Mortgage companies typically offer owner finance agreements. This is because not many people can afford to hand out $100,000 plus at the time of signing for a home. It is necessary to finance a customer over a period of time. They generally do this to gather interest and make a profit.
In finance, the rate of return is a profit from an investment whereas the set rate determines the profit. For example, if an investor receives 10% for every $100 invested then the rate of return would be $10.00.
The finance companies give loans for interest at higher rates, they also lend money from banks and others for cheaper rates, if necessary. The difference of interest between these two is their profit.
Well, every business finance anywhere in the world is guided by profit motivation. Without profit motivation, no business finance can be fruitful and the organisation is bound to be debarred from growth and natural expansion. In competetion scenario,no organisation can even survive without the goal of earning profit. The organisation is answerable to the share holders, as the later would not be foolish to retain shares in a loss making organisation.Since profit in business covers the cost of production and also create a surplus for undertaking expansion and diversification work and leads to the survival of business. Hence, it is considerd as one of the objective of business finance.
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
A company's profits are a key method to finance growth by using those profits into research & development. Should a company require more funding to finance growth, then issuing corporate bonds and - or taking out loans will augment the funds needed for research & development. Growth can also be funded by buying another company which has large cash reserves and or products that are very profitable. Here, the buying company must make an attractive offer and create the financing to make this deal work.
Generally there is no difference only when they come to financial policies there is a great difference. As profit organizations finance from there Income while non profit organizations take funds and donations.
the private is here to absorve profit which the public secte is not.
Mortgage companies typically offer owner finance agreements. This is because not many people can afford to hand out $100,000 plus at the time of signing for a home. It is necessary to finance a customer over a period of time. They generally do this to gather interest and make a profit.
the private is here to absorve profit which the public secte is not.
In finance, the rate of return is a profit from an investment whereas the set rate determines the profit. For example, if an investor receives 10% for every $100 invested then the rate of return would be $10.00.
The finance companies give loans for interest at higher rates, they also lend money from banks and others for cheaper rates, if necessary. The difference of interest between these two is their profit.
why is the distinction between insurable and uninsurable risks is significant for the theory of profit
Internal finance is money which is used to help the firm but the the money comes from within the business for example: A internal finance to a firm is last year's profit.
Functional finance is an economic theory. It believes that the government should finance, but not necessarily control, areas like the achievement of full employment for a country.
Hire purchase can give the good profit,
Interest on Loan