Found 235 Articles for Economics

Introduction Financial analysis is also considered to be a helpful tool to correctly analyze the condition of the business by many analysts. Since financial analysis is performed according to set mathematical standards, many analysts argue that it helps to minimize human errors to a large extent. Financial analysis is also dependent on information that is collected from accounting books. So, many analysts believe that it represents true outcomes that may have occurred even if the business policies were followed without actually performing business. Hence, the real outcomes of virtual policies can be obtained from financial analysis. Meaning of Financial ... Read More

What is meant by Industries? Businesses can range from sole proprietor enterprise to big corporation that employs thousands of workers across multiple countries. Depending on the scale of business, organizations can be classified as micro-enterprises, small-scale enterprises, large-scale industries, public enterprises, and multinational corporations. There are a number of business organizations that form industries depending on their products, forms of manpower, capital requirements, etc. Therefore, there are small-scale industries, medium-range industries, large-scale industries, and multinational corporations available as forms of business worldwide. Industries are referred to as part of the economy that helps in the production, processing, and modification ... Read More

Introduction Depending on various factors, companies may be classified into various categories. These factors may include liabilities, member count, parameters of holding, or control among others. Let’s check the types of companies possible to be divided into various classes one by one. Types of Companies Companies may be broadly categorized into the following types: Based on Liabilities Companies Limited by Shares Companies Limited by Guarantee Unlimited Companies Based on the Member Count One-Person Companies (OPC) Private Companies Public Companies On the basis of Control or Holding Holding and Subsidiary Companies Associate Companies Companies ... Read More

What is the Issue of Shares? The issue of shares is the way to allocate new shares to the shareholders. Shareholders may be either individuals or corporate. The allocation of shares in India is made according to the Companies Act 2013. The issue of prospectus, receiving applications, and allocation of shares are three steps in the issue of shares. A company’s capital accumulation can be collected via many installments. The first installment is collected during application which is known as application money. The second installment which is usually made while the allocation of the shares takes place is known as ... Read More

What is meant by the Issue of shares at a Premium? Usually, a company’s capital is made up of shares that are used to earn more capital for the company. Shares are issued to the public by public companies. Shares are issued through a process called initial public offering or IPO. Companies may offer shares at face value or par value. However, companies may also offer shares at a value more than the face value. This process of issue of shares at a higher value than the face value is known as the issue of shares at a premium. Premium ... Read More

What is a Debenture? A debenture is a form of corporate debt that is not supported by collateral. Therefore, companies do not have to pledge their assets to comply with the capital requirement. The trust of the issuing company is therefore an important factor for the financial validity of the debenture in the market. Some government organizations also issue debentures for their infrastructure and growth projects. As these firms do not have to pledge anything during the issue of debentures, traders can earn higher profits from the debenture trade in the market. Debentures are therefore traded by networks of investment ... Read More

What is an Investment and How it Works? Investment refers to an asset or item for earning income or appreciation in the future. Appreciation refers to growth in the value of the asset over time. When a good is purchased for investment purposes, the intent may not be to use the good but to earn interest and more value from it in the future. The main reason for investment is to create wealth from an asset, and not to consume it. There must be an outlay of a resource in the present that includes effort, time, money, or an asset ... Read More

Introduction Intermediate goods are important intermediaries in the production process and hence they are very important in nature. These goods change or create new goods so that the final product could be made and reached the final consumer. Apart from creating intermediate goods, industries purchase and sell intermediate goods amongst each other. Knowing about the process of production of intermediate goods, therefore, can be beneficial for developing business expertise. What are Intermediate Goods? Intermediate goods are the goods or items that are unfinished items that can be used to process or transformed to make other goods. Companies may alter, merge ... Read More

What is a Debenture? A debenture is a certificate issued by a company. It is therefore an unsecured debt tool that is issued by a company to acknowledge that it owes money to the debenture holder. It is usually issued to the public with the help of a prospectus which is quite similar to the issue of shares. As no collateral is involved in the case of debentures, their holders are dependent heavily on the reputation and creditworthiness of the issuer. The primary motive for issuing debentures is to raise funding or capital for businesses. For investors, debentures are ... Read More

Images Coming soon Liquid Assets: Definition If an asset is easy to sell or convert into cash without any loss in its value it is said to be liquid. For example, checking accounts and banknotes are the most liquid assets. A liquid asset offers any individual or company access to cash at any time they want. It is advised that, at the time of investing, the investor should invest some amount in liquid assets. That is investors should have some liquid assets in their portfolio so that they can have an easy hand on their money during an emergency. Cash ... Read More