Category: CORPORATE FINANCE

Over-the-Counter (OTC) Trading: What It Is, Importance, Network, Examples

Over-the-counter (OTC) trading, often referred to as off-exchange trading, plays a vital role in the dynamic landscape of financial markets. This blog post delves into the significance of OTC trading, exploring its importance in providing flexibility to market participants and the expansive network it fosters. What is Over-the-Counter Trading? Over-the-counter …

Labor Productivity: Definition, Meaning, Calculation, Example, Measures

Companies expect employees to be productive during their work hours. Essentially, it means maximizing the output for lower input. In this case, products or services are the outputs, while labor work hours are the input. Companies can use labor productivity as a financial metric to gauge their operations. What is …

Loan Covenants: Types, Usage, Examples, Pitfalls

In the intricate landscape of lending and borrowing, loan covenants play a pivotal role in shaping the terms of agreements between borrowers and lenders. This blog post aims to shed light on the various types of loan covenants, their pitfalls, and their strategic usage in the financial realm. What are …

CAMELS Rating System: What It Is, Definition, How It Works

When it comes to financial institutions they often use many different methods to assess their finances. One such method is known as the CAMELS rating system. CAMELS stands for Capital Adequacy, Asset Quality, Management Capability, Earnings, Liquidity, and Sensitivity to Market Risk. It not only helps in decision-making but also …

Process Centering: Definition, Advantages, Disadvantages

Ensuring a product meets specific criteria is one of the most critical challenges that companies face. However, they can use various techniques to eliminate or reduce any variations in operations. One of these includes process centering. What is Process Centering? Process centering is a fundamental concept in statistical process control …

General Partnerships: Definition, Examples, Advantages, Disadvantages, Alternatives

In the realm of business structures, a General Partnership (GP) stands as a fundamental model of collaboration where individuals come together to pursue shared entrepreneurial endeavors. This blog post aims to unravel the essence of a General Partnership, exploring its definition, examples, advantages, disadvantages, and the landscape of other partnership …

Quality of Conformance: Definition, Meaning, How to Measure, What Factors Impact

Companies measure various financial metrics to determine performance. However, these metrics do not gauge every aspect of the business. Companies use other non-quantifiable methods to measure those areas. One of these includes the quality of conformance. What is Quality of Conformance? The quality of conformance, also known as conformance quality, …