Economics - EDUCATIONLEAVES

Working Capital Management: [PDF], Importance, Objective, Components, Formulas, and Factors, Related Questions

June 19, 2023February 26, 2023 by Sushanta Maiti

What is Working Capital? Working capital is the difference between a company’s current assets and its current liabilities. In other words, it represents the amount of money a company has available to cover its short-term obligations and expenses. Current assets include cash, accounts receivable (money owed to the company by customers), inventory, and other assets … Read more

Cost of Capital: Types, Component, Formula, Impact, & Importance

May 25, 2023February 24, 2023 by Sushanta Maiti

The cost of capital is the minimum return that a company or an investor expects to earn on their investment to compensate for the risk involved. It represents the cost of funds used to finance a business or a project and is expressed as a percentage.

What is the Market risk? Types, Example, How to Measure and Manage Risk

May 25, 2023February 21, 2023 by Sushanta Maiti

The uncertainty associated with any investment decision is called market risk or systematic risk. Price volatility often arises because of unexpected fluctuations in factors that generally affect the entire financial market.

What is Capitalism? Definition, Characteristics, Benefits, Negatives

December 28, 2024February 20, 2023 by Sushanta Maiti

Capitalism is an economic system where individuals and businesses can privately own and operate the means of production and distribution of goods and services, with the goal of generating profits.

Difference Between Sales and Marketing [PDF Included]

November 30, 2022August 23, 2022 by Sushanta Maiti

Sales are the delivery of products from the manufacturer to consumers in exchange for money and marketing is basically understanding the customer’s need and introducing products accordingly.
Sales basically follow a fragmented and product-oriented approach, whereas marketing follows an integrated and customer-oriented approach.
Sales focus on maximizing the seller’s profit but marketing focuses on generating profit through customer satisfaction.
Sales follow the push strategy and marketing follows the pull strategy.
The target audience of sales is both individuals and organizations, moreover, the target audience for marketing is the public.
The primary objective of sales is to influence the target audience to become a buyer, and the primary objective of marketing is to identify customers’ needs and make products accordingly.

Law of Demand and Supply: [PDF Included] Curves, Importance, Conditions, & Factors Affecting Demand and supply

September 10, 2022August 17, 2022 by Sushanta Maiti

The law of supply and demand is possibly one of the most essential concepts and it is the backbone of an economy. According to the law of demand and supply, when there is a higher demand for a product or service, there is a rise in the supply of such product or service and vice versa. The law of demand and supply describes the interaction between the desire for a product and the supply of that product. For example, if the supply of a product is low and the demand is high, it signifies such product is lacking for the number of people that desires it, therefore, it will lead to an increase in the price of the product.

What is Budgeting & Budgetary control? – 4 Types, Advantages & Disadvantages

January 29, 2022January 28, 2022 by Sukanta Maiti

Budgeting is the process of looking at a business’s estimated incomes and expenses over a specific period in the future. It allows a business to see if they will be able to continue operating at their predicted level with these projected incomes and expenditures.

What is Asset Management? Definition, Asset Life Cycle, Types & Softwares

December 23, 2024January 18, 2022 by Sushanta Maiti

Asset management is a system that helps companies to keep a record of all their assets, such as instruments, machinery, and expenses. Keeping tabs on the assets helps streamline operations. The process also reduces the possibility of recording ghost assets, since all the assets are well accounted for.

Purchase Price Allocation (PPA): Definition, Components, Example, and PDF

December 20, 2025December 21, 2021 by Sushanta Maiti

A purchase price allocation is primarily involved in accounting purposes, but it also gives a useful evaluation of the components that make up goodwill. In this process, the purchase price was allocated to all the tangible net assets, such as working capital and machinery, with the rest allocated entirely to goodwill. Definition Purchase price allocation … Read more

What are Mergers and Acquisitions? M&A Definition, Example, Types, Forms, and Transactions

November 30, 2022December 18, 2021 by Sukanta Maiti

Mergers and acquisitions are transactions of shifting ownership between two companies, wherein a merger is a fusing or combining of two companies and acquisition is one company acquiring or buying another. The ultimate goal of mergers and acquisitions is to create synergy, which typically makes the two combined companies worth more valuable than the two separate companies.