At the close of each month, you need to complete a month-end report to keep your accounting statements updated. The month-end report adjusts your ledger for monthly transactions. This includes recording loan payments, reducing the value of business assets by their depreciation, writing off any bad debts and recording entries for prepaid expenses. The month-end…
Management information (MI) is very important in analysing trends, helping you forecast the future and solving any problems you identify. Firms should use it to monitor customer treatment, expectations and outcomes.
Marginal Analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use Marginal Analysis as a decision-making tool to help them maximise their potential profits. Marginal refers to the focus on the cost or benefit of the next unit or individual, for example,…
An MBO (management buyout) is a transaction where a company’s management team purchases the assets and operations of the business they manage. A management buyout is appealing to professional managers because of the greater potential rewards and control from being owners of the business rather than employees.
Mergers and acquisitions (M&A) is a general term that refers to the consolidation of companies or assets. M&A can include a number of different transactions, such as mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. In all cases, two companies are involved.
Global market business that trades in short term instruments such as Commercial Paper and Bankers Acceptance.
The policies of the central bank targeted at controlling the supply of money.
The part of a subsidiary company’s share not owned by the parent company. This ownership interest is also referred to as non-controlling interest.
A corporate situation that involves the combination of 2 separate companies into one entity. Existing shareholders retain a shared interest in the new entity.