Corporate Finance
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Corporate Finance
Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to Shareholder value, maximize or increase valuation (finance), shareholder value. Correspondingly, corporate finance comprises two main sub-disciplines. Capital budgeting is concerned with the setting of criteria about which value-adding projects should receive investment funding, and whether to finance that investment with ownership equity, equity or debt capital. Working capital management is the management of the company's monetary funds that deal with the short-term business operations, operating balance of current assets and Current liability, current liabilities; the focus here is on managing cash, inventory, inventories, and short-term borrowing an ...
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Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitability asse ...
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Inventory
Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials. The concept of inventory, stock or work in process (or work in progress) has been extended from manufacturing systems to service businesses and projects, by generalizing the definition to be "all work within the process of production—all work that is or has occurred prior to the completion of production". In the context of a manufacturing production system, inventory refers to all work that has occurred—raw materials, partially finished products, finished products prior to sale and departure from the manufacturing system. I ...
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Joint-stock Company
A joint-stock company is a business entity in which shares of the company's capital stock, stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their share (finance), shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. In modern-day corporate law, the existence of a joint-stock company is often synonymous with incorporation (business), incorporation (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company's debts only to the value of the money they have invested in the company). Therefore, joint-stock companies are commonly known as corporations or limited company, limited companies. Some jurisdiction (area), jurisdictions still provide the possibility of registering joint-stock companies without limited liability. In the United Kingdom and in other count ...
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DK Publishing
Dorling Kindersley Limited (branded as DK) is a British multinational publishing company specialising in illustrated reference books for adults and children in 63 languages. It is part of Penguin Random House, a subsidiary of German media conglomerate Bertelsmann. Established in 1974, DK publishes a range of titles in genres including travel (including DK Eyewitness travel), history, geography, science, space, nature, sports, gardening, cookery and parenting. The worldwide co-CEOs of DK is Paul Kelly and Rebecca Smart. DK has offices in New York, Melbourne, London, Munich, New Delhi, Toronto, Madrid, Beijing, and Jiangmen. DK works with licensing partners such as Disney, LEGO, DC Comics, the Royal Horticultural Society, MasterChef, and the Smithsonian Institution. DK has commissioned Mary Berry, Monty Don, Robert Winston, Huw Richards, and Steve Mould for a range of books. History DK was founded in 1974 by Christopher Dorling and Peter Kindersley in London as a book ...
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Dividend
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called retained earnings). The current year profit as well as the retained earnings of previous years are available for distribution; a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or by share repurchase. In some cases, the distribution may be of assets. The dividend received by a shareholder is income of the shareholder and may be subject to income tax (see dividend tax). The tax treatment of this income varies considerably between jurisdictions. The corporation does not receive a tax deduct ...
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Publicly Listed Company
A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in Over-the-counter (finance), over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (listing (finance), listed company), which facilitates the trade of shares, or not (unlisted public company). In some jurisdictions, public companies over a certain size must be listed on an exchange. In most cases, public companies are ''private'' enterprises in the ''private'' sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states, and therefore have associations and formal designations which are distinct and separate in the polity in which they reside. In the United States, for example, a public company is usually a type of corporation (though a corporation need not be a public company), in the Unit ...
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Verenigde Oostindische Compagnie
The United East India Company ( nl, Verenigde Oostindische Compagnie, the VOC) was a chartered company established on the 20th March 1602 by the States General of the Netherlands amalgamating existing companies into the first joint-stock company in the world, granting it a 21-year monopoly to carry out trade activities in Asia. Shares in the company could be bought by any resident of the United Provinces and then subsequently bought and sold in open-air secondary markets (one of which became the Amsterdam Stock Exchange). It is sometimes considered to have been the first multinational corporation. It was a powerful company, possessing quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, strike its own coins, and establish colonies. They are also known for their international slave trade. Statistically, the VOC eclipsed all of its rivals in the Asia trade. Between 1602 and 1796 the VOC sent almost a million Europ ...
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Low Countries
The term Low Countries, also known as the Low Lands ( nl, de Lage Landen, french: les Pays-Bas, lb, déi Niddereg Lännereien) and historically called the Netherlands ( nl, de Nederlanden), Flanders, or Belgica, is a coastal lowland region in Northwestern Europe forming the lower basin of the Rhine–Meuse–Scheldt delta and consisting of three countries: Belgium, the Netherlands and Luxembourg. Geographically and historically, the area also includes parts of France and Germany such as the French Flanders and the German regions of East Frisia and Cleves. During the Middle Ages, the Low Countries were divided into numerous semi-independent principalities. Historically, the regions without access to the sea linked themselves politically and economically to those with access to form various unions of ports and hinterland, stretching inland as far as parts of the German Rhineland. Because of this, nowadays not only physically low-altitude areas, but also some hilly or elevated regi ...
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Italian City-states
The Italian city-states were numerous political and independent territorial entities that existed in the Italian Peninsula from the beginning of the Middle Ages until the proclamation of the Kingdom of Italy, which took place in 1861. After the fall of the Western Roman Empire, urban settlements in Italy generally enjoyed a greater continuity than settlements in western Europe. Many of these cities were survivors of earlier Etruscan civilization, Etruscan, Umbrian and Roman towns which had existed within the Roman Empire. The republican institutions of Rome had also survived. Some feudal lords existed with a servile labour force and huge tracts of land, but by the 11th century, many cities, including Venice, Milan, Florence, Genoa, Pisa, Lucca, Cremona, Siena, Città di Castello, Perugia, and many others, had become large trading metropoles, able to obtain independence from their formal sovereigns. Early Italian city-states Among the earliest city-states of Italy, that alre ...
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Financial Accounting
Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions related to a business. This involves the preparation of financial statements available for public use. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes. Financial accountancy is governed by both local and international accounting standards. Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements. On the other hand, International Financial Reporting Standards (IFRS) is a set of accounting standards stating how particular types of transactions and other events should be repo ...
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Accounting Profession
Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms. Accounting can be divided into several fields including financial accounting, management accounting, tax accounting and cost accounting. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to the external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, ana ...
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Financial Management
Financial management is the business function concerned with profitability, expenses, cash and credit, so that the "organization may have the means to carry out its objective as satisfactorily as possible;" the latter often defined as maximizing the value of the firm for stockholders. Financial managersFinancial Managers
(FM) are specialized professionals directly reporting to , often the