A corporation is a legal entity that is separate from its owners, shareholders, and managers. A corporation can own assets, incur liabilities, enter into contracts, sue and be sued, and pay taxes. A corporation is created by filing articles of … Continue reading What is a Corporation and Why is it Important for Finance?
If you want to start a business with one or more partners, you might consider forming a partnership. A partnership is a type of business structure that allows two or more parties to share the ownership, management, profits, and liabilities … Continue reading Partnership: A Way to Share Business Risks and Rewards
If you are thinking of starting your own business, you might have heard of different types of business structures, such as partnerships, corporations, or limited liability companies. But did you know that there is another option that is simpler and … Continue reading Sole Proprietorship: The Simplest Way to Start a Business
Dividend policy is an integral part of the firm’s financing decision. It involves determining how much of the profit earned by the company after paying the taxes is to be distributed to the shareholders. The dividend payout ratio is calculated by dividing … Continue reading Dividend Policy Decisions
Investment is one of the three major decisions in financial management, the other two being financing and asset management decisions. The investment decision is concerned with determining where to invest funds and at what amount. It is the most important of … Continue reading Investment Decisions for Financial Managers
Financing is one of the three major decisions in financial management, the other two being investment and asset management decisions. The financing decision involves determining the makeup of the right-hand side of the balance sheet. Different firms across industries employ varying … Continue reading Financing Decisions
ABC of Finance 