What is Activity-Based Costing?- Its advantages and Disadvantages
What is Activity Based Costing (ABC)?Activity Based Costing (ABC) is a 2 step method of costing whereby costs are first allocated to ‘identified activities’… Read Article
Buy Vs Lease
Buy vs Lease dilemma is faced by most entrepreneurs. The decision on whether to buy or lease is dependent on a number of factors… Read Article
Transaction vs Translation Exposure
Transaction exposure impacts a forex transaction’s cash flow, whereas translation exposure impacts the valuation of assets, liabilities, etc., shown in the balance sheet.
Multi-national… Read Article
Equity Multiplier
What is Equity Multiplier (EM)?Equity Multiplier is a key financial metric that measures the level of debt financing in a business. In other words,… Read Article
Cash Credit
What is Cash Credit?Cash credit is a facility to withdraw money from a current bank account without having a credit balance but is limited… Read Article
Recourse vs Non-Recourse Loan/Debt
Usually, debt or loan is secured against collateral, say ‘home’ in a home loan. In case the borrower defaults, the lender has the right… Read Article
Pecking Order Theory
Pecking order theory is a theory related to capital structure. Donaldson initially suggested it. In 1984, Myers and Majluf modified the theory and made… Read Article
Intellectual Property Rights
Meaning of Intellectual Property RightsIntellectual property is the creation of the minds of an individual which has commercial and moral value. Intellectual property rights… Read Article
Floating Charge
Meaning of Floating ChargeA floating charge is a type of security that a creditor undertakes on an entire business’s assets in respect of a… Read Article
Comparative Advantage
Meaning of Comparative AdvantageComparative advantage refers to the ability of a country to produce particular goods or services at a lower opportunity cost compared… Read Article
Difference between First Mortgage & Second Mortgage
What is First Mortgage?A first mortgage also referred to as a primary mortgage or a senior lien, is a loan taken out by a… Read Article