capacity

capacity definition - business

capacity

  1. The maximum output that can be expected from a person, a plant, a company, or the economy during a specified period. For example, an automobile plant may have a capacity of 1,000 vehicles per day.
  2. The maximum quantity that something can hold. For example, an underground oil tank may have a capacity of 25,000 gallons.
  3. The dollar amount of exposure (or proportion of surplus) an insurer is willing to place at risk.
  4. See debt capacity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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