What is economic stabilization? Economic stabilization or macroeconomic stability is a situation when an economy’s output matches its production capacity, its labor resources being fully employed, and inflation being at lower levels. Policymakers create economic policies such as fiscal policy…
What is budgeting? Budgeting is essential to financial well-being. Being an student, you always budget your study time and your money. Families budget income and expenses. On the other hand, Governmental agencies budget revenues and expenditures. While businesses create budgets…
Risk and return: 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 higher…
Foreign Exchange Risk 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 rates…
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: The economy of any country, either good or bad, always depends on multiple macroeconomic factors or macroeconomic variables. In order to understand how economies operate and how their performance could be improved, economists collect the economic data and…
What is 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…