What is Profit Maximization?As the term suggests, Profit Maximization is a philosophy to maximize the profits from a business concern. In the free economy, there is always profitability if the goods and/or services are good. So, firms selling good products and services increase the prices of goods to generate more revenues and profits. After the market competition for such service providers, however, a point is reached where the maximum profit halts.This is the point of profit maximization.Note − To maximize profits, one must produce quality goods or services.The underlying cause of profit maximization is efficiency. This helps the companies to ... Read More
A financial manager plays a pivotal role in keeping the businesses intact and on track. By applying his or her knowledge, he or she builds the businesses should accept for profit maximization. He or she must also be a team player in order to coordinate the communication from the financial department to other business departments of the company.Note − No organization can succeed nowadays without good financial managers.As a dynamic member of the organization, he or she must play the following rolesDecision MakerIn the recent past, financial managers were not considered vital members of the organization. So they were excluded ... Read More
A Sinking Fund is a special fund that is created by depositing fixed payments each period to gain an estimated and fixed amount after a specific period. In other words, a sinking fund is an account that earns compound interest into which a fixed payment is made periodically for a specific period of time.A sinking fund is generally created to accumulate a fixed sum of money after a specific period. One can use the sinking fund to pay off a loan as a lump sum after a certain period. In the meantime, until the lump-sum period is reached, one can ... Read More
The interest rates paid annually by financial organizations on an annual basis are known as Nominal Interest Rates. In such an arrangement, the interest is paid at the end of each year. If compounding is done, that will also be covered under this arrangement in one shot.However, there are arrangements in which financial organizations pay interests on funds semi-annually or quarterly. For example, in the case of loans, the charges or interests may be levied semi-annually. Such an arrangement of paying the interest several times within a selected period is known as Effective Interest Rates.Nominal Interest Rate Vs Effective Interest ... Read More
Annuity Due is a payment of receipt of a fixed amount of money at the beginning of each period for a specified number of periods. It is different from general/ordinary annuity in which the payments are made after the end of each payment cycle. One may find an Annuity Due while paying rent, planning for retirement, borrowing money, or buying an annuity.Since the concept of Annuity is based on Time Value of Money, the payer usually prefers to pay ordinary annuities. This helps them have the money for coming periods. The lender, however, prefers Annuity Due because they get to ... Read More
Kurtosis is a statistical term used to quantify distribution that is like skewness. Unlike skewness, which only distinguishes absolute value in one tail from those in the other, kurtosis assesses extreme values in both tails. Tail data exceeds the tails of the normal distribution in distributions with strong kurtosis. The tails of ranges with low kurtosis are often less severe than the tails of a normal circulation.A high kurtosis is a trend that investors watch closely as it could result that there will be sharper results in either directions of profits or loss. This in comparison to the normal deviation ... Read More
Korean Composite Stock Price Indexes (KOSPI) are a series of indexes that follow the total performance of the Korean Stock Exchange as well as the performance of its constituents. Every one of the KOSPI indexes represents a market average that has been capitalization weighted.These indexes are most well-known for the KOSPI 200, which is comprised of the top 200 publicly traded stocks traded on the Korean Stock Exchange and measures the performance of around 70% of the total market value of the Korean Stock Exchange as a whole.When investors or traders analyze performance of the Korean Exchange, they often fall ... Read More
This combined indicator, known as the KOF Economic Barometer, delivers a dependable indication of the trend lines of GDP growth in the Swiss economy when compared to the very same quarter of the previous annum. Based on a multi-sectoral project with key parts such as, core GDP, construction, and banking, the KOF Economic Barometer measures the state of the economy.This tool is used to calculate a complex structure as this tool has combinations of over 500 indicators in various stages giving investors good reading. KOF Swiss Economic Institute publishes it on a monthly schedule.Key Points BrieflyThe KOF Economic Barometer is ... Read More
Kuwaiti Dinar (KWD) is among the most expensive currencies among the world and is the official currency of Kuwait. The name dinar comes from the Latin word denarius, which means "denarius." The KWD is divided into 1000 fils, a coin that is widely used in Arab countries.Key Points BrieflyKuwaiti Dinar (KWD) that belongs to a small nation of Kuwait is one of the costliest currencies in the world.The currency is tied to an unidentified basket of currencies and moves in a narrow range.Example of a Kuwaiti Dinar exchange rate is shown below.The Kuwaiti dinar varied between $3.27 and $3.36 between ... Read More
A variety of undergraduate and graduate programs are available at Indiana University's Kelley School of Business, which is located in the university's business college. These programs include debt financing, accounting, marketing, and management. According to the U.S. News and World Report, it is consistently ranked among the top 25 business schools in the country.Key Points BrieflyEstablished in 1920, the Kelley School of Business is a private institution of higher learning. It has locations on the Indiana University Bloomington and Indianapolis campuses, as well as in Indianapolis. 2Additionally, in addition to the full-time MBA, students can pursue an online MBA or ... Read More
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