Found 399 Questions for Management

What are the differences between limited partner and general partner?

Mandalika
Updated on 27-Jul-2020 08:08:24
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.

Write the difference between calendar year and fiscal year.

Mandalika
Updated on 27-Jul-2020 08:07:35
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

Compare limited liability companies and partnership.

Mandalika
Updated on 27-Jul-2020 08:06:26
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

Distinguish between stock option and Restricted share unit (RSU).

Mandalika
Updated on 27-Jul-2020 08:04:12
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

What are differences between EBITA and operating income?

Mandalika
Updated on 27-Jul-2020 08:02:16
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

Write the difference between EBITDA and net income.

Mandalika
Updated on 27-Jul-2020 08:01:34
The major differences between EBITDA and net income are as follows −EBITAIt calculates profit making ability of a firm.The earning potential of a company can be calculated.EBITDA is defined as sum of EBIT, depreciation and amortisation (or) sum of net profit, taxes, interest, depreciation and amortisation.Tells about money income generated before expenses (taxes, interests, depreciation and amortisation).There is Overstates the cash flow.It is used by start-ups.Net incomeIt indicates total earnings of a company.It calculates earning per shares (EPS).Net income is defined as difference between revenue and cost of doing business.It tells about total earnings after reducing expenses (interest, tax, depreciation ... Read More

Differentiate between EBIT AND EBITDA.

Mandalika
Updated on 27-Jul-2020 08:00:29
The major differences between EBIT and EBITDA are as follows −EBITEBIT refers to Earnings Before Interest and Tax.It measures company’s profit.Operation results are represented on accrual basis.EBIT is defined as difference between revenue and operating expenses.Depreciation/amortisation is taken into account.When capital intensive is less, financial markets gives priority to this ratio.EBITDAEBITDA refers to Earnings Before Interest, Tax, Depreciation and Amortisation.It measures actual operating performance of a firm.Operation results are represented on cash flow basis.EBITDA is defined as difference between revenue and operating expenses.Depreciation/amortisation are not taken into account.When sectors are capital intensive, financial markets will emphasize this.Read More

Compare EBIT and operating income.

Mandalika
Updated on 27-Jul-2020 07:59:16
The major differences between EBIT and operating income are as follows −EBITIt calculates company’s profitability.It is used to understand the company’s profit making capacity.It is not recognised by GAAP.The adjustments are made.The non-operated expenses are also considered.It is not reported in financial statements.Operating incomeIt calculates profit gained through operations.It is used to know company’s capacity to convert their revenues into profit.It is recognised by GAAP.There is no need for adjustments.Only operating expenses are considered.It is reported in the financial statements.

Distinguish between EBIT and net income.

Mandalika
Updated on 25-Jul-2020 07:26:33
The major differences between EBIT and net income are as follows −EBIT (Earnings before Interest and Taxes)It evaluates profits earned through an entity.An operating income earned by an entity before adjustments (interests and taxes) is EBIT.The main purpose is to determine profit earning of an entity.EBIT can be defined as difference between revenue and operating expense (or) sum of net income, interest and taxes (or) difference between Earnings Before Interest Tax Depreciation and Amortisation (EBITA) and depreciation, amortisation expensesIt is used by governments, equity holders and debt holders.Interest and expenses incurred are not considered.Cost of operating business is ignored.Operating expenses ... Read More

Compare joint venture and partnership.

Mandalika
Updated on 25-Jul-2020 07:25:42
The major differences between joint venture and partnership are as follows −Joint VentureIt is a trade formed by two or more individuals.The duration of time is fixed.The parties are called Co-Ventures.The profit/loss are distributed on interim basis.There are no specific governing laws.A specific name is not required.The accounts may/may not be separately maintained.It follows liquidation accounting.It includes profit-seeking ventures.A minor is not accepted as a Co-Venturer.PartnershipIt is an agreement made by two or more individuals having respective proportionate shares to start a business.The duration of time is not fixed.The parties are called partners.The profit is distributed annually.It is regulated by ... Read More
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