What is the business cycle in simple words? The business cycle describes an economy's cycle of growth and decline. What are the four stages of the business cycle? The four stages of the business cycle are expansion, peak, contraction, and trough. ...
The payback period is one of the capital budgeting techniques that estimate the time that a project takes to recover the initial cost of investment. In other words, it is the period that the project takes to generate cash flows that are equivalent t...
Explain why an equity's beta is important in capital budgeting. What is a deferred tax asset and what is its purpose? Describe the importance of working capital management. What are the pros and cons of maintaining high working capital?
Mark Suster, Managing Partner of Upfront Ventures (the largest venture capital firm in Los Angeles), suspects that most startups will spend any VC money within 12 – 18 months of investment. If you’ve got money, you want to spend it. And if the market is good, more investment is ...
It is simple: they want to earn a fee, or interest, for loaning out their money. For instance, someone could borrow $100 from a bank for one year at a six percent annual interest rate. At the end of that year, the borrower owes the bank $106. In other words, you can say that ...
In the broad meaning E-Commerce is a means of conducting business using one of the many electronic methods, usually involving telephones, computers or both. E-commerce is not about the technology itself, it is about doing business using the technology. E-Commerce is the process of carrying ...
What Is Markup Percentage? Markup Percentage is a percentage mark-up over the cost price to get the selling price and is calculated as a ratio of gross profit to the cost of the unit. In many cases, the companies that sell their products, during the process of decision making for selling...
Average cost refers to the per-unit cost of production, which is calculated by dividing the total cost of production by the total number of units produced. In other words, it measures the amount of money that the business has to spend to produce each unit of output. It forms a fundamental...
This is only an advantage of zero-based budgeting if you remember to plan for it. When you have a built-in emergency fund, you can spend that money where you need to. You can also build in flexibility by allocating funds at a high level. For example, give your marketing team a specif...
Capital budgetingThe process of evaluating an investment option by comparing it against other available options and selecting the best investment option under the light of the company's goals and objectives is known as Capital budgeting.Answer and Explanation: To include intang...