Capital Budgeting: Methods and Stages for Long-Term Planning
Capital Budgeting: Methods and Stages
1. What is Capital Budgeting?
Capital budgeting is long-term planning for projects. The life of a project is generally more than one year, so the capital budgeting decision considers cash inflows and outflows for long periods. Accrual accounting measures profitability on a year-by-year basis.
2. What are the Stages of Capital Budgeting?
The six stages are:
- Identification
- Search
- Information Collection
- Selection
- Financing
- Implementation and Control
3. Discounted Cash Flow
Read MoreThe Enlightenment and Neoclassicism in 18th Century Spain
The Enlightenment in the 18th Century
The 18th century brought about the rise of the bourgeoisie. This primacy of change was driven by the innovative ideology of the Enlightenment. The Enlightenment posited the triumph of reason and progress in the political sphere. It defended the freedom of the individual, equal rights, and brotherhood among humans. The Enlightenment had its cradle in France. Among its thinkers, three authors stand out: Voltaire, Rousseau, and Montesquieu. Their ideas were reflected
Read MoreClimate Change Impacts and Sustainable Business Practices
Climate Change: Socio-Economic Effects
Primary effects of climate change:
- Melting of glacial ice caps
- Rising sea levels
- Shifting climate zones
- Changes in rainfall patterns, increase of arid areas
- Increased risk of extreme weather events
- Ocean acidification
- Loss of biodiversity
- Possible changes in ocean currents
Socio-economic effects of climate change:
- Damage to infrastructure and property (flooding, extreme weather)
- Loss of production (agriculture, industry)
- Effects on human health (food and water shortages,
Maximize Customer Loyalty with After-Sales Service
After-Sales Service: Enhance Customer Satisfaction
After-sales service is the set of mechanisms and tasks that an organization uses after the sale is completed to obtain total customer satisfaction. It is an important source of information and should be considered an investment. It is easier to sell new products to a satisfied customer than finding new customers. Through their recommendations, we can gain access to new customers.
Advantages of After-Sales Service
- It provides greater customer satisfaction.
Synonym Asset Investments and Corporate Finance
Synonym Asset Investments
Synonym Funding Liabilities
The functions of the finance department of a company are:
- Choose the most appropriate investment projects.
- Establish the financial requirements to carry them out and determine their timeline (whether long or short-term).
- Study the cost of each of the funding sources that will be used.
- Define the dividend policy of the company.
To be considered self-financing, a company cannot get into debt; that is, it is made up of its equity. This may be self-financing
Read MoreUnderstanding Corporations, Shares, and Financial Investments
Corporations
A corporation is an organization formed by one or more partners, either natural or legal persons, who are not personally liable for the debts of the entity. It requires a minimum capital of 60,101.21 euros, divided into registered or bearer shares, which can be cumulative or indivisible.
Classes of General Meetings
Annual General Meeting
The Annual General Meeting must be held within six months of each financial year. It is called to review management, approve social accounts (if appropriate)
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