Found 235 Articles for Economics

Introduction Do you want to be able to weather any business storm that comes your way? Then, now is the right time to employ diamond hands in your business portfolio. But what exactly is this term? It’s the capacity to hold on to an asset for prolonged period despite the market swings and price movements of underlying securities. In this tutorial, we'll discuss why having diamond hands is essential for investing and business success and how to develop this valuable trait. So relax, grab a cup of coffee, and get ready to learn the essential methods for long-term ... Read More

Introduction In trading business, it’s common for buyers to request sellers provide advance payment guarantees. This is because buyers want to protect themselves against any default from the seller’s side or failing to deliver the goods or services as per the agreement. The workings of advance payment guarantee are enlightened in this tutorial. Define Advance Payment Guarantee An advance payment guarantee is a financial tool promising the buyer that as per the agreement, the goods or services will be delivered post advance payment to the seller. The bank preserves this guarantee to protect the buyer from any loss ... Read More

Introduction Several industries, including economics, have been transformed by machine learning. Machine learning has made it possible for economists to evaluate massive amounts of data more quickly, make precise forecasts, and create models that better reflect the complexity of economic systems. In this article, we'll discover how machine learning has the potential to revolutionize how we think about and approach economics, from anticipating consumer behaviour to spotting fraud in financial transactions. Impact of Machine Learning on Economics Economic theory has seen a lot of change thanks to machine learning. Here are a few effects it has had on the area. ... Read More

What is Gaining Ratio? Gaining ratio is a term related to partnership firms. When a partner of a partnership firm retires, the remaining partners need to form a new partnership with a new partnership ratio. This new ratio is applied in distributing the profits and losses to the remaining partners. In financial and economic terms, the new partnerships ratio is called the gaining ratio. With the formation of the gaining ratio, the existing ratio of the partnership comes to an end, and a new partnership is formed. The continuing partners of the firm follow this new ratio to get the ... Read More

Introduction Every company incurs costs during its operations. It is impossible to think about a company with no cost. The companies therefore must be aware of the costs because the unnecessary costs may harm the financials absurdly. Saving funds by managing costs efficiently goes a long way in making a company profitable. That is why knowing more about costs is important for everyone. A company usually makes two types of costs depending on the nature of change along with the production volumes of the company. These two types of costs are − Fixed Costs Variable Costs. ... Read More

Introduction Usually, organizations have different types of assets. They may include property, plants, inventories, etc. The assets may have different natures and their properties may be different too. According to analysts, there is one fundamental difference among the assets depending on which the assets can be divided into two sections − Fixed Assets and Current Assets. The difference lies in the assets’ ability to get converted into cash. What is are Fixed Assets? Termed also as Property, Plant, and Equipment (PP& E) and as capital assets, fixed assets are tangible things of a company that can be ... Read More

Introduction Governments have both earning and spending as their responsibilities. Therefore, they earn revenues and spend money on public projects, such as infrastructure, education, and public health. There are two possible results of this − The government may either have a surplus or A deficit in the budget. Surplus refers to the extra revenue left while deficit refers to the loss of the government in terms of fiscal balance. What is the Fiscal Budget? The fiscal budget of a government is calculated by the revenues earned by the government by comparing it with the expenditure. When the ... Read More

What is meant by Dissolution of Partnership Firm? Dissolving a partnership firm legally means stopping the business under the name of the said partnership firm. In such a case, all liabilities are ultimately settled by selling off assets. Assets may be transferred to a particular partner, which settles all accounts that existed with the partnership firm. Transfer of any profit/ loss to partners takes place according to their profit-sharing ratio which is agreed by them in the partnership deed. Dissolving a partnership firm is different from dissolving a partnership. In the case of dissolving a partnership firm, the firm ends ... Read More

Introduction When the relationship between all the partners of the firm is terminated then it is called the dissolution of the firm. After the dissolution of the partnership firm, the firm won’t exist anymore. This dissolution process includes disposing and discarding of all the assets of the firm and/or settlements of accounts, assets, and liabilities. What is Dissolution of Partnership Firm? Dissolution of a firm or a partnership firm is a procedure in which the professional relationship between numerous partners of a firm is removed or terminated. After the dissolution of a partnership firm, a change takes place in ... Read More

Introduction Although often not mentioned, the financial statements of a company are the backbone of success. By keeping records of the company’s financial conditions, the accountants not only save the financial mechanism a company follows but also find out whether the company is profitable and working in the right direction. Therefore, financial statements are an indispensable part of the business. Financial statements are prepared by following a certain mechanism and the mechanism is based on appropriate business-oriented tools that help businesses become profitable and perform well enough. Therefore, these financial statements are considered to be unavoidable by businesses. Limitations ... Read More