Sunday, 26 June 2011

Finance Glossaory-part-3

Net Present Value:The Net Present Value technique involves discounting net cash flows for a project, then subtracting net investment from the discounted net cash flows. The result is called the Net Present Value(NPV). If the net present value is positive, adopting the project would add to the value of the company. Whether the company chooses to do that will depend on their selection strategies. If they pick all projects that add to the value of the company they would choose all projects with positive net present values, even if that value is just $1. On the other hand, if they have limited resources, they will rank the projects and pick those with the highest NPV's.
Internal Rate of Return:The internal rate of return (IRR) on a project is the rate of return where the cash inflows (net cash flows) equals the cash outflows (net investment.) The easiest way to find IRR is to use a financial calculator or spreadsheet program.
Bridge Financing :A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations.
Portfolio Management:The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk vs. performance.
             Portfolio management is all about strengths, weaknesses, opportunities, and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and numerous other trade-offs encountered in the attempt to maximize return at a given appetite for risk
Code Sharing: Code sharing is a commercial agreement between two airlines that allows an airline to put its two-letter identification code on the flights of another airline as they appear in computerized reservations systems and in the Official Airline Guide.  For example, US Airways' "US" code is used by the ten US Airways Express airlines.
             Additionally, US Airways and United Airlines have announced a marketing agreement that includes plans for code share flight within the U.S., and between the U.S. and points in Asia, Europe, Latin America and the Caribbean. Customers will be able to fly on a US Airways airplane from their home town to a city served by both US Airways and United, and then continue on a United aircraft to their final destination using the US Airways ticket designator. This will allow US Airways customers to have the benefits of a single airline ticket to destinations not previously available in the US Airways network.  Airlines that share codes typically coordinate schedules to minimize connection times as well as provide additional customer services, such as one-stop check-in and baggage checked through to the final destination.
Activity Based Budgeting - ABB :A method of budgeting in which activities that incur costs in each function of an organization are established and relationships are defined between activities. This information is then used to decide how much resource should be allocated to each activity.
Independent Director: In order for a director to qualify as an
Independent Director: In order for a director to qualify as an
"independent director," the Board must affirmatively determine that the director has no material relationship with Occidental (either as a partner, stockholder or officer of an organization that has a relationship with Occidental) that would preclude that nominee from being an independent director. 
What is a nominee director/manager?
The term is meant to imply that a client or clients who are the majority shareholders or  majority member certificate holders, have nominated Nevada First Holdings to appoint a Director or Managing Member and oversee that the Director/Manager completes their responsibilities. At NFH we are proud to offer Professional  Director/Manager Services. It is important to understand that Directors/Managers have a responsibility to the shareholders/certificate holders that all legal responsibilities of the mangers of the business have been reported annually and that their responsibilities according to the By-Laws/Operating Agreement have been satisfied.
Sec 313     -     Appointment and term of office of alternate directors.
The Board of directors of a company may, if so authorised by its articles or by a resolution passed by the company in general meeting, appoint an alternate director to act for a director (hereinafter in this section called "the original director") during his absence for a period of not less than three months from the State in which meetings of the Board are ordinarily held.
Intangible Asset :An asset that is not physical in nature.
            Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets.
Why have and what is a Nominee Director?
Our nominee director service is used to ensure the highest degree of privacy and confidentiality.
Under the law of some countries information on directors and/or shareholders must be registered in the public files of the Companies Registry. Therefore only by using nominee directors and/or shareholders can the client's anonymity and confidentiality be ensured.
     Third party directors with residential status in a fiscally neutral country are used so that the offshore company cannot be considered resident for tax purposes and liable to tax at local rates on worldwide income in countries with onshore legislation.
        The essence of a nominee service is that it is the names of the nominee directors and/or shareholders that are indicated in the corporate documentation, according to their designation. Thus the names of the company's beneficial owners are not disclosed to the Companies Registry, so that clients are ensured the utmost confidentiality.
      At the same time the appointed nominees are not actually entitled to manage the company. We can provide the beneficial owner with a Power of Attorney empowering him to run the business, manage the company's activities and open and operate the company's bank accounts.
The basic function of the Nominee Director is to shield working executives of Limited and other companies from the public disclosure requirements that exist in the UK and other jurisdictions. It is a perfectly legal device which preserves the privacy of an individual. It is designed to help a person who would rather not disclose their interest or association with a given corporate body. Anyone performing a Company Search on a company with a Nominee Director would be unable to discover in whose name the Nominee Director was registered.
There are however limitations to the function of the Nominee Director. The Nominee is a director of a company in name only and has no other powers or responsibilities.
    The Nominee Director cannot and will not enter into any business contract or financial or moral commitment. The Nominee Director cannot sign any official forms or verify that any information provided to Government Agencies, including Tax Authorities, is correct.
Since the address of the Nominee Director will be one of ours, we will from time to time receive correspondence which will require the attention of the person requesting the Nominee Director Service. As part of the service we will forward these documents.
        Please note that this address should not be used for any trading purposes or general correspondence, or for any form of advertising. The address is only to be used to comply with the requirements of the Companies Act 1985 in relation to official mail and documents. 

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