The major differences between discount rate and interest rate are as follows −Discount RateFederal reserve banks charges to depository institution/commercial banks on its overnight loans.Central banks decide the rate.It is not determined by market rate of interest.It determines present value of future cash flows.It focuses on investors view.The demand and ... Read More

The major differences between ROIC and ROCE are as follows −ROICROIC refers to Return on invested capital.It aims to find the return relative to capital which is invested in business.It evaluates profitability by considers only capital invested in the business.ROIC = Net operating profit/invested capital.Company said to be profitable, if ... Read More

The major differences between licensing and franchising are as follows −LicensingFranchisingBusiness model deals with products and goods.Ownership is with licensee.Governed by contracts law between partiesWithout investing huge capital licensor will get vertical integration in market.Licensor don’t have control over intellectual property rights.Registration is not mandatory.No training and support is provided.One-time ... Read More

The major differences between budget and forecast are as follows −BudgetIt’s a business plan made by management for future with quantitative.It shows what a company want to achieve during a period of time.Generally, it is short term.It is static in nature.It is used as tool to manage operational performance in ... Read More

The major differences between active and passive investment are as follows &mius;Active InvestmentIt is an investment invested after doing independent analysis on value of each investment.The main objective is to beat market performance.It focuses on absolute terms.In view of investor perception, market may be inefficientIt has higher transaction frequency.It has ... Read More

The major differences between capital account and current account are as follows −Capital AccountThese are accounts related to capital investments and expenditures of a country to another.It measures inflow and outflow of capital in economy.It evaluates country net investment position.Impacts foreign assets and liabilities of a country.Deals with source and ... Read More

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 ... 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 ... 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 ... 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 ... Read More