Tag: examples
Salvage Value
What is a 'Salvage Value'
Salvage value is the estimated value that the owner is paid when the item is sold at the end of...
Scarcity Principle
The Scarcity Principle, like other principles of economics, comes from the principles of psychology and behavioral sciences. As per the simplest definition, it states...
Back Office
DefinitionA back office in most corporations is where tasks building layout of early companies where the front office would contain the sales and other...
Backward Integration
What is 'Backward Integration'
Backward integration is a form of vertical integration that involves the purchase of, or merger with, suppliers up the supply chain....
Bad Paper
What is 'Bad Paper' Unsecured short-term fixed income instrument that is issued either by a corporation, city, state or country, that has...
Crony Capitalism
DefinitionCrony capitalism is an economy in which businesses thrive not as a result of risks they take, but rather as a return on money...
Compound Interest
DefinitionCompound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It...
Call Privilege
What is 'Call Privilege' The provision in a bond indenture that gives the bond issuer the option to redeem all or part...
Passive Income
What is passive income and why should you care
Passive income is a type of income that does not require active work to earn. This...
Paper Profit (Paper Loss)
What is 'Paper Profit (Paper Loss)' Unrealized capital gain (or capital loss) in an investment. It is calculated by comparing the market...