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what is a real estate limited partnership relp | a real estate limited partnership relp is a group of investors who pool their money to invest in property purchasing development or leasing it is one of several forms of real estate investment group reig under its limited partnership lp status a relp has a general partner who assumes full liability and one or more limi... | |
what is a real estate mortgage investment conduit remic | the term real estate mortgage investment conduit remic refers to a special purpose vehicle spv or debt instrument that pools mortgage loans together and issues mortgage backed securities mbss understanding real estate mortgage investment conduits remics remics are complex investments that generate income for issuers an... | |
what is a real estate operating company reoc | a real estate operating company reoc is a publicly traded company that actively invests in properties generally commercial real estate unlike real estate investment trusts reits reocs reinvest the money they earn back into their business and are subject to higher corporate taxes than reits understanding real estate ope... | |
what is real estate owned reo | the term real estate owned reo refers to a lender owned property that is not sold at a foreclosure auction properties become reo when owners default and the bank repossesses them and tries to sell them the lender which is often a bank takes ownership of a foreclosed property when it fails to sell at the amount sought t... | |
when a borrower defaults on their mortgage the pre foreclosure period often involves either a real estate short sale or a public auction if neither goes through the foreclosure process can end with the lender taking ownership of the property lenders may be banks non traditional lenders quasi government entities like fa... | lenders may attempt to sell reo properties in their portfolios without the help of real estate agents when this is the case banks or government agencies often list their reo properties on their websites a bank s loan officers may also notify customers looking for homes about the reo properties in its portfolio the depa... | |
how a property gains reo status | so how does a property become real estate owned there is a process that lenders must adhere to for it to go from the original owner to lender owned it starts with the borrower defaulting on their mortgage or home loan lenders normally have a cut off date generally within a few months when a mortgage is in default lende... | |
what does real estate owned mean | a real estate owned property is managed by a bank or other lender properties that fall under this category are taken over by lenders after the original borrowers default on their mortgages lenders go through the foreclosure process to repossess the property and sell it at auction if the property isn t sold it becomes p... | |
how does a property become real estate owned | there is a process that a property must go through before they can become real estate owned first the borrower goes into default if the lender cannot negotiate repayment of the mortgage they can repossess the property this allows them to evict any occupants provided it s a single family home and prepare the property fo... | |
how much buyers should offer on a real estate owned property varies lenders are often highly motivated to sell reo properties which means they often come at a bigger discount compared to properties being sold by an owner if you still feel that you re not getting the best price look at the market value of the property a... | the bottom linereal estate can present a lucrative investment opportunity to save money on the purchase price many investors find opportunities in real estate owned properties which are owned by lenders these properties go through the default and foreclosure process and aren t sold at auction because it can be costly t... | |
what is the real estate settlement procedures act respa | the real estate settlement procedures act respa was enacted by the u s congress in 1975 to provide homebuyers and sellers with complete settlement cost disclosures respa was also introduced to eliminate abusive practices in the real estate settlement process prohibit kickbacks and limit the use of escrow accounts respa... | |
what does respa prohibit | respa prohibits specific practices such as kickbacks referrals and unearned fees for example section 8 prohibits any person from giving or receiving something of value in exchange for referrals of a settlement service business it also regulates the use of escrow accounts such as prohibiting loan servicers to demand exc... | |
what information does respa require to be disclosed | respa requires that borrowers receive various disclosures at different times first the lender or mortgage broker must give you an estimate of the total settlement service charges that you likely will have to pay this estimate is a good faith estimate however actual costs may vary the lender or mortgage broker also must... | |
why was respa passed | respa was passed as part of an effort to limit the use of escrow accounts and to prohibit abusive practices in the real estate industry such as kickbacks and referral fees the bottom line | |
what is a short sale | a short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owner s mortgage a short sale is usually a sign of a financially distressed homeowner who needs to sell the property before the lender seizes it in foreclosure all of the proceeds of a short sale go ... | |
when convincing a lender to agree to a short sale the homeowner must be able to cite a new source of financial difficulty not something that was withheld at the time the mortgage was approved | short sale vs foreclosurea short sale or foreclosure are two possible outcomes for homeowners who are behind on their mortgage payments own a home that is underwater or both in either case the owner is forced to part with the home but the timeline and consequences are different in a foreclosure the lender seizes the ho... | |
when setting an asking price make sure to factor the cost of selling the property into the total amount of money you need to get out of the sale of course you want to sell the home for as close to the value of your mortgage as possible but in a down market there is bound to be a shortfall | in some states even after a short sale the bank will expect you to pay back all or part of that shortfall gather all the documents you ll need to prove your financial hardship to the lender these may include bank statements medical bills pay stubs a termination notice from your former job or a divorce decree it is up t... | |
don t forget that a short sale can still affect your credit score the months of mortgage payments that you missed before the short sale can show up as delinquent payments on your credit report it is up to the bank to decide what to report so it s in your best interest to try to convince the bank not to report your defa... | your bank may be more likely to be generous in this regard if you brought up your hardship before you were significantly behind short sale strategies for buyers and investorsshort sales can provide excellent opportunities for buyers to get houses at a reduced price here are a couple of tips to help you make smart decis... | |
what is a short sale | in real estate a short sale may take place when an owner sells a house at a price that is less than the outstanding mortgage amount this typically happens when the owner is under financial stress and is behind on mortgage payments the owner is obligated to sell the home to a third party with all of the proceeds of the ... | |
what is the difference between a short sale and a foreclosure | in a short sale the process is initiated by the homeowner to get out of financial trouble the owner must prove the extent of the financial distress through documents submitted to the lender if the lender agrees to move forward the homeowner is responsible for finding a buyer in a foreclosure the lender initiates the pr... | |
is it a good idea to buy a short sale property | buying a short sale property can be a good deal for a prospective buyer however it is important to be aware of some of the drawbacks involved short sales can take a long time moreover if the bank believes that a foreclosure proceeding is a more lucrative option it may reject the short sale and move forward with foreclo... | |
what is real gross domestic product gdp | real gross domestic product gdp is an inflation adjusted measure that reflects the value of all goods and services produced by an economy in a given year real gdp is expressed in base year prices it is often referred to as constant price gdp inflation corrected gdp or constant dollar gdp put simply real gdp measures th... | |
what is nominal gdp | as noted above governments rely on both real and nominal gdp to get an idea of where the economy is heading while real gdp takes inflation or deflation into account nominal gdp is a macroeconomic assessment of the value of goods and services using current prices in its measure as such nominal gdp is also referred to as... | |
what does real mean in real gdp | real gdp tracks the total value of goods and services calculating the quantities but using constant prices that are adjusted for inflation this is opposed to nominal gdp which does not account for inflation adjusting for constant prices makes it a measure of real economic output for apples to apples comparison over tim... | |
what does real gdp measure | real gdp is an inflation adjusted measurement of a country s economic output over the course of a year the u s gdp is primarily measured based on the expenditure approach and calculated using the following formula gdp c g i nx where c consumption g government spending i investment and nx net exports 6 | |
why is real gdp more accurate than nominal gdp | real gdp is considered to be more accurate than nominal gdp because it factors inflation or price changes into its calculation as such it measures the total health of the economy nominal gdp on the other hand doesn t necessarily provide an accurate picture of the economy or where it s headed that s because it factors c... | |
why is measuring real gdp important | countries with larger gdps will have a greater amount of goods and services generated within them and will generally have a higher standard of living for this reason many citizens and political leaders see gdp growth as an important measure of national success often referring to gdp growth and economic growth interchan... | |
what are some critiques of using gdp | many economists have argued that gdp should not be used as a proxy for overall economic success as it does not account for the informal economy does not count care work or domestic labor in the home ignores business to business activity and counts costs and wastes as economic activity among other shortcomings the botto... | |
what is real income | real income is how much money an individual or entity makes after accounting for inflation and is sometimes called real wage when referring to an individual s income individuals often closely track their nominal vs real income to have the best understanding of their purchasing power understanding real incomereal income... | |
when following real wages there may be several statistics to consider a real wage rate can be a basic calculation of an individual s hourly weekly or annual rate after adjusting for inflation | having an expectation for a real wage rate can be just as important as a career expectation for a nominal wage rate the bls publishes a monthly real earnings report which can be helpful in keeping tabs on real wage rates the may 2022 real earnings report for example shows the real average hourly earnings rate across al... | |
when inflation occurs a consumer must pay more for a fixed quantity of goods or services theoretically this is why savvy investors seek to hold a significant portion of their income in investments with a 2 return in that case with inflation at 2 they would be able to maintain their purchasing power at a constant level | for instance assume a consumer spends approximately 100 per month for a total of 1 200 per year on food during a year when inflation is rising at an annual rate of 1 also assume that the consumer saw no change in their wages a consumer with a 60 000 annual nominal salary would have lost approximately 600 of purchasing ... | |
what is a real interest rate | a real interest rate is an interest rate that has been adjusted to remove the effects of inflation once adjusted it reflects the real cost of funds to a borrower and the real yield to a lender or to an investor a real interest rate reflects the rate of time preference for current goods over future goods for an investme... | |
what is purchasing power | purchasing power is the value of a currency expressed in terms of the number of goods or services that one unit of money can buy it is important because all else being equal inflation decreases the number of goods or services you can purchase for investments purchasing power is the dollar amount of credit available to ... | |
what is inflation | inflation is the decline of purchasing power of a given currency over time the rate of inflation or the rate of decline in purchasing power is reflected by the consumer price index cpi cpi measures the change in an average price of a basket of selected goods and services over a specific period of time the rise in the g... | |
how does a real interest rate affect investment returns | a real interest rate is the nominal or stated interest rate less the rate of inflation for investments the inflation rate will erode the value of an investment s return by decreasing the rate of return for example if the rate of return for bonds you hold is 6 and the inflation rate is 3 then the real rate of return wil... | |
what is a real option | a real option is an economically valuable right to make or else abandon some choice that is available to the managers of a company often concerning business projects or investment opportunities it is referred to as real because it typically references projects involving a tangible asset such as machinery land and build... | |
how do real options work for a company | with real options a business s management gives itself the option to expand change or curtail projects based on changing economic market or technological conditions factoring in real options affects the valuation of potential investments however commonly used valuations fail to account for the potential benefits that r... | |
how are real options valued | in dealing with real options a company s management team factors the potential for real option value into decision making although the value is somewhat vague and uncertain valuation techniques for real options often appear similar to pricing financial options contracts where the spot price or current market price refe... | |
when are real options most appropriate | real options are most appropriate when the economic environment and market conditions relating to a particular project are highly volatile yet flexible stable or rigid environments will not benefit much from real options value rov analysis and should use more traditional corporate finance techniques instead the bottom ... | |
what is real property | real property is a parcel of land and structures that are permanently attached to the land the owner of real property has all the rights of ownership including the right to possess sell lease and enjoy the land real property may be classified according to its general use as residential commercial agricultural industria... | |
how real property is defined | to understand how real property is defined it s helpful to start with land and real estate land is the earth s surface extending downward to the center of the earth and upward to infinity including everything that is permanently attached by nature or at least attached for the foreseeable future such as boulders trees a... | |
what is real estate vs real property | the terms real estate and real property are used interchangeably but real property is actually a broader term real estate is defined as land and everything attached to it real property extends to the interests benefits and rights inherent in the ownership of real estate | |
what are some examples of real property | a natural formation like a hill or a pond can be real property an artificial addition such as a house a driveway or a garden shed can also be considered real property if you own the land that structures are situated on you have the right to use manage and dispose of the structures these rights are derived from english ... | |
is a car real property | a car is tangible personal property not real property as the car can be moved unlike most other tangible personal property a car can be used to secure a loan a car loan is secured by the vehicle just as a mortgage is secured by a house the bottom linereal estate is land at above and below the earth s surface including ... | |
what is the real rate of return | the real rate of return is the annual percentage of profit earned on an investment adjusted for inflation therefore the real rate of return accurately indicates the actual purchasing power of a given amount of money over time adjusting the nominal return to compensate for inflation allows the investor to determine how ... | |
what is trailing | trailing refers to the property of a measurement indicator or data series that reflects a past event or observation it is usually attached to a specified time interval by which the data trail or over which that data is aggregated summed or averaged trailing data and indicators are used to reveal underlying trends but c... | |
what is the difference between a real or a nominal interest rate | a real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor a nominal interest rate refers to the interest rate before taking inflation into account 2 nominal can also refer to the... | |
what is inflation | inflation is the decline of purchasing power of a given currency over time a quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time the rise in the gene... | |
what is real time | real time is when a system relays information to a user at a speed that is near instantaneous or has a short delay from when the event occurred online brokerages often provide a real time data feed that displays stock quotes and their respective real time changes with a very insignificant lag time so that clients can b... | |
what is real time gross settlement rtgs | the term real time gross settlement rtgs refers to a funds transfer system that allows for the instantaneous transfer of money and or securities rtgs is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank once completed real tim... | |
when you hear the term real time it means the settlement happens as soon as it is received so in simpler terms the transaction settles in the receiving bank immediately after it is transferred from the sending bank gross settlement means transactions are handled and settled individually so multiple transactions aren t ... | an rtgs system is generally used for large value interbank funds transfers operated and organized by a country s central bank these transfers often require immediate and complete clearing as mentioned above once transactions are settled they cannot be reversed in 1970 the u s fedwire system was launched it was the firs... | |
what is the real time gross settlement fee | the fee for real time gross settlement will vary depending on the institution country in which the settlement occurs as well as the size of the transfer there are times when the fees can be waived by the institution | |
what is an example of a real time gross settlement system | an example of a real time gross settlement system would be when a customer has their bank send a transfer of funds to another bank via the rtgs and the transfer happens instantaneously if this transfer was done via automated clearing house ach the transfer may take a few days to clear | |
what is the difference between net settlement and real time gross settlement | the difference between net settlement and real time gross settlement rtgs is that net settlement involves aggregate data that is processed and settled at the end of the day whereas rtgs involves data with individual transactions in real time processed and settled instantly the bottom linereal time gross settlement rtgs... | |
what is a real time quote rtq | a real time quote rtqs is the display of the actual price of a security at that very moment in time quotes are the price of a stock or security displayed on various websites and ticker tapes in most cases these figures are not real time numbers of where the securities are trading but are delayed quotes delayed quotes u... | |
how a real time quote works | a standard quote on any security consists of a bid price and an ask or offer price and is a two way pricing structure in this structure the bid price is the most any buyer is willing to pay for the share or the security conversely the asking price is the least amount the seller is willing to take for the share the bidd... | |
what is the realization multiple | the realization multiple is a private equity measurement that shows how much has been paid out to investors the realization multiple measures the return that is realized from the investment private equity funds are unique in that they hold assets that are pulled together from all sorts of illiquid sources including lev... | |
how realization multiple works | the realization multiple is popular among venture capitalists and private equity fund investors this is because it focuses on what has actually been paid out to investors if a private equity fund is paying out money to investors year after year its realization multiple will climb as there are more distributions in the ... | |
what is a realized gain | a realized gain results from selling an asset at a price higher than the original purchase price it occurs when an asset is sold at a level that exceeds its book value cost while an asset may be carried on a balance sheet at a level far above cost any gains while the asset is still being held are considered unrealized ... | |
how realized gains work | realized gains and unrealized gains vary considerably realized gains are those that have been actualized by selling an existing position for more than what was paid for it an unrealized paper gain on the other hand is one that has not been realized yet realized gains result in a taxable event but unrealized gains are t... | |
when an asset is sold a realized profit is achieved and the firm predictably sees an increase in its current assets and a gain from the sale the realized gain from the sale of the asset may lead to an increased tax burden since realized gains from sales are typically taxable income this is one drawback of selling an as... | in most business cases companies do not incur any tax until a realized and tangible profit occurs realized vs unrealized gainswhile realized gains are actualized an unrealized gain is a potential profit that exists on paper resulting from an investment it is an increase in the value of an asset that has yet to be sold ... | |
when unrealized gains present it usually means an investor believes the investment has room for higher future gains otherwise they would sell now and recognize the current gain additionally unrealized gains sometimes come about because holding an investment for an extended time period lowers the tax burden of the gain | for example if an investor holds a stock for longer than one year their tax rate is reduced to the long term capital gains tax 1 further if an investor wants to move the capital gains tax burden to another tax year they can sell the stock in january of a proceeding year rather than selling in the current year investors... | |
what is a realized loss | a realized loss is the loss that is recognized when assets are sold for a price lower than the original purchase price realized loss occurs when an asset that was purchased at a level referred to as cost or book value is then disbursed for a value below its book value understanding realized loss | |
when an investor buys a capital asset an increase or decrease in the value of the security does not translate to a profit or loss the investor can only make a claim to a profit or loss after he has sold the security at fair market value in an arm s length transaction 1 | real world example of realized loss for investorsfor example assume an investor purchases 50 shares of exwhyzee xyz at 249 50 per share on march 20 from this purchase date to april 9 the value of the stock declined by about 13 7 to 215 41 however the investor only has a realized loss if he actually sells at the depress... | |
how realized loss works for businesses | a realized loss occurs when the sale price of an asset is lower than its carrying amount although the asset may have been held on the balance sheet at a fair value level below cost the loss only becomes realized once the asset is off the books an asset is removed from the books when it is sold scrapped or donated by th... | |
what is realized yield | realized yield is the actual return earned during the holding period for an investment it may include dividends interest payments and other cash distributions the term realized yield can be applied to a bond sold before its maturity date or a dividend paying security generally speaking the realized yield on bonds inclu... | |
what is a realtor | a realtor is a real estate professional and a national association of realtors nar member the nar defines the term realtor as a federally registered collective membership mark that identifies a real estate professional who is a member of the association and subscribes to its code of ethics 1nar requirementsrealtors are... | |
when was the national association of realtors started | the nar was founded as the national association of real estate exchanges in 1908 at the time it had 120 members 19 boards and a single state association 1 | |
what is the realtor code of ethics | the code of ethics professional standards is a set of rules focused on fair and honest behavior that members pledge to abide by the code of ethics holds members to a high moral standard 4 | |
how are real estate agents different from realtors | real estate agents are licensed by their state to help people buy and sell real estate realtors are real estate agents who have opted to become members of the national association of realtors the bottom linea realtor is a national association of realtors nar member professionals who may hold the title of realtor includ... | |
what is rebalancing | rebalancing refers to the process of returning the values of a portfolio s asset allocations to the levels defined by an investment plan those levels are intended to match an investor s tolerance for risk and desire for reward over time asset allocations can change as market performance alters the values of the assets ... | |
how rebalancing works | portfolio rebalancing aims to protect investors from exposure to undesirable risks while providing exposure to reward it can also ensure that a portfolio s exposure remains within the portfolio manager s area of expertise there are times when a stock s price performance can vary more dramatically than that of bonds the... | |
should stock x experience a sudden downturn the portfolio will suffer higher losses by association rebalancing lets the investor redirect some of the funds currently held in stock x to another investment be that more of stock y or purchasing a new stock entirely | by having funds spread out across multiple stocks a downturn in one will be partially offset by the activities of the others which can provide a level of portfolio stability advantages and disadvantages of rebalancing | |
what does rebalancing a portfolio mean | it means selling and buying the necessary securities to bring the value of each allocation in a portfolio back to the level established by an investment plan | |
does rebalancing have costs | yes it does it involves the fees related to the transactions to purchase and sell securities it can also involve the cost of performance for example to rebalance you might sell securities that have increased in value and pushed your allocations out of whack however you could miss out on a continued upswing in prices th... | |
how often should i rebalance | that depends on your investment goals risk tolerance and financial needs for example long term investors who take a buy and hold approach to the markets might consider reviewing their allocations once a year with their financial advisors to see if rebalancing is warranted other investors with shorter term goals may wis... | |
what is a rebate | in a short sale transaction a rebate is a portion of interest or dividends that is paid by a short seller to the owner of the stock or bond shares being sold short short selling requires a margin account broadly speaking a rebate is a sum of money that is credited or returned to a customer on completion of a transactio... | |
when a short seller borrows shares the seller or the seller s broker might pay a rebate fee with interest to the lender of the shares | it is difficult for individual investors to qualify for a rebate as it requires holding a substantial sum in a trading account generally large institutions market makers and traders with broker dealer status are beneficiaries of rebates | |
when a short seller borrows shares to make delivery to the buyer the seller must pay a rebate fee this fee depends on the dollar amount of the sale and the availability of the shares in the marketplace if the shares are difficult or expensive to borrow the rebate fee will be higher | in some instances the brokerage firm will force the short seller to buy the securities in the market before the settlement date this is referred to as a forced buy in a brokerage firm may require a forced buy in if it believes that the shares might not be available on the settlement date 3before going short a trader sh... | |
what is recapitalization | recapitalization is the process of restructuring a company s debt and equity mixture often to stabilize a company s capital structure the process mainly involves the exchange of one form of financing for another such as removing preferred shares from the company s capital structure and replacing them with bonds underst... | |
when a company s debt decreases in proportion to its equity it has less leverage its earnings per share eps should decrease following the change but its shares would be incrementally less risky since the company has fewer debt obligations which require interest payments and return of principal upon maturity without the... | reasons to consider recapitalizationseveral factors motivate a company to recapitalize a company may decide to use it as a strategy to defend itself against a hostile takeover the target company s management may decide to issue more debt to make it less attractive to the potential acquirer another reason may be to redu... | |
how does recapitalization work | a company can use recapitalization to improve its financial stability or overhaul its financial structure the company must change its debt to equity d e ratio by adding more debt or more equity to its capital | |
why would a company consider recapitalization | reasons include a drop in the business s share price to defend against a hostile takeover to reduce financial obligations and minimize taxes to provide venture capitalists with an exit strategy or bankruptcy | |
what forms does recapitalization take | companies can swap debt for equity or vice versa one version of equity replacing debt in the capital structure is equity recapitalization this is when a company issues stock to buy back debt securities increasing its proportion of equity capital compared with its debt capital one version of debt replacing equity in the... | |
what is a receipt | a receipt is a written acknowledgment that something of value has been transferred from one party to another in addition to the receipts consumers typically receive from vendors and service providers receipts are also issued in business to business dealings as well as stock market transactions for example the holder of... | |
how a receipt works | receipts are used to document payments and business transactions companies and other entities use receipts to track their cash flows reimburse eligible payments or claim certain benefits on their taxes in some countries businesses are required to provide a receipt for each transaction each receipt should include the da... | |
what are the types of receipts | common examples of receipts include packing slips cash register tape invoices credit card statements petty cash slips and invoices although the format for these forms may vary they all serve the same purpose of documenting the time and value of a business transaction | |
is an invoice the same as a receipt | an invoice is a request for payment while a receipt is a document for payment that has already occurred businesses frequently use invoices after providing a service to notify the customer of the expected payment | |
what are gross receipts | gross receipts are the total amount of cash or property that a business receives without accounting for any other expenses or deductions accountants use a company s gross receipts as one factor to calculate the firm s net income and profitability | |
what are read receipts | read receipts are used in emails to determine if a message has been opened or read by the recipient they are used in a similar way to mail delivery receipts as proof that a message has been delivered | |
how long should you keep receipts for taxes | for most expenses you should keep receipts and other records for three years after filing taxes as this is how long it takes for the period of limitations to run out however for some types of expenses such as unreported income or bad debt deductions the irs advises you to keep records for six or even seven years if you... | |
what is the accounts receivables turnover ratio | the accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance it is a quantification of a company s effectiveness in collecting outstanding balances from clients and managing its line of credit process an efficient company has a higher accounts receivabl... | |
when making comparisons it s ideal to look at businesses that have similar business models once again the results can be skewed if there are glaring differences between the companies being compared that s because companies of different sizes often have very different capital structures which can greatly influence turno... | another example is to compare a single company s accounts receivable turnover ratio over time a company may track its accounts receivable turnover ratio every 30 days or at the end of each quarter in this manner a company can better understand how its collection plan is faring and whether it is improving in its collect... | |
what is a good accounts receivable turnover ratio | accounts receivable turnover ratio calculations will widely vary from industry to industry in addition larger companies may be more wiling to offer longer credit periods as it is less reliant on credit sales in general a higher accounts receivable turnover ratio is favorable and companies should strive to collect cash ... | |
should the accounts receivable turnover ratio be high or low | high accounts receivable turnover ratios are more favorable than low ratios because this signifies a company is converting accounts receivables to cash faster this allows for a company to have more cash quicker to strategically deploy for the use of its operations or growth 1 | |
what affects the accounts receivable turnover ratio | the accounts receivable turnover ratio is comprised of net credit sales and accounts receivable a company can improve its ratio calculation by being more conscious of who it offers credit sales to in addition to deploying internal resources towards the collection of outstanding debts | |
why is the accounts receivable turnover ratio important | the accounts receivable turnover ratio tells a company how efficiently its collection process is this is important because it directly correlates to how much cash a company may have on hand in addition to how much cash it may expect to receive in the short term by failing to monitor or manage its collection process a c... | |
what is a receivership | a receivership is a court appointed tool that can assist creditors in recovering funds in default and help troubled companies avoid bankruptcy having a receivership in place makes it easier for a lender to obtain the funds that are owed to them if a borrower defaults on a loan a receivership may also occur as a step in... | |
how receiverships work | a receivership is generally a process that s put into place to protect a company a period of receivership can be thought of as a protective umbrella for a troubled company a receiver or trustee steps in to manage the entire company its assets and all financial and operating decisions during this time the company s prin... | |
what are some benefits of a receivership | there can be benefits for creditors as well as for a company creditors can be sure that the assets that secure the loans they made to a company remain protected and of value until their claims are handled a business can get a neutral objective professional to oversee problems that may concern management operations or f... | |
how long does a receivership last | receiverships can last anywhere from a few months to several years it depends on the reason why they re implemented a receivership put into place to help resolve the claim of one creditor could last less time than one that s used to remedy a company s ills so the company can avoid bankruptcy the bottom linereceivership... |
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