How to Manage Business Finances

Proper fiscal planning is crucial for successful business operations. Many entrepreneurs initially struggle with capitalization, as without investment liquidity, it becomes difficult to expand the business. Without proper diversification, a business can fall victim to market volatility. Therefore, risk mitigation strategies should be developed to maintain solvency. To increase business profitability, it is necessary to reduce overhead expenses. Calculating depreciation and amortization makes it easier to create an accurate balance sheet. Market inflation and escalation affect the business, so feasibility studies are necessary. Using arbitrage strategies can further increase profits. Therefore, for successful business finance management, ensuring proper equity, collateral, and correct disbursement should be maintained to preserve business sustainability.

How to Manage Business Finances
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How to Manage Business Finances - Mask Toggle

Emoji
Word Meaning Example Sentence Synonyms Antonyms
#2278
💰
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fiscal
ˈfɪs.kəl
adjective
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Relating to government revenue, especially taxes; relating to financial matters.
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The government's fiscal policies impact national growth.

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financial, monetary, economic
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non-financial, unrelated, extraneous
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#2279
💼
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capitalization
ˌkæp.ɪ.təl.aɪˈzeɪ.ʃən
noun
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The provision of capital for a company or the total value of a company's stocks and bonds.
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The startup secured high capitalization for expansion.

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investment, funding, endowment
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devaluation, undercapitalization, liquidation
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#2280
🌊
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liquidity
lɪˈkwɪd.ə.ti
noun
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The availability of liquid assets to a market or company; the ability to convert assets into cash quickly.
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The company improved its liquidity to ensure stability.

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cash flow, solvency, convertibility
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illiquidity, insolvency, asset lock
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#2281
🎯
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diversification
daɪˌvɜː.sɪ.fɪˈkeɪ.ʃən
noun
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The process of a business enlarging or varying its range of products or field of operation.
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Diversification in investments reduces financial risks.

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variety, expansion, variation
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homogeneity, uniformity, monotony
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#2282
📈
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volatility
ˌvɒl.əˈtɪl.ə.ti
noun
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Liability to change rapidly and unpredictably, especially for the worse.
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Market volatility creates uncertainty among investors.

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unpredictability, instability, fluctuation
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stability, consistency, predictability
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#2283
🛡️
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mitigation
ˌmɪt.ɪˈɡeɪ.ʃən
noun
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The action of reducing the severity, seriousness, or painfulness of something.
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Climate change mitigation strategies are essential.

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reduction, alleviation, moderation
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aggravation, intensification, worsening
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#2284
💪
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solvency
ˈsɒl.vən.si
noun
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The possession of assets in excess of liabilities; ability to pay debts.
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The company's solvency improved after restructuring.

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financial stability, creditworthiness, viability
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insolvency, bankruptcy, default
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#2285
📊
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profitability
ˌprɒf.ɪ.təˈbɪl.ə.ti
noun
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The degree to which a business or activity yields profit or financial gain.
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Increased efficiency enhances business profitability.

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revenue, earnings, gain
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loss, deficit, unprofitability
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#2286
💸
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overhead
ˈəʊ.və.hed
noun
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Ongoing business expenses not directly attributable to creating a product or service.
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High overhead costs reduce overall profits.

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operating cost, fixed expenses, administrative cost
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variable cost, direct expenses, reduced spending
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#2287
📉
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depreciation
dɪˌpriː.ʃiˈeɪ.ʃən
noun
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A reduction in the value of an asset with the passage of time, due in particular to wear and tear.
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Property depreciation lowers resale value.

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devaluation, asset decline, wear and tear
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appreciation, value increase, growth
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#2288
📋
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amortization
əˌmɔː.tɪˈzeɪ.ʃən
noun
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The action or process of gradually writing off the initial cost of an asset.
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Smart amortization prevents financial strain.

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loan repayment, installment reduction, debt allocation
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accumulation, default, non-payment
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#2289
📈
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inflation
ɪnˈfleɪ.ʃən
noun
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A general increase in prices and fall in the purchasing value of money.
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Inflation reduces purchasing power.

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price surge, economic rise, currency devaluation
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deflation, price stability, economic downturn
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#2290
⬆️
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escalation
ˌes.kəˈleɪ.ʃən
noun
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A rapid increase; a rise.
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The escalation of production costs impacts profitability.

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surge, intensification, expansion
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reduction, decrease, stabilization
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#2291
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feasibility
ˌfiː.zəˈbɪl.ə.ti
noun
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The state or degree of being easily or conveniently done.
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The feasibility study confirmed project success.

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viability, practicality, implementability
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impracticality, unworkability, infeasibility
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#2292
⚖️
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arbitrage
ˈɑː.bɪ.trɑːʒ
noun
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The practice of taking advantage of a price difference between two or more markets.
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Arbitrage opportunities exist in volatile markets.

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market exploitation, price advantage, trading profit
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loss, speculation failure, risky investment
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#2293
🏢
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business finance
ˈbɪz.nɪs ˈfaɪ.næns
noun
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The area of finance that deals with sources of funding and the capital structure of corporations.
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Effective business finance enhances profitability.

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corporate finance, commercial capital, financial planning
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personal finance, non-commercial funds, insolvency
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#2294
⚖️
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equity
ˈek.wɪ.ti
noun
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The quality of being fair and impartial; the value of shares issued by a company.
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Shareholders invest in equity for long-term gains.

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fairness, ownership, stakeholding
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inequality, debt, liability
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#2295
🏠
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collateral
kəˈlæt.ər.əl
noun
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Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
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The bank requires collateral for loan approval.

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security, guarantee, pledge
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unsecured loan, risky investment, liability
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#2296
💳
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disbursement
dɪsˈbɜːs.mənt
noun
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The payment of money from a fund.
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The company's disbursement of salaries was delayed.

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expenditure, fund allocation, payment
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withholding, retention, collection
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#2297
🌱
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sustainability
səˌsteɪ.nəˈbɪl.ə.ti
noun
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The ability to be maintained at a certain rate or level; avoidance of the depletion of natural resources.
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Green energy ensures environmental sustainability.

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endurance, eco-friendliness, long-term viability
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unsustainability, depletion, instability
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