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Does Bank interest rate affect investment in Business?

By Business    
category in: Business    Tags: Assets, Banking, Business, Business Management, Costs, economy, Enterprise, Factor, finance, Influence, interest rates, investment, Macro Economy, Policies, profit, Purchasing    

The term investment implies different meanings in business management, economics and finance but all are closely related to each other.While the bank interest rate to the consumers is defined as the current rate of return given on the savings.

Investment decision plays key role in purchasing assets for business enterprises as they tend to maximize the profits. So in business management, they have to evaluate the net benefit of making further investment and also the factors on which investment depends, the most important of which is bank interest rate.business interest rate

According to the Macroeconomics concept the interest rate given by banks and investment are inversely related to each other. If banks increases the interest rates the people draw money out from the business and put it in the banks as they get high return from there thus high reward from the banks.

The business owners who made investments in their business by borrowing from the banks cut down their investment if the bank interest rate increases as they have to pay high costs of making investment which reduces their profitability.

…read the rest of this entry»

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Factors Involving With the Revenue Growth

By Business    
category in: Business, Featured    Tags: Analyze, Business, economy, Essential, Factors, Gross revenue, income, Measure, Net revenue, Performance, Potential, profit, Quality, revenue, revenue growth, sales, Skills, Venture    

The term revenue means the income that a company receives from its normal business activities, usually from the sale of goods and services to the customers. Income which a company earns through dividends, interest or royalties amount paid by other companies is also called as revenue. Revenue may refer to the income earned through a business in general, or it may refer to an amount received during a period of time. Profit or net income is generally calculated by subtracting total expenses from total revenue with in a given period. Revenue is also known as “REVs“.In the case of a non-profit organization, annual revenue is termed as gross receipts.

The sources of revenue for these non-profit organizations are as follows:

  • Aid from government organizations
  • Donations from individuals and corporations
  • Income from activities related to the organization’s mission
  • Income from fund generating activities
  • Financial investments such as stocks and shares of the companies
  • Membership dues

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26% rise in profits, Google defies economic worries

By Business    
category in: Online business    Tags: economy, Google, investment, online, profits, shares    

The online search giant shows 26% rise in profits despite worsening economic conditions in the country. The announcement became a cause of 7% increase in the company’s shares in after-hours trading.

During the 3Q of the 2008, Google minted $1.35bn and beaten the analysts expectations quite easily.

The company said in an announcement that its earning had strongly grown and it’s mainly due to company’s online search and advertising businesses.

There was a 31% ($5.54bn) increase in Google’s quarterly revenue that also includes commissions to associated advertisers.

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Georgia to receive $750m loan from IMF

By Business    
category in: IMF    Tags: economy, EU, Georgia, IMF, loan    

IMF has approved a $750m loan for Georgia for boosting confidence in its economy and rebuilding the currency reserves of the country.

Georgia’s economy is facing some economic worries following last month’s conflict with Russia.

According to some analysts, the loan would help Georgia to overcome the difficulties to attract foreign   investment and selling products abroad. The loan was approved after Nato chief Jaap de Hoop Scheffer visit to Tbilisi. …read the rest of this entry»

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IMF to give $750m in financial assistance to Georgia

By Business    
category in: IMF    Tags: economy, Georgia, IMF, infrastructure, loan, war    

The International Monetary Fund (IMF) will provide $750 loan to Georgia in an effort to rebuild its economy after the recent war with Russia.

Georgia’s economy has gravely suffered after the recent war, key infrastructure including roads and ports have been destroyed by the Russian bombing during the war.

The US Secretary of State Condoleeza Rice has already announced a $1bn aid package in financial assistance to Georgia.

Georgia requests $2bn financial aid from the International community. …read the rest of this entry»

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Stricken US economy: Mexicans migrants sending home less money

By Business    
category in: The US Economy    Tags: central bank, dollar, economy, oil, revenues, US    

Because of the stricken US economy and the falling dollar, Mexicans are sending less money to their homes.

According to Mexico’s central bank, the sharpest fall was recorded in remittances during July that was 6.9% down compared to the same period last year.

Besides oil revenues, remittances are counted Mexico’s second largest legal source of foreign income. …read the rest of this entry»

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