Working Capital Cycle (Operating Cycle)
What is Working Capital Cycle? The working capital cycle measures how quickly your company’s assets, such as inventory, are converted into cash in your bank account. When you understand your…
Working Capital Management: Factors Affecting, Importance, Requirement, Strategies, Managing
What is Working Capital? Working capital refers to monies invested in current assets. It is the capital that is required to run the business on a daily basis. Working capital,…
What is Dividend Policy? Types, Determinants, Theories
What is Dividend Policy? The company’s dividend policy is a set of guidelines for dividend distribution prepared by the board of directors of a company. The policy establishes guidelines for…
What is Financial System? Financial Assets, Financial Markets
What is Financial System? A financial system is a collection of entities that allow money to be exchanged, such as banks, insurance firms and stock exchanges. On a firm, regional…
What is Consumer Financing and What are Its Benefits
Consumer financing is the process of lending money to individuals. These loans are typically unsecured, which means you do not need collateral and your credit score does not affect whether or not you get approved for a loan.
What is Inventory Control? Techniques, System
What is Inventory Control? Inventory control is concerned with the acquisition, storage, handling and use of inventories so as to ensure the availability of inventory whenever needed, providing adequate provision…
Types of Derivatives Contracts
What is Derivatives? A derivative is a financial contract with a value that is derived from an underlying asset. Derivatives have no direct value in and of themselves - their…
What is Cash Management? Objectives, Strategies, Techniques
What is Cash Management? Cash Management refers to the collection, handling, control and investment of the organizational cash and cash equivalents, to ensure optimum utilization of the firm’s liquid resources.…
What is Dividend Policy? Objective, Factors, Definition, Dividend Decision
What is Dividend Policy? Dividends are paid out of the PAT generated by a firm. Dividend payment is a cash drain for firms as it is a cash out flow.…
Dividend Theories Types: Irrelevance, Relevance
The dividend theories relates with the impact of dividend on the value of the firm. According to one school of thought the dividends are irrelevant and the amount of dividends…