Definition: Financial intermediary is the organization which acts as a link between the investor and the borrower, to meet the financial objectives of both the parties. These can be seen as business entities which accept deposits from the depositors or investors (lenders) by allowing them low interest on their sum. Further, these organizations, lend this amount to the … [Read more...] about Financial Intermediaries
Profitability Ratios
Definition: Profitability ratios are the financial measures to analyze the earning capacity and determine the financial soundness of the organization by comparing the earnings with different expenditures, and ensure the optimum utilization of the various resources. Analyzing the financial position of an organization using the profitability ratios, are essential for all the … [Read more...] about Profitability Ratios
Line of Credit (LOC)
Definition: A line of credit can be seen as a revolving account opened with the bank or other financial institution. It allows the borrower (customer) to withdraw the required amount as a loan, partially or wholly, up to the given maximum limit mentioned in the agreement. The principal feature of a line of credit is that the interest is chargeable only on the sum withdrawn by … [Read more...] about Line of Credit (LOC)
Monetary Policy Vs Fiscal Policy
Both monetary policy and fiscal policy go hand in hand when it comes to the economic stability and growth of a nation. The most significant difference between the two is that monetary policy is introduced as a corrective measure by the central bank to control inflation or recession and strengthen the Gross Domestic Product (GDP). Whereas, fiscal policy is implemented each year … [Read more...] about Monetary Policy Vs Fiscal Policy
Bill of Exchange Vs Promissory Note
The bill of exchange and promissory note are negotiable instruments used for carrying out various economic activities. However, they vary from each other in many ways. The significant difference between them is that a bill of exchange is a written order drafted by the drawer on the drawee to receive the mentioned sum within the specified period. Whereas, a promissory note is a … [Read more...] about Bill of Exchange Vs Promissory Note
Central Bank Vs Commercial Bank
The central bank and commercial banks both form the base of a country's economy. However, they are incredibly different from one another. When the central bank is the supreme organization of the banking system of any country, the commercial banks function under the rules, regulations, policies and guidelines of the central bank. The significant difference between the two is … [Read more...] about Central Bank Vs Commercial Bank
Public Goods Vs Private Goods
Public goods, as the name suggests, are for the facility and welfare of the public in general for free of cost. Whereas, private products are the ones which are sold by private companies to earn profits and fulfil the needs of the buyers. This is a significant difference between these two types of goods. However, both public goods and private goods are for the consumer's … [Read more...] about Public Goods Vs Private Goods
Job Enlargement Vs Job Enrichment
Job enlargement and job enrichment are both used as techniques for employee motivation and satisfaction. However, they differ a lot from each other. The critical difference is job enlargement is a horizontal expansion of duties and tasks across the same organizational level, whereas job enrichment is the vertical expansion of the roles, responsibilities, authority and … [Read more...] about Job Enlargement Vs Job Enrichment
Advertising Vs Publicity
The terms advertising and publicity are used interchangeably by many of us. But there is a considerable difference between the two. The critical difference between the two is that; former is a paid promotion of products done with the aim of increasing sales volume. However, the latter is an unpaid promotion through a third party aimed at creating a buzz or revealing a public … [Read more...] about Advertising Vs Publicity
Job Description Vs Job Specification
The critical difference between job description and job specification is that; former is the summary of all the task, role and responsibilities specifying what the company is offering to the candidate. Whereas, the latter is an overview of all the attributes, experience and qualification which the company is looking for in a candidate to pursue the job. Job description and … [Read more...] about Job Description Vs Job Specification