Imagine you run a lemonade stand. Each month, you earn money from selling lemonade, but you also have expenses that you need to cover to keep your stand running and to grow your business. It’s things like buying supplies, maintaining the lemonade machine, and paying taxes that add up. Using
No two countries are the same. They have different cultures, people, food, and, of course, laws and regulations. So, each has its pros and cons, especially in business. Some might have a regulation that decreases your productivity in one industry or sector, reducing your competitiveness. On the other hand, it
Have you noticed a pattern: every time you increase your sales slightly, you experience an influx of profit disproportionate to sales? If so, there is a chance that you have a high degree of operating leverage. But what does it mean, and how do I calculate it? The degree of
Imagine you’ve invested in a stock, and its market price rises after some time. This makes you feel positive about your good investment, and now you want to see how much it has grown. Using a capital gains yield calculator, you can quickly determine the percentage increase from the original
Imagine you have an ice cream stand and are considering investing in a new machine. On the initial look, it seems like a great idea. Let’s be honest; everyone loves ice cream, so the new machine always seems like a great idea. Although your accountant might have a different opinion
Imagine you have a lemonade stand, and your friend has a cookie stand nearby. If you notice that when the price of your friend’s cookies increases, more people buy your lemonade, which means the two products are substitutes. People switch to your lemonade when cookies get more expensive. Conversely, if
Investments are great. You buy a bunch of assets, sit on them, and enjoy your money growth. If all goes well, you make money over time; if something doesn’t go as well, you can lose. However, the consensus is that the longer you keep your assets, the lower your chances
Let’s imagine that you want to open your lemonade stand this summer. So you go and borrow $1,000 to help with initial costs. You borrow at an annual interest rate of 5%, so your yearly interest expense is $50. You will love to know that interest expense is tax deductible
Imagine this, you decided to refit your shower. You estimated the cost of refitting to be around $2,000, this is what you are willing to pay. So you contacted a few companies and they quoted you with $1,500. At the end you chose a company that quoted $1,500 and you
Imagine you own a bakery that makes cakes. To bake sweet treats, you need different ingredients. These include flour, sugar, eggs, electricity for the oven, etc. The costs vary depending on how many cakes you decide to make. In the economic jargon, these are called variable costs, and they change
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