The term Credit Policy is used to refer three decision variables: 1. Credit Standards 2. Credit Terms 3. Collection Efforts Credit Standards are criteria to decide the types of customers to whom goods could be sold on credit.If a firm has more slow paying customers, its investment in accounts receivable will increase. The firm will Read more
The profitability of the shareholder’s investment is measured by Earning Per Share(EPS). The Earning Per Share is calculated by dividing the profit after taxes by the total number of shares outstanding. EPS=Profit After Tax / Number of Shares outstanding EPS calculations made over years indicate whether or not the firm’s earning power on per share Read more
The Capital Asset Pricing Model is a model that provides a framework to determine the required rate of return on an asset and indicates the relationship between return and risk of the asset. Assumptions of CAPM 1. Market Efficiency : The capital market efficiency implies that share prices reflect all available information and the individual Read more
High Investment Grades AAA (Triple A): Highest safety of timely payment of interest and principal. AA (Double A) : High safety of timely payment of interest and principal. Investment Grades A : Adequate safety of timely payment of interest and principal. BBB (Triple B) : Moderate Safety of timely payment of interest and principal for Read more
What is a Bond? A Bond is a long term debt instrument or security.Bonds issued by government do not have any risk of default. Debenture: The private sector also issues bonds, which are also called debentures. The principal of a redeemable bond or bond with a maturity is payable after a specified period, called maturity Read more
Do you have problem starting Apache on Xampp.The error saysBusy when you try to start the service. Before arriving at the solution i installed fresh XAMPP 2-3 times, but the problem still persists. So looked a few forums and finally found a solution. The issue which was causing my Apache busy was linked with Skype. Read more
The internet provides a unique staging area for business activity.A business model is a method and set of assumptions that explain how a business creates value and earns profit in a competitive market. Some of the models used on internet are : 1. Commission based : Charges commission for brokerage or intermediary services. Adds value Read more
Balance of Payment is a record of economic transactions between the residents of one country and the rest of the world. Nations keep record of their balance of payments over the course of a one year period, some of the nations sch as US keep such records on quarterly basis. Current Account : Monetary value Read more
Porter’s Five forces Model is used as an analytical tool for examining the competitive environment.It has five basic competitive forces namely: 1. The threat of new entrants. 2.The Bargaining power of buyers. 3. The Bargaining power of suppliers. 4. The threat of substitute products and services. 5. The intensity of rivalry among competitors in an Read more
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