The concept of liability refers to the set of debts that a has. Thus, the liability is collected in the situation balance of any entity and therefore is the result of those obligations of the company that have been the result of its financial activity. In these cases, the accounting liability refers to the financing … Read more
The meaning of operating leverage is the accounting term that aims to increase the profitability modifying the balance between variable costs and fixed costs. It can be considered as the impact that these have on the general costs of the company, referring to the relationship between sales and its profits before taxes and interest. Another … Read more
This concept was coined by the American economist Arthur Okun, gaining great relevance among the economic and financial spheres of a country. Okun's law tries to define the empirical relationship between the variables of the unemployment rate and the production of a country (measured in the Start real that this one has). The linear relationship … Read more
A premium is an additional charge added to a person's life insurance. The client pays the insurance company so that there is an increase in the risk of her policia. Life insurance is a method to guarantee security against anything that may happen to you, you are thinking about the future. But, oddly enough, life … Read more
The definition of lock-up is the period of time in which a certain operation cannot be performed. The reasons for these closing periods vary depending on the type of product. Why do a financial lock-up? For example in the field of fondos de inversión, the lock-up is the period of time during which the entry … Read more
Work life is the time that a person has accumulated working in companies or official bodies during their active life. In Spain, the age of people of working age is between 16 and 65 years. To know the jobs you have done and the time you have been in them, you can request the Work … Read more
The leveraged buyout term (LBO) refers to the purchase of a company through external debt. Together with all the money, the complete sum is the one that finalizes the purchase of said company. As leverage, assets (such as goods) of the company to be acquired are used mainly, this allows to ensure the purchase and … Read more
Thework leave o Temporary disability refers to the inability of an employee to go to his job temporarily for a justified reason, such as an illness or an accident, either at home or at the job itself. In this sense, it is understood that if a worker requests sick leave, he or she will need … Read more
In the economic sphere, the definition of leverage is the strategy used to increase the profits and losses of an investment. Through credits, fixed costs or another tool at the time of investment, facilitate the growth of the profitability final, which can be positive or negative. It should be clarified that a higher degree of … Read more
The meaning of liquidity ratio is the different indicators and measures whose purpose is to determine if a company is capable of generating treasury, that is, if you have enough capacity to convert your assets into liquidity short term. All companies have the objective of achieving long-term benefits, this implies that the income is higher … Read more
