Inventory financing is a type of short-term loan that is used to finance the purchase of inventory. The loan is typically secured by the inventory that is being purchased, and the loan is repaid when the inventory is sold. Inventory financing is a popular financing option for businesses that have a lot of inventory turnover, … Read more
The working ratio definition is a calculation used to determine a company’s financial health. The working ratio measures a company’s ability to meet its financial obligations as they come due. To calculate the working ratio, divide a company’s total liabilities by its total assets. A ratio of less than 1 indicates that a company has … Read more
A restructuring charge is an accounting term used to describe the costs associated with reorganizing a company’s operations. These charges can include severance pay for employees who are laid off, the costs of relocating a company’s offices or factories, and the costs of cancelling contracts. Restructuring charges are often recorded as one-time items on a … Read more
The term “How Chairs Are Different From CEOs” refers to the different roles that these two corporate positions play within a company. While the CEO is responsible for overall strategy and direction, the Chair is responsible for ensuring that the Board of Directors is effective and that shareholders’ interests are represented. While both the CEO … Read more
A Propco is a stand-alone company that owns and manages a portfolio of commercial properties. The company’s purpose is to generate income from the properties through rent and capital appreciation. The company structure enables investors to buy shares in the company and benefit from the performance of the portfolio without having to directly own or … Read more
. Six Sigma: Methodology and Belt Rankings. Is Lean Six Sigma used in finance? Yes, Lean Six Sigma is used in finance. It is used in finance to streamline processes and make them more efficient. It is also used to improve quality and reduce waste. What are the belts level ranking in Six Sigma? There … Read more
A capital dividend account (CDA) is an internal account maintained by a corporation to track the portion of its retained earnings that can be paid out to shareholders as a tax-free dividend. A CDA is created when a corporation elects to designate a portion of its retained earnings as “eligible dividends” under the Income Tax … Read more
The term “transfer price” refers to the price charged for goods or services transferred between two related parties. The transfer price is used to allocate costs and profits between the two entities, and can be used to create artificial profits or losses. Transfer prices can be used to manipulate financial statements and tax liability. What … Read more
A dealer incentive is a type of financial incentive offered by a company to its dealers or retailers in order to encourage them to sell its products. The incentive may take the form of a discount off the retail price of the product, or it may be a rebate paid to the dealer after the … Read more
The going-concern value definition is a measure of a company’s ability to continue as a going concern. It is calculated by subtracting the present value of the company’s liquidation value from the company’s value as a going concern. The going-concern value definition is used to measure a company’s financial health and is an important factor … Read more
