What is a Blacklist? Blacklist contains entities which are penalized due to unethical or illegal activities. In finance, a blacklist consists of a list of persons or organizations that are punished for allegedly violating laid down business ethics. Generally maintained by entities, blacklist can be made public or secret depending on the involved par...

What is a Flat Yield Curve? The flat yield curve is a yield curve that depicts the difference between two bonds (short-term and long-term debt securities) that belong to the same category of credit. The flat yield takes the form of a horizontal line which shows that a short-term bond and long-term bond with the same credit quality have a little disc...

What are integrative, distributive, and compatible bargaining scenarios? The interdependence of parties is often affected by the nature of the differing interests or objectives. The parties may find themselves in situations where the interest or objective of both parties is the same and is finite.  Finite generally means that the interest is a fixed...

What are the common types of conflicts regarding the priority of security interests? The following types of security interest are often in conflict: Lien Creditors vs. Security Interest - A lien creditor who establishes an interest in a debtors property prior to perfection by another secured party has priority over that secured party. Depending upon...

What are the Forms of Message in Communications? Information is communicated through messages that become an integral part of communication. Messages can be in the form of dialogue, language, gestures, or the context. There are four distinct forms of messages that are discussed below. Primary messages - Primary messages are those where the informati...

What is Organized Labor? Organized labor refers to an association of workers coming together as a legal and recognized entity in a particular industry or sector. Organized labor is otherwise referred to as a Union or a Trade union. Organized labors are formed as associations representing the common interest of workers in a particular industry, this ...

What is Capitulation? Capitulation occurs when an investor does not take any previous gains earned from securities, and rather sells his or her position in the diminishing stage. Though there is no specific time set for capitulation, but it usually takes place when there is trading going on in big volumes, and in case of added fall in securities. Wh...

Why do Parties Negotiate? Negotiations result from actual or perceived conflicts of interest or objectives between two parties. The intent is to better ones current position (further their interests or objectives) by achieving mutual assent with regard to differing perceived interests or objectives.  The parties may desire to: align their actions (o...

What is Sensitivity Analysis? Sensitivity analysis, also referred to as simulation analysis, is a technique employed in financial modeling to determine how different values of a set of independent variables can influence a particular dependent variable under certain specific conditions and assumptions. It is used to ascertain how the overall uncerta...

What is the Systems Approach to Management? The Systems Approach to management theory, commonly viewed as the foundation of organizational development, views the organization as an open system made up of interrelated and inter-dependent parts that interact as sub-systems. Thus the organization comprises a unified singular system made up of these sub...