How does Specialization allow for a gain from Trade? Consider the category of machinery, where the U.S. economy has considerable intra-industry trade. Machinery comes in many varieties, so the United States may be exporting machinery for manufacturing with wood, but importing machinery for photographic processing. The underlying reason why a country...

What is a Push Strategy?  A push strategy and a pull strategy are the two main options within promotion. The difference here is it's a strategic choice between promoting to our intermediaries (which are our wholesalers, our retailers, or the people that sell our products) or the people that we want to buy our products (in other words consumers). Wit...

What is a Qualified Dividend? A qualified dividend refers to a dividend covered under capital gains tax rates that are less as compared to the income tax rates on dividends. In order to be eligible for the highest tax rates of 0%, 15%, or 20% that are applicable for capital gains in the long run, qualified dividends must comply with the following cr...

What is Pro Forma? Pro forma is a Latin phrase that means as a matter of form. In business and investing, it refers to the manner in which a firm calculates and presents its financial results. The pro forma calculation method emphasizes current and projected figures. How is Pro Forma Used? Pro forma financial statements are designed to emphasize spe...

What is Defamation under the 1st Amendment? Defamation is the publication (open communication) of false statements about others that will knowingly subject that person's character to ridicule or disrepute.  Types of defamation include libel, slander, and trade disparagement. Defamation receives only partial protection under the 1st Amendment from in...

What is a Charge-Off? A charged-off account refers to an account held by a creditor that has not been paid by a debtor. The creditor has stopped collection efforts and designated the debt as uncollectable. How does a Charge-Off Work?  Once a lender considers collection efforts to be hopeless, it would opt for a charge-off. This generally happens wit...

What is Value Added? Value added can be defined generally as the increased utility that a company creates for its consumers or clients. More specifically, it refers to the extra features a company may add to a product or service to give it a sense of increased value to customers or clients. This may include either changing the product design or prov...

What is the Office Of Management And Budget? The largest office within the EOP (Executive Office of the President) of the US is named as the Office of Management & Budget (OMB). Its main responsibility is to generate the operational budget as well as estimate the quality of programs run by an agency, strategies, and processes to check whether th...

What is the Office of the Comptroller of the Currency (OCC)? The Office of the Comptroller of the Currency (OCC) is a federal organization that observes and analyzes how well the national banks are implementing the set laws. Particularly, it acts as a charter, regulator, and supervisor of national banks and federal branches of the U.S. based foreign...

What is a Charitable Gift Annuity? A charitable gift annuity is a contract or an agreement between an individual and a charity, where such individual transfers assets to a charity in return for a partial income tax deduction and a regular lifetime income sizable to the asset. Like other life annuities, when the receiver of the annuity (annuitant) di...