What is a Hell or High Water Contract? A hell or high water contract is a non-cancelable agreement by which the lessee is legally obliged until the expiration of the contract, to continue making stipulated installment payments to the lessor, irrespective of any complications they may run into during usage of the leased property or equipment. How is ...

What is a Civil Society Organization? Civil society is a sector of society (often a business group) devoid of government interference.  The term is also used to refer to non-governmental organizations that fight for the well-being of citizens.  Where do Civil Society Organizations come from? The term civil society can be traced back to Aristotle's P...

What is a Vertical Market? A vertical market refers to a form of market that consists of a cluster of organizations and customers that are connected with one another through a given niche. Firms that prefer vertical market meet the specific needs of the market, and dont serve a wider target market. Vertical markets formulate organizational policies ...

What is an Asset Swapped Convertible Option Transaction? Asset Swapped Convertible Option Transaction - ASCOT is a structure in which convertible bonds are divided into two parts using convertible bond options. An isolated item is a bond with ordinary coupon payments and stock options as a call option. Through the ASCOT mechanism, investors can purc...

What are Economic Unions? An economic union is a type of trade block composed of common market and a customs union.  The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labor) as well as a common external trade policy. Related Topics Trade Balanc...

What is Factor Income? An income derived from any factor of production is called a factor income. There are four factors of production, they are; Land, capital, labor and enterprise. Any return received or income generated on these factors of production is the factor income. Different factors of production provide income through different means. Fac...

What is the Balance Sheet? A balance sheet is a report or statement containing all the assets, liabilities and shareholders' equity owned by a business at a specific time. Balance sheet is important in financial accounting, it is the financial statement that contains the details of a company's asset, equity and liabilities over a period of time time...

Severance Pay: What You Need to Know It is an unfortunate situation when you have to let an employee go or your are the employee being dismissed from the company. Either way, it is important to understand some of the implications of discharging an employee. In this article, we will discuss what is severance pay, how is it used, and some important co...

What is Expected Utility? Expected utility refers to the usefulness, profitability, or utility that an economy is anticipated to accumulate under given circumstances within a space of time.  As a term in economics, the expected utility also describes the anticipated value (utility) an action should produce under certain situations.  Expected utility...

What is Below Par? Below par is a concept used for a bond in case its market price is lower than its par or face value, that is $1000 in most of the cases. Since the price of bonds is ascertained as a specific percentage of principal value, any price that is lower than $100 would be considered as a below par. How Does Below Par Work? One can trade b...