Friendly Finances & Loans

Levy (1992) points out that lower partial moments of first order are consistent with second-order stochastic dominance. The concept of stochastic dominance has several important advantages. It requires no distributional assumptions, takes all the moments of the return distributions into account and requires only very mild assumptions about investor behavior. With respect to the comparison [...]

For decades, leading Japanese companies have directed much of their cost-management efforts towards muda or waste elimination. This involves techniques such as process analysis, mapping and re-engineering, which are important parts of operational decision-making. The value of process analysis is that it enables waste to be identified and eliminated and costs to be reduced by [...]

Use budgets for dynamic financial management. Budget early so financial requirements are known as soon as possible. Consider the best time-period for the budget. This is normally a year, but it depends on the type of business. Budgets can be of interest to people outside the business as well as providing a starting point for [...]