A credit limit is imposed by lenders (very often, banks) as the upper limit or maximum amount a borrower can borrow. This is aimed at preventing over-borrowing by the borrower and it also helps lenders minimize their risk. Credit cards have credit limits that are often decided based on a person’s income level and credit … Read more
Return on Investment (ROI) is a popular profitability metric used to evaluate how well an investment has performed.
Treasury bonds are bonds (loans) given out by the US government which are for a period greater than 20 years. The bond owners receive periodic interest payments for the duration that they hold the bonds for. Treasury bonds play a big role in the functioning of the global economy. The US government is considered the … Read more
The value of assets is theoretical in nature and not physical, the value of which is harder to quantify. Patents, brand value, licenses, etc are intangible assets.
The assets are usually referred to assets that are physical in nature and the value of which can be easily determined. For example, cars, buildings, furniture, machinery, are all examples of tangible assets.