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Which factors would explain an increase in retained earnings?
INFLATION
What are the factors to be considered in multinational capital budgeting?
There are seven factors to consider in multinational capital budgeting. The factors are: Blocked Funds, Exchange Rate Fluctuations, Financing Arrangement, Impact of Project on Prevailing Cash Flows, Inflation, Real Options, and the Salvage value.
Do companies decide each year's dividend by looking at their capital expenditure requirements and then distributing whatever cash is left over?
While companies do consider their capital expenditure requirements when deciding on dividends, the decision is not solely based on leftover cash. Management typically evaluates a variety of factors, including earnings, cash flow, debt obligations, and overall financial health, as well as shareholder expectations and market conditions. This comprehensive analysis helps determine a sustainable dividend policy that aligns with long-term corporate goals. Ultimately, the goal is to balance reinvestment in the business with returning value to shareholders.
What is working capital and what factors affect the size of working capital in an enterprise?
Requirements Of working capital depend upon various factors such as nature of business, size of business, the flow of business activities. However, small organization relatively needs lesser working capital than the big business organization. Following are the factors which affect the working capital of a firm:1. Size Of BusinessWorking capital requirement of a firm is directly influenced by the size of its business operation. Big business organizations require more working capital than the small business organization. Therefore, the size of organization is one of the major determinants of working capital.2. Nature Of BusinessWorking capital requirement depends upon the nature of business carried by the firm. Normally, manufacturing industries and trading organizations need more working capital than in the service business organizations. A service sector does not require any amount of stock of goods. In service enterprises, there are less credit transactions. But in the manufacturing or trading firm, credit sales and advance related transactions are in large amount. So, they need more working capital.3. Storage Time Or Processing PeriodTime needed for keeping the stock in store is called storage period. The amount of working capital is influenced by the storage period. If storage period is high, a firm should keep more quantity of goods in store and hence requires more working capital. Similarly, if the processing time is more, then more stock of goods must be held in store as work-in-progress.4. Credit PeriodCredit period allowed to customers is also one of the major factors which influence the requirement of working capital. Longer credit period requires more investment in debtors and hence more working capital is needed.But, the firm which allows less credit period to customers needs less working capital.5. Seasonal RequirementIn certain business, raw material is not available throughout the year. Such business organizations have to buy raw material in bulk during the season to ensure an uninterrupted flow and process them during the entire year. Thus, a huge amount is blocked in the form of raw material inventories which gives rise to more working capital requirements.6. Potential Growth Or Expansion Of BusinessIf the business is to be extended in future, more working capital is required. More amount of working capital is required to meet the expansion need of business.7. Changes In Price LevelChange in price level also affects the working capital requirements. Generally, the rise in price will require the firm to maintain large amount of working capital as more funds will be required to maintain the sale level of current assets.8. Dividend PolicyThe dividend policy of the firm is an important determinant of working capital. The need for working capital can be met with the retained earning. If a firm retains more profit and distributes lower amount of dividend, it needs less working capital.9. Access To Money MarketIf a firm has good access to capital market, it can raise loan from bank and financial institutions. It results in minimization of need of working capital.10. Working Capital CycleWhen the working capital cycle of a firm is long, it will require larger amount of working capital. But, if working capital cycle is short, it will need less working capital.11. Operating EfficiencyThe operating efficiency of a firm also affects the firm's need of working capital. The operating efficiency of the firm results in optimum utilization of assets. The optimum utilization of assets in turn results in more fund release for working capital.
What is the amount capital in variety store?
The amount of capital necessary to open a variety store depends on a several factors. Real estate can be the biggest outlay, and one must also consider what and how much they want to stock. The required capital could be as little as a few hundred thousand up to $2 million.
What factors a financial manager consider while estimating working capital requirements of a firm?
There are many factors that a financial manager will consider while estimating working capital requirements of a firm. The main factors will include the availability of resources and the returns it will bring to the firm.
Define and explain the four factors of production landlaborphysical capitalhuman capital?
Define factor of production land ,labour,physical capital ,human capital?
Explain growth of the global economy?
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
4 factors of production?
capital:man-made machines usedentrepreneurship:person that starts a businessland:all natural resources found in the landlabor:all human resources
How do you determine the authorised capital?
The authorized capital is usually determined by the company owners and stated in the company's incorporation documents. It represents the maximum amount of capital the company can raise through the issuance of shares. It is important to consider factors such as business needs, growth plans, and regulatory requirements when determining the authorized capital.
How do push and pull factors explain people's decision to migrate?
how do push factors and pull factors explain people's decisions to migrate
State and explain the four factors of production giving one example in each case?
Factors of production are the basic inputs used in the production of goods and services. It includes land,labour,capital and entrepreneurship. By Lamptey Samuel Boafo
According to the classical school prices of factors and products are?
According to the classical school prices of factors and products are capital, fixed capital, working capital, financial capital and technological progress.
What are factors affecting capital accumulation in an economy?
determinants of capital accumulation
Explain how each of the cultural factors contribute to cultural tourism?
explain how each of the cultural factors contribute to culural tourism?
Factors affecting capital structure?
There are many factors that can affect capital structure. The most common factor is a downturn in the economy. A decrease in sales can also affect the capital structure.
What the the four factors of economic growth?
Physical capital, human capital, natural capital & technological change.
