The Implications of the Security Act of 1933 Assignment

The Implications of the Security Act of 1933 - Assignment Example One of the major factors that make up interest is financial management. Financial management is a basic building block as it measures the health and progress of the business. Moreover, financial ratios depicts the relationship of the figures in income statements and balance sheets to give leverage position, profitability, and productivity which have to be balanced by interest and health business (Dlabay & Burrow, 2008). Low leverage ratio gives a business more money for inventory, the advantage of trade discount and competitive pricing (Dlabay & Burrow, 2008). Accounts receivable is also a factor that makes up interest. The account receivable refers to the total amount of money gained from products or services sold. The account receivable turnover shows how the business collects what is owed to it. It also indicates the liquidity of the receivables which is very important when it comes to interest. Having a good banking relationship is very beneficial for a business. Good banking rel ationship allows a business access better loan terms and interest rates. According to Van (2010), bringing the large share of the client’s wallet is the major concentration of financial institutions sales efforts. This is beneficial to a business since the business can access better interest rates than those advertised to the general public. Depending on the overall banking relationship, a business may get lower interest rates on their time of borrowing and higher interest rates on their time of deposit.