Reorganization is the process of restructuring a company’s financial affairs. This can involve changes to the company’s ownership structure, management team, business model, or operations. It can also involve raising new capital, refinancing existing debt, or selling off assets. Reorganizations are often undertaken in response to financial distress, such as mounting debts or dwindling cash … Read more
What is a Profit Margin? A profit margin is a financial ratio that is used to measure the profitability of a business. It is calculated by dividing the company’s net income by its total revenue. How to Calculate Profit Margin The profit margin can be calculated by dividing the company’s net income by its total … Read more
Budgetary slack is the amount by which a company’s actual performance falls short of its budgeted or planned performance. It is usually expressed as a percentage of budgeted or planned costs. Budgetary slack can arise for a number of reasons, including poor planning, unrealistic budgeting, and deliberate under-performance. In some cases, it may be used … Read more
Net investment is defined as the difference between a company’s total investments and its total liabilities. This figure represents the portion of a company’s assets that are financed through equity rather than debt. A company’s net investment can be positive or negative. A positive net investment indicates that the company’s equity is greater than its … Read more
Income smoothing is the process of managing a company’s reported income so that it is more stable and predictable. This can be done through a variety of methods, such as using accrual accounting, managing inventory levels, and timing the recognition of revenue and expenses. The goal of income smoothing is to make a company’s financial … Read more
A registrar is a company that is responsible for maintaining the share register for a public company. The registrar keeps track of the names and contact information of all the shareholders, as well as the number of shares each shareholder owns. The registrar also handles the transfer of shares when shareholders buy or sell their … Read more
A commercial account is an account held by a business or organization rather than an individual. Commercial accounts typically have higher spending limits and may offer rewards or cash back programs. Many businesses use commercial accounts to make purchases for their company, such as office supplies or travel expenses. What is the difference between commercial … Read more
A capital injection is when a company receives an influx of cash from an external source. This can come in the form of investments, loans, or even donations. The cash infusion provides the company with the funds it needs to keep operating and avoid bankruptcy. There are a few reasons why a company might need … Read more
A capital commitment is a legal agreement to provide capital, typically in the form of equity or debt, to a business in the future. The agreement is typically made between an investor and a company, but can also be made between two companies. Capital commitments are often made in the form of a contract, and … Read more
A shell corporation is a company without significant assets or operations. It is used as a vehicle for various financial maneuvers, such as evading taxes or hiding assets. Shell corporations are legal, but can be used for illegal purposes. Do shell companies have bank accounts? There is no simple answer to this question, as it … Read more
