capacity

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Capacity

Credit grantors' measurement of a person's ability to repay loans.

Capacity

The theoretical maximum number of products a company can produce at a given time. For example, an oil pump may have a capacity of X barrels per day, meaning that it cannot produce more than X. Companies rarely operate at full capacity, both to allow themselves leeway in the event of increased demand and because capacity may not be possible at a given time because of worker illness, machinery maintenance, or other reasons.

capacity

the maximum amount of output that a firm is physically capable of producing, at a point in time, given the fullest and most efficient use of its existing plant or plants.

Over time, a firm may adjust its capacity to meet changes in demand and the competitive situation facing it, investing in new plant or extending existing plant to meet an increase in demand, or closing down plant, permanently or temporarily (‘MOTHBALLING’), to meet a situation of OVERCAPACITY.

When preparing a PRODUCTION BUDGET, it is necessary to ensure that the firm has sufficient production capacity to meet planned output levels. A firm's capacity or the capacity of industry in general may be limited by the availability of capital equipment and labour.

The maximum rate of output which the firm can produce will depend upon the capacity of its individual factories which in turn depends upon the capacity of various departments and work stations within each factory See INPUT-OUTPUT CONTROL, PRODUCTION SCHEDULING, PRODUCTION-LINE BALANCING. See CAPACITY UTILIZATION, LIMITING FACTOR, RATIONALIZATION, INDIVISIBILITIES, CAPACITY CONSTRAINED RESOURCE, CAPACITY CONTROL, CAPACITY CUSHION, CAPACITY PLANNING, CAPACITY REQUIREMENTS PLANNING.

capacity

  1. 1the maximum amount of output that a firm or industry is physically capable of producing given the fullest and most efficient use of its existing plant. In microeconomic theory, the concept of full capacity is specifically related to the cost structures of firms and industries. Industry output is maximized (i.e. full capacity is attained) when all firms produce at the minimum point on their long-run average total cost curves (see PERFECT COMPETITION). If firms fail to produce at this point, then the result is EXCESS CAPACITY.
  2. in macroeconomics, capacity refers to POTENTIAL GROSS NATIONAL PRODUCT. The percentage relationship of actual output in the economy to capacity (i.e. potential national income) shows capacity utilization. See also MONOPOLISTIC COMPETITION.

capacity

The legal ability of parties to enter into contracts.
• Full capacity. Having unlimited ability to enter into binding contracts of all types.
• Limited capacity. Having the ability to enter into binding contracts for certain things, such as a minor's contracts for necessities, but also having the ability to disaffirm other contracts upon reaching legal age, for example.
• No capacity. Having no ability to enter into contracts, such as one who has been adjudicat- ed as mentally incompetent.

References in periodicals archive ?
References to jury instructions from sister states' case law may be problematic where the other jurisdiction allows for the burden of establishing testamentary capacity to shift to the proponent of the will.
a) the making or alteration of a will that deals with the whole or part of the property of the person who lacks testamentary capacity, or
Rather, its application in each case underscores that testamentary capacity is a question of fact and very much a pragmatic inquiry.
In this article, I focus on the threshold issue of testamentary capacity along with two additional doctrines by which a will can be held invalid once testamentary capacity has been established: insane delusions and undue influence.
individuals testamentary capacity, today only minors are categorically
The criteria for assessing testamentary capacity are legal and not clinical and the question of competency is ultimately decided by the court.
In re Estate of Joffe, 143 Ill App 3d 438, 440, 493 NE2d 70, 72 (1st D 1986) (dismissal of contestant's lack of testamentary capacity and undue influence claims affirmed because doctrine of election precluded subsequent attacks on the will).
Essentially, the factor compares the decedent and the influencer rather than merely evaluating the testamentary capacity of the decedent.
As previously discussed, the issues of undue influence and testamentary capacity are "inextricably linked.
Mr and Mrs Man and Mrs Bechal's nieces Sandra and Louise were in court to hear the judge, Sir Donald Rattee, declare: "In my judgment, on the balance of probabilities, Mrs Bechal had testamentary capacity.
Roberts argued that the patient was suffering from insane delusions when she executed the will in the hospital and therefore, lacked the testamentary capacity necessary to execute a valid will.
For each jurisdiction, this paper addresses rights to property by surviving family members, intestate succession, testamentary capacity and testamentary formalities, guardianship or tutorship, and, finally, guidance for preparing a will using DL Wills.