Understanding Loan Repayment, Financial Markets, and Ratios
Loan Repayment Methods
Equal Principal Payments
The loan is repaid in equal amounts of principal. The installments are unequal because the interest payment is largest in the first year and becomes smaller as the principal is gradually paid.
Equal Amortization
The loan is repaid in equal installments. The amount applied to principal is smallest in the first year and gradually increases through the payment years. The decreasing payments on interest equalize the uneven payments on principal.
Balloon Payment
The
Read MoreFinancial Markets, Securities, and Risk Management Concepts
Financial Market Assets
Other assets exchanged on the financial market include:
Commodities
Tangible or non-tangible goods such as crude oil, gold, coal, aluminum, copper, wheat, electricity, broadcasting rights, and digital commodities.
Securitization
A process by which non-tradable assets or financial products, such as mortgages, car loans, and credit cards, are aggregated to build a tradable security.
Mortgage-Backed Securities (MBS)
Securities whose cash flows depend on a pool of residential or commercial
Small Scale Industries: Driving India’s Economic Growth
Role of Small Scale Industries in Economic Development
Small Scale Industries (SSIs) are crucial for India’s economic development and employment generation. They foster national growth by stimulating both urban and rural economies. Small and Medium-Scale Enterprises (SMEs), including SSIs, play a vital role in supporting government efforts to enhance infrastructure and manufacturing. They also contribute significantly to addressing societal challenges such as pollution, slums, and poverty. Investing
Read MoreSpain: Economy, Employment, Social Policy, and Public Services
Economy and Employment in Spain Today
The Spanish economy in 2007 remained among the most dynamic in its environment, recording GDP growth of 3.8%, nine tenths above the EU average. However, it started to show a slowdown in the major factors that had sustained economic growth: consumption expenditure by households and the construction sector. Initially, more moderate economic growth was forecast, possibly also more sustainable in the medium and long term. That picture changed substantially with the
Read MoreFinancial Statements Explained: Balance Sheet & Income Statement
Achieving Business Objectives Through Financial Insight
Effective financial diagnosis helps companies achieve core objectives:
- Survival: Continuing operations and meeting all commitments over time.
- Profitability: Generating sufficient income to adequately reward shareholders and fund necessary investments.
- Growth: Increasing sales, market share, and overall profits.
Limitations of Financial Statement Analysis
Analyzing financial statements comes with several important limitations to consider:
- Historical
Core Economic Concepts: Demand, Markets, Costs, and Business Principles
Understanding Demand in Economics
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at different prices during a given period.
Key Determinants of Demand
Several factors influence the demand for a product or service:
Price of the Good (Own Price)
The Law of Demand states that as the price of a good decreases, the quantity demanded increases (and vice versa), assuming all other factors remain constant.
Income of the Consumer
- Normal Goods: Demand increases