The goal of all businesses is to grow. As such owners, management, financiers and investors are all incredibly concerned with tracking the growth of businesses they are linked to. Growth can, of course, be financed from internal sources or external sources or a combination of both. Where growth is funded from internal sources it is …
Inventory management or control is important for the success of a firm. Apart from managing stock shortages or excess stock, inventory control helps reduce wasted time and costs. The objectives of inventory control are to track sales and increase operational efficiency among other factors. What is Inventory Control Inventory control is the regulation of the …
Inventory represents a very important part of any business. Businesses that produce and/or sell goods hold inventory for production and resale. Businesses that provide services use inventories in the provision of services. Having inventory available as and when required is important and much money and time are spent on inventory management. The objectives of inventory …
Short term financing sources can be Trade creditors, Factoring services, Bill discounting, Advances from customers, working capital loans from banks, fixed deposits, receivables and payables. What is short term financing Short term financing refers to financing business operations for less than one year. Short term financing is also referred to as capital financing. It arises …
Sources of finance are classified based on the time period for which the money is required. Some of the sources for long term finance include, share capital or equity shares, preference capital/shares, retained earnings, debentures/bonds, term loans from financial institutions and commercial banks as well as venture funding to name a few. What is long-term …
If a public company is not issuing a prospectus on its formation it must file a statement in lieu of prospectus also known as a substitute prospectus or substitute circular. This statement is issued with the registrar of companies. What is a statement in lieu of prospectus The term ‘statement in lieu of prospectus’ simply …
Contracts are agreements that form a legal relationship between two or more parties. Included in the features of contracts are an object, an agreement, considerations, terms, conditions and warranties. While all the other elements are clear the difference between a condition and warranty can sometimes be unclear. Both being elements of a contract we can …
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The cash book is very important in the accounts of any business. Business transactions are measured in monetary terms so naturally, the accounting book that is responsible for recording the day to day movements of money in the books is very important. There are four types of cash book, the singles column, two-column cash book, …
Cooperatives may be organised to bring together people of a specific occupation such as farming, mining and tradesmen. As a result, there are different types of cooperative societies which include consumer cooperative societies, housing and producer cooperative societies to name a few. What are Cooperative Societies A cooperative society is an association of people united …
There are various pricing models used for security valuation. These can be based on the balance sheet of the organisation or discounted cashflows. In other cases, ratios can be applied. Valuation is done in order to determine if a security is undervalued, overvalued or to monitor the overall performance of a security. In some cases, …