Capital structure refers to the combination of different sources of funding that a company utilizes to finance its operations and investments. It represents the proportionate mix of debt and equity that a company employs to meet its financial needs. Understanding Capital Structure Imagine a business in its nascent stages, a budding seed yearning for sunlight … Read more
Gross Domestic Product (GDP), Gross National Product (GNP), and Net Domestic Product (NDP) are key economic indicators that play pivotal roles in assessing a country’s economic performance. GDP represents the total value of all goods and services produced within a nation’s borders over a specific time period, serving as a comprehensive measure of a country’s economic health.
NDP stands for “Net Domestic Product.” It is a macroeconomic indicator that represents the total market value of all final goods and services produced within a country’s borders during a specific time period, minus the depreciation of capital assets. In other words, NDP provides a measure of a nation’s economic output after accounting for the … Read more
Gross National Product (GNP) is the total market value of all final goods and services produced by a country’s residents in a specific time period, typically a year. It includes the value of goods and services produced domestically as well as the income earned by the country’s residents from abroad, minus the income earned by … Read more
IFRS or International Financial Reporting Standards refers to a globally accepted set of accounting and financial reporting guidelines for preparing and presenting financial statements.
Globalization refers to the interconnectedness and interdependence of economies, cultures, societies, and nations across the world. It involves the exchange of goods, services, information, ideas, and technology on a global scale, leading to increased integration and interrelation among different regions and countries. Globalization is driven by advancements in technology, communication, and transportation, breaking down barriers … Read more
Gross Domestic Product (GDP) is the monetary value of all finished goods and services produced within a country’s borders in a specific time period. It is a comprehensive measure that reflects the overall economic performance of a nation, encompassing the total value of goods and services generated by businesses, governments, and consumers. GDP serves as a key indicator for assessing the size and health of an economy, providing insight into its level of production and economic activity.
Capital budgeting helps companies decide where to allocate their funds for projects that will benefit them in the long run.
Marginal Revenue (MR) is the additional revenue generated by producing and selling one more unit of a good or service. In other words, it represents the change in total revenue that occurs as a result of selling an additional unit of a product.
The balance of trade, often referred to simply as the “trade balance,” is a measure that indicates the difference between the value of a country’s exports (goods and services sold to other countries) and the value of its imports (goods and services bought from other countries) during a specific period, typically a year.
