Before it starts the definition of the term financial projection, it is important that we proceed to know the etymological origin of the two words that shape it. Projection derives from Latin, more specifically from “protection”, which can be translated as “action and the effect of throwing something forward.” Financier, on the other hand, emanates from the French “financier,” which is equivalent to “paying a debt” and which, in turn, comes from the Latin “finis” (end). The notion of projection is used in different ways. In this case, we are intent in its meaning as that planning or forecast that…
Author: marketing2business
In an economic sense, it is known as spending to the amount that is spent or has been expenditure. Spending is a useful concept for families, businesses, or the government. A family needs to control their spending so that income allows them to meet their obligations and meet their needs. A company, for its part, must know its expenses in detail as they undermine their profit or profits. In the case of a government, which does not seek financial revenue, controlling spending is important to avoid the fiscal deficit. The payment of services (electricity, gas, and telephony) and the purchase…
The term entrepreneurship is not part of the dictionary of the Royal Spanish Academy (RAE). It is about the effect of the undertaking, a verb that refers to carrying out work or business. Entrepreneurship is usually a project that develops with effort and facing various difficulties, with the resolution of reaching a certain point. The most common use of the concept appears in the field of economics and business. In this case, an enterprise is an initiative of an individual that assumes an economic risk or that invests resources in taking advantage of an opportunity offered by the market. The…
To regulate the etymological origin of the two main words that shape the term, we have to go to Latin. Thus, in this language, we find the fact that the plan comes from the word planus that can live translated as “flat.” Meanwhile, contingency emanates from the contingent plan concept that Remian the result of the union of three parts: the prefix with – which equivalent to “meeting”, the verb tangere that synonymous with “touching” and finally the suffix – encia that can determined that its meaning is equal to “quality”. A contingency plan is a type of plan preventive,…
The statement that reflects how much cash keeps someone after expenses, interest, and capital payments. The expression that in the field of Accounting is known as cash flow statement, therefore, is a type of accounting parameter that provides information about the movements that have been made in a certain period of money or any of its equivalents. Operating activities, investments, and financing are part of the categories contemplated in the framework of the cash flow statement. The operational cash flow indicates the cash received or invested as a result of the company’s basic activities. The cash flow of investment does…
The RPI Retail Price Index or CPI consumer price index is an average of the prices of different consumer goods and services that are used to calculate inflation. The CPI changes are expressed as a percentage, with positive changes indicating an acceleration of inflation and negative changes that show deflation. The world’s major central banks, such as the Federal Reserve or the Bank of England, have inflation as their main monetary policy objective. These will use monetary policy tools, such as interest rates, to keep inflation stable. There are other data, in addition to the consumer price index, which is…
The exchange of currencies (also known as FX or forex exchange, an abbreviation of the English term Foreign Exchange), is the exchange of one money for another. Currencies in international trade: Currency exchange is an essential part of international trade. If a Chinese company wants to make a commercial exchange with a French company, the two companies are obliged to go to the currency market to complete the transaction, which involves the Chinese currency, the yuan or renminbi and the French currency, the euro. Despite the importance of international trade, this only accounts for 2% of the total volume of…
A business model, also known as business design, is the planning that a company makes concerning the income and benefits it seeks to obtain. In business models, guidelines are established to follow to attract customers, define product offers, and implement advertising strategies, among many other issues related to the configuration of the company’s resources. When establishing the business model, it is important that the person in question analyze the company in depth and answer a series of questions, since based on the answers, one or the other type of business model can be implemented. In this case, it is important…
Point is a term with multiple meanings: in this case, we are interested in its meaning as a physical place or site. Sale, on the other side, is the process and the result of selling (giving the property of a good to another subject, who will pay a certain price already agreed to keep the product in question) With these definitions in the clear, we can refer to the notion of point of sale. It is the commercial premises in which various products are obtainable for sale. A person who wants to buy something, therefore, can approach a point of…
Definition of Net Profit. The utility is the interest or benefits you get from something. The concept comes from the Latin utilities, which means “useful quality.” In particular, we can add that it is made up of the following parts: “uti,” which is synonymous with “being able to be used”; “-Ilis,” which is indicative of “possibility” and the suffix “-dad,” which is equivalent to “quality.” This term was widely used in the field of economics and finance to name the gain that is achieved from a good investment . This means that if a person invests $ 1,000 in the…