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...
Accrued Revenue
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...
Tax Planning
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...
Joint Probability
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...
Hurdle Rate
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...