The concept and tools for assessing the value of money over time
Financial management requires the constant implementation of various calculations related to cash flows in different periods of time. The key role in these calculations is played by the time value…

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HOW TO BUILD A FINANCIAL BRIDGE IN CIVILIZATION
Strange creatures are people ... They always want what is inaccessible. And when at last there is an opportunity to get what you want, interest instantly fades away and it…

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What is small business profitability?
Profitability - this term is heard by almost every adult. But not everyone understands what this term means. Not even all businessmen can explain this term. After starting to publish…

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leverage effect

What is small business profitability?

Profitability – this term is heard by almost every adult. But not everyone understands what this term means. Not even all businessmen can explain this term. After starting to publish articles on small business performance, I began to receive letters from my readers asking them to explain the difference between business performance and profitability. And in general, talk about profitability – what kind of concept it is, how it is determined, etc.

What is profitability.
Basically, these are letters from those businessmen who came across lenders or investors. And one of the very first questions they were asked was the question of the profitability of their business. But not only for the sake of lenders, it is necessary to have elementary concepts of profitability. Profitability is one of the main indicators of business performance, which illustrates the effectiveness of all, without exception, business costs, the effectiveness of all its activities. Continue reading

The benefits of a loan for small businesses.

For a small business, there are several ways to determine the benefits of a loan.

The easiest, but also the most approximate way. Rather, it’s not even a way, but simply a condition for those entrepreneurs who do not want to consider the economy of their business. The condition is quite simple. The net profit of small businesses should significantly exceed all payments on the loan. The fulfillment of this condition must be indispensable. To some extent, this will allow the business to avoid bankruptcy. But only that. It is unclear whether there is a benefit from the loan or not.

To accurately determine the benefits of a loan, you should turn to the concepts of profitability. To do this, I recommend reading an article on profitability. Continue reading

Credit Debt Masochism
Today, one of the main topics of all world media is the debt crisis that erupted in Europe. The absolute and relative values ​​of various types of debt (external, state,…

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Why and who needs financial analysis
Defining the boundaries of financial sustainability of enterprises is one of the most important problems in a market economy. Inadequate financial stability may lead to a lack of funds to…

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Common mistakes made by managers
Question: “It seems to me that we have thought through the process of change to the smallest detail, but already at the first stages of the implementation of the plan…

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The problem of the interaction of technological and economic transformations
The article discusses issues related to the paradigm of independent research of technological and economic transformations. The author comes to the conclusion that in modern conditions the technological innovation process…

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