Found 699 Articles for Companies/Organisations

The major differences between share outstanding and float are as follows −Share OutstandingThese are shares held by stakeholders, company officials and investors in public domain.Contains both stock float and restricted shares.Contains all shares of company held by its investors.It is used to calculate market capitalisation and earnings per share (EPS).It provides voting right and ownership right.Private or public limited company will issue these kinds.It has low risk.FloatIt is share issued by company to public and available to investors for trading in stock market.Contains only float stock.It is available for public.It acts as determinant of financial calculations.Won’t provide voting right and ... Read More

The major differences between discount rate and interest rate are as follows −Discount RateFederal reserve banks charges to depository institution/commercial banks on its overnight loans.Central banks decide the rate.It is not determined by market rate of interest.It determines present value of future cash flows.It focuses on investors view.The demand and supply has no effect on discount rate.Interest RateIt is an amount charged by lender to a borrower for use of assets.Commercial banks decide the rate.It depends on market rate of interest, creditworthiness etc.It can’t determine present value.It focuses on lender’s view.The demand and supply has effect on interest rate.Read More

The major differences between ROIC and ROCE are as follows −ROICROIC refers to Return on invested capital.It aims to find the return relative to capital which is invested in business.It evaluates profitability by considers only capital invested in the business.ROIC = Net operating profit/invested capital.Company said to be profitable, if ROIC is greater than zero.Measures after tax.It is more important for an investor.ROCEROCE refers to Return on capital Employed.Its main aim is to find return relative to total capital employed.It had very broad scope.ROCE = net operating profit/capital employed.Company said to be profitable, if ROCE greater than cost of capital.Measures ... Read More

The major differences between licensing and franchising are as follows −LicensingFranchisingBusiness model deals with products and goods.Ownership is with licensee.Governed by contracts law between partiesWithout investing huge capital licensor will get vertical integration in market.Licensor don’t have control over intellectual property rights.Registration is not mandatory.No training and support is provided.One-time property/rights transfer.Negotiable fee structure.Royalties are commonly used term.Covers single product/products.Generally, established business will go licensing.Business models deals with providing services.Ownership is with franchisee.Governed by companies’ laws and other federal laws (international business)Franchisor get access to diversified market geographically.High initial investment is required.Registration is mandatory.Training and support is provided.Ongoing assistance is ... Read More

The major differences between budget and forecast are as follows −BudgetIt’s a business plan made by management for future with quantitative.It shows what a company want to achieve during a period of time.Generally, it is short term.It is static in nature.It is used as tool to manage operational performance in short term.It sets the targets.It is updated annually.There is variance analysis.Covers large areas like costs, revenue, profits etc.Almost everyone will aware of budget.ForecastIt is based on historical data; future trends can be estimated.It tells about what a company will achieve in a specified period.Generally, it is long term.It is more ... Read More

The major differences between active and passive investment are as follows &mius;Active InvestmentIt is an investment invested after doing independent analysis on value of each investment.The main objective is to beat market performance.It focuses on absolute terms.In view of investor perception, market may be inefficientIt has higher transaction frequency.It has high returns and more risk.It has high operating cost.It includes short term price fluctuations.High skills are required to make decisions.It is highly flexible in investing.Passive InvestmentIt is invested after investor portfolio is matched with market portfolio.The main objective is to match tracked index.It focuses on relative returns.In the view of ... Read More

The major differences between capital account and current account are as follows −Capital AccountThese are accounts related to capital investments and expenditures of a country to another.It measures inflow and outflow of capital in economy.It evaluates country net investment position.Impacts foreign assets and liabilities of a country.Deals with source and utilisation of capital.Current AccountThese are accounts related to trade of goods and services of a country.It measures inflow and outflow of goods and services in the economy.Merchandise trade, services, income receipts and unilateral transfers are key components.It evaluates trade surplus/trade deficit of a country.Impacts on net income and output of ... Read More

The major differences between large cap stock and small cap stock are as follows −Large Cap StockIf market capital is greater than 20, 000 crores, then it is called large cap stock.The risk is less.There are less returns.It has relatively high stability in business.The availability of information is high.It has less growth potential.Small Cap StockIf the market capital is less than 500 crores, then it is called as small cap rock.The risk is high.There are high returns compared to mid-cap.It has relatively low stability in business.Less information is available.It has high growth potential.Read More

The major differences between annuity and lump sum are as follows −AnnuityThe payments are spread across the period of time.An investor who wants regular inflow of payments prefers annuity.It is short term in nature.The types of annuity are deferred and immediate.An amount received is very less to take decision about investment or business.The cash flow will add up to larger amount.Lump sumThe payment is made at once.An investor who is willing to get the money at point of time will prefer lump sum.It is long term in nature.There are no types in lump sums.It includes high tax burden.The payment is ... Read More

The major differences between period cost and product cost are as follows −Period CostIt’s the cost not allocated to any products and is charged as expenses.It is also called as operating costs.Time is the basic for period cost.It contains only non-manufacturing cost.It is recorded as expense in income statement.It is not considered for valuation of inventory.It is considered by valuation (cost inventory).It includes Administrative cost, distribution cost etc.It is not a part cost of production.The cost is fixed.Examples − audit fees, rent etc.Product CostIt is the cost allocated to products.It is also called as inventorial cost.The volume is basis for ... Read More