Debt Overhang
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 take on new debt, but the debt overhang must be addressed first. Here are some ways to reduce your debt...
Trust Indenture
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 party. The indenture may also contain provisions for how the trust property will be managed, how distributions will be made,...
Holding Costs
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 are a necessary part of doing business, they can also cut into profits if they are not carefully managed. One way...
Legal Monopoly
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 particular product or service. Monopolies can be legal or illegal. A legal monopoly is one that is created through exclusive...
New Growth Theory
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 the late 20th century, in response to the stagnation of economic growth in developed countries. The key tenants of new growth...
Acid-test ratio
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 can meet its short-term financial obligations if it had to pay them all immediately. The acid-test ratio is also sometimes...
annualized income installment method
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 them to reduce payments for low income and increase them for high income. To understand how this method works, it's...
Capital Employed
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, including loans, equity investments, and profits. The important thing is that they are able to be used to finance the...
Simple Tips to Avoid Serial Ransomware Traps
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 from? The answer may be found in the nature of the attack, which, according to CNA cybersecurity analysts, was executed using...
Bearish Engulfing Pattern
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 followed by a large black candle, with the black candle completely engulfing the white candle. This pattern can be found at...