by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Employee Profit Sharing Plan?Employee profit sharing plan (EPSP) or a profit share plan is when a company allocates a share of profits to its employees. An EPSP is generally based upon performance, such as annual profitability. ESPS are thought to improve...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Illiquid Asset?Illiquid indicates those assets or securities that cannot be sold easily or converted into cash due to shortage of buyers or without loss in its value. A firm may be identified to be illiquid if it lacks the cash needed to meet its current...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Fair Market Value? The price at which the property is sold on the open market is called fair market value (FMV). The Fair market value is different from appraised value or market value. It is based on economic principles of open and free market activity. The...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Debenture?A debenture is a form of debt instrument used by companies for borrowing money. In the US a debenture is not backed by any physical asset or collateral; rather, it is secured on the borrowers reputation and credit history. In the UK, in contrast, a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Debt Financing?Businesses can raise operational capital (or other sorts of capital) by selling debt instruments like bonds, debentures, and other types of debt security. The act of raising capital by selling debt instruments is called debt financing. The...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Discount Rate?The term discount rate refers to two very discreet concepts in finance. First, the discount rate refers to the interest rate paid by the commercial banks and other depository financial houses against a loan received from the regional Federal...
