Relationship between a Company’s External Environment, Business Model, and Financing Needs
A firm’s financing needs and risk profile depend on its business models and other factors. These factors can be classified into external and firm-specific factors. External Factors Master business environment and financing needs with our Free Trial. Firm-specific Factors Start…
Business Models
A business model outlines how a business is organized to deliver value to its customers. A business model encompasses the following aspects: A business model describes what a business is about, how it runs its operations and generates revenue and…
Public and Private Corporations
A corporation can either be regarded as private or public. This classification is determined by the following factors: 1. Issuance of Shares Public Companies Public companies may issue additional shares in the capital markets to raise huge amounts of capital…
Business Structures
A business is initiated by a founder(s) who possesses significant know-how or expertise. The founder may, nevertheless, lack the skills to manage the business as it grows. Moreover, the founders may lack the capital to grow their business. They may,…
Impact of Geopolitical Risk on Investment
The degree to which investors take geopolitical risk into account when making decisions will greatly depend on their investment goals and risk appetite. While geopolitical risk may be welcomed by certain investors while it may also be shunned by others…
Tools of Geopolitics
Geopolitical tools refer to methods used by geopolitical actors to strengthen their interests to others. These tools ultimately result in geopolitical risk. Tools of geopolitics may be separated into: i. National Security Tools Tools for national security are those that…
Geopolitics and Globalization
Globalization is the interaction and integration of individuals, organizations, and governments on a global scale. It is characterized by the cross-border movement of goods, information, employment, and culture. However, recently there has been a growth of nationalism, thanks to which…
Geopolitics
Geopolitics examines how geography influences national and international relations. Analysts in this field examine the people, groups, businesses, and national governments that engage in political, economic, and financial activities and their interactions with one another. The risk posed by tensions or acts between…
Forward Price of an Asset With Zero, Positive, or Negative Net Cost of Carry
Cost of Carry The cost of carry is defined as the net of the costs and benefits. The term “carry” is analogous in that storage (or holding) of an asset attractcts net costs i.e, the costs to “carry” an asset….
