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Does high operating leverage always mean high business risk? Explain.
High operating leverage doesn't always mean high business risk. If the company's sales are quite steady then the variation in operating income would be less even if the degree of operating leverage were large.
The IASB is in the procedure of undertaking a comprehensive review of accounting for financial instruments, and has issued a latest financial instruments standard referred to as IF
State the major decision of financial management The major decision of financial management is the decision relating to dividend policy. The dividend must be analysed in relat
The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti
Federal Reserve System The central banking institution in the United States responsible for determining United States monetary strategy, including the setting of interest rates
identify service marketing mix of facebook
COMPOUNDING TECHNIQUE is the method of calculating the future values of cash flows and involves calculating compound interest. Under this process, interest is compounded when the
What is the matching principle of working capital financing? What are the benefits of following this principle? The matching principle is while short-term financing is used fo
Profit Maximisation Decision Criterion According to this approach, actions which increase profits must be undertaken and those that decrease profits are to be avoided. In speci
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Inventory days (Average inventory/Cost of sales) x 365days Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Ope
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