0
What does it mean when a firms external financing needs is calculated and is negative?
Wiki User
∙ 9y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What areas do business economists work in?
Business economists work in such areas as manufacturing, mining, transportation, communications, banking, insurance, retailing, private industry, securities and investment firms, management consulting firms, and economic and market research firms,
Which ratio measures the firms degree of indebtness?
debt ratio
What firms a pair with 6 to give 48?
8 times 6 = 48
What is the difference between a buy side trading firm and sell side trading firm?
On Wall Street, "buy side" refers to firms that invest money or 'buy' securities and "sell side" refers to the investment banks that provide the buy side firms with products and services such as initial public offerings (IPO's), secondary offerings, trading, research, conferences, etc. The "sell side" firms are 'selling' IPO's and services to the buy side firms. Examples of buy side firms would be large mutual fund companies like Fidelity or T Rowe Price. Examples of sell side firms would be investment banks like Goldman Sachs, Morgan Stanley, etc. Most of the large investment banks also have small buy side operations that are run separately from the larger sell side. For example, you can buy a mutual fund from Morgan Stanley or Merrill Lynch, but this isn't where these firms make most of their money.
WHAT measure would be most useful in comparing the operating profitability of two firms in different industries?
cash in divided by cash out
What does a negative cash flow from financing activities mean?
Negative cash flows from financing activities means that the firm is paying out more money to investor (in the form of debt principal repayment, interest payment, dividends and share repurchases) than it is raising from investors. Usually, negative cash flows from financing activities are associated with mature companies generating more than enough cash from operations to fund future activities. It is not necessarily bad news. Conversely, early-stages firms rapidly growing firms and those in financial distress typically have positive cash flows from financing activities.
What are Difference between the financing patterns of US and Japanese firms?
The basic differences between the financing patterns of U.S. and Japanese firms are in the source of financing--internal versus external-- and the composition of external finance--bank borrowing versus debt securities. Historically, U.S. companies have received 60% to 70% of their funds from internal sources. By contrast, Japanese companies have relied heavily on external funds to finance their strategy of making huge industrial investments and pursuing market share at the expense of profit margins. Industry's sources of external finance also differ widely between Japan and the United States. Japanese firms rely heavily on bank borrowing, while U.S. firms raise much more money directly from financial markets by the sale of securities.
What is the stock market used for?
It can be used by firms as a source of financing.
Where would one find financing in Chicago?
The Chicago Tribune has help for financing or Robert Half has a financing and account website. His firm is one of the largest recruitment firms. Another option is to apply for a financing internship.
Which firms are most likely to use bank financing rather than to issue bonds or stock to finance their activities?
Smaller firms that are sole pripiortorships or partnerships that are not incorporated and not public companies are more likely to use bank financing.
Why ratios is calculated?
To see the Firms Financial position Firms Performance Trend analysis
When external costs are generated by firms the government should?
stop
Who are the users of balance sheet?
external users like statutory firms, share holders etc
What is the meaning of the term 'venture capital financing'?
The term venture capital financing refers to a group of investors that lend money to start up small businesses and firms. Investors do this in order to get more in return if the business or firm was successful.
How do governments correct for the unfairness of negative externalities?
They regulate firms and make such practices illegal.
What does a negative ROA mean?
ROA is an indication of a firms profitability and sustainability. Those organizations that have a negative ROA may not be able to sustain their operations overtime.
How does the nature of a business affect its source of financing?
The nature of a business affect from its sources of financing are by a firm's economic potential (high growth and large profits yields more possible sources of financing), the company size and maturity (firms with established track record have more financing options than startups; e.g., bankers loan based on past performance), types of assets (firms with tangible assets have an easier time borrowing money than do those with intangible assets), and owner preferences for debt or equity (the mix is a matter of preference).A great way for a small to medium sized business to solve their financing and cash-flow problems is to have their invoices factored and get 80 to 90% of the invoices value paid up front.
