This article throws light upon the four main types of financial ratios. The types are: 1. Liquidity Ratios 2. Activity Ratios 3. Leverage Ratios 4. Profitability Ratios. Type # 1. Liquidity Ratios: Liquidity ratios reflect the firm's ability to meet scheduled short-term obligations. For the firm to remain alive, it must be able to pay its bills as they become [...]
This article will help you to learn about the difference between horizontal and vertical integration. Difference between Horizontal and Vertical Integration Horizontal Diversification (Integration) 1. Nature: In horizontal diversification, two businesses, similar or dissimilar, join together. 2. Size of operations: Horizontal diversification enlarges the scope of operations and, thus, provides economies of scale. 3. Flexibility: Failure of one business does [...]
After reading this article you will learn about:- 1. Causes of External Growth Strategy 2. Merits of External Growth Strategy 3. Limitations. Causes of External Growth Strategy: 1. Economies of scale: Small firms have limited resources (financial and non-financial) and generally produce goods at high cost. They buy in small quantities and, therefore, pay high price for materials and other [...]