Leverage

This can be viewed as an opportunity and also a risk, it combines two components in business ie operating leverage and financial leverage. Operating leverage is a component in business…

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Customer Value

"Zappos bribes people to quit. During the four weeks of customer service training, it offers employees $2,000 cash, plus payment for the time worked, if they leave the company. The…

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Timing Activites

Bob during his operations as a farmer will need feedback on how the business is doing without waiting for the end of the accounting period. Therefore he should divide the…

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Farms Probabilty

Some risk accompanies any investment decision. with the assistance of probability, we can determine the right path to follow based on our choices Bob invests in a farm with a…

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Bob’s Equity

The accounting equation is described using the following equation Assets = liabilities + Equity An Owner's claims on the businesses are referred to as Equity and therefore the equation can…

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