‘Capital’ means ‘Principal.’ What does ‘Principal’ mean in business? The ultimate goal of any business is to create wealth. Wealth serves as the foundation for creating value, and that value must be generated solely through production. To produce, the cost must be invested first; the source of that cost is referred to as ‘Principal.’ In other words, the result of a transaction through trading is ‘revenues,’ and if costs and expenses are subtracted from sales, what remains is ‘profit.’ If costs and expenses exceed revenues, it results in a losing trade; if they are lower, it results in a profitable trade. Therefore, principal serves as the benchmark for profitability; in other words, it is referred to as capital. Whether a business is good or bad is determined by its profitability. If the principal is insufficient, borrowing capital becomes necessary, which is termed “debt.” Just as the number of principals capable of producing tankers differs from those that can create bicycles, the si...
I believe that humans’ key activities are discovery and imagination. Humans grow through thought, which involves gathering information from the exploration of nature and society and organizing it meaningfully. Progress occurs when we connect with and apply this information beyond its immediate relevance, and this process of connection is termed imagination. Discovery serves as the foundational material for imagination, while imagination generates new outcomes through application, leading to development. - Joseph’s “just my thoughts”