Dictionary Home »
Business » capacity
capacity business definition
- 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.
- The maximum quantity that something can hold. For example, an underground oil tank may have a capacity of 25,000 gallons.
- The dollar amount of exposure (or proportion of surplus) an insurer is willing to place at risk.
- See debt capacity.
Learn more about capacity
Related Articles