What is accrued revenue and why is it important
Accrued revenue is income that has been earned but not yet received. This can happen when goods or services are delivered but not invoiced until later. For example, if a company...
What is tax planning and why do you need it
Tax planning is the process of arranging your financial affairs in a way that minimizes your tax liability. This can involve making strategic decisions about how to invest your money,...
What is joint probability
Joint probability is a statistical concept that refers to the likelihood of two events occurring together. For example, the joint probability of rolling a 6 on a die and flipping a coin landing on heads is...
What is a hurdle rate and why is it important
A hurdle rate is the rate of return that an investment must achieve in order to be considered worthwhile. This concept is used in both personal and corporate finance, and...
What is a ground lease
A ground lease is a type of lease in which the tenant leases a parcel of land from the landlord. The tenant is then responsible for all improvements and maintenance on the property. Ground leases...
What is a duopoly?
A duopoly is a situation where two companies together own all, or nearly all, of the market for a given product or service. A duopoly is the most basic form of oligopoly, a market dominated by...
What is capital loss carryover
When an investor realizes a capital loss on the sale of an asset, they may be able to use that loss to offset any capital gains realized in the same year. If the losses exceed...
What is the Fixed Asset Turnover Ratio
The Fixed Asset Turnover Ratio is a financial ratio that measures a company's efficiency in using its fixed assets to generate sales. The fixed assets include both long-term and short-term assets, such as...
What is an exculpatory clause
An exculpatory clause is a provision in a contract that releases one or more parties from liability in the event of damages or injury. In some cases, an exculpatory clause may also be used to...
What is a Factor Market
A factor market is a market where firms and households purchase or sell productive factors of production. The key productive factors are land, labor, capital, and entrepreneurship. Factor markets help to allocate resources in the...