What is a SWOT analysis?

The SWOT concept, also known as SWOT or SWOT, is a study tool that addresses the situation of a company or business project. To do this, it analyzes its internal characteristics, such as strengths and weaknesses, as well as external ones, such as opportunities and threats. This term comes from the acronym SWOT, from the … Read more

What is the journal?

The daily book of a company is used to collect day after day all the data and activities carried out by the entity in terms of economic terms. Therefore, the concept of a journal is understood as a most useful way to record day-to-day operations. The name received for each of the entries in the … Read more

What is debt issuance?

If there is a method used in many companies as a financing system, that is the issuance of debt. When a company issues debt, what it is doing is issuing financial titles for a certain price but whose acquisition it will have to reward in the future. Through this procedure, companies are able to borrow … Read more

What is the debt ratio?

The meaning of debt ratio is the ratio that measures the relationship between the amount of funds that a company has with respect to the debts incurred in both the long and the short term. The concept of debt ratio analyzes the financial appeceament, which is the proportion of debt that a company bears against … Read more

What is a bill of exchange discount?

The discount of bills is a financial operation that generally consists of anticipating the liquidity of a debt belonging to a company, which has not yet been collected. The discount will symbolize all debt in favor of a company subject to a deferral in its payment. So, if a company is in this case, and … Read more

What is a Decision Tree?

A decision tree, as its name indicates, is a scheme in which the possible consequences derived from the achievement of actions are configured according to an order. This resource helps to decide, to make decisions. Not only is this an inexpensive concept, but it can be really useful for day-to-day tasks. It will help us … Read more

What is direct debit?

En accounting terms, a direct debit is a form of payment that consists of communicating to the bank the payment of a certain amount of money at regular intervals. Thus, it is possible to direct the payment of bills (electricity, water, gas, telephone), of purchased goods (a computer, an appliance, etc.) or of a service … Read more

What is equity dilution?

When a company grows, it needs to look further finance and increase capital. This requires issuing new shares so that new shareholders can buy and invest. It may also be the case that the former investors who already own the old shares buy a certain amount of the new shares and thus the percentage of … Read more

What is a guarantee?

A guarantee is a contract by means of which a unilateral solidarity commitment is established by which a person will benefit from the payment of obligations. Therefore, in any bank guarantee the main participants of the guarantee contract will be three: the person requesting said aid, the debtor; on the other hand, the person who … Read more

What is tax deduction?

Deduction in economic and financial terms is the action of deducting in whole or in part an economic amount that weighs on a certain act or good. The term deduct also applies to a thing, object or economic quantity, when it is deductible. The relief is therefore a reduction on a certain economic burden. When … Read more