Introduction to business capital/finance - class-XII

Where there is an increase in the tax on corporate profit, the debt becomes relatively cheaper. This is because interest rate is to be paid to the debtors is deducted from the total income before calculating the value of tax. Thus, as the valueof tax increases, the debt becomes relatively cheaper.

While India has various financial literacy initiatives, it does not have a single, unified, formal nationwide structured financial education program that covers the entire population in the way implied by the statement.

Bancassurance is a partnership between a bank and an insurance company where the bank sells the insurance company's products to its customer base.

The most widely accepted objective of the firm is to maximize the value of the firm for its owners, that is, to maximize shareholder wealth. Shareholder wealth is represented by the market price of a firm’s common stock.

ADR is a dollar denominated negotiable certificate, it represents non-US company;'s Publicly traded equity. ADRs are divided into three levels based on the regulations and privilege of each company's issue. 

According to Section 2(51) of the Companies Act, 2013, Key Managerial Personnel includes the CEO/MD/Manager, Company Secretary, Whole-time Director, and CFO.

External users are those outside the organization who use financial statements to make decisions. Creditors use these statements to assess the creditworthiness of the business, unlike managers, CEOs, or controllers who are internal.

Operating leverage and financial leverage are interdependent because they both affect the total risk and return of the firm. They interact to determine the overall financial structure and earnings per share volatility.

Finance is regarded as the lifeblood of a business enterprise. It is the basic foundation of all kinds of economic activities. Finance is the master key that provides access to all the sources for being employed in manufacturing and merchandising activities. The success of an organization largely depends on efficient management of its finances.

Business finance refers to money and credit employed in business. It involves procurement and utilization of funds so that business firms may be able to carry out their operations effectively and efficiently.

Every business enterprise must undertake such business which is lawful. All business organization should adhere to the law of the country to ensure peace and order. Illegal and unlawful business organizations should not be undertaken.

Board for Industrial and Financial Reconstruction $(BIFR)$ is a board setup by the Government of India, in order to tackle the problem of industrial sickness, under the purview of Sick Industrial Companies (Special Provisions) Act,$1985$ $(SICA)$.

Interest paid by non-financial enterprises is classified as a financing activity in the cash flow statement because it relates to the cost of obtaining financial resources. Operating activities typically involve the core revenue-generating activities of the business.

The principle of indemnity ensures that an insured party is compensated only for the actual loss suffered, preventing them from profiting from an insurance claim. This prevents the dangers of over-insurance or double insurance.

Interest rate in cash credit is normally lower than bank credit account. Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance, whereas bank credit refers to a loan which is issued by the banking company and which are to be repaid by the borrower with a higher interest rate.

Cash
credit is normally given on security of stock, debtors etc. whereas
bank credit is normally given on security of a fixed asset- this is a rue statement.Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance.

The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF).

 The World Bank and the IMF are both based in Washington, D.C., and work closely with each other.

The World Bank is an international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.