Meaning Business analysis is a process of identifying and creating solutions for business needs. In simple terms, it means evaluating a company’s economic health in a form of the entity’s strengths and weaknesses. This practice is done in order to come to a consensus business valuation terms i.e. making willing parties agree on an intrinsic value of a company. Business analysis serve as the base upon which various decisions are built like; investing in equity or loan, extending credit facility or not, deciding the value of a business for initial public offer ..read more

Meaning Financial Ratios are created to find numerical value to gain meaningful information about a company. This value/ratio is not a calculation but an explanation of the economic statues of a company in terms of business liquidity, solvency, leverage, growth, margin, profitability, valuation, return on investment, and many more. Financial Ratio is useful tool for business managers and investors to analyze and compare financial relationships between two financial statements. The information gathered from financial ratio analysis is a valuable data to a manager who have to make financial dec ..read more

Meaning Financing activities are transactions that companies undertake to help achieve their economic goals and objectives. It involving activities that affects business’ long-term liabilities, owner’s equity and changes to short-term borrowings. These activities involve the flow of cash and cash equivalents between the company and its sources of finance i.e. the investors and creditors for non-trading liabilities such as long-term loans, bonds payable etc. {Anything to do with the movement of money, i.e. cash inflows and outflows, is a financial activity.} For example, purchasing and selli ..read more

Meaning Investing activities are the second main category of a business activities. It refers to the purchase and sales of long-term assets and other business activities. These activities are related to expanding a business and gaining bigger profits to a company in the long term. It is listed on the cash flow statement and consist of buying and selling long-term assets and other investments. In other words, it is the net amount of cash received and paid during a financial accounting period for long-term assets and investments. Why are Investing Activities Important? Investment activities a ..read more

Meaning Operating activities is a type of Business Activities and are the core activities that a business performs to earn revenue. These activities affect the cash flow coming in and out and determine the net income of the business. The main fundamental operating activities for a business includes sales, customer service, administration and marketing. These activities are part of the day-to-day functioning of a business which take effect in company’s monthly, quarterly and annual income and profits. This Operating activities provide the majority of the cash flow in a business and hence deter ..read more

Meaning Business activities refer to activity a business engages in for the primary purpose of earning a profit through customer satisfaction. All the business activities depend on each other to ensure constant process and cannot serve the purpose of customer satisfaction solely. There are three main types of business activities: operating, investing, and financing. It involves multitude of exercises and theses activities, are ongoing and focused on creating value to its consumers. The cash flows used and created by each of these activities are listed in the  ..read more

Meaning A depository receipt (DR) is a type of security through which a domestic company can represent its shares in foreign stock markets. It is a physical certificate issued to investors which allows them to hold shares of domestic companies in foreign countries while trading in local stock exchange within the home country. Previously, if investors want to buy shares in foreign company, they would need to exchange their money into foreign currency and open foreign broker exchange, only then they are allowed to purchase shares on foreign stock exchange. Depository receipts were introduced to ..read more

Meaning To hedge means to safeguard. In finance, it means to protect against risks. A hedge fund (also known as funds of funds) is an alternative investment strategy, in which large amount of funds are collected from accredited investors like banks, institutions, insurance companies, High Net Worth Individuals (HNIs) and families. Compared to other investments, hedge funds are considered to be more aggressive in nature and contains high risks. These funds function as private investment partnerships or overseas investment corporations. Investment on Hedge fund are only accessible to accredited ..read more

Meaning Mutual Funds is an investment scheme in which Asset Management Company (AMC) collects money from several individuals and institutional investors with common investment objective. A financial professional known as Fund Manager manages the pooled investments. Fund manager invest this collection of money in securities like stocks, bonds, gold, short-term debts and other assets that seek to provide potential returns. This combined securities that a mutual fund investment owns is known as its portfolio. The profit generated from this collective investment is distributed proportionately amo ..read more

Meaning Investment planning is the process of identifying financial goals and objectives, matching it with available resources and converting them through building a plan. It is the main component of financial planning. An investment plan is a type of financial product that provides individual an opportunity to create wealth for his future and meet the financial goals by investing periodically in different investment plans, stock, mutual funds and other schemes. It helps to create a habit of disciplined investment among investors so that they can gain long-term wealth and achieve their future ..read more