Revenue vs profit: Profit and revenue are both exceptionally solid marks of a business’s monetary prosperity. Since one uses both, it is crucial to understand their difference to precisely manage an organisation’s funds and make an adequate financial plan.
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Microeconomics is a branch of economics that examines how individuals and firms make decisions about allocating scarce resources. In contrast to macroeconomics, which looks at the economy as a whole, microeconomics focuses on the individual elements of the economic system.
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Business turnover, also known as sales revenue, is the total income a company generates from selling its products or services. It’s a key metric used to assess a company’s financial health and performance.
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Depreciation is the gradual reduction in the value of an asset over time because of wear and tear, obsolescence, or other factors. It’s a financial accounting concept that reflects the economic reality that assets ultimately lose their usefulness or become less valuable.
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Marketing communication is the process of building and maintaining relationships with customers through various channels. It involves conveying information about a product or service to potential and existing customers, with the goal of influencing their thoughts, feelings, and behaviors.
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An Employee Stock Ownership Plan (ESOP) is a benefit program that gives workers a stake in the company they work for by granting them ownership in the form of company shares. It essentially allows employees to become part-owners of the business.
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DVR shares are a class of equity that deviates from the norm in terms of voting rights. Unlike their ordinary share counterparts, DVR shares imbue shareholders with voting power that can be either amplified or diminished. The specific allotment of voting rights hinges upon the terms established by the company during the issuance of these shares.
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Imagine a company decides to buy back some of its outstanding shares from shareholders. These repurchased shares are no longer available for public trading and become known as treasury shares or treasury stock. In essence, the company takes ownership of a portion of its own stock. This might seem counterintuitive, but there are several reasons why a company might choose to do this.
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Ordinary shares, or equity shares, are the most common type of stock issued by a company. When you buy ordinary shares, you’re essentially purchasing a piece of ownership in the company. This ownership comes with certain rights and potential rewards, but also some risks.
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Think of preference shares as a special class of stock that grants investors certain privileges over common stockholders. The key benefit lies in dividends. Preference shareholders have the right to receive dividend payouts before any dividends are distributed to common shareholders. These dividends are typically fixed, meaning they represent a set percentage of the face value of the share.
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