he much raise the necessary capital required, construct a factory building, installed the machinery buy required raw material, employee the required labor and start the production.
• Management and supervision: when the production is being carried on the entrepreneur must attend the management and supervisor problem. he must introduced proper division of labor and distribute the work in such a manner that  right man is employed for the right place supervision for men and material and ensure that there is no wastage of time, labor, materials
• Marketing: after the production is complete the entrepreneur must make arrangement for the efficient marketing and distribution of his product at the best market. That is at the market where he can get the highest possible price for his product. For this purpose he must established contacts with middleman such as wholesalers and retailer or established his own retail shop make, proper transportation arrangement for the movement of goods and arrange for the advertisement of the product. Further he must study the changing market condition and make suitable changes in market and distribution techniques.
• Innovation: according to Schumpeter, “an entrepreneur is a greater innovator and a leader in breaking the traditional pattern in production” this statement means that an entrepreneur must introduce innovation.

 Innovation may take the following forms:

• Introduction of new product to satisfy the changing needs of the consumer introduction of new techniques of production
• improvement in the methods of production
• discovery of new market for the product
• discovery of new sources of existing raw materials
• improvement in marketing discovery of new uses for the products.

also read: explain the importance and features of Land.