Introduction: What is the Profit-Sharing Ratio? The term profit-sharing ratio is an essential factor in partnership firms. Profit-sharing is the ratio in which the firm's partners divide the profit from the business operation. The profit-sharing ratio is usually mentioned in the partnership deed of a business. As is evident, it ... Read More

Introduction: What is GDP? Gross Domestic Product or GDP is the monetary value of all goods and services produced in a nation within a specified period of time, typically one year. Calculation of GDP is prepared on all final and finished goods. This is done to avoid double entry. That ... Read More

What is the meaning of Government Deficit? Usually, in most cases, a government’s expenditure is not equal to its earnings. This creates a gap between earnings and expenses. When the spending of the government exceeds income through revenues, a government deficit occurs. In other words, the government deficit is the ... Read More

Introduction: What are Inferior Goods? Inferior goods refer to items that have a negative elastic relationship with demand and wages. When income increases, people tend to buy less of inferior goods. On the other hand, when income decreases, people tend to buy more inferior goods. One notable aspect that ... Read More

Introduction Exchange rate refers to the value of a currency when it is compared to another currency. That means the exchange rate shows how much local currency would be required to buy a certain amount of another currency. Usually, the comparison of local currency is done with US dollars. There ... Read More

Introduction: What is Goodwill in Finance? Goodwill refers to the reputation a firm builds over time. It is associated with a company’s brand value, functional consumer association, palpable consumer base, outstanding employee association, and any other patent or proprietary technology the company has. Goodwill is an intangible asset as it ... Read More

Introduction: What is Reconstitution of a Partnership Firm? Partnership firms are one of the most popular and oldest forms of business. In these firms, individuals may have different ownership or profit (and loss) sharing ratios. A partnership firm runs according to a formal document known as a partnership deed. The ... Read More

Introduction: What is National Income? National income is the total monetary value of products and services produced by a country in a given period of time. In other words, national income shows the income from all factors generated in a given production year. Therefore, by the term national income, we ... Read More

Introduction: What are Shares? Shares are the units of distribution into which the total capital of a company is divided. For example, if the total capital of a company is Rs 10 lakh and this capital is divided into 10, 000 units of Rs 100 each, then each unit of ... Read More

What are Normal Goods? Normal goods are those goods that have a positive elasticity relation with demand and wages. When the wage of a consumer increases, he/she buys more normal goods, and when the wages go down, they buy fewer normal goods. So, normal goods refer to the positive level ... Read More