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Business Finance

Business finance deals with financial decisions that a business entity makes, as well as the tools and analysis used to make these decisions. Its primary goal is to maximize business value while managing the company’s financial risks.

500 Questions

Why are merger and acquisition strategies popular in many firms competing in the global economy How would these strategies impact a firm's performance?

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Asked by Wiki User

Through merger/acquisition, a financially weak entity is merged with a stronger one, thereby facilitating to regain its lost health and compete in the market. This being the primary reason for this strategy to be popular in global economy.

What is record keeping in a business?

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Asked by Wiki User

Maintaining daily transaction records in account books in a business is called record keeping. While it was manual in early days, presently all records are kept in computer generated accounting system where chances of error is minimum.

What do you mean by ipo cycle in computer organization?

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Asked by Wiki User

An IPO cycle is a business term, as far as I know.

5 reasons for merger?

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Asked by Wiki User

Five reasons for a merger include Capital, satisfy customer needs, gain talented staff, new market opportunities and product development

What is a common sense approach to financial statement analysis?

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Asked by Ladygertie02

First of all, I look at the company over time. Generally, I do a 10-year analysis, but then pay particular attention to the last 3 years. I do what's called a common size analysis. Instead of dollars, I convert the line items to percentages. The balance sheet items are shown as percent of total assets. The income statement items are shown as percent of sales. I look at the trends of the company over time and then compare it to the industry.

What is meant by quality of earnings?

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Asked by Ladygertie02

In recent years, I've read earnings announcements from companies and I've come to doubt the transparency of even the veracity of what I've been reading. After digging into the financial statements, I've found what I consider some dubious earnings reporting. Financial analysts are increasingly concerned about earnings reporting and have reached certain conclusions.
* The measure of quality is the degree to which earnings are generated from internally developed initiatives, as opposed to external forces.

* If a company has increased earnings year over year from improved cost efficiencies or sales generated from a marketing campaign, that company has a high quality of earnings.

* If a company's earnings are attributed to outside sources such increasing commodity prices, this is seen as low quality of earnings.

* It has also come to mean the degree to which management's choices of accounting estimates can affect reported income.

* Some analysts question whether some firms engage in "earnings management."

What part of the 10-K is the most important?

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Asked by Ladygertie02

Management Discussion and Analysis (MD&A) - This is where the management of the company get to "talk" to the shareholders. The formatting of the early sections of the 10-K are more or less mandated by the SEC. So when reading those sections, the language might seem overly legalistic and dry.

MD&A may be straightforward, to the point, informative, and open. I've read some discussions where the CEO was not afraid to predict next quarter’s growth would be. (And the next quarter was pleased to announce that the prediction was met.)

I've read some CEO's who were not afraid to admit when they made errors in judgment and what they were doing to correct their mistakes. On the other hand, I've read many 500-page 10-K's that I could not begin to interpret. I've read some 10-K's that felt to me that the preparer had little interest in being transparent – consequently I have little interest in such companies.

I focus on companies with transparent statements. I also look for good quality of earnings.

What does branch location mean?

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Asked by Wiki User

A Company with its head office, may have branches at different locations. These branch activities are coordinated by the head office of the company. The different addresses of the branches situated at diverse locations are called branch location.

What is the national defense argument for tariffs on steel?

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Asked by ChuckSiata

The national defense argument for tariffs on steel is based on the prospect of war or the need to prepare for one. Without tariffs on steel, such as the one imposed during the George W. Bush administration, steel would be easily imported and the nation would become dependent on these imports. By imposing a tariff, defense contractors as example, would already have established steel contracts from domestic producers. Hence, no problems regarding having enough steel.

What are the companies that are domestic corporation?

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Asked by Wiki User

Generally speaking, if a corporation is termed "domestic" it usually means that it does business in its home country. This, for example is the opposite of an international corporation that does business globally.

What is the 3 P's in business and what do they mean?

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Asked by Wiki User

the four p's are price, place, product and promotion: price is the cost they are selling it for; place is where they are sold; product is the atual item and promotion is how they sell it!

Who actually published the budget?

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Asked by Wiki User

It is the Union Finance Minister who present the Union Budget in both houses of parliament for approval, after which the President consents to the budget to become an Act.

Do you need a license for start a business?

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Asked by Joyalee52

Every business registered license, is a document of a company name, you registred your business in your state and pay taxes in a legal fashion.

What retail and consumer trends have occurred since mall of America opened in 1992 that it should consider making future plans?

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Asked by Wiki User

a. Some retail trends that have occurred since the Mall of America opened that it should consider when making future plans is not to duplicate what they already have. Thus, it would not make sense for the mall to two of the same stores. Also, this way retailers don't risk cannibalism in which one of their stores takes away business from their other stores.

b. A consumer trend that has occurred since the mall opened is that consumers look for other forms of entertainment at malls. Thus, Mall of America should consider this when making future plans to expand.

What are the benefits of business credit scoring?

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Asked by Wiki User

The benefits of good business credit scoring is that lenders can offer better interest rates and it will save you money. It can also reduce your personal liability and protect your personal assets.