What is a Pyrrhic Victory? A pyrrhic victory refers to a type of victory that is recorded after significant loss or costs have been incurred. That is, the victory that is achieved at a great cost or loss. Related Topics How Strategies Arise Intended, Deliberate, Realized, and Emergent Strategies Management and Strategic Planning Mintzberg's Schools ...

What is a Distributive Negotiation? A distributive negotiation is a situation in which interests or objectives of the parties are the same and are mutually exclusive. These situations are characterized by a finite or fixed amount of resources. The interest(s) or objective(s) of the other party are in direct conflict with yours.  Further explanation ...

What is a Market Risk? Market risk refers to the risk where there is a possibility of an investor experiencing a decrease in value of an investment as a result of changes in financial market factors. Note that you cannot completely eliminate market risk through diversification. However, you can hedge against by diversifying it into assets that have ...

How does a party enforce a civil judgment? Collecting on a judgment can be a difficult process. There are three primary methods by which a party may enforce a court's judgment. Encumbrance Execution Garnishment What is Encumbrance?  A judgment holder may file a lien on the property of the debtor, such as the real property registered to the debtor. T...

What is Strong Form Efficiency?  Strong form efficiency refers to a market efficiency in which prices of stocks reflects all the information in a market, be it private or public. In strong form efficiency, stock prices reflect public and private information about a market. Strong form efficiency is the strongest of the three forms of the efficient m...

What is a Bank Insurance Fund? Bank Insurance Fund (BIF) is a unit of Federal Deposit Insurance Corporation (FDIC) that deals with the provision of insurance protection for banks that are not grouped as a saving and loan association. Given all FDIC covers, BIF provides coverage with a limit of $250,000 for every customer in insolvent banks. Creation...

What is Neoliberalism? Neoliberalism is an ideology and policy model that advocates for the free market economy and argues in favor of transferring the power of controlling the economy from public sector to private sector.  What are the Principles of Neoliberalism? The ideology is based on the basic principles of neoclassical economics that recommen...

What is a Leverage Ratio? A leverage ratio is any kind of financial ratio that indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement.   The most common leverage ratios are:  debt to equity, and  debt to capital. How Does a Leverage Ratio Work?  Most bus...

What is an Accrual Rate? Accrual rate refers to the interest percentage rate charged on financial instruments such as bonds, pension, credit card, and mortgage loans among other loans. Accrual rates vary according to the financial instrument. However, it is commonly applied on bonds to find out the amount of interest expense accrued for various inte...

What is the International Financial Reporting Standards? International Financial Reporting Standards refer to an international accounting standards set which states how specific transaction types and other activities ought to be reported in financial statements. The International Accounting Standards Board (IASB) issues IFRS, and they dictate precis...