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Category Archives for "Business and Economy"

What Is a Mission Statement

Mission statement is the official on paper assertion of the hub principles of a corporations or different sort of businesses. In various terms, an assignment declaration is comparatively concise and unsophisticated. At additional periods, an operation declaration might be extended and rather more explicit. The precise arrangement of the declaration will fall on the sort […]

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What is Market Cap

Stock market has become a new venture of investment yielding high return in smalltime frame. Though this is at high risk option of investment but when it works gives unexpected profits to the investors. This has made it so popular that share market is no more a business of capitalists; it has a huge investor […]

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What Is Scarcity

Scarcity is a term that is derived from inequality between delivery and demand. There is no doubt that scarcity can occur in case of short supply and increasing demand. Scarcity can be considered in reference to any product or services. Shortage of delivery can occur when manufacturers are unable to meet increasing demands of customers […]

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What is LIBOR

The most popular and remarkable interest rate dealing market that remains active is LIBOR. It stands for London Interbank Offered Rate. The calculation of LIBOR is accounted based on the short-term deposits offered by different banks participating in London Money Market. Plenty of derivatives in money that are accounted with the help of LIBOR such […]

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What are Closing Costs

When an individual invests money in real estate, many fess and other costs are involved in the actual costs apart from purchase price of your property. Such surplus costs are called closing stocks. It is very important to pay closing cost in advance and before closing transactions real estate. It is normally responsibility of buyer […]

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What is a Job Opening

These are vacancies that an employer of a company wishes to fill. Generally such job openings are advertised through a proper channel so that organization can pick suitable employees for them. A prospective employee should track these jobs opening properly since competition is too high these days. Whenever the human resources department finds it apt […]

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What Is Business Capital

This term is used in two different situations, one in the accounting and the other in the marketing situation. In accounting terms it is used to refer the amount of money that is invested in the business. On the other hand in marketing terminology it is used to refer the value of a company itself. […]

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What is Gross Domestic Product

Every nation has certain economic tools to measure its growth in terms of the size of the nation. One such tool is called the Gross Domestic Product. This is a very broad measure that is used to measure the economy’s volume in terms of output. In general terms gross domestic product is defined as overall […]

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What is the Federal Reserve

The Federal Reserve System is mainly a central banking system which is in progress in the banks of United States. The Federal Reserve System is opted as a central banking system. The Federal Reserve System is shortly known as Fed. The Federal Reserve was created by the United States Congress. Federal Reserve System was invented […]

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What is Accounts Receivable

This is an accounting transaction that deals with the money that is owed by its customers towards the goods and services purchased. These are billing of customers by making a receipt and delivering it to them. The amount to this tune is shown in the balance sheet under the heading Accounts Receivables. Some companies also […]

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What is the IMF

The International Monitory Fund was one among the financial institutions that emerged during the United Nations financial conference that was held at Bretton woods in 1944. This organization came into existence to control international payments that went to a lot of confusion due to Second World War. Today this fund has about 184 countries as […]

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What Is a Budget

Budget in business terminology refers to the designed allocation of existing resources for every unit in an organization. This method of planning is called budgeting; this helps the management in controlling the money in productive areas that can generate good income for the organization. A budget is set only in consultation with accountants, financial specialists […]

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What is Six Sigma

Six Sigma is a quality measure that every company is striving today to get perfection. It is a much disciplined methodology for eliminating defects.  This applies to all sectors of business like manufacturing, services, transactions and even products. Six sigma denotes the six standard deviations from statistical mean. Sigma is derived from a Greek word […]

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What is Coinsurance

Coinsurance is defined as the agreement which has been made between the customer who is taking the policy and the insurance company. This agreement is about the terms and condition according to which the insured person will have to pay a particular percentage of the cost as per the rules when the purchasing of the […]

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What is Philanthropy

Philanthropy is basically a term which defines the love towards the humanity. And the person who makes an effort for the well being of the humanity is known as Philanthropist. A philanthropist can make an effort by giving his time for the society and also by donating some amount of money for any charity fund […]

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What is Vertical Integration

Vertical integration is a type of management control. Companies forming part of supply chain are working for a common owner in vertical integration. This helps in achieving better control of production process and hold-up situation can be avoided due to common control. Vertical integration allows company to get better hold of the market as dependence […]

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What Does Per Capita Mean

This term has been derived from a Latin word which means head. Hence per capita is referred to as individual person. It refers to a set of people and also some kind of income they earn or spend. Such kind of income is called per capita income. It is generally that figure that is derived […]

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What is a Commodity

A Commodity is basically defined as the food product which is easily available in any part of the country such as the commodity of the America is corn while the commodity of India is rice. But if you find the term commodity in any book of economics, or by any economist, the meaning of the […]

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What Is Gross Pay

Gross pay is total income before deducting tax. It is summing total of regular income, overtime compensation and all taxable earnings. After deducting taxes what is left to the employee is net pay. Gross pay can be categorized into hourly gross pay and salaried gross pay.  A salaried gross pay is calculated by dividing annual […]

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What is Procurement

Procurement is process of acquiring goods and services. This is not simple buying. It is a complete process where emphasis is made on acquiring goods and services after systematic planning. Quality check and meeting specifications as per company’s standards are carried out as a part of procurement process. Procurement includes taking cost- effective decisions too […]

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What is the Unemployment Rate

The definition of unemployment rate as defined by the Labor organization is the total number of unemployed or jobless people prevailing to the total number of jobless people who are working to make a living. This ratio is called as unemployment rate which varies from country to country. Every year there are billions of people […]

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What is EBITDA

This denotes the company’s earnings before certain deductions like interest, taxes, depreciation and amortization. The expansion of EBITDA is earnings before interest, taxes, depreciation and amortization. This helps the investors to know what is the earning that the company makes before making the above deductions. This helps them investing money especially when the company is […]

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What is Net Worth

It is a financial accounting terminology that refers to the total value of an organization. Net worth is usually the total assets minus the total liability. Any business for that matter has to pen down its assets, liabilities and shares on the balance sheet for any given accounting period. It is the calculation of all […]

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What is Accounting

Accounting is a very vast term to be defined. It can be understood in many ways for the purpose of accounting and business applications as well. Accounting details has to be identified and measured, for this purpose the best way to have a set of accounts. This depends upon the kind of accounting system the […]

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