Found 597 Articles for Management

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

The major differences between revenue and turnover are as follows −RevenueIt is the total value of goods sold by a company.It is the money earned by selling goods/services.It effects the profitability of a company.It calculates the gross profit, net profit and operating profit.It determines growth of the company.The types of revenue are operating revenue and non-operating revenue.It is mandatory to report on income statement.TurnoverIt is an income generated by trading of goods/services.It is makes/burns of the asset by a company.It effects the efficiency of a company.It calculates inventory turnover ratio, asset turnover ratio, sale turnover ratio, accounts receivable and accounts ... Read More

The major differences between marginal tax rate and effective tax rate are as follows −Marginal Tax RateIt is additional tax paid on additional dollar is earned.It’s a percentage of income paid on additional dollar earned.Different tax rates are applicable.Amount paid is higher (calculated amount).Higher income people/companies pays more taxes.Taxation goes down when income decreases.Not good for business expansion and is a complicated method.Effective Tax RateIt is tax paid on taxable income.Its percentage of income paid on taxes.Multiple tax rates are applicable.The tax amount is less (compared to marginal tax rate).It has diversified impact.It has minimal impact when income decreases.It promotes ... Read More

The major differences between limited partner and general partner are as follows −Limited partnerLiable to extend of investment made.Ownership is predefined in agreement.Minimal control partner.Profit/loss is shared according to investment proportion.It has complex structure.More paperwork is required.Less participation in day to day business activities.General PartnerIt has unlimited lability.It has equal ownership right.More control as compared to limited partner.Profit/loss shared equally or according to agreement.It has simple structure.Less paperwork is required.Major participation in day to day business activities.

The major differences between calendar year and fiscal year are as follows −Calendar yearIt has fixed time period.It is used in normal life undertaking.It includes 365 days (from January 1st to December 31st).Tax reporting is easy.MNC’s Financials is simple.Easy to compare financials of different companies.Fiscal yearBusiness can choose its starting date as per their requirement.It is used to prepare business accounting, financial reporting and tax reporting.12 months’ period is there in a fiscal year.Tax reporting is complicated as compared to calendar year.MNC’s financial is time taking.Comparison of financials of different companies is difficult.Read More

The major differences between limited liability companies and partnership are as follows −Limited liability companiesPartnershipsOffers features of both partnership and a body corporate.It is governed by Limited Liability Partnership Act, 2008.Registration is mandatory with the ministry of corporate affairs.Charter document is LLP agreement.Liability is limited to capital contribution (except for fraud cases).Can be sued/sue in its nameThey have separate legal status.Name of the firm contains LLP in its suffix.No limit for maximum partnersThere is perpetual succession.Audit of account is mandatory, only if turnover is above 40 lakhs and capital is above 25 lakhs.LLP can’t be converted to partnership.Cost of formation ... Read More

The major differences between stock option and Restricted share unit (RSU) are as follows −Stock OptionIt is right to employee to buy fixed share at a fixed price and time.The employees receive stock after vesting period.Stock is used as a mode of payment.Taxes on non- qualified stock and incentive stock.Market price (stock) is greater than grant price.The shareholders have full rights.There are voting rights and dividends.There is no exercise price.Restricted Share Unit (RSU)It is an assurance by a company to pay the amount of stock/cash after questing period is completed.The employees can get tax benefits after vesting period.The mode is ... Read More

The major differences between EBITA and operating income are as follows −EBITAEBITDA is defined as sum of EBIT, depreciation and amortisation (or) sum of net profit, taxes, interest, depreciation and amortisation.It tells about company’s profit earning capacity.The earning capacity of an organisation is calculated.It is not recognised by GAAP.The adjustments are made (depreciation/Amortisation).It is calculated prior to operating income calculation.Operating incomeOperating income is defined as difference between net sales, cost of goods sold and operating expenses.It tells about the profit earned due to operating activities.It calculates how much revenue is converted into profit.It is recognised by GAAP.No adjustments (depreciation/amortisation) are ... Read More