Bank drafts are a common type of payment used by businesses and individuals. It is a written order from a bank or other financial institution, instructing the drawee to pay a specific person or entity a specified sum of money on demand. The recipient of the Bank Draft will receive …

The workforce is essential in many industries. Whether service- or product-based, businesses need employees in many areas. In manufacturing companies, these employees also help contribute during the production cycle. The work done by them falls under the definition of labor. It includes any effort, skill, and time employees put toward …

Structured finance is a type of financial engineering that involves the use of complex financial instruments to structure sophisticated transactions. It is used to manage risk, raise capital and facilitate asset transfers. Structured finance can involve the securitization of assets or other forms of debt financing. These structures are designed …

When it comes to payments, it is important to stay on top of any arrears. This means knowing if the payments are late or missed and being proactive in dealing with them. Late payments can cause a financial strain and can negatively affect credit ratings. It is important to keep …

Implicit costs are expenses that appear on a company’s balance sheet and represent the opportunity cost of using resources. Unlike explicit costs, which are actual out-of-pocket payments for goods or services, implicit costs do not involve any cash exchange. As such, they can be difficult to recognize and measure accurately. …

Lease agreements are prevalent for properties throughout the world. These agreements involve two parties. Firstly, they include the property owner, also known as the landlord. On the other hand, they also contain the party that leases the landlord’s property, also known as the tenant. Both parties receive benefits from these …

Setting the price for a product or service can be a complicated task. From satisfying customers to staying competitive in the market, there’s a lot to consider. Economy pricing is one strategy that businesses can utilize to achieve their desired pricing objectives. Economy pricing, also known as low-price or cost-based …

Common stock is a type of equity ownership in a company. It is the primary instrument to indicate the shareholders’ rights to a company’s assets. Sometimes, they are also known as ordinary shares. Common stocks have various features, including voting rights, dividends, limited liability, etc. Companies use these instruments to …

Financing is an essential component of any business’s operations. It helps to fund new investments, provide capital for expansion and support day-to-day operations. Hybrid financing is an increasingly popular financial instrument that combines the characteristics of both debt and equity. By understanding how hybrid financing works, businesses can gain access …

Budgeted cost is an important metric used by businesses and organizations to set financial goals, manage expenses, and ensure that resources are allocated efficiently. It’s also a key element in project planning as it helps to identify potential risks or areas of overspending before committing funds. Businesses can use budgeted …