The Shift from Coal to Renewables and the Case of Eraring Power Station
The energy landscape in Australia is undergoing a significant transformation as the country shifts from coal-fired power plants to renewable energy sources. This transition is crucial for achieving environmental sustainability and reducing carbon emissions. One notable example is Origin Energy’s plan to shut down the Eraring Power Station, the country’s largest coal-fired power plant. This […]
Voluntary Administration: The Role of a Voluntary Administrator
A voluntary administrator plays a pivotal role in voluntary administration which offers struggling businesses a chance to restructure and potentially return to profitability. This article explores the reasons behind such decisions, with a specific look at why administrators, including those from Deloitte Australia, may distance themselves from certain cases, such as the ongoing woes of […]
Bankruptcy Risk: What it is, How it Works
What is Bankruptcy Risk? Bankruptcy risk, also known as insolvency risk, represents the likelihood that a company will fail to meet its debt obligations, leading to insolvency. This risk reflects the probability that a firm will become unable to service its debt, which can affect investment decisions. Investors often evaluate a company’s bankruptcy risk before […]
Business Interruption Insurance: What It Is, How It Works
What is Business Interruption Insurance? Business interruption insurance is coverage that replaces business income lost due to a disaster, such as a fire or a natural disaster. It is not sold as a separate policy but is typically added to a property/casualty policy or included in a comprehensive package policy as an add-on or rider. […]
Bootstrapping: What It Is, Strategies, Pros and Cons
What is Bootstrapping? Bootstrapping refers to the process where an entrepreneur starts a company with minimal capital, relying on personal finances or the company’s operating revenues rather than outside investments. It involves establishing and building a company using limited resources without seeking significant external funding. Key points: Understanding Bootstrapping Bootstrapping a company occurs when a […]
How to Use Video Marketing to Reach New Customers
When it comes to digital content production for business purposes, video marketing has emerged as a wonderful tool to reach and engage their target audience effectively. In Australia, video marketing is gaining momentum as a key component of business marketing strategies, using a compelling message, evoke emotions, and showcase products or services. This article explores […]
Corporate Social Responsibility (CSR): What It Is, Types
What is Corporate Social Responsibility (CSR)? Corporate social responsibility (CSR) is a self-regulating business model that ensures a company remains socially accountable to itself, its stakeholders, and the broader public. By practising CSR, also known as corporate citizenship, companies become aware of their impact on various aspects of society, including economic, social, and environmental dimensions. […]
Business Intelligence: What It Is, Types, Benefits
What is Business Intelligence (BI)? Business intelligence (BI) leverages technology to analyse business data, empowering executives and managers with actionable insights for informed decision-making. It encompasses various processes like data mining, process analysis, performance benchmarking, and descriptive analytics. BI integrates all business-generated data, offering easy-to-understand reports, performance metrics, and trends vital for management decisions. Key […]
Corporate Citizenship: What It Is, Stages, Example
What is Corporate Citizenship? Corporate citizenship encompasses a business’s social responsibilities and its commitment to meeting legal, ethical, and economic obligations, as determined by shareholders. Corporate citizenship is gaining significance as both individual and institutional investors increasingly seek out companies with strong environmental, social, and governance (ESG) practices. Key points: Understanding Corporate Citizenship This concept […]
Venture Capital: What It Is, How It Works
What is Venture Capital (VC)? Venture capital (VC) is a form of private equity that provides financing to startup companies and small businesses with long-term growth potential. Typically sourced from investors, investment banks, and financial institutions, venture capital can also include technical or managerial expertise. Key points: Understanding Venture Capital (VC) Venture capital (VC) provides […]
Margin Account: What It Is, How It Works
What is a Margin Account? The term “margin account” refers to a brokerage account where a trader can borrow money from their broker-dealer to purchase stocks or other financial products. The margin account and the securities within it serve as collateral for this loan. A margin account comes with a periodic interest rate that the […]
Margin Call: What It Is, Example
What is a Margin Call? A margin call happens when an investor’s equity in a margin account falls below the required threshold set by the broker. In a margin account, investors use a combination of their own funds and borrowed money from the broker to purchase securities. Specifically, a margin call is the broker’s request […]