How to Reduce Your Debt Overhang
A company that is heavily indebted may suffer from a condition called debt overhang. This condition occurs when the organization is unable to easily borrow new money. It may be a good idea to...
What is a trust indenture
A trust indenture is a document that outlines the terms of a trust agreement. The indenture is typically executed by the trustee and the beneficiaries, and it sets forth the rights and duties of each...
What are holding costs and why do they exist
Holding costs are the costs associated with storing inventory. They can include storage fees, insurance, and loss of interest on the money that is tied up in inventory. While holding costs...
What is a legal monopoly and how is it created
A monopoly is a business entity that has complete control over its product or service. In other words, it is the only company in the market that can provide a...
What is new growth theory and what are its key tenants
New growth theory is a macroeconomic theory that emphasizes the role of technological innovation and human capital in the long-term growth of an economy. The theory was developed in...
What is the acid-test ratio and why is it important
The acid-test ratio is a financial ratio that measures a company's ability to pay its short-term obligations with its liquid assets. In other words, it shows how well a company...
Annualized Income Installment Method Exceptions
The annualized income installment method allows taxpayers to pay their tax bill in four equal installments of 25% of their taxable income. This method is especially useful for people with irregular income, as it allows...
What is capital employed and why is it important
Capital employed is a term that is used to describe the funds that a business has available to reinvest in its operation. These funds may come from a variety of sources,...
CNA Financial, a prominent American insurance company, found itself the target of a sophisticated ransomware attack. How can a company that reduces the risk for other organizations fail to protect itself from the same risk they insulate their clients...
What is a bearish engulfing pattern
A bearish engulfing pattern is a candlestick chart pattern that can signal the end of an uptrend and the beginning of a downtrend. The bearish engulfing pattern forms when a small white candle is...