Accounting Profit
What is accounting profit and how is it calculated
Accounting profit is the total revenue of a company minus the total expenses. This includes both...
Inherent Risk
What is inherent risk and why should you care
In business, inherent risk is the one type of risk you can do nothing about. It's...
Make Your Travel Dreams Come True With These Essential Tips
Are you one of those people who has always dreamed of traveling the world? If so, now is your chance to make those dreams...
Capital Stock
What is capital stock and what does it represent
Capital stock is a term used in business and economics to describe the physical or financial...
Giffen Good
What is a Giffen Good
A Giffen good is a type of product for which demand increases as the price increases. This happens because the...
Adhesion Contract
What is an Adhesion Contract
An adhesion contract is a legal agreement where one party agrees to terms that are heavily biased in favor of...
Positive pay
What is positive pay and how does it work
Positive pay is a fraud prevention tool used by businesses to reduce the risk of forged...
Insurable interest
What is insurable interest
When you purchase insurance, the insurance company is taking on a risk. In order for the company to be willing to...
Gift of Equity
What is a Gift of Equity
A gift of equity is a home sale in which the seller agrees to give the buyer a certain...
Cash Ratio
What is the cash ratio and why is it important
The cash ratio is a measure of a company's ability to pay its short-term debts...