What is Activity-Based Management? Activity-Based Management (ABM) is a management approach focusing on managing employee activities efficiently and effectively with the purpose of increasing productivity, profitability, and organizational competitiveness. This approach focuses on planning, implementation, and measurement of business activities.  Ac...

What is a Spinoff? A spinoff refers to a process of creating a new company from an existing one through the division or separation of a subsidiary from a parent company. A spinoff can also occur when a new product is created from an old one, either through the modification of the old product or the creation of a new product.  A spinoff is otherwise ...

What is a Yield Basis? The yield basis of a security or financial instrument is the yield percentage attributed to it rather than its dollar value. Fixed income security such as bond carry yield percentage instead of carrying their dollar value. With the yield basis, the diverging characteristics of bonds can be measured and compared. How Does a Yie...

What is the Collaborative Economy? A collaborative economy is a type of economy where consumers rely on one another for the satisfaction of their needs. This means consumers are able to get what they need from one another.  A collaborative economy is otherwise known as a peer-to-peer economy or a sharing economy. How does a Collaborative Economy Wor...

What is the Emergency Economic Stabilization Act of 2008 (EESA)? In 2008, Congress took bailout measures to repair the damage from the subprime mortgage crisis and passed the EESA. This authorized the government to buy out $700 billion in troubled assets from banks and to stabilize liquidity in financial markets. History of the Emergency Economic St...

Should You Incorporate in Delaware or California? The majority of startups begin business as a sole proprietorship, general partnership, or limited liability company. The business generally changes entity forms when it needs the more formalized ownership and control structure characteristic of a corporation. Specifically, the separation between offi...

What is Hearsay? Hearsay is "an out-of-court statement offered to prove the truth of the matter asserted therein." Hearsay testimony occurs when one person testifies about what another person said. The creation of hearsay rule came into place to help prevent individuals from unfair convictions using gossips. Hearsay evidence is inadmissible in some ...

What is the Comptroller General? In the United States, a Comptroller General is a government official that supervises the accounting policy in the States. This is a top-ranking official, often an accounting professional in a management level that oversees the accounting and financial reporting of the United States. Organizations can also have comptr...

What is Social Responsibility in Marketing?  Social responsibility for an organization generally regards making decisions and carrying on operations in a manner that creates a positive impact or minimizes the negative impact upon society at large.  Creating a positive societal impact or reducing a negative impact can be in any area that affects or i...

What is a Personal Exemption? A personal exemption refers to the amount of money that a single taxpayer can claim as a tax deduction, this deduction is claimed on personal income and federal income tax. The amount an individual can deduct under personal exemption is based on the tax return or taxable income of the individual. As at 2017, the persona...