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How Corporate Finance Helps Businesses Make Smart Decisions 

CFO Talks

How Corporate Finance Helps Businesses Make Smart Decisions Every business, no matter how big or small, needs to make good financial decisions to grow and stay successful. Without good financial planning, even a profitable company can run into trouble. Getting insurance to cover unexpected losses. Open another branch?

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Forecasting Future Fraud: Q&A With Joanne Horton Of Warwick Business School

Global Finance

The key benefit of Benfords law is that it doesnt matter what kind of firm it ispublic, private, what accounting policies it follows, what currency it operates in, whether its loss-making, whether its a growth company, highly leveraged or no leverage at allmakes absolutely no difference. And its incredibly difficult.

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Beyond Unicorns: Andreessen’s Venture Capital Vision

Global Finance

Criticisms of the VC partnership model include: unrealistic growth expectations placed on startups, potential for misaligned incentives between founders and investors, a focus on short-term profits over long-term sustainability, pressure to make quick decisions that might not be in the best interest of the company, and the loss of control for founders (..)

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To Bitcoin or not to Bitcoin? A Corporate Cash Question!

Musings on Markets

In my classes and writing on corporate finance, I look at the motives for businesses retaining cash, as well as how much cash is too much cash. Using the corporate life cycle structure can also provide insight into how the motives for holding cash can change as a company ages.

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Global Insurance: New Capital Frontiers

Global Finance

Reflecting the impact of climate change, global inflation-adjusted insured losses from natural catastrophes grew almost 6% a year between 1994 and 2023, according to Swiss Re. “There will be more cyberrelated losses as the economy becomes increasingly connected.”

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The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book.

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Data Update 5 for 2024: Profitability - The End Game for Business?

Musings on Markets

Since businesses invest that capital in their operations, generally, and in individual projects (or assets), specifically, the big question is whether they generate enough in profits to meet these hurdle rate requirements. While private businesses are often described as profit maximizers, the truth is that if they should be value maximizers.