Meaning of trading on equity - Equity means equity capital or capital of the owners, whereas trading means earning of profits. In composite form, the method of earning profits by equity capital is known as trading on equity. In a narrow sense, when trading in any business institution is done on the basis of debt capital, rather than equity capital, then it is known as … [Read more...] about Trading On Equity: Objectives, Types, Importance, Limitations
Entrepreneurship
Capital Gearing: Types, Importance, Advantages and Effects
Capital gearing means maintaining the desired and proper proportions between various types of securities in the capital structure of the company. In other words, deciding the ratio of capital to be made available by various sources, in total capitalization is known as capital gearing. The term capital gearing is used to describe the ratio between the ordinary share … [Read more...] about Capital Gearing: Types, Importance, Advantages and Effects
11 Key Features and Importance Cost of Capital
The cost of capital means that rate of return, which a company has to earn on investments to maintain its value intact. In other words, the cost of capital is the minimum rate of return, which maintains the per-share market price (at the current level). The cost of capital may be defined as the rate that must be earned on the net proceeds to provide the burden of cost … [Read more...] about 11 Key Features and Importance Cost of Capital
20 Psychological Factors Affecting Entrepreneurship
Physiological factors in entrepreneurship mean feelings, inspirations, tendencies, self-thinking, and physical, economic and social atmosphere of the behavior of entrepreneurs occupied in industrial activities, which cause changes and revisions in the behavior of the employees. Entrepreneurship is a physiological activity. Hence, behaviors of entrepreneurs are guided … [Read more...] about 20 Psychological Factors Affecting Entrepreneurship
15 Importance of Social Responsibilities of Entrepreneurs
The concept of social responsibilities of the entrepreneur in the present day business activities is gradually getting prevalent. That is why this concept is going to be known as an integral part of the modern system. why it is so? As regards assuming the social responsibilities of the big entrepreneur, it is relevant to clarify that the first motive of the entrepreneurs … [Read more...] about 15 Importance of Social Responsibilities of Entrepreneurs