Image: CC BY-SA 3.0, by Nick Youngson, via Alpha Stock Images/Blue Diamond GalleryIs filing for bankruptcy just another sad move in a line of bad money management? Or can it be a thoughtful business decision to help you learn and grow?Most of its connotations are negative, from celebrity bankruptcies to relentless commercials on credit failure, […]
What Is a Stakeholder’s Role and Responsibilities? | Finance for Dummies
Although you have heard the term many times, do you still find yourself asking, “what is a stakeholder?” What are their responsibilities and what role do they play in business? Do you know the difference between a shareholder and a stakeholder? Well, if you want to learn ‘what is a stakeholder’ you will find plenty […]
Business Plans For Dummies Book Review
Whether you have a commercial or mission-based venture, a well-made business plan helps to focus on both long-term strategy and short-term tactics. Creating a good business plan requires know-how, and many books are available to help you craft a workable document. Here we’ll review a popular title in the field: Business Plans for Dummies. Business […]
What Is Contribution Margin?
In accounting, contribution margin is the difference between a company’s total sales, revenue, and variable costs. You can use the contribution margin formula to determine how much of a company’s revenues will be contributing to the business’s net income and fixed costs, after deducting the variable costs. It can be presented as the amount for a […]
What Is Free Cash Flow?
Free cash flow (FCF) is one of the best indicators of a company’s health, and unlike other indicators, free cash flow is quite easy to understand. You can think of free cash flow as the deposit that you take to your bank after paying all your monthly bills. If the deposit keeps on increasing, then […]
What is Equity?
Equity refers to all the resources invested in a particular business by the owners. It is commonly called owner’s equity or net assets. In other words, the term describes the net investment of stockholders or owners in a business. Equity is governed by the equation that follows: Equity = Assets – Liabilities. The following example gives […]