What is a passive investment strategy?
A passive investment strategy has the goal of holding a balanced portfolio of “all” the stock market and seeking a return on investment by following the market. Passive asset managers believe investing in a broad mix of securities that match the S&P 500 will gain the investor the most returns without adding additional risk to the investors portfolio.
What is a balance sheet?
A balance sheet is a statement of a companies assets, liabilities, and equities for a pension of time. You can think of it like a snap shot of a companies current status. This is different from an income statement that is viewed as an accumulation of assets and expenses over a period of time.
Jane is owns a small business and is considering hiring a new employee. What are three things Jane should consider with hiring a new employee?
1. Jane should evaluate her current cash flow situation and be assured that using the capital to pay an employee will not negatively impact her business 2. Jane needs to clearly define the role of the new employee and quantify the benefits of adding a new employee to her payroll 3. Jane should consider the additional costs that comes with hiring a new employee including training, benefits, bonuses, etc.