Geography & History Notes | KCSE, NECTA, ZIMSEC & GCSE

  Shares; The main source of capital for any company is the sale of shares. -A share is a unit of capital in a company e.g. if a company states that its capital is ksh.100,000 divided into equal shares of ksh.10 each. -Each shareholder is entitled to the company’s profit proportionate to the number of shares he/she holds in the company.                              Types of shares; Ordinary shares Preference shares Ordinary shares;- Ordinary shares have the following rights: Have voting rights Have no fixed rate of dividends. The dividends on them vary according to the amounts of profit made They have a claim to dividends after the preference shares If the company is being liquidated, they are paid last after the preference shares Preference shares;- They have the following characteristics; Have a fixed rate of sharing profits(dividends) Hav...

  Mark up and margin helps in the following; setting the selling price, calculating  profit or losses and determining the sales for a given period of time Working capital and acid test ratio help in showing whether the business is in a position to meet its short term obligations and checking whether the business is utilizing its resources properly. That is high working capital ratio shows that most of the resources are idle Return on capital shows the following; The performance of the business in relation to other similar businesses Comparison of the performance of the business over different periods Whether the business finances have been invested or not Help the potential investors on the decision on where to invest Rate of stock turnover also help in determining how fast or slow the stock is moving. It also helps in computing the gross profit or loss. RELATED POSTS IMPORTANCE OF SOIL STRUCTURE     7 CHARACTERISTICS OF EQUATORIAL CLIMATE    7 ADVANTA...