What is Knitted Fabric

What is Knitted Fabric?

Knitted Fabric: Knitted fabrics provide comfortable wear to almost any garment. For making comfortable wear we first think about knitted garments. Though it has an open structure so most of the knitted garments contour to the body’s silhouette. That’s why knitted garments are so much popular as inner-wear, bodywear, and sportswear.

what is knitted fabric

Nice comfortable wear made by knitted fabric

Types of Knitted Fabric

There are basically two types of knit fabrics.

  1. Weft knits
  2. Warp knits

Weft knits

Weft knitting is the simplest method of converting a yarn into fabrics. In weft, knitting loops are made in a horizontal way from a single yarn. In this way, inter-meshing of loops take place in a circular or flat form on a crosswise basis. Most of the weft knitting is of tubular form.

Weft Knitting

Weft Knitting

Warp knits

In warp knits yarn zigzag along the length of the fabric. In warp knits the number of stitches in a row is equal of the number of separate strands of yarn. It is almost done by machine, not by hand.

Warp Knitting

Warp Knitting

Written By

Engineer Sheikh Nurja

B.Sc Engineer of Textile

6 Principles of Finance Every one Need to Know

Principles of Finance

Principles act as a guideline for the investment and financing decision. Financial managers take operating, investment and financing decisions, some of this related to the short term and some long term. The 6 Principles of Finance Every one Need to Know whether it is for individual or organization.

Before discussing principles of finance let’s have some idea about finance, is the process of collecting funds and ensures proper utilization of funds. Many people say that finance is the management of funds and those who are responsible for managing this fund are financial managers.

There are six basic principles of finance everyone needs to know

  1. The Principle of Risk and Return
  2. The Principle of the Time Value of Money
  3. The Principle of Cash Flow
  4. The Principle of Profitability and liquidity
  5. Principles of diversity and
  6. The Hedging Principle of Finance
six principles of finance
6 Principles of Finance

The Principle of Risk and Return

This principle indicates that investors have to conscious both risk and return, because higher the risk higher the rates of return and lower the risk, lower the rates of return. For business financing, we have to compare the return with risk. To ensure optimum rates of return investors need to measure risk and return by both direct measurement and relative measurement.

The Principle of Time Value of Money

This principle is concerned with the value of money, that value of money is decreased when time passes. The value of dollar 1 of the present time is more than the value of dollar 1 after some time or years. So before investing or taking funds, we have to think about the inflation rate of the economy and the required rate of return must be more than the inflation rate so that return can compensate for the loss incurred by the inflation.

Cash Flow Principle

This principle mainly discusses the cash inflow and outflow, more cash inflow in the earlier period is preferable than later cash flow by the investors. This principle also follows the time value principle that’s why it prefers earlier more benefits rather than later years benefits.

The Principle of Profitability and Liquidity

This principle is very important from the investor’s perspective because the investor has to ensure both profitability and liquidity. Liquidity indicates the marketability of the investment i.e. how much easy to get cash by selling the investment. On the other hand, investors have to invest in a way that can ensure the maximization of profit with a moderate or lower level of risk.

The Principles of Diversity

This principle helps to minimize the risk by building an optimum portfolio. The idea of portfolio is, never put all your eggs in the same basket because if it falls then all of your eggs will break, so put eggs by separating in a different basket so that your risk can be minimized. To ensure this principle investors have to invest in risk-free investment and some risky investment so that ultimately risk can be lower. Diversification of investment ensures minimization of risk.

Hedging Principle of Finance

Hedging principle indicates us that we have to take a loan from appropriate sources, for short-term fund requirement we have to finance from short-term sources and for long-term fun requirement we have to manage fund from long-term sources. For fixed asset financing is to be done from long-term sources.

Finally, if you have a basic understanding of finance and its principles then you can make financial decisions easily. And there is a higher possibility to become the gainer.

Written by
Md. Nahian Mahmud Shaikat
MBA: IBA-JU
Financial Analyst
Email: [email protected]
Facebook: Nahian Mahmud Shaikat

What is Finance

What is Finance?

Finance is all about taking decisions of money i.e. how money or fund will be collected and ensure the use in a productive sector effectively. Before 1960 it refers only the collection of funds but after that, the idea was changed. It is not only limited to a collection of funds/money but also ensure the proper utilization of funds. It is the responsibility of manager who is dealing with the funds.

finance

Finance is lifeblood of every corporation because we cannot do any business activity without the help of finance. Some people say that the overall activities related to planning, organizing, raising, conservation, using and controlling funds is known as finance.

Personal and corporate finance are two broad areas where an effective financial decision may bring thousands of dollar. So everyone should know its basic principles and why it is necessary to learn financial concepts. Financial analyst are those person who is responsible for identifying most worthy source of financing and take a good financial decision. Time value of money is one of the core principle of finance which is overlooked by many uneducated investors. Every financial decision is related with cost. A better decision is the reason of being successful.

According to Harvard & Upton, it is that administrative area which is concerned with the arrangement of cash and credit effectively.

You may find three interrelated areas

  • Money & Capital Market
  • Investments
  • Financial Market

So concluding with the idea, it is not the only collection of fund where the funding cost is lower and then utilizes it to ensure the maximum rate of return for the investors. Managing funds is not an easy task but it is management’s responsibility to manage the funds which can ensure higher profitability and the substantial growth of a company.

Written by

Md. Nahian Mahmud Shaikat