The difference between the value of an investment and the amount of money invested by shareholders.
Costs of doing business that vary with the volume of business, such as advertising costs, manufacturing costs and bad debts.
A variable rate loan or credit agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in either the payments or the length of the term.
Commonly refers to funds that are invested by a third party in a business either as equity or as a form of secondary debt.
A combination of firms, which operate at different levels or stages of the same industry manufacturer mergers with a type company (backward integration).
Winding up of a company is done by paying the company’s creditors, and then distributing monies left (if any) among the members.
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