Finance

12 Types of Financial Intermediaries – And How Do They Work?

A financial intermediary means an institution that acts as a middleman between two parties in order to help financial transactions. Financial intermediaries are highly specialized and they connect market participants with each other. Financial intermediaries include banks, investment banks, credit unions, insurance companies, pension funds, brokers and exchanges, clearinghouses, dealers, mutual funds, etc. 1) Banks …

12 Types of Financial Intermediaries – And How Do They Work? Read More »

12 Main Objective of Financial Management You Should Know

Meaning: Financial management is that managerial activity that is involved in planning and controlling of firm’s financial resources. It is concerned with acquiring, financing, and managing assets to accomplish the overall goal of a business enterprise. Every beginner needs to start a business or a company with financial knowledge and management strategies. Finance is directly …

12 Main Objective of Financial Management You Should Know Read More »

ERG Theory of Motivation: What is it? and How does it work?

Clayton Alderfer’s ERG theory of motivation from 1969 converges Maslow’s five human needs into three categories: Existence, Relatedness, and Growth. Existence Needs: This need includes basic survival and physiological needs like air, water, clothing, safety, intimacy, and affection. This equates to Maslow’s first two levels. Relatedness Needs: This need encompasses social and external esteem, relationships …

ERG Theory of Motivation: What is it? and How does it work? Read More »

What is Operating Gearing? Meaning, Formula, Example, and Usages

Meaning of Leverage/gearing Leverage refers to increased means of accomplishing the purpose of the company. In the financial world, leverage refers to the ability to use fixed-cost assets or funds to increase the return to its shareholders. The leverage related to investment activities is called operating leverage. Operating leverage. Operating leverage is caused by to …

What is Operating Gearing? Meaning, Formula, Example, and Usages Read More »

7 Types of Long-term Debt: Definition, and Explanation

Definition: Long-term debts are non-current liabilities with obligations beyond one year. Long-term debt can be viewed from two perspectives: financial statement reporting by issuer and financial investing. The balance sheet must record long-term debts and the related payment obligations in the non-current section of the balance sheet. On the other hand, investing in long-term debt …

7 Types of Long-term Debt: Definition, and Explanation Read More »

Scroll to Top