Definition: A break-even point is that position where a business entity can recover its cost through the revenue it generates from the sales. Here, we can say that the company is now able to meet its expenses through its sales revenue. Break-even analysis is the means to identify the effect of variation in sales volume on the cost, revenue and profitability of a project or a … [Read more...] about How to Calculate Break-Even Point?
Break-Even Analysis
Definition: Break-even analysis is a tool used by the business organizations to find out the minimum number of units it needs to sell or the amount of sales revenue it has to generate for meeting up the total cost incurred. It is the initial judgement on whether the project is viable or not. Break-even analysis is an essential tool for any business. All the initial decisions … [Read more...] about Break-Even Analysis
Wholesale Banking
Definition: Wholesale banking refers to the complete banking solution provided by the merchant banks to the large scale business organizations and the government agencies or institutions. To avail the facility of wholesale banking, the companies need to possess a strong financial statement and operate on a large scale. Usually, multinational companies are the clients of … [Read more...] about Wholesale Banking
Financial Market
Definition: A financial market is a marketplace where trading or exchange of various financial instruments and assets takes place. The price of these assets is dependant on its demand and supply in the respective market. All the financial and economic activities in a country are dependent upon these markets Example The most common financial market is Real Estate … [Read more...] about Financial Market
Blue Chip Stocks
Definition: Blue chip stocks are the secured, stable and less volatile shares of those reputed and well-established companies which have huge market capitalization. These entities are considered to be industry leaders. Example; some of the high valued blue chip stocks are Bosch Ltd., Maruti Suzuki India Ltd. and Bajaj Finance Ltd. What are Blue Chip Companies? Blue chip … [Read more...] about Blue Chip Stocks
Real Estate Investing
Definition: Real estate investing refers to the purchase of property as an investment to generate income rather than using it as a primary residence. In simple terms, it can be understood as any land, building, infrastructure and other tangible property which is usually immovable but transferable. Some of the examples of real estate are a house, office building, agricultural … [Read more...] about Real Estate Investing
Product Life Cycle (PLC)
Definition: Product life cycle can be defined as the analysis of the complete life span of a product. It is divided into five stages, i.e., development, introduction, growth, maturity and decline. It is an essential tool for analyzing the prospective success or potential of a new product through research and development. Just like humans, a product also has a life cycle … [Read more...] about Product Life Cycle (PLC)
Capital Budgeting
Definition: Capital budgeting is the method of determining and estimating the potential of long-term investment options involving enormous capital expenditure. It is all about the company's strategic decision making, which acts as a milestone in the business. For Example; Let us now consider capital budgeting for buying a new printing machine by a publishing house. The … [Read more...] about Capital Budgeting
CAMELS Rating System
Definition: CAMELS rating system is an internationally recognized supervisory tool which was developed in the US to measure the bank's or other financial institution's level of risk with the help of its financial statements. The parameters used for judgement comprises of capital adequacy, asset quality, management, earnings, liquidity and sensitivity. The CAMELS rating … [Read more...] about CAMELS Rating System
Seed Capital
Definition: Seed capital is the initial fund or money which is required by a budding entrepreneur to start a new business venture. 'Seed' here refers to the business which is at the beginning stage. 'Capital' refers to the money or funds required at the very beginning of a business. A 'budding entrepreneur' is the business aspirant who looks forward to making money from his … [Read more...] about Seed Capital