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The following terms are in everyday use in financial regions, such as commercial business and the management of large organisations such as corporations. Noun phrases [ edit ]
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization ...
Each account in the chart of accounts is typically assigned a name. Accounts may also be assigned a unique account number by which the account can be identified. Account numbers may be structured to suit the needs of an organization, such as digit/s representing a division of the company, a department, the type of account, etc.
In other words, managerial economics is a combination of economics and managerial theory. It helps the manager in decision-making and acts as a link between practice and theory. [ 12 ] Furthermore, managerial economics provides the tools and techniques that allow managers to make the optimal decisions for any scenario.
In other words, an income in the future needs to be discounted, in some manner, to obtain its present equivalent. The factor by which a future income is reduced is known as the 'discount rate'. Thus, $1.00 received a year from now is worth $0.9091 at a 10% discount rate , and its discounted value will be still lower two years down the line.
A share expresses the ownership relationship between the company and the shareholder. [1] The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company, [3] which may not reflect the market value of those shares. The income received from the ownership of shares is a ...
Equity and debt financing represent the total financing of companies and other legal entities (such as local authorities). They provide information on the origin of the financing funds, which in the case of equity financing come from the shareholders or from the company itself (retention of earnings and depreciation and amortization) and in the case of debt financing from creditors or from the ...