Examlex
A line of credit represents a guarantee from a bank to lend a firm a given amount of money.
Debt Capacity
The maximum amount of debt a business or entity can borrow without reaching financial distress.
Diversification Benefits
Advantages obtained from investing in a variety of assets, which helps to reduce risk by spreading exposure across different investments.
Purchase Accounting
An accounting method used to consolidate the financial statements of a acquiring company and the company it has acquired.
Net Asset Value
Net Asset Value is the total value of an entity’s assets minus its liabilities, often used in relation to the value of an investment fund.
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