Liquidity and Profitability ate competing goals for a Public Limited Company.

• Liquidity and profitability are very closely related.
• When one increases the other decreases.
• High Current Assets means high liquidity but low profitability.
• Low current Assets  mean high profitability but high risk.

Investment is the cheapest source of finance.

• Investment may not be the cheapest source of finance because the cost of finance is normally measured in terms of the extra money that needs to be paid to secure the initial amount the typical cost is the interest that has to be paid on the borrowed amount.
• In fact, the cheapest form of money to a business comes from its trading profits.

Every business decision ultimately becomes financial decision.

• Business is about profit and loss which is a financial term. So Every business decision ultimately becomes financial decision.

Islamic Economy and global economic recession

• Even if these figures are not exceptional compared to those 'posted by conventional financial institutions between the years 2000 and 2007, they are quite remarkable if we consider the timeframe and the dynamics of the Islamic financial system's evolution.
• The first stage of the global financial crisis, during 2007 and 2008, favored the Islamic banking system compared with the conventional system.
• According to a recent IMF study, Islamic banks performed better than conventional ones in 2008 in terms of profitability, credit and asset growth.
• The Islamic banks' profitability crunch was less than 10 percent, whereas the conventional banks' profitability slumped more than 35 percent in 2008 compared with 2007.
• The IMF study reported that Islamic banks have maintained stronger credit growth compared to conventional banks in almost all countries and in all years, suggesting that the system has great potential for further market-share expansion and a possible contribution to market stability through the available credit.
• The same trend was maintained on the assets side, which was less affected by deleveraging and grew on average more than twice that of conventional banks during the period of 2007 to 2009.
• While conventional finance is largely debt-based and allows for risk transfer, Islamic financial intermediation is asset-based and focuses on risk sharing.
• Prohibition on excessive leverage and on risk transfer according to shariah principles made the system more resilient, less exposed and thus protected from the impact of toxic assets and derivatives' effects that triggered the global financial crisis.
• The Islamic banking system's features make its activities more closely related to the real economy.
• This reduces its contribution to excesses and bubbles, but it also makes it more exposed and vulnerable to the second wave of financial crisis: the real economic downturn.
• Islamic banks lent a large part of their funds to the consumer sector and invested in assets that proved in time to be illiquid, sharing the losses of their activity with the stakeholders. According to the IMF study, Islamic banks' larger decline in profitability in 2009 was due to weaknesses in risk-management practices, mainly associated with high degree of concentration on, or greater exposure to, one sector and/or borrower.

Millennium Declaration

• In 2000, 189 nations made a promise to free people from extreme poverty and multiple deprivations. This pledge turned into the eight Millennium Development Goals.

• The United Nations Millennium Development Goals are eight goals that all 191 UN member states have agreed to try to achieve by the year 2015.

  Eight Goals of MDG

1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Ensure environmental sustainability

• Extraordinarily high transaction speeds,
• A clear, simple user interface
• Barrier-free access
• Ensure convenient and speedy deposits and withdrawals around the clock.
• Minimal service complexity.