Finance

8 Characteristics & Feature of Financial Intermediaries

Generally, financial intermediaries are engaged in bringing together the ultimate borrowers and ultimate lenders of finance. They allocate the funds of companies that have a surplus of capital and lend them to production companies. In this way, their objective is to convert savings into investments. The financial intermediaries charge a fee for their service and …

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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 …

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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 …

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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 …

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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 …

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7 Best Internal Source of Fund That Company Could Benefit From (Example and Explanation)

Internal sources of finance are generated internally by the business-like retained earnings, sale of assets, debt collection, and discounted selling. Internal sources of finance are easily accessible, simple, and save a lot of effort. Internal financing is the preferred means of raising finance for companies that want to remain debt-free. 1) Retained Earnings Retained earnings …

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