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What is CFO?

CFO stands for Chief Financial Officer and it corresponds to a position that entails financial-related tasks and activities in a particular organization or company. When a person is given the title of CFO, he/she is typically a senior officer that is tasked to deal with all financial matters of his/her company. Financial goals and planning [...]

What is deductible?

Deductible is the mount that an insurance holder may be required to pay out-of-pocket before an insurance company covers the cost of healthcare. For instance, in case of an accident resulting into a total hospital expense of $2, 000 and the deductible is $300; the patient may first have to satisfy the latter amount in [...]

What is Business Administration?

Business Administration is a method of managing business or supervising any non-profit organization to sustain growth and stability. It basically involves all aspects in business such as managing operations, leadership, decision making, human resource, and accounting. It requires a great aptitude in math and communications to effectively carry out a certain task. When it refers [...]

What is BPI?

BPI or business process improvement refers to a strategy or program that helps businesses update and/or re-structure their existing activities in order to improve on various fronts including operations, financial stability, brand value, and customer service among others. Business processes relate to all the activities that a company is doing in order to run their [...]

What is LTV?

LTV is the acronym for the loan-to-value phrase. Loan-to-value is a financial phrase that used to compare the ratio of loan to the value of the asset acquired. LTV is a common term in building societies and banks. It is often used to express the lien of an initial mortgage as a percentage of the [...]

What is Direct Variation?

Direct variation is one of the topics in algebra that represents a particular situation of a linear function. Direct variation may be used in modeling different situations in the real world. Essentially, direct variations are exhibited in situations where two quantities increase or reduce at a similar rate. Such quantities may be pay and hours [...]

What is Horizontal Integration?

Horizontal integration refers to a strategy used by companies to acquire or create units of production for purposes of generating outputs that are similar. The outputs generated can either be competitive or complementary. An example of horizontal integration is where a company takes over a competitor within the same sector or industry, involved in production [...]

What is the Hierarchy of Control?

Hierarchy of control is a term used in management to refer to control procedures. In workplace safety, the term is a safety jargon used with respect to systems in safety management. The word hierarchy basically refers to a list. This list usually comprises things that are related or have some commonality as well as order. [...]

What is Annuity?

Annuity refers to an insurance plan that can serve as a retirement strategy and pays periodic income. Annuities are common among investors looking to get a steady source of income upon retirement. Annuities involve making investments in an annuity that pays on a future time or over a several dates in future. Income received from [...]

What is a Dependent Variable?

A dependent variable is an attribute whose value is determined by the existence of other factors. A variable can be any kind of category or group that is being measured. It can take the form of an idea, object, period, or even feeling. For instance, the score of a test may be considered as dependent [...]

What is Kaizen?

Introduction: The term “Kaizen” was introduced by Japanese which was meant for the process of continuous improvement in some entity or unit. It is basically an approach in which processes are continuously improved in order to increase their effectiveness and efficiency. Along with efficiency and effectiveness, Kaizen also helps to improve the quality of the [...]

What is FTE?

An abbreviation of Full time equivalent, FTE is a unit that is used to measure the reductions in cost in an organization. Or we can say that a worker’s involvement in a particular project is measured through this unit. There exist some particular eligibility criteria for being a part of FTE calculation every year. Every [...]

What is GDP per capita?

GDP per capita refers to the measurement of a country’s economic growth in relation to the country’s population. GDP stands for gross domestic product that means all that the country produces per year. To compute for GDP per capita, one must compute for the GDP and divide it to the population of the country. GDP [...]

What is mortgage?

Mortgage pertains to the debt instrument that is used to buy some real estate property. A person or entity that wants to buy real estate assets offers collateral in exchange for a loan and make payments based on the defined payment schedules. Mortgages are used to purchase real estate assets when the buyer cannot afford [...]

What is money laundering?

Money laundering is a crime wherein a criminal or criminals mask the real ownership as well as control of the income from criminal activities by making it appear that the funds came from a legitimate source. There are many ways money launderers disguise ill-gotten money. Money laundering can happen even without the help of the [...]

What is IPO?

IPO stands for initial public offering or the selling of a stock of one firm to the general public. A firm can obtain money by offering stock—equity or debt—to the public. The first time a firm offers its equity to the public, and then it is an IPO. IPO explained There are two categories for [...]

What is industrialization?

Industrialization pertains to the transition of a nation from being a largely agricultural based nation to a manufacturing nation. Industrialization is often an indication of the advancement of a country or state. It is related to urbanization, income growth and improvement of the standard of living of residents or citizens. Effects of industrialization Industrialization happens [...]

What is Collateral Mortgage?

Collateral mortgage refers to a type of mortgage where the loan agreement is secured by collateral. There are lenders that offer a borrower’s ability to register collateral for a mortgage up to 125 percent of the mortgage value. This allows a borrower to borrow more funds from the same lender. The amount borrowed the second [...]

What is critical mass?

Critical mass is the size that a firm needs to achieve so it can compete competitively and efficiently with its competitors. A company must reach a certain size for it to grow and operate efficiently until the firm reaches the point of profitability. How critical mass works There are several factors when referring to critical [...]

What is CFO?

CFO stands for chief financial officer, a senior manager who oversees all financial-related activities of the firm. The CFO has several responsibilities which include the monitoring of the company’s cash flow and financial planning. The CFO also takes into consideration the weaknesses and strengths of the firm’s financial standing and suggest and implement programs to [...]

What is microeconomics?

Microeconomics deals with the smaller components of the economy, particularly how markets and consumer behave. It is a branch of economics. Microeconomics analyzes the relationship between the individual consumers and their respective behaviors. This branch of economics focuses on the demand and supply patterns of a market along with how prices are determined and market [...]

What is leverage?

Leverage is when a person or entity uses different financial instruments or borrows capital to increase the possible return of the investment. A company or person who has more debts or loans than equity is referred to as highly leveraged. The term is widely used for real estate deals since mortgages are used to buy [...]

What is Ledger Balance?

Ledger balance is the resulting balance when the total debit is subtracted from the total number of credits. It is shown in every customer’s bank statement. A bank account would basically show two balances. The first one represents the ledger balance while the second is the current balance. The current balance is the amount that [...]

What are liquid assets?

Liquid assets are important elements in financial planning and investing. They serve as key tool for financial planners to analyze potential net or profit within a given period by monitoring the accessible funds of an individual. Through liquid assets financial investors are also able to demonstrate and predict the rise and fall of financial markets [...]

What is Ethical Behavior?

Ethical behavior refers to acts that are consistent with what individuals and societies generally consider are right. Ethical behavior is necessary particularly in business. It involves showing respect for important principles that are moral and acceptable. In the recent past, big organizations such as Arthur Andersen, Health South and Enron have lost their glory by [...]

What is CFR?

CFR is an abbreviation for the phrase Cost and Freight. This phrase means that a seller is required to pay the cost of goods plus freight charges required to transport those good to the port of destination. CFR requires that a seller clears goods for export. However, the risk associated to damages or loss of [...]

What is Keynesian Economics?

Keynesian economics refers to a theory, which is named after the British economist John Maynard Keynes. This economist is most popular for his simple explanation about what caused the Great Depression. The economic theory of Keynes focuses on the circular flow of money, which states that when the amount of spending increases, the earnings increase [...]

What is Franchising?

Franchising refers to the business practice of leasing the right to utilize a particular company’s established business model and brand within a specific period of time. On the part of the franchiser, this can be considered as a good alternative, instead of constructing chain stores that will distribute the products. Franchising spares the company from [...]

What is Fixed Income?

The term fixed income can have several meanings. One of the most common definitions is that it is a stable and constant rate on a particular investment. An example is when an individual purchased bonds and obtains an unchanging rate of income from these bonds. Generally, this is a low rate of interest on the [...]

What is fein?

FEIN stands for federal employee identification number. Some also refer to it as EIN. Those who would like to get a business license, file their tax returns to the Internal Revenue Services or IRS, or get a bank account for their business venture must first get a FEIN. This identification number is similar to a [...]

What is CPG?

CPG stands for consumer packaged goods. It is a type of commodity that consumers use or consume every day. Those that fall under the category of CPG are in need of constant replacement unlike other products that users can use for a long time. Marketing CPG is often tricky since there are many similar products [...]

What is IBAN?

IBAN is the acronym for International Bank Account Number. This refers to a kind of numbering system which was devised in order to recognize a bank account, no matter where the bank which maintains the account is located. This system was developed so that transactions involving bank accounts from other countries could be processed and [...]

What is a Hedge Fund?

A hedge fund refers to a collection of investments that is aggressively managed to utilize innovative strategies to generate high profits. Such strategies could be short term or long term and may be leveraged locally or internationally. In most cases, hedge funds are established as investment partnerships of a private nature open to a specific [...]

What is Financial Aid?

Introduction: The term “financial aid” is used in many contexts these days. Educational institutes use this term for helping out the needy students in their finances so that they can pursue their studies without any financial problem. Countries use this term for giving some finance to the poor countries. But in the long run, this [...]

What is EQ?

EQ is the short acronym for Emotional Quotient which refers to the approach used to measure Emotional Intelligence (EI). Emotional Intelligence is a person’s ability to assess, perceive and manage their own emotions and those of other people. Emotions have the ability to affect people’s most vital personal and work relationships. Due to the change [...]

What is equality?

Introduction: Equality builds the basis of human rights i.e. to treat everyone equally. Humans should be treated equally in the areas of race, gender, ethnicity, religion, beliefs, age and sexual orientation. And when states talk about equality, they mean that there is no discrimination in any of the above mentioned areas. It is very important [...]

What is Latent Learning?

Latent learning refers to learning that is only manifested after reinforcement is provided. In most cases, people focus on learning that is obvious or one that is manifested immediately. For instance, a rat is taught to run via a maze by rewarding right responses. Students are also taught to raise hands through praising correct behaviors. [...]

What is Interest?

In very simple terms, interest refers to the cost incurred for borrowing money. It is also known as the cost of debt. When someone borrows money, the charge they pay is the interest. On the other hand, the person who lends money earns an interest. Interest is calculated based on a specified rate. If the [...]

What is invoice?

An invoice is a document for commercial purposes that list down the dealings between a seller and a buyer. An invoice indicates the transaction details such as the number of items purchased, cost of services or goods, date of sale, the names of the seller and buyer, the invoice number that is unique, and sometimes [...]

What is foreclosure?

Foreclosure is the seizure of a property by a lender after a homeowner failed to make the payments for the principal as well as interest payments for the mortgage. The lender evicts the homeowner and sells the asset as indicated in the contract of mortgage. A homeowner is considered to be in default when he [...]

What is CSC?

CSC is the abbreviation for Card Security Code. CSC is a crucial online security feature appearing at the back of MasterCard, Visa, Switch, JCB or Solo Card and on front side of AmericanExpress cards. This recent code has 3 to 4 digits that provide cryptographic scans on information imprinted on a card. A CSC code [...]

What is CAGR?

CAGR or compound annual growth rate and it refers to the average growth rate of an investment over a specified period of time. The calculation used for CAGR can be applied to investments that are made for a few years or those that are intended for long-term yields. Assuming that the growth rate is positive [...]

What is GMP?

Good Manufacturing Practice (GMP) is a system created by law to ensure that products are safe for human consumption. Under this mechanism, manufacturers, processors, and packagers are required to conform to the guidelines and quality standards of the Food and Drug Administration. It is a qualitative approach in ensuring that products are free from contamination [...]

What is Empowerment?

Empowerment is a general term which means possessing or advancing strength and authority. In many fields of studies, empowerment may also mean the process of improving a person’s economical, social, educational, and social vigor. It enables one person to transform from being frail to a Supreme Being. It also means rising from the ground. Empowerment [...]

What is hedging?

Hedging is when investors take necessary steps to protect themselves from unforeseeable events in relation to their investments. In the financial markets, hedging takes place when investors and portfolio managers employ various techniques to protect their investments or their client’s investments to reduce the risks. Hedging is the strategic use of different instruments in the [...]

What is grace period?

Grace period is the time provided by financial firms for those with loans to settle their obligation after the due date has already lapsed. Those who settle their obligations within the grace period are not required to pay late fee charges, and their loans will not be cancelled nor considered as in default. Most financial [...]

What is Game Theory?

Game theory is an essential aspect in economics, which involves the study of social situations and strategic decision making to secure the best outcomes. In political science and psychology, it is referred to as interactive decision theory. It is also used in parlor games like poker and bridge, which is done by making critical observations [...]

What is IRR?

IRR stands for internal rate of return and is used mainly for the budgeting of capital, because it can be a tool for measuring and making comparisons of the profitability of projects or investments. The IRR is also known as the rate of return (ROR) or the discounted cash flow rate of return (DCFROR). IRR [...]

What is Cost of Goods Sold?

Cost of goods sold refers to the accumulated sum of all the costs that are used to produce a particular product or service that has been sold. There are three main categories for these costs, namely, materials, labor, and overhead. For businesses which render different types of services, the cost of goods sold is composed [...]

What is Earned Income?

Earned income is the money you receive from working or from specific disability payments. As opposed to unearned income, it comes from active sources like wages, salary, bonuses, and commissions. It basically includes all the proceeds of employment with the exclusion of pensions, annuities, and other worker’s compensation benefits. Earned income also includes severance pay, [...]

What is Myanmar Kyat?

The Myanmar Kyat, also known as MMK, is the official currency of Myanmar. Though one kyat is made up of a hundred pyas, pya coins are scarce making them use notes up to a thousand kyat. While the official exchange rate of MMK to U.S dollars has stayed around 7 kyats to one US dollar, [...]

What is Habitual Residence Test?

Habitual Residence Test (HRT) is a process in which a European Economic Area (EEA) national or an immigrant must undergo to have claim on social benefits that British citizens enjoy. As what the title suggests, “Habitual Residence” means that someone needs to have residence in the United Kingdom for a certain period of time. Also, [...]

What is Demand?

In economic terms, demand refers to the total quantity of a specific product or service that consumers are willing to buy at a given rate or price. Demand is important in determining the price of products and services in a market. Besides cost, demand for a product or service depends on several factors. These include [...]

What is Inequality?

Inequality simply means the state that lacks equality. This term can also be used in two different contexts, economics and mathematics. In economics, inequality pertains to the distribution of resources to different sectors of the society. This shows the difference between the wages and income of the poor against the rich. Inequality also has a [...]

What is DBA?

DBA also referred to as a fictitious or assumed business name stands for ‘Doing Business As’. DBA informs the public about the actual of a business. DBA began as a method of protecting consumers from deceitful business people by ensuring that they don’t operate under different identity. Once a person files a DBA, it is [...]

What is Corporation Tax?

Corporation tax is defined as a levy charged on profits earned by limited companies as well as organizations such as societies, clubs and unincorporated entities. The rate used to calculate corporate tax varies depending on the level of profit earned over a specified chargeable period. The amount of corporate tax is charged on a firm’s [...]

What is Affiliate Marketing?

Introduction: Marketing is the main element for a business to run successfully. The launch of a product not alone helps you to get maximum profit; rather its promotion is equally necessary. How you promote a product among consumers or what marketing strategies you use, all depends upon the type of marketing you use for your [...]

What is bid and ask?

Bid and ask refers to a terms in stocks or foreign exchange trading which refers to the price at which the buyer and seller agree on some stock or security. The bid and ask price is typically given in two values with one price lower and the other price higher than the other. As in [...]

What is IRA?

IRA stands for Individual Retirement Account and refers to an account setup that allows people to save money for his retirement with a tax-deferred basis or a tax-free growth. The three major types of Individual Retirement Accounts include Traditional, Rollover, and Roth. The first type, called Traditional IRA, involves making monetary contributions which may be [...]

What is CCO?

CCO is the acronym for the position of Chief Compliance Officer. A person holding this position is in-charge of ensuring that the organization he/she represents is abiding by the rules and regulations as determined by government and other authorities. It is also the responsibility of the CCO to ensure that internal policies and guidelines are [...]

What is Marginal Cost?

Marginal cost refers to the costs for producing another unit of a particular product or good. For instance, when a company produced 1001 products instead of 1000, the expense of producing the last item (1001st product) is considered as the marginal cost. The costs may differ and is one of the things that are considered [...]

What is fair trade?

Fair trade refers to a form of trading between different countries that basically promote goodwill, fairness, and sustainability.  The concept of free trade is directed towards the fair treatment of developing countries especially to the producers or farmers of actual goods.  Under normal trade conditions and agreements, many of the producers of goods are exploited [...]

What is Mortgage Insurance?

Mortgage insurance, also called private mortgage insurance, refers to an insurance policy that is aimed to provide protection to the lender in case the borrower fails to pay his mortgages. Mortgage insurance is paid by borrowers in order to encourage lenders to offer them with financing. Private mortgage insurance is sometimes confused with credit life [...]

What is BNY Mellon?

BNY Mellon is short for The Bank of New York Mellon Corporation, a banking and investment management firm based in the US.  Its main office is located in New York’s Wall Street and offers various banking and financial services to its global customers.  The company is known to be the US’ oldest bank and the [...]

What is an adjusted gross income?

Adjusted gross income refers to the taxable income of an individual under the US taxation system. This figure can be derived from the actual gross income minus the deductibles that are allowed under US tax filing laws.  These deductibles may include some expenses related to the individual’s business, moving expenses, and expenses for child support [...]

What is TJX?

TJX is one of the biggest names in the global retail industry.  TJX is officially known as The TJX Companies, Inc and is based in Massachusetts in the USA.  This company is known for its off-price department store concept.  Most people can buy a variety of clothing and apparel at TJX stores across the globe. [...]

What is Lean?

Lean refers to a philosophy or practice that is applied to production or other aspects of business with the main goal of minimizing wastage without compromising the so-called product or value for clients and/or customers.  The core philosophy of so-called lean organizations is to provide customers with value for their products for example with a [...]

What is a debt ceiling?

A debt ceiling is a set limit to the amount of money that can be borrowed by a person or organization.  Debt ceilings are typically given specific amounts or values in order to put clarity in terms of exactly how much can be borrowed.  When this particular limit has been reached, borrowing may not be [...]

What is debt ceiling?

Debt ceiling refers to some kind of limit imposed by the US Congress for its own government.  The limit or ceiling on US debt is basically set to prevent the government from exhausting all its resources and engage in overspending.  Putting a limit on how the US government spends or borrows is one direct way [...]

What is EOWA?

EOWA or the Equal Opportunity for Women in the Workplace Agency is an organization that is run by the Australian government to help promote equality in the workplace especially for women. The main goal or function of the agency is to monitor eligible companies and organizations across Australia in terms of giving women the same [...]