Tag: firms
Earnings Management
What is earnings management and why do companies do it
Many publicly traded companies engage in a practice known as earnings management. This is the...
Imperfect Market
DefinitionIn economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition. In theoretical models where conditions...
Eclectic Paradigm
DefinitionThe eclectic paradigm is a theory in economics and is also known as the OLI-Model or OLI-Framework. It is a further development of the...
Economies of Scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output...
Target Firm
What is a 'Target Firm' A target firm is a company which is the subject of a merger or acquisition attempt. A...
X-Efficiency
What is 'X-Efficiency' X-efficiency is the degree of efficiency maintained by individuals and firms under conditions of imperfect competition. According to the...
Creative Destruction In Economics
Creative destruction, sometimes called Schumpeter's gale, is an idea people studying economics theory say may lead to innovation in the business cycle. Karl Marx...
WACC – Weighted Average Cost of Capital
Source: WikipediaLast Sourced: 2021-02-01This Article has been Edited for Accessibility Further Reading WACC the dog: The effect of financing costs on the levelized...
Labor Market Flexibility
What is labor market flexibility and why is it important
Labor market flexibility is the ability of businesses to respond quickly to changes in market...
Fabless Company
What is 'Fabless Company' The Global Semiconductor Alliance defines fabless as follows: Explaining 'Fabless Company' The fabless model is an...