What is an Income Deposit Security? An income deposit security is a hybrid financial security. It is considered a hybrid because it shares the qualities of both a high-yield note and common stock. Another name for it is enhanced income security. The sole purpose of selling them is to provide pay income regularly to the security holder. The payments ...

What are the theoretical (political) views toward judicial review? Judicial Restraint is the political view courts should refrain from issuing opinions that expand or change the nature of an existing law unless absolutely necessary.  Judicial Activism is the political view that courts are best positioned to develop law through the interpretation of ...

What is Ethnocentrism? Ethnocentrism is an idea or belief that ones way of life, culture, group, race, and language are superior to others. It generally entails bias in ones ability to objectively judge options and make comparisons. How does Ethnocentrism Work? An ethnocentric person judges everything based on his predefined values and compares othe...

What is Passive Loss? A passive loss refers to a financial loss within an investment in any business enterprise or trade in which the investor isn't materially involved. Passive losses can arise from investments in business partnerships, rental properties, or other activities in which an investor isn't a material participant. In a bid to be consider...

What is the Ashridge Mission Model?  The Ashridge Mission Model, proposed by Andrew Campbell, is a method that can be used to create or analyze a Mission, Sense of Mission, and Mission Statement.  What are the Elements of the Ashridge Mission Model?  It contains the following four elements which should be linked tightly together, resonating and rein...

What is Persuasion Theory? Persuasion Theory is a mass communication theory that deals with messages aimed at subtly changing the attitudes of receivers. According to this theory, the communication process consists of a three phase model:  Communication-Attitudes-Behavior.  The concept underlying persuasion is that information is provided to influen...

What is an Irrevocable Letter of Credit? An irrevocable letter of credit is a financial document from a financial firm that guarantees the buyer's payment obligation to the seller.  Read about how a Letter of Credit works. It is referred to as irrevocable because it cannot be canceled or altered at any time without the agreement of the beneficiary, ...

What are impossibility and commercial impracticability of a contract? Impossibility of performance and commercial impracticability may excuse a party's duty to perform a contract. Further, it will relieve the party from liability for the non-performance. Each is discussed below. What is Impossibility of Performance? A party may be excused from her d...

Who is an Exempt Employee? According to the Fair Labor Standards Act, an exempt employee is an employee that is not qualified for minimum wage or overtime payment. The main reason for these employees being exempt by the Fair Labor Standards Act (FSLA) is that this set of employees earn substantial salaries. Exempt employees are on a high rank when i...

What is Customer Lifetime Value?  The life time value is regarded as an estimate regarding the average revenue that the company is going to generate from the customer during the lifespan of customer or company. The customer is attached to the company and spends money at the company throughout his life. This reality helps the company to make economic...