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Define the term- profit
The term "profit" can be used in two senses. As an owner-oriented concept it refers to amount and share of national income that is paid to owners of business, which is, those who supply equity capital. As a variant it's termed as profitability. It's an operational concepts and signifies economic efficiency. Or we can say, profitability refers to a situation where output exceeds input, which is, value created by the use of resources is more than the total of input resources.
Define the P/E valuation method. Under what circumstances should a stock be valued using this method? The P/E ratio points out how much investor are willing to pay for each dol
The two main objectives are: To get at a single value: Measures of central value, by considering the mass of data in one single
Q. What do you mean by Cash Flow Ratios? Cash Flow Ratios: - Cash Flow Ratios are an additional device of cash management. Some important cash flow ratios are: (i) Cash Turn
Planning to Achieve Budget Goals: It is insufficient for an organisation or a project team to simply set budget goals and expect management and employees to work in the same ma
Q. In planning a restaurant, it is estimated that a revenue of $6 per seat will be realized if the number of seats is at most 50. On the other hand, the revenue on each seat will d
Q. What do you know about sinking funds? sinking funds : quite often, one may be interested to accumulate a target amount over a given period inclusive of interest for the peri
Need to Widen and Deepen the Government Securities Market The importance of the Government Securities markets can be evaluated from three angles as follows: From the Gove
The following are considered the major stumbling blocks: The process becomes expensive because of the stamp duty payable. It also
Q. Describe about Self-Employment Tax? Self-Employment Tax - Most individuals who are in business for themselves, like PARTNERS, SOLE PROPRIETORS or independent contractor ar
Define the term- Earnings per share (EPS) EPS = Profit available to ordinary shareholders (PAT) / Weighted average number of shares in issue(p per share) This ratio illustra
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