The major differences between investment and speculations are as follows −InvestmentPurchasing an asset/security for good returns is termed as an investment.It is long term and has moderate risk.Investors will go for the cautions and conservative approach.The decision is made on financial performance of a company.The returns are modest and continuous.It is used for self.Examples &minnus; stock markets, bonds, mutual funds etc.SpeculationsA risky financial transaction for high profits is termed as speculation.It is short term (less than a year).An investor will go for an aggressive approach.The decision is made on technical charts, market psychology and individual decisions.It excepts return at high ... Read More

The major differences between interest rate and annual percentage rate are as follows −Interest rateIt is used to calculate monthly payments/EMIs of loans.It relates to cost of borrowing.The formula to calculate the interest rate is as follows − A = P(1+rt), where, A implies simple interest, P for principle amount, r for interest rate, t is time period.It impacts outstanding debt amount.The high interest rates are preferred.Annual percentage rateIt provides full information on principle amount which reflects cost of loan.It relates to total cost of loan.The formula to calculate annual percentage rate is as follows − Annual percentage rate = ... Read More

The major differences between industry and sector are as follows −IndustryIt includes group of organisation/firms who produces similar products/goods.It comprises grouping of companies/enterprises based on their business activities.It is categorised based on their process.The scope is narrow and it has a specific term.There are different firms which can for form cluster.It is ranked after sector.It has specific analysis view.Examples − manufacturing industry, extractive industry, construction industry etc.SectorIt includes business groups, which are having similar services/products.It comprises of entities/companies having similar processes/product line/operating activities.It is categorised based on business activities.It has wide scope and a general term.Industries combined to form sectors.It ... Read More

The major differences between entrepreneurship and management are as follows −EntrepreneurshipManagementEntrepreneurship refers to creating a company/firm by considering financial risk.It motivates to start a business.It includes start-ups , venturesTagged as owner.The rewards come in form of profits.It accepts risks.It sets goals.The decisions are made on personal perception.Includes innovator.The process is centralised.Opportunity recognition, feasibility analysis, business planning and runningPart of managementContemporary aspects includes social entrepreneurship, venture growth etc.Management refers to doing business activities by a group of people or by organized groups.It motivates to manage business.It will take care of the ongoing operationsTagged as an employee.Employees get their salaries.It does not ... Read More

The major differences between time and money are as follows −TimeIt is defined as hours spend on work.It is measured in terms of seconds, minutes, hours.It is more valuable than money.Its value remains constant.The value earned differ from person to person.It is neither earned nor purchased.It is not constant and can’t be saved.It is limitedIt plays an important role in earning.It can’t make future contingency.We can’t control time.MoneyIt is defined as an amount earned for work done.It is measured in terms of value, exchange and payments.It depends on time.Its value decreases with time.The value of money remains same for all.It ... Read More

The major differences between shareholder and stakeholder are as follows −ShareholderThey are people who owns the share of the company.They act as owners and are a subset.There are limited shareholders for a company.A company includes equity and preference shareholders.They focus on investment.They have direct impact on financial performances.They have single dimension.The success is measured by value enhancement.Their main aim is to increase profitability, increase dividends, increase share price and maximise shareholders value.StakeholderIt’s a party who have a stake in a company.They are interested parties and are a super set.Every company/organisation have stakeholders.Stakeholders includes shareholders, creditors, customers, suppliers etc.They focus on ... Read More

The major differences between credit and debit are as follows −CreditIt decreases in assets and increases in liabilities.It indicates the amount withdrawn.It represents in the right side of T format ledger.It is recorded as GIVER in a personal account.It is an amount What Goes Out in real account.It records all incomes and gains in Nominal account.DebitIt increases in assets and decreases in liabilities.It indicates an increase in asset/amount.It represents the left side of T Format ledger.It is recorded as RECEIVER in personal account.It is an amount What Goes In, in real account.It records all expenses and losses in Nominal account.Read More

The major differences between direct cost and indirect cost are as follows −Direct costIt is the cost, which is directly/easily referable to the product/services.It is easily calculated.It is attributable, has variable cost and can be easily identified.It is expended on specific cost object.All direct costs are known as prime cost.Examples − raw material cost, transportation cost etc.Indirect costIt is the cost that is not easily referable to a particular service/product.It is not easily calculated.It is not attributable, has fixed cost and is difficult to identify.It is expended on multiple cost objects.All indirect costs are known as overhead cost.Example − Administration, ... Read More

The major differences between loan and mortgage are as follows −LoanIt has high interest rates.It can be secured/unsecured.It is not collaterally backed.The loan period is less as compared to mortgage.There are few formalities in case of unsecured loans when compared to mortgage.It requires less documentation.Examples − open ended loans, close ended loans, student loans, payday loans etc.MortgageIt has low interest rates.It is always secured.It can be backed collaterally.The loan is period is more as compared to loan.There are strict measures for loans in mortgage.It requires more documentation.Examples − VA Loan mortgage, reverse mortgage, adjustable rate mortgage, fixed rate mortgage etc.Read More

The major differences between forex and stock market are as follows −ForexThe size of the market is large.It has high leverage as compared to stock market.It has no qualifying requirements.It is less regulated than stock market.It has high liquidity.It is open for 24 hours.The commissions are minimum or zero.The focus is narrow.The buying/selling involves multiple currencies.Stock marketThe size of the market is less.It has less leverage as compared to forex.There are certain qualifying requirements.It is more regulated than forex.It has less liquidity.It is open for 8 hours only.The commissions are high.It has wide focus.The buying/selling involves single currency.Read More