What does the term hedging mean? Why do companies elect to follow this strategy?

Q: Explain the following in simple words or explanation: Would scenario planning cause the company to…

A: Scenario analysis or scenario planning is defined as the method that describes the strategic…

Q: How can a company like Volkswagen improve on their coporate governance?

A: Every business firm has to follow some rules and principles, this set of instructions which the…

Q: Institution-based view argues that the success and failure of firms are enabled and constrained by…

A: Institution-based view refers to the view that devises strategic choices as a product of the dynamic…

Q: Do firms have any responsibilities to society atlarge?

A: The answer is Yes, firms have a lot of responsibilities to the society. Also, small businesses still…

Q: How is Trend analysis important for a company?

A:

Q: what determines the market value of a company?

A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…

Q: What factors influence a company’s WACC?

A: Weighted average cost of capital (WACC): It may be an estimation of the cost of capital of a company…

Q: What is financial leverage and how does it affect a business's performance?

A: The company borrows money to acquire assets and do operations. The amount of debt a corporation has…

Q: Why do companies “go global”?

A: Following are the reason why every company tends to go global: Boost sales and return on profit.…

Q: what recent development in FP&A, if any, can significantly help companies deal with a black swan…

A: The answer for the theory question on the development in FP&A that helps companies in dealing…

Q: How do the DuPont technique helps the firm’s managers to further analyze its returns?

A: DuPont analysis is referred to as the framework regarding the analysis of the fundamental…

Q: How is it possible for a firm to grow itself out of business and how can this be guarded against as…

A: Finance managers are accounting experts concerned for a company or organization's financial…

Q: How do companies add value, and what arethe dimensions of performance that customersare expecting of…

A: Step 1: The companies may add through the following things: Research and development, Proper…

Q: 'Market structures are often criticised for being too unrealistic in their assumptions of how firms…

A: Answer:-  Market structure meaning:- In economics, the market structure describes how the businesses…

Q: If markets are truly efficient, does it matter whether firms engage in earnings management? On the…

A: If the company concentrated on earnings management then the market is not truly efficient.

Q: What characteristics will give firms greater sensitivity to business cycles?

A: Companies with larger sensitivity to the cycles of business are in industries that make capital…

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: up between owners and managers and how

A: Profit maximization and value maximization are two financial management approaches that define the…

Q: How are high-context and low-context cultures different? Which of these is the best culture for…

A: Communication is a process of exchange of ideas, thoughts, information’s from one person to another…

Q: e DuPont identity a valuable tool for analyzing the performance of a firm? Discuss the types of…

A: DuPont is very important concept in the equity analysis.

Q: Why does business risk vary from industry to industry?

A: Business risk It is the probability of occurrence of an inadequate amount of loss because of…

Q: What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a…

A: The strategy that has helped company D to achieve huge success is the marketplace is its operational…

Q: What do you meant by not for profit objective of the firm?

A: The sole purpose of any business organization is to earn profit. However, there are some…

Q: What are the advantages of bringing IPO  into company?

A: To run the business, the firm needs funds for a long time. To arrange the funds, firms issue various…

Q: what does it mean to say that managers should maximize shareholders wealth subject to ethical…

A: Share- It is a unit of ownership in a company's capital. It entitles the shareholder to an equal…

Q: What is meant by solvency? What information in thebalance sheet can be used to assess a company’s…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: What is the strategic value of the DuPont chart?

A: The DuPont chart, which was popularized by the DuPont Corporation, is a framework for analyzing…

Q: A promoter becomes irrelevant to a company when?

A: A company needs a promoter during its incorporation stage. It is the first person who conveys the…

Q: What advice would you give those who want to invest in this company? (recommendations)  (based on…

A: Before investing in any companies’ securities, performance and growth is evaluated by considering…

Q: Why would managers misrepresent the financial results oftheir companies?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: What could possibly go wrong while using financial leverage? Do you think it should be utilized by a…

A: Financial leverage: Financial leverage is a word that describes the use of borrowed money (debt) to…

Q: Which kind of company ownership is optimal for an upcoming start-up

A: Businesses are anything that creates money via the sale of products or services to clients.

Q: Explain why a clear strategy is vital for a company.

A: In general words, a business strategy is a written plan outlining how a company intends to achieve…

Q: What factors reduce the effectiveness of companies business plan

A: A business plan is a written document that explains all the things about business objectives and how…

Q: What problems do companies face in designing and managing their channels?

A: Distribution channel is the chain in which the final customers receive the products or purchase the…

Q: What are the different types of risks associated with businesses?

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: What special problems arise when evaluating performance in multinational companies?

A: Performance evaluation refers to the process of assessing how an individual or a firm is performing…

Q: what if your company is being targeted by a SPAC would that be a good thing or a bad thing?  What…

A: Here discuss about the importance of the Special Purpose Acqusition company (SPAC) which are…

Q: Why is hedging relevant for a company?

A: Hedging represents the strategy of risk management in order to offset the losses associated with the…

Q: Why are the customer perspective measures important when a company is doing financially well?

A: Customer perspective measures: It refers to the measures which are considered while viewing the…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: What is JetBlue’s strategy for success in the marketplace? Does the company rely primarily on a…

A: JetBlue’s strategy has the main focus on "Direct Business Model" which results into eliminating the…

Q: What should be the most important goal of a company? Why?

A: A company is an entity that has a legal identity in the eyes of law. It represents an association of…

Q: Explain what breakeven point is and why it is important for business?

A: Breakeven point is that point of sales at which there is no profit and no loss. It means company is…

Q: What does the R2measure? What is the R2for a typical company?

A: R^2 is the measure of a stock’s performance in relation to its benchmark performance. The measure…

Q: What are the main hindrances in valuation estimates in business valuati

A: Knowing how much an asset is worth and what factors influence its value is essential for making…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.