---
entity_slug: four_methods_of_employing_capital
evaluator: null
evaluated_at: '2026-02-23T05:30:51.048720'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly delineates four distinct categories of capital
    employment with specific functions (procuring, manufacturing, transporting, retailing).
    While the language is somewhat archaic ("rude produce"), the conceptual boundaries
    between each method are well-defined and non-overlapping.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity directly reflects Smith's explicit categorization in Book
    II, Chapter 5, where he systematically outlines these four methods as the complete
    taxonomy of capital employment. The definition accurately captures both the specific
    categories and Smith's argument about their interdependence.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the appropriate domain placement as this represents
    Smith''s foundational theoretical framework for understanding capital circulation
    throughout the economy. This is clearly a structural economic theory rather than
    a specific application or policy discussion.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S1 (primary operations) as it describes the
    fundamental operational categories through which an economic system transforms
    inputs into outputs. The four methods represent different but coordinated operational
    subsystems within the broader economic viable system.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by revealing the structural
    mechanism of how capital flows through different functional stages of economic
    production and distribution. It illuminates the systematic relationship between
    raw material extraction, processing, distribution, and retail as interdependent
    capital employment functions.
---

# Evaluation: Four Methods Of Employing Capital

## definition_precision — 4.0 / 5.0

The definition clearly delineates four distinct categories of capital employment with specific functions (procuring, manufacturing, transporting, retailing). While the language is somewhat archaic ("rude produce"), the conceptual boundaries between each method are well-defined and non-overlapping.

## source_grounding — 5.0 / 5.0

This entity directly reflects Smith's explicit categorization in Book II, Chapter 5, where he systematically outlines these four methods as the complete taxonomy of capital employment. The definition accurately captures both the specific categories and Smith's argument about their interdependence.

## domain_placement — 5.0 / 5.0

"General Theory" is the appropriate domain placement as this represents Smith's foundational theoretical framework for understanding capital circulation throughout the economy. This is clearly a structural economic theory rather than a specific application or policy discussion.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S1 (primary operations) as it describes the fundamental operational categories through which an economic system transforms inputs into outputs. The four methods represent different but coordinated operational subsystems within the broader economic viable system.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by revealing the structural mechanism of how capital flows through different functional stages of economic production and distribution. It illuminates the systematic relationship between raw material extraction, processing, distribution, and retail as interdependent capital employment functions.
