Customer equity is the sum of allcustomer lifetime valuesfor a firm. In other words, we calculate each customer’s lifetime value and we total all of these values together to determine customer equity. Customer equity, therefore, is the total expected profitability to be generated from a custo...
What are the factors that relate to pay equity? While it’s true that pay equity is about achieving equal pay for equal work, there’s more to it than just that. Employers must also weigh their employees’ education, experience or skill level, years with the organization, and performance t...
Providing excellent employee benefits can increase employee loyalty, boost recruitment efforts, and show employees that you care about their wellbeing.
While it‘s easy to combine branding and marketing into one discipline, they’re quite distinct. It's also common to hear branding and marketing compared in terms of priorities. The truth is they are both essential to a successful business and must work in harmony for a business to grow. ...
In terms of accounts payable and accounts receivable, CFOs need to ensure that the person responsible for paying bills cannot also enter invoices. In fact, some firms choose to have one AR team member note receipt of customer payments and another post those payments to the general ledger, and...
There is historical precedent for this: from 1965 to 1980 bond yields generally rose, while at the same time equity prices slid by 70% in real terms and lost about 40% when dividends were considered. Measured as a percentage of gross domestic product, the S&P 500 market cap fell from 110...
Business Accounting Statement of changes in equity What is meant by the terms elements and items as they relate to the income statement? Why might...Question:What is meant by the terms elements and items as they relate to ...
The long-term liability would be the loans taken out to purchase the building and outfit it to their needs. Assets, liabilities, and equity on a balance sheet Think of assets and liabilities as two sides of the same coin—or, in accounting terms, two sides of the same balance sheet. A...
The cost of equity tends to be higher than the cost of debt. This is because equity investors are rewarded more generously than debtholders, and take higher levels of risks. In addition, debt provides a guaranteed level of payments, and debtholders are given priority in the event of b...
In addition to exceeding their customers' expectations, businesses can also help educate them. Being known as an expert in a certain field or being able to relate to customers and how they use the products and services they buy goes a long way in ensuringbrand loyalty. Small businesses and l...