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TYPES OF LEVERAGE IN FINANCIAL MANAGEMENT – OPERATING, FINANCIAL AND COMBINED LEVERAGE LEVERAGE Leverage refers to debt or to the borrowings of funds to finance the purchase of the company’s asset. It is used to measure the effect of increase or decrease of fixed cost on the earnings. Leverage may be ACCORDING TO THE JAMES…
Business Risk and Financial Risk: Meaning and difference between these two terms. BUSINESS RISK: Business risk is also known as operating risk. It implies uncertainty in profits or danger of loss leading to shut down of that business. These risks may arise due to future uncertainties. Example: FINANCIAL RISK: this risk is associated with the…
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REGULATIONS APPLICABLE FOR COMMERCIAL PAPERS : Meaning of commercial papers, Difference between commercial papers and debentures, Regulations applicable for commercial papers COMMERCIAL PAPER: Commercial paper represents unsecured promissor notes issued by the firms to raise the short-term funds. The maturity period of commercial paper mostly ranges from 91 days to 180 days in India. It…
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