How to Calculate Sales Quantity Variance? (Definition, Formula, and Example)

A sales volume variance arises when there is a deviation between the actual number of units sold and the estimated number of units expected to be sold. This could be due to various reasons, as listed below: A sales quantity variance analysis is performed because even though it’s almost impossible for the company to achieve …

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What is a Convertible Preferred Stock? Definition, Feature, And How Does It Work?

Definition Convertible Preferred Stocks are considered a type of Preferred Stock that allows stockholders to convert their stock holding to common stock at a fixed conversion ratio. However, this conversion can only take place after a predetermined date. Even though this transaction mostly takes place upon the shareholder’s request, it can be seen that some …

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6 Types of Business Activities You Should Know

All businesses are built on various functions in which they are experienced. The actions of companies contribute to the increase in production and the organization’s expansion. Every company sets together various rules and procedures to ensure that these operations operate as efficiently as possible. To ensure that they abide by all the government regulations while still satisfying employees and …

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What is Venture Capital?: Definition, How Does It Work? Advantages and Disadvantages

Definition: Venture capital is finance provided by venture capitalists to a company they deem to have high growth potential or a high future earning prospect. Venture capitalists are veteran investors and maybe anyone from wealthy investors to investment banks or companies. They generally provide startup and late-stage growth finance to smaller companies. The capital is …

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