Risk and return Overview: Risk and return are two key factors influencing investment decisions. These two words are highly and positively correlated with each other. In fact, there is a most popular finance principle that says, “ higher the risk…
Foreign Exchange Risk Overview: Exchange rates are quoted as a number of units of one currency (variable currency) in exchange for one unit of the other currency (base currency). Exchange rates are very volatile in nature. This means that exchange…
External Sources of finance: The choice of methods of financing is among the financial decisions taken by the management. One way of categorizing the sources of finance for business is to split them into internal and external sources. So, basically,…
Sources of Finance: Every business needs finance to run or grow the business, whereas the financial needs of every business are different according to the type and size of the business. There are several sources of finance, however, the objective…
Objectives of internal control: Internal control refers to all the methods and procedures implemented within the organization to safeguard assets, enhance the reliability of accounting records, boost the efficiency of operations, and ensure compliance with laws and regulations. There are…
Difference between economic investment and financial investment: When entrepreneurs, corporate executives, and common people use the word investment, they almost always mean financial investment. In fact, the common meaning of the word investment is a financial investment. However, there is…
Macroeconomic factors overview: The economy of any country, either good or bad, always depends on multiple macroeconomic factors. In order to understand how economies operate and how their performance could be improved, economists collect the economic data and then make…
Fundamentals of Corporate Finance: Corporate finance is one of the types of finance associated with capital expenditures, investments, and all spending by a corporation. Not only does it keep a record of them, but also assists the management to take…
Types of Finance Overview: Finance has been around for decades; however, it has changed its shape, basis, concept, and purpose of existence now and then. Today, it is nothing closer to what it used to be a decade ago, but…
Types of Unemployment Overview: Unemployment is a macroeconomic problem that affects people and the economy as well. There are three types of unemployment as referenced by economists: Frictional, structural, and cyclical. Economists say that the economy is “fully employed” when…