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Amalgamation

Amalgamation is the term referring to the process of combining one or more entities into forming a new entity. Neither of the combining companies survives as legal entities. Read the full article

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Scorched Earth Policy – Meaning, Types, Drawbacks, and More

Scorched Earth Policy is not any environment protection policy. Rather, one would come across this term in case of a corporate takeover (hostile takeover). Read the full article

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Financial Intermediaries – Meaning, Functions And Importance

A financial intermediary is an entity that facilitates a financial transaction between two parties. Such an intermediary or a middleman could be a firm or an institution. Read the full article

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Opportunity Cost of Capital – Concept, Example, and Consideration

A financial cost of capital, in simple words, is the average cost of financing the current projects. And this cost of capital is always represented in percentage terms. Read the full article

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Incremental Budgeting – Meaning, Advantages and Disadvantages

Incremental budgeting is an important part of management accounting based on the premise of making a small change to the existing budget for arriving at the new budget. Read the full article

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Hostile Takeover

Definition Of Hostile Takeover A hostile takeover is the acquisition of one organization by another. Hostile takeover takes place by approaching a company’s shareholders directly or fighting to Read the full article

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Types of Invoice / Receivable Factoring

There are various types of factoring based on variations in the different services and agreements between the business and the factor. Read the full article

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Currency Arbitrage – Meaning, Types, Risk and More

Arbitrage is a trading strategy in finance that is possible due to the inefficiencies in a market. And, currency arbitrage is no different. Read the full article

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Balloon Payment

Definition of Balloon Payment A balloon payment is defined as a significantly large amount of payment made at the end of the loan tenure. Read the full article

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Mezzanine Fund – Importance, Advantages And More

Mezzanine Fund or Mezzanine loan does not fall into the category of pure debt or pure equity. In other words, it is a very high risk and high reward instrument that fills the gap between senior debt Read the full article

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How to Calculate EPS?

Understanding EPS Earnings per share or EPS is the portion of a company’s profit that is allocated to each individual outstanding share. Read the full article

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When does the cost of the inventory become an expense?

Inventory Cost as Expense The cost of the inventory becomes an expense when a business earns revenue by selling its products/ services to the customers. Read the full article

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Debt Ratio

What is Debt Ratio? The debt ratio determines the relative proportion of debt to total assets; it measures the proportion of debt used to finance the company’s assets. Read the full article

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Paid-in Capital – Meaning, Advantages Disadvantages and More

Paid-in capital or Contributed capital is part of the stockholders’ equity. It is the capital or the cash that a company receives when it issues shares to the investors. Read the full article

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Fixed Overhead Volume Variance

What is Fixed Overhead Volume Variance (FOVV)? Fixed overhead volume variance is stated as a figurewhich is equal to the standard fixed overhead less the budgeted overheads at a particular level of Read the full article

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Types of Financial Decisions

What are Financial Decisions? Financial decisions are the decisions that managers take with regard to the finances of a company. Read the full article

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Bonds and their Types

A bond is a financial instrument whereby its issuer raises (borrows) capital or funds at a certain cost for a certain time period and pays back the principal amount on maturity of the bond. Read the full article