Project

project

Project is a limited-time venture, planned with a set of tasks to achieve the desired goal or goals which are not available now. The desired goal could be a product, service, result, business model or a strategy. In today’s competitive and technological advanced business environment it could be anything. Project and routine operations are not … Read more

Mortgage

home-mortgate

Simply, a mortgage is a loan to purchase your home. A bank or mortgage lender gives you money to buy your dream house. Sounds great, huh! When you decided to buy a house and have decent monthly income but you could not pay the entire value now, then the bank or mortgage lenders come like … Read more

CPA – Certified Public Accountant

become-a-cpa

Certified Public Accountant or CPA is a professional accounting degree. From another perspective, CPA is the license to provide accounting services to public. In many English speaking countries, CPA is the title for qualified accountants who provide business and financial consulting services. In United States, to become a CPA you must fulfill the ‘3E’ requirement. … Read more

Financial Leverage

Financial leverage is the degree to which an entity uses interest-bearing debt to finance its assets. The higher the share of debt financing in the capital structure of the company, the higher the financial leverage and also the financial risk. A high proportion of financial debt also means high-interest payments. Which may have a negative … Read more

EBIT – Earnings before Interest and Taxes

EBIT is the abbreviation for “Earnings before Interest and Taxes”. The “before” means that the company’s earnings is calculated before interest expenses (I) and income tax expenses (T) have been deducted from revenue. EBIT gives an indication of the operating profitability of a company. Because EBIT is independent of the type of financing (equity versus … Read more

EBITDA

EBITDA stands for Earnings before Interest, Taxes, Depreciation, and Amortization. It refers to the earnings of a company before interest, taxes, depreciation, and amortization are deducted. That is, it is understood as the gross operating profit calculated before the deduction of financial expenses and accounting deductions. Although it is not part of the income statement … Read more

Line of credit

[subtitleh2]What is Line of credit (LOC)?[/subtitleh2] A line of credit, also known as LOC is generally an unsecured loan. A LOC gives a borrower the right to borrow and draw funds at any time to meet immediate needs. A significant condition of a line of credit is it’s maximum limit. Borrower can take money out … Read more

Stockholder or Shareholder

[subtitleh2]What is a stockholder or shareholder?[/subtitleh2] A stockholder is an individual, company or any other entity who owns at least one or any number of share of a corporation’s capital stock. [subtitleh2]Is there any difference between stockholder and shareholder?[/subtitleh2] The answer is NO. Both are same. In the United States, people love to name by … Read more

What is Leverage? How does it work and what are the risks?

Financial Leverage

The term “financial leverage” is a recurring term in the business sector, which means the use of debt to finance business operations or investment. In this article, we will know what is the leverage, how it works and what are its advantages and its risks. What is leverage? Financial leverage is the use of debt … Read more

What is a letter of credit? How does it work?

Letter of Credit

The letter of credit (LC) also called “commercial credit” or “documentary credit”, is one of the most reliable means of payment in international trade. In this article, we will try to understand what is the letter of credit, how does it work, what types there are and some more curiosities of this instrument, that is … Read more