CORPORATE FINANCE AND ACCOUNTING
Shareholder
Definition: A shareholder is an individual or institution that owns stock in a corporation or other company. Shareholders are also known as stockholders. Types of Shareholders: Rights of Shareholders: Responsibilities of Shareholders: Additional Notes: FAQs
Agency Problem
An agency problem occurs when two parties, known as principals, delegate tasks to an intermediary agent who is not a direct employee of the principals. The agent is responsible for acting on behalf of the principals and executing tasks on their behalf. Key Features of Agency Problems: Examples of Agency Problems: Solutions to Agency Problems: […]
Killer Bees
Killer bees, also known as Africanized honey bees, are a highly aggressive species of honey bee that is native to Africa. They are known for their extreme defensive behavior and their ability to sting repeatedly and cause severe harm to humans. Characteristics: Behavior: Killer bees typically live in large, complex hives that are often found […]
Internal Capital Adequacy Assessment Process (ICAAP)
The Internal capital Adequacy Assessment Process (ICAAP) is a process used by banks and other financial institutions to assess their own capital adequacy. It involves a comprehensive review of the institution’s financial position and operations to determine its ability to withstand a range of potential losses. Key Steps in the ICAAP: 1. Data Collection:– Gather […]
Descriptive Statistics
Descriptive statistics are a set of summary measures that provide a concise overview of the central tendency, variability, and shape of a data set. These statistics are commonly used to describe and summarize large datasets in a way that facilitates understanding and comparison. Key Descriptive Statistics: 1. Mean:– The average of all values in the […]
Unit Cost
The unit cost is a measure of cost per unit of a particular item. It is calculated by dividing the total cost of an item by the number of units of that item. Formula: Unit Cost = Total Cost / Number of Units Example: If a company purchases 100 units of a product for a […]
Wholly Owned Subsidiary
A wholly owned subsidiary is a subsidiary company that is completely owned and controlled by another company, generally its parent company. In other words, the parent company owns 100% of the subsidiary company’s shares and has complete authority over the subsidiary’s operations. The subsidiary company is considered to be an extension of the parent company, […]
Boot
The word “boot” has several meanings, depending on context. Here are a few of the most common meanings: 1. Footwear: Boot is a term used for a type of closed-toe shoe that covers the entire foot, typically worn in cold weather or for protection against dirt and water. Examples: “He wore his boots to the […]
Accrue
The word “accrue” has several meanings. Main meaning: To accumulate or gather over time, often through gradual addition. Examples: The debt accrued over the years. Interest accrued on a loan. Savings accrued through regular deposits. Other meanings: To become larger or greater through growth, accumulation, or addition. To make something more severe or troublesome. To […]
Rationalisation
Definition: Rationalization is the process of simplifying and codifying mathematical expressions by removing fractional powers and simplifying radicals. It is a technique used in mathematics to simplify and manipulate expressions. Steps involved in rationalization: Examples: 1. Rationalize the following expression: 3/x + 5/x Solution: 3/x + 5/x = (3 + 5) / x = 8/x […]
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