Finance

Residual income (RI) is the net operating income received by the investment center, also known as ‘economic profit’. It is again that one continues to…

Operating Expenses, also known as operating expenditures, or “opex,” are the costs incurred by a business which are not related to a product being made.…

The word switching costs, also called “switching barriers”, are costs incurred by a customer by switching brands, goods, services, or suppliers. While most prevalent switching…

The Reserve Fund is a fund, which is created by the company out of its net profits to be utilized at the time of financial stringency…

Reserve capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation. This…

Customer Acquisition Cost (CAC) is the money that’s expended on convincing a buyer to make a purchase. In other words, the CAC refers to the…

A foreign direct investment (FDI) is a speculation made by a firm or individual in one country into business intrigues situated in another country. Enduring…

A foreign direct investment (FDI) in a company located in a country other than the foreign direct investor’s. Lasting interest distinguishes FDI from international portfolio…

Re-insurance is insurance for insurance companies. This refers to a contract of insurance for the second time. It is also known as insurance for insurers…

The alternative depreciation system (ADS) approach measures depreciation using a straight-line method, which divides the difference between the cost of the asset and estimated value…

Accelerated depreciation is a method of depreciation that refers to any of several methods through which a company depreciates a fixed asset for ‘financial accounting’…

Operating cash flow (OCF), cash flow provided by operations, Cash flow from operating activities (CFO), or free cash flow from operations (FCFO) is the amount…