The golden rule of the company’s balance sheet
Net working capital Net working capital is the difference between long-term sources of financing (long-term liabilities and equity) and fixed assets in the Balance Sheet. If the net working capital is positive, it represents a part of working capital financed from long-term sources. Negative net working capital indicates disturbances in the company’s operations, which can […]
Business plan – financial analysis
You do the financial analysis of a business plan (business idea) primarily for yourself, in order to prevent investment risks, and not because of potential creditors or co-investors. The potential lender is primarily interested in whether you are creditworthy, or what you can offer as a loan guarantee, ie. whether you have a property unencumbered […]
Why financial analysis of a business plan is needed
You do the financial analysis of a business plan (business idea) primarily for yourself, in order to prevent investment risks, and not because of potential creditors or co-investors. The potential lender is primarily interested in whether you are creditworthy, or what you can offer as a loan guarantee, ie. whether you have a property unencumbered […]
Investments in fixed and current assets
Question: The program put an investment in my financial outflows after the completion of the investment and in the following years of the project. What it is ? Answer: Investments include investments in fixed and working capital throughout the life of the project. 1. After the completion of the investment in the cash flow projections, […]
What is, why and how to become an innovative company
What is an innovative company An innovative company is a company that constantly introduces innovations in its activity (products, design, technologies in production and environmental protection, intellectual property, organization) or develops new activities, all with the aim of optimizing business for survival and competitiveness in the market. Why an innovative firm Without product development, technology […]
Choice od legal form of business
Entrepreneur or company Entrepreneurial companies are conceived by the legislature as small family businesses. The founder (entrepreneur), members of his family and possibly several employees should work in them. Registration fees are less than 100 EUR in dinar equivalent. Companies are conceived as larger (economically more powerful) companies with more capital and more employees. Of […]
SWOT analysis
SWOT analysis (acronym of English words: Strengths, Weaknesses, Opportunities, Threats) is a technique that links the strengths and weaknesses of a company with the opportunities and threats in the external environment.The author of this method is Albert Humphrey (1960) ) from USA Stanford University, where he analyzed and used the development strategies of the 500 […]
Investment and creditworthiness of investors
Investment and creditworthiness of local self-government Investment and creditworthiness of local self-government depends on: • Financial condition, and • Investment support (guarantee) from higher authorities. The elimination criterion for the realization of the planned investment is the net current budget deficit, which is calculates according to the formula: + Current budget revenues – Current budget […]
Intellectual property
INTELLECTUAL PROPERTY (protection of one’s own intellectual property and the danger of unauthorized use of another’s intellectual property) What is an intellectual property Intellectual property is a registered/published product of the human mind, which is characterized by novelty, innovation, or originality. It is characterized by: • Time-limited period of protection against unauthorized use in countries […]
Renewable energy
Technical calculations for the production of energy from renewable sources ENERGY AND POWER UNITS The official unit for energy or work is the joule, marked J. This unit is small, so kJ and MJ are used, a thousand or a million joules. For power, a watt unit, W, is used, ie a thousand times increased […]
