Corporate financing
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Decision Support Systems (DSS): Definition & Benefits
What Is a Decision Support System? A decision support system (DSS) is a computerized program used to support determinations, judgments, and courses of action in an organization or a business.
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Understanding Labor Costs: Direct & Indirect Expenses
What Is the Cost of Labor? The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is bro
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BCG Growth-Share Matrix: A Comprehensive Guide for Strategic Planning
What Is a BCG Growth-Share Matrix? The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effor
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Activity-Based Management (ABM): Improve Profitability & Efficiency
What Is Activity-Based Management? Activity-based management (ABM) is a system for determining the profitability of every aspect of a business so that its strengths can be enhanced and its wea
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Understanding Non-Cash Charges: Impact on Financial Statements
What is a Non-Cash Charge? A non-cash charge is a write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a companys
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Understanding Economic Life: Definition & Importance
What is Economic Life? Economic life is the expected period of time during which an asset remains useful to the average owner. When an asset is no longer useful to its owner, then it is s
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Underwriting Agreement: Definition, Purpose & Key Terms
What Is Underwriting Agreement? An underwriting agreement is a contract between a group of investment bankers who form an underwriting group or syndicate and the issuing corporation of a new s
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Strategic Financial Management: Achieving Business Goals & Maximizing Value
What Is Strategic Financial Management? Strategic financial management means not only managing a companys finances but managing them with the intention to succeed—that is, to attain the compan
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Profit Centers: Definition, Benefits & Examples | [Your Brand]
What Is a Profit Center? A profit center is a branch or division of a company that directly adds or is expected to add to the entire organizations bottom line. It is treated as a separate, sta
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Understanding Parent Companies: Definition, Control & Subsidiaries
What Is a Parent Company? A parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies can be either hands-on or hand
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Understanding Non-Controlling Interest (Minority Interest)
What Is Non-Controlling Interest? A non-controlling interest, also known as a minority interest, is an ownership position wherein a shareholder owns less than 50% of outstanding shares and has
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Levered Free Cash Flow (LFCF): Definition & Importance
What Is Levered Free Cash Flow (LFCF)? Levered free cash flow (LFCF) is the amount of money a company has left remaining after paying all of its financial obligations. LFCF is the amount of ca
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Understanding Financial Structure: Debt vs. Equity
What Is Financial Structure? Financial structure refers to the mix of debt and equity that a company uses to finance its operations. This composition directly affects the risk and va
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Understanding Cash Position: A Guide for Investors & Businesses
What Is a Cash Position? A cash position represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time. The cash position is a sign of fin
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Capital Funding: A Comprehensive Guide for Businesses
What Is Capital Funding? Capital funding is the money that lenders and equity holders provide to a business for daily and long-term needs. A companys capital funding consists of both debt (bon
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Authorized Share Capital: Definition & Purpose
What Is Authorized Share Capital? Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorpor
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Asset Financing: Leverage Your Assets for Capital - [Company Name]
What is Asset Financing? Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a lo
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Optimal Capital Structure: Balancing Debt & Equity for Maximum Value
What Is Optimal Capital Structure? The optimal capital structure of a firm is the best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of cap
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Special Warranty Deed: Definition & What It Covers
What Is a Special Warranty Deed? A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during thei
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Reverse Stock Split Explained: What It Is & Why Companies Do It
What Is a Reverse Stock Split? A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer (higher priced) shares. A reverse stock s
Corporate financing
- The Power of Agreement in Sales: A Fundamental Rule
- Down Rounds: Understanding Equity Financing & Valuation
- Understanding Scrap Value: What It Is & How It's Determined
- Incremental Analysis: A Business Decision-Making Technique
- Capital Lease Explained: Accounting & Ownership
- Loss Leader Strategy: Definition, Benefits & Examples
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Dry Powder: Understanding Corporate Cash Reserves & Investment OpportunitiesDry powder refers to cash reserves that corporationsCorporationA corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. Corporat...
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Profitability Index (PI): A Comprehensive GuideWhat Is the Profitability Index (PI)? The profitability index (PI), alternatively referred to as value investment ratio (VIR) or profit investment ratio (PIR), describes an index that represent...
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Smart Financial Decisions: 6 Questions to Ask YourselfIt's good to have a little talk...
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Opening a Bank Account Without ID: Options & AlternativesPersonal identification is an obstacle when you are among the 10 million people in the U.S. without a bank account and you want to open an account. Because of recent U.S. and international legislation...