A directors’ report is a financial document that major limited corporations must file at the end of the fiscal year. It is written in the law and is part of a broader movement toward increased...
What is a creditor?
The word “creditor” can refer to a variety of meanings depending on the context but most commonly refers to a financial institution or a person from who a debtor, often known as a...
What is a debtor?
A debtor is someone who obtains payments from creditors to satisfy their personal and business needs. A debtor is someone, such as a person or company, who seeks financial assistance from creditors...
What is a PEST analysis?
PEST analysis is a strategic planning framework that identifies macro-environmental factors. Political, economic, social, and technological forces are all common factors in the environmental span of...
What is a convertible bond?
Convertible bonds are the most common type of bond issued by a company. As the name implies, these bonds can be changed into shares of the very same company’s stock at the bondholder’s...
What is an angel investor?
An angel investor is a type of early investor that provides money to a startup in addition to helping it get off the ground. In return for their investment, angel investors typically obtain an equity...
What is a private equity firm?
Private equity firms take companies the private capital they obtained from investors or their capital to improve their operations and then take them public and sell them for a profit. Venture capital...
What is transaction cost?
Costs incurred in connection with purchasing or selling goods or services are transaction costs. The work required to deliver a service or product to market is characterized by transaction costs...
What are economies of scale?
Firms benefit from economies of scale whenever their production gets more efficient. Economies of scale can be achieved through increasing output and cutting costs. Since costs are distributed among...
What is loss aversion?
No one loves losing, especially when it is a financial loss. Fear of losing money can paralyze an investor, leading them to keep a failing investment long beyond what should have been sold or sell...