---
entity_slug: revenue_destined_for_capital_replacement
evaluator: null
evaluated_at: '2026-02-23T06:18:36.266845'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes this specific portion of annual
    produce from other revenue types, with concrete examples (provisions, materials,
    finished work) and a clear function (maintaining productive labor). The distinction
    between capital replacement and general revenue is well-articulated and non-circular.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Book II, Chapter 3 where Smith explicitly
    divides annual produce into capital replacement and revenue portions. The entity
    accurately reflects Smith's own analytical framework without introducing foreign
    concepts.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: Placement in "Accumulation" domain is precisely correct, as this concept
    is central to Smith's theory of how capital accumulates and reproduces itself
    over time. The entity deals fundamentally with the mechanics of capital formation
    and maintenance.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This maps well to S1 (primary operations) as it represents the fundamental
    resource flows that sustain productive operations, and partially to S3 (internal
    regulation) as it involves the systematic allocation of resources for operational
    continuity. The concept has clear operational significance in system maintenance.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: "This entity illuminates a crucial structural mechanism in Smith's economic\
    \ theory\u2014how societies maintain their productive capacity and determine the\
    \ balance between productive and unproductive labor. It explains the foundation\
    \ of economic growth and societal character regarding industry."
---

# Evaluation: Revenue Destined For Capital Replacement

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes this specific portion of annual produce from other revenue types, with concrete examples (provisions, materials, finished work) and a clear function (maintaining productive labor). The distinction between capital replacement and general revenue is well-articulated and non-circular.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Book II, Chapter 3 where Smith explicitly divides annual produce into capital replacement and revenue portions. The entity accurately reflects Smith's own analytical framework without introducing foreign concepts.

## domain_placement — 5.0 / 5.0

Placement in "Accumulation" domain is precisely correct, as this concept is central to Smith's theory of how capital accumulates and reproduces itself over time. The entity deals fundamentally with the mechanics of capital formation and maintenance.

## vsm_relevance — 4.0 / 5.0

This maps well to S1 (primary operations) as it represents the fundamental resource flows that sustain productive operations, and partially to S3 (internal regulation) as it involves the systematic allocation of resources for operational continuity. The concept has clear operational significance in system maintenance.

## explanatory_value — 5.0 / 5.0

This entity illuminates a crucial structural mechanism in Smith's economic theory—how societies maintain their productive capacity and determine the balance between productive and unproductive labor. It explains the foundation of economic growth and societal character regarding industry.
