Environmental Impact Assessment Process | Introduction to EIA Process EIA is intended to identify the impacts (both beneficial and adverse) of proposed public and private development activities. Often, the focus is dominantly environmental (biophysical), but the good practice also addresses social and economic aspects. EIA is mainly used at the level of specific developments and …

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What are the Factors to be considered in Internal Audit Planning Definition of Auditing: The word ‘Audit’ is originated from the Latin word ‘audire’ which means ‘to hear’. In the earlier days, whenever there is suspected fraud in a business organization, the owner of the business would appoint a person to check the accounts and …

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Advantages and Limitations of Auditing | Qualities of an auditor Definition of auditing The International Auditing Practices Committee defines Auditing as “The independent examination of financial information of any entity, whether profit-oriented or not and irrespective of its size, or legal form when such an examination is conducted with a view to expressing an opinion …

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Elements and Characteristics of an effective internal control system Characteristics of an effective internal control system Plan of organization: A proper plan and an appropriate structure of the organization is a must for the implementation of an effective internal control system. Authorization, Record, and Control Procedures: The basic objective of the authorization, record, and control …

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Factors that influence exchange rates | Features of Swap Measuring exchange rate movements Exchange rates respond quickly to all sorts of events – both economic and non-economic. The movement of exchange rates is the result of the combined effect of a number of factors that are constantly at play. Economic factors, also called fundamentals, are …

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American Depositary Receipt | Global Depository Receipts Features ADR ( American Depository Receipt ) It represents ownership in the shares of a non-US company and trades in the American stock markets. ADRs enable American investors to buy shares in foreign companies without any issue of cross-border and cross-currency transactions. ADRs carry prices in the American …

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Components of Balance of Payment | Objectives of Tax Planning. Components of the balance of payment Components of Balance of Payments are generally grouped under the following heads 1) Current Account 2) Capital Account 3) Unilateral Payments Account 4) Official Settlement Account. 1) Current Account: “The Current Account includes all transactions which give rise to …

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Factors Affecting Interest Rates | Different Types of Interest Rate. Certificate of Deposits Certificate of deposit (CDs) is a short-term instrument issued by commercial banks and financial institutions. It is a document issued for the amount deposited in a bank for a specified period at a specified rate of interest. The concerned bank issues a …

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Risk management is the process of identifying, quantifying, and managing the risks that an organization faces. As the outcomes of business activities are uncertain, they are said to have some element of risk. These risks include strategic failures, operational failures, financial failures, market disruptions, environmental disasters, and regulatory violations. While it is impossible that companies …

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A capital market is an organization where securities like debt and equity are traded to raise long-term funds in the economy. The capital market is fragmented into the stock market which trades equity securities and the bond market which trades debt securities. Various financial instruments like equity, insurance, derivative instruments, and so on are traded …

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Valuation Approaches and Business Valuation Methods Explanation of valuation approaches Three types of approaches are mostly employed in business valuation. They are the income approach, the asset-based approach, and the market approach. 1. Income-based approach: Income-based approach determines fair market value by multiplying the benefit stream generated by the target company times a capitalisation rate. …

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In the dynamic world of business, management buyouts (MBOs) have emerged as a prominent strategy for entrepreneurs and executives looking to take control of their destiny. An MBO occurs when the current management team, often with the support of external financing, acquires a controlling stake in their own company. This strategic move allows managers to …

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Mergers and acquisitions have become increasingly common in today’s fast-paced business world, as companies seek to expand their market presence and improve their competitive advantage. However, the success of these transactions greatly depends on the ability to unlock synergies. Synergy refers to the combined effect of two or more entities working together that is greater …

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ESOP ( Employee Stock Ownership Plans ) Ι Rules & Types of ESOP. Explanation of ESOP An ESOP is a kind of employee benefit plan, similar in some ways to a profit-sharing plan. In an ESOP, a company sets up a trust fund, into which it contributes new shares of its own stock or cash …

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