Measuring Liquidity
A company’s liquidity is measured by the extent to which it has current assets, i.e., cash, marketable securities, accounts receivable and inventory which can be readily used to satisfy its short-term obligations. Measuring Liquidity Liquidity ratios assist in measuring the…
Types of Financing Methods
Every source of capital has different risks for the company and the investor. For example, debt is a safer investment than common stock because it has a higher priority in claims in case of financial distress. It is, however, riskier…
Potential Risks due to Poor Corporate Governance
Weaknesses in corporate governance practices and stakeholder management processes expose a company and its stakeholders to several risks. The reverse scenario is that effective corporate governance and stakeholder management practices can create several benefits for a company and its stakeholders….
