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What is an example of a fixed expense thats paid for with discretionary funds?
Wiki User
∙ 9y ago
Budget items that remain the same month to moth is an example of a fixed expense that is paid for with discretionary funds. Discretionary fund is the money that is subject to one's own control.
Wiki User
∙ 9y ago
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What is fixed and working capital?
Fixed capital is something that is need for long term ...working capital is the capital or funds for managing and carrying out day to day operations. Apart from this a important point to note is that usually fixed assets or long term assets of the company are bought from fixed capital. Buying short term current assets from funds for long term would be illogical.
Do high tax rates slow the economy?
Generally speaking high tax rates take funds out of the private sector. A high tax burden leaves the private economy with less funds in invest in new technologies and to expand their growth. On an individual basis high tax rates leave people with less discretionary funds to make consumer purchases. These could be "big ticket items" such as new cars or smaller purchases that must now be delayed because of less money in the hands of the consumer.
What is direct and indirect flow of funds?
Supplying funds directly involves the surplus unit (person with funds available) lending to a deficit unit (person needing funds) in a financial market (no intermediaries such as banks are needed in the exchange). Indirectly supplying funds means you are giving an ADI (Authorised Deposit-taking Institution) your funds and they will in turn supply this to deficit units.The fundamental difference is that when you are directly supplying funds you are personally becoming involved in the transaction, whereas indirectly, you are giving funds to a bank, for example, and they are giving you are return on your investment, with which they can do what they please (give it to any deficit unit).
Can the firm's financing decisions affect its profitability?
Yes, a firm's financing decisions can play a major role in determining its profitability. A firm can opt for different methods of financing, i.e. raising money for business needs. For example, finance may be required to invest in a building or machinery or materials. Finance may also be needed for ongoing business expenses like salaries or rent or telecom costs. There are different ways to arrange for these funds for the firm, and funds cost money. If the firm borrows the funds from a bank, then it incurs an expenditure which is the interest charged by the bank. This expense is reduced from profit, so profitability reduces. Another way of raising funds is to sell shares, i.e. the equity of the company. The owners of the shares then become part owners of the company, and can also exercise management control over the company. In this way, distribution of equity can also affect profitability.
Example of financial intermediaries?
brokers, creditrating agencies, dealers, investment banks, insurance companies, pension funds, savings banks, closed and open ended mutual funds, private banks, venture capitalists, finance houses and commercial banks. these are all examples of financial intermediaries.
What is a fixed expense that's paid for with discretionary funds?
The cable TV bill
What can discretionary funds be used to pay?
Discretionary funds are government spending by passing an appropriations bill to pay for a program such as military spending or education. The money is raised and can only be spent on the program in the bill.
What is the concept of ecotourism?
The tourist is spending discretionary funds, give them what they want, and they will open their purse strings.
What can discretionary funds be used to pay for?
Discretionary funds are government spending by passing an appropriations bill to pay for a program such as military spending or education. The money is raised and can only be spent on the program in the bill.
What populations are not targeted for extra federal funds by Youth Services Discretionary Grants?
youth from high-income families
What is Source and application of funds?
sources of Funds 1. Profit from Operations 2. Issue of Shares 3. Issue of Debentures 4. Bank Loan (Long Term) 5. Sale of fixed Assets Application of Funds 1. Expense for operations 2. Redemption of shares 3. Redemption of Debentures 4. Payment of Loans 5. Purchase of Assets
What types of investments are the funds of a fixed annuity invested in?
With a fixed annuity, you're giving your money to an insurance company in return for a fixed interest rate. It is the company that decides how to invest that money. You as the owner, does not pick any funds.
What is advantages of fixed budgets?
A fixed budget will help businesses manage finances. With a fixed budget managers will not have the ability to spend extra funds.
Open ended mutual funds?
the supply of shares in the funds is not fixed but can increase or decrease daily with purchases and redemptions of shares.
Can you sell equities with a series 6 license?
No, only mutual funds and fixed annuities.
In a fixed annuity an investor can choose from many options usually in mutual funds?
variable
What types of mutual funds are available?
There are more that fifty different types of mutual funds available for those wanting to invest. Some examples include equity, fixed income, international and sector funds.
