The Industrial Capital Circuit and Cash Flows in Construction Firms

Abstract

This chapter begins with a discussion about the economic implications of management in a firm. We look at the organisational and accounting concepts used to define and measure a firm. We then go on to discuss the industrial capital circuit and the social structures of accumulation, which form the preconditions necessary for capital accumulation by firms to take place. This approach using capital circuits enables both organisational and accounting approaches to be used in the same model. We then compare and contrast profits and cash flows.