Arc Elasticity
What Is Arc Elasticity? If you've ever wanted to know the relationship between two variables, then you have likely heard of the concept of arc elasticity. It is a measure of one variable's sensitivity to a change in another. The difference between two points is measured in percentage changes. This property has several applications, including non-uniform pricing and the study...
Notice to Creditors
What is a Notice to Creditors and what does it mean for you A notice to creditors is a public announcement that a person has died. The notice allows creditors to make claims against the estate for owed money. If you are a creditor, you may need to file a claim in order to get paid. The notice also provides...
Grantor Trust Rules
Grantor Trust Rules and Exceptions The grantor trust rules apply only to the transfer of property from one party to another. If you have a grantor trust, you can elect for a successor trustee to take over the property in the event you pass away. The successor trustee may elect to replace the trust principal with assets of equal value....
Organizational Economics
What is organizational economics and what does it study Organizational economics is a branch of economics that studies how individuals and firms interact within the context of organizations such as corporations, partnerships, and Sole proprietorships. It also studies how these organizations impact the economy as a whole. Major topics of study in organizational economics include contract theory, incentives, and organization...
Merton Model
The Merton Model and Its Benefits The Merton model is a classic financial model that combines the concepts of volatility and probability to predict the future of an investment. The Merton model has been used in financial markets for over four decades. This article explains the Merton model and its benefits. Read on to learn more. We'll also discuss the...
Horizontal Acquisition
What is horizontal acquisition Horizontal acquisition is the purchase of a company that operates in the same industry as the acquirer. The main motivation for this type of acquisition is to gain market share or achieve economies of scale. For example, if a company wants to enter a new market, it may acquire a local player that already has a...
Unified Tax Credit
What is the Unified Tax Credit The Unified Tax Credit (UTC) is a way for the government to provide tax relief to low- and middle-income families. The credit is based on the amount of taxes owed, and it is available to any family that meets the income requirements. The UTC is designed to help families with children, as well as...
Asset Coverage Ratio
What is Asset Coverage Ratio? The Asset Coverage Ratio is a financial ratio that measures the extent to which a company's assets cover its liabilities. In other words, it is a measure of a company's financial strength and ability to repay its debts. The ratio is calculated by dividing a company's total assets by its total liabilities. A high ratio...
Deed of Release
What is a Deed of Release A deed of release is a legal document that confirms that a person has received payment or satisfaction for a debt or obligation. The deed of release can be used to settle any type of dispute, including personal injury claims, property damage claims, and breaches of contract. In most cases, the deed of release...
Unrealized Loss
What is an unrealized loss An unrealized loss is a decrease in the value of an asset that has not yet been sold. The term is typically used in reference to investments, such as stocks, bonds, or real estate. unrealized losses can also occur with other assets, such as collectibles or pieces of art. When the asset is sold at...