Definition: Employee ownership is a model in which the employees own all or maximum stake in the business. It isn't restricted to the higher level but also offered to every management level. Moreover, it provides tax benefits to businesses. This model benefits both the business as well as employees. Employees shares companies' profits, which boosts enthusiasm. Consequently, … [Read more...] about Employee Ownership
Search Results for: SHARES
Staggered Board
Definition: Staggered Board or classified Board is a board which consist of different classes of the directors for different terms or time period, as the election is conducted at a different point so that all the director’s term will not expire at the same time. In general, there are three classes of directors whose tenure and responsibilities are decided by the company. The … [Read more...] about Staggered Board
Sales Forecast
Definition: Sales Forecast is the assessment made for the future sale of products produced by the company. This forecasting plays a very important role in making production decisions. If the company do not forecast a sale they may produce unnecessarily excessive products, and in contrary may fail to produce demanded quantity of products. Sales forecasting is treated … [Read more...] about Sales Forecast
Debt Vs Equity
In simple terms, debt is the sum acquired from the outside or external sources along with the liability of some specific amount of interest at the time of repayment of borrowed funds and the equity is the owner’s capital; however, both debt and equity funds are raised to increase the share capital of the company. Debts are the credits for the company and hence return on … [Read more...] about Debt Vs Equity
Municipal Bond
Definition: Municipal Bond are the bonds which are issued by the local government or agencies to complete their minor projects or to complete the public welfare work for which finance is required, a government issues a certificate consisting of its worth and also provides interest on such certificates to the holders of Municipal Bonds. A general example for which the local … [Read more...] about Municipal Bond
Sole Proprietorship Vs Partnership
Sole Proprietorship is the most accessible form of business that is solely or individually handled by one person called "proprietor," subject to minimal regulation. However, the Partnership is a type of business in which at least two persons are required to become a partner by signing a contract that explains all the partners' duties, responsibilities, and rights. In the … [Read more...] about Sole Proprietorship Vs Partnership
Money Market
Definition: Money Market acts as an essential part of economic development. It is concerned with that portion of the financial system where trading of the short-term fund is done for a period of less than 1 year. It is a product of the capital market, which is treated as a channel of short-term debt capital. Although it is undoubtedly distant from the capital market, money … [Read more...] about Money Market
Reserves Vs Provisions
Reserves are the portion of the earning of the business which the company retains to meet any forthcoming emergencies or contingencies. In contrast, provisions are the charge against income and are treated as expenses and entered into a profit and loss account. Reserves lists beneath “reserves and surplus” head whether they are capital reserves or revenue … [Read more...] about Reserves Vs Provisions
Cash Flow Statement
Definition: A cash flow statement is a financial statement which serves the inflow and outflow of the cash and cash equivalents by the company. It consists of all cash receipts and cash payments transactions of the company during the year. It aims to determine the difference between the company's cash-in-hand at the beginning and the end of the year. A specified protocol of … [Read more...] about Cash Flow Statement
Auditor
Definition: An auditor is a body who organizes an audit process. He is the one who creates an audit report after due examination of accounting records and accounting statements of the company forming his impression/assumption regarding financial statements fairness and reliability. Content: Auditor Qualification of an Auditor Qualities of an Auditor Responsibilities … [Read more...] about Auditor