Capital goods: Types, Examples, and Comparison to Consumer Goods What is capital goods and consumer goods? Capital goods are defined as physical or intangible assets that are used in the production of other goods and services. Capital goods can include machinery, equipment, tools, buildings, and vehicles. They are also known as durable goods, and their … Read more
Carrying costs are the costs associated with storing and keeping inventory on hand. Managing these costs effectively can help business owners save money. There are a number of ways to manage carrying costs. One way is to streamline the inventory management process so that there is less need to keep excess inventory on hand. This … Read more
Qualified institutional placement (QIP) is a method of private placement of shares with institutional investors. It is primarily used by companies in India to raise money from the market. A QIP is a fast and efficient way for a company to raise capital, as it does not require the lengthy and costly process of a … Read more
A syndicate is a group of individuals or organizations who join together to finance a large project or venture. In the business world, a syndicate is often used to refer to a group of investment banks that work together to underwrite and sell a new security issue. What is syndicate approach? The syndicate approach is … Read more
The profitability index (PI) rule is a basic guideline for making investment decisions. It states that the NPV of an investment should be positive in order for it to be accepted. In other words, an investment should only be accepted if it is expected to generate a positive return. The PI rule is a simple … Read more
The loss leader strategy is a pricing strategy where a company offers a product at a low price in order to attract customers and generate sales. The hope is that the customer will then purchase other, more profitable items from the company. The strategy can be effective in certain industries, such as retail, where customers … Read more
Auditors play an important role in protecting investors from company fraud. They do this by ensuring that companies provide accurate and complete financial information. This information is used by investors to make informed decisions about whether to invest in a company. If a company misrepresented its financial information, investors could lose a lot of money. … Read more
A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company. The definition of a parent company varies by jurisdiction, with the definition usually being tailored to … Read more
A salary freeze is a policy implemented by a company in which no employees receive raises or cost of living increases for a set period of time. The salary freeze may be temporary, lasting for a year or less, or it may be indefinite. Either way, the goal is to save money on labor costs. … Read more
The production rate is the number of units of a product that a company produces over a period of time. It is typically measured on a per-day or per-week basis. The production rate is a important metric for companies because it is a key factor in determining the company’s profitability. If a company can produce … Read more
