traditional measures used to assess working capital practices. A major focus of the chapter is to distinguish solvency from liquidity. The former concerns whether assets exceed liabilities‚ whereas liquidity refers to the firm’s ability to meet short-term obligations with cash while remaining a going-concern.1 The major empha1 The going-concern principle involves the firm’s ability to remain as a viable business. Hence‚ solvency violates the going-concern principle as selling off assets to repay
Premium Inventory Balance sheet Net present value
Sources of Finance in Short Term Source of short term finance refers to money that is needed for financial activities carried out for less than one year. These funds are usually used for day to day operations such as payment of wages‚ inventory ordering‚ advertisement expenses and so on. There are different sources of rising the short time finance can vary according to way of their usage. Bank Overdraft This is a temporary source found that is provided by bank in which business has a
Premium Credit card Bank Credit history
Sources of short term finance 1) Trade creditors This the basic source of finance and many entrepreneurs do not realise that by acquiring items on credit they are obtaining short term finance. Credit just like any other source of finance has interest element hidden which most are not able to recognise. The discount may be offered to encourage early payment and the receiving company may not advantage of the discount the cost arise. It is not a cheap source of finance. On occasions‚ trade credit is
Premium Debt Finance Bank
A stock market is a market for the trading of company stock‚ and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. Contents [hide] [ The term ’the stock market ’ is a concept for the mechanism that enables the trading of company stocks (collective shares)‚ other securities‚ and derivatives. Bonds are still traditionally traded in an informal‚ over-the-counter market known as the bond market. Commodities are traded in commodities
Premium Stock market
PTMBA I / Trim III (A. Y. 2010-11) Div. C. Assets of Short Term Financial Policy Flexible Short Term Financial Policy Maintainance of high ratio of current assets to sales. This would include:- ❖ Keeping large cash & bank balances ❖ Making substantial investment in inventories. ❖ Liberal Credit Term meaning high level of debtors. Restrictive Short Term Financial Policy. This would include:- ❖ Low cash balances / no investment in marketable securities ❖ Small
Premium Inventory Balance sheet Asset
Pariya Poocharoen MBA514 Marketing Management Chapter 2 Key Terms Chapter 2 Key Terms * Value Chain: A high-level model of how businesses receive raw materials as input‚ add value to the raw materials through various processes‚ and sell finished products to customers. A value chain typically consists of; inbound distribution or logistics‚ manufacturing operations‚ outbound distribution or logistics‚ marketing and selling‚ and after-sales service. These activities are supported by purchasing
Premium Management Strategic management Marketing
lShort term sources of finance 1) Bank credit * Cash credit * Overdraft * Bill discounting Cash credit Account This account is the primary method in which Banks lend money against the security of commodities and debt. It runs like a current account except that the money that can be withdrawn from this account is not restricted to the amount deposited in the account. Instead‚ the account holder is permitted to withdraw a certain sum called "limit" or "credit facility" in excess of
Premium Money Bank Bond
Former US vice-president Al Gore has hit out at company bosses and fund managers for damaging the environment by focusing on short-term goals. Speaking at the National Association of Pensions Funds’ annual investment conference in Edinburgh‚ Gore warned that companies’ obsession with meeting short-term profit targets rather than taking a longer term view‚ was hampering work to combat climate change. Goals Goal-setting ideally involves establishing specific‚ measurable‚ attainable‚ realistic
Premium Goal Time Term
maintenance of the current dividend‚ the current policy is appropriate. The company through advertisement should make the investors aware of the new growth prospects and greater investment opportunities ahead. Such an announcement would help prevent the share prices from falling on reduction of the dividend paid‚ if the company adopts policy of immediate dividend cut. 2. When company is in profit but under certain circumstances cash is not available how company distributes its profit? Concept using
Premium Stock market Dividend Shareholder
A MARKETPLACE BOOK McMillan on Options Second Edition Lawrence G. McMillan John Wiley & Sons‚ Inc. McMillan on Options Founded in 1807‚ John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America‚ Europe‚ Australia‚ and Asia‚ Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Trading series features
Premium Futures contract Option Derivatives