Valuation Drivers
Business valuation is the assessed worth of a business in monetary or material terms. It depends on the perception of future business potential of the business.
Bootstrapping: Meaning, Phases, Advantages, and Disadvantages
Bootstrapping is a process of establishing and developing the business from the 0th level without borrowing any funds. Here the owner of the business finances the business with his/her …
Incremental Cash Flows
What is the incremental cash flow? Incremental cash flow is the extra cash flow a business will generate by investment in a new project over and above its existing …
Active Return: Meaning, Formula, Interpretation, Information Ratio, and More
Active Return is the return generated, out of the various decisions made by the portfolio manager or the fund manager. Here the returns could be either profits or losses, …
Fundamental Analysis
Fundamental Analysis is an approach for market prospects analysis of a security or stock. It covers financial as well as the complete business eco system. It is a useful …
Key Man Clause – Meaning, Importance, How to Implement and More
Key Man Clause is a contractual term that protects the lender or investor. The presence of such a clause prevents a company from taking decisions in case their key …
Production Possibility Frontier: Meaning, Assumptions, Graphical Curve, Interpretation, and More
Production Possibility Frontier: Meaning Production Possibility Frontier (PPF) is a macroeconomics concept that shows various combinations of two products or services using almost the same and finite raw materials …
Rule of 69 – Meaning, Benefits, Limitations and More
Rule of 69 is a general rule that calculates how much time investment or saving would take to double in case of continuous compounding of interest. A point to …
APIC Accounting: Meaning, Working, Accounting Process, Importance and More
In accounting terms, APIC stands for Additional paid-in Capital. And it is an additional amount the investors are ready to pay above the par value of the stock. Therefore, …
Comprehensive Budget
What is a Comprehensive Budget? A comprehensive budget consists of all the recurring income and expenditure and non-recurring expenditure. It does not include non-recurring income as according to the …
