debt\equity mix is an important ration b\c it gives the reader of financial documents the ability to quickly determine how liquid an entity is in the event that a business becomes insolvent or bankrupt. if you sold everything in the business what would be it's market value (not book value) to meet all demands from your creditors. this ratio that you seem concerned with is not relevant unless you are in 1 of 3 situations: 1st. In the event that someone is trying to buy your company and are trying to determine an appropriate value or "price" to buy your business. 2. In the event that you are borrowing money and a bank asks to see your financial statements. 3. In the event your company is listed on a publicly traded Stock Market and financial institutions are analyzing your companies strength. A more appropriate ratio for the latter situation would be a price\earnings ration which would give them information of how profitable your stock has been in the past. The only way to alter this d\e ratio is to purchase, invest, aquire, etc. capital goods or inventory that will retain some resale value (which most capital goods usally do) such as vehicles, computers, furniture, tractors, forklifts, inventory. Do you see? Equity is the part of your business that has tangible value or something you can touch. Others want you to have a healthy mix of the two so that they know they can sell everything and pay debts quickly with the worst case scenario. Sort of a street smart approach to doing business. Good luck.
We shall ignore any extraneous factors.
Entrepreneurial ability is refers to the ability to be able to manage a business well. This is one of the most critical factors of production.
There are an endless array of both internal and external factors that can have either a positive or negative affect on business operations. External factors would include changes in the economy, government regulation, war, weather (i.e. hurricanes, flooding, etc.), competition and market changes, among others. Usually external factors are beyond the control of management.
Yes, this is true
There are four main factors that influence supply elasticity. Those factors are the ability to produce other goods; the ability to shut down and cease business; the ability to take advantage of alternative resources; and the amount of time it takes to respond to changes in price.
example of factors that affect one's ability and sexuality
how environmental factors affect in business
The lab technicians said that the stray hair found on the toilet seat was from a previous guest who'd stayed in the hotel room, and was totally extraneous to the investigation.Exactly what I saw that night, I'm not sure, but it was extraneous to this plane of existence, and it still gives me nightmares.All seem to make values depend on extraneous factors.Many people may not want all this extraneous software cluttering up their hard drive.
There are many different factors that affect business policy. These different factors range from shareholders to the dividend policy of a certain business.
factors limit the credit creating ability of commercial bank
The demand of the business school and the number of business school are some of the factors to consider when starting a business school.
There are many factors that affect an individual's ability to learn including nutrition. The people in the individual's life also affect the ability to learn.
Some internal factors that impact the business environment include competitors and business resources. External factors that affect the business environment barriers to entry and government regulations.
wht are the factors of communication in business?// i need the answer please
M. F. O'Reilly has written: 'The influence of extraneous factors on displacement perimetry thresholds'
Human factors, Physical factors, and technological factors.
Internal factors that influence the business environment include businesses that believe in innovation. External factors that influence the business environment include government regulations.
Various factors can affect the globalization of a business. For example, cultural factors may affect how viable a product is in a certain location.
There are extraneous factors and internal factors that can cause cancer. The extraneous factors include chemical factors, like nitrosamines, physical factor, such as radiation, and biological factors, like RNA virus. The internal factors include inherent causes, Immune factors, as well as Endocrine factors. Therefore, not only enviromental, inherent reasons, but also eating habits, work-rest habits can also determine whether a person will get cancer or not. However, the most important thing is not to cure cancer but to forecast cancer and to prevent cancer. Now genetic testing for cancer is available. I have ever seen a website about genetic testing for cancer at CD Genomics website. Hope this is more helpful for us.
what are the factors affecting an effective filing system in business organisation in nigeria
Various factors can affect if someone chooses to use a business or not. For example, the location and the price.
The global factors affecting business are the issues that will influence the way business runs from one country to another. Some of the main factors are political, legal, social as well as technological developments.