Post-Modern Portfolio Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Post-Modern Portfolio Theory?A system for the distribution of portfolio investments based on assets versus the risk of negative returns, also known to as downside risk. This defined as Post-Modern Portfolio Theory. In the post-modern portfolio theory, the risk...

Knowledge Process Outsourcing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Knowledge Process Outsourcing (KPO)?Knowledge process outsourcing (KPO) is a type of outsourcing in which a different company or subsidiary in the same organization (which may be based offshore to save on taxes or other resources) conducts knowledge and...

Financial Institutions Regulatory Act – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Financial Institutions Regulatory Act?How Does the Financial Institutions Regulatory Act Work?The Central Liquidity Facility What is the Financial Institutions Regulatory Act?The Financial Institutions Regulatory and Interest Rate...

Evolutionary Economics – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Evolutionary Economics?Evolutionary economics is a theory propounded by an American economist and sociologist, Thorstein Veblen (1857-1929). This theory dwells on anthropology, sociology, psychology, and Darwinian principles. Several other economists including...

Balanced Trade – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Balanced Trade?In a balanced trade, a country does not account for trade surplus or trade deficits. This model mandates countries to equal their imports with exports. This ensures that a zero balance of trade is achieved which could also include the...

Fox-Trot Economy – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Fox-Trot Economy?A “fox-trot economy” refers to an unexpected pattern of economic growth and activity in which an economy experiences two periods of fast growth and another two periods of slow growth. This term follows the pattern of the fox-trot...

Assemble to Order – Explanation

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Assemble To Order?Assemble to order (ATO), also known as make to order or assemble to order, is a production model used by manufacturers where goods are produced from scratch when an order is made by a customer. The parts needed to produce a good are already...

Asymmetric Information – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

What is Asymmetric Information?Asymmetric information refers to a situation in a contractual agreement or economic transaction where the two parties involved have disproportionate information. Restated, when one party has greater information and material knowledge...

Assignment of Trade – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Assignment of Trade?An assignment of trade (AOT) is a tri-party agreement in the trade of mortgage-backed securities (MBS) in which a party in the initial agreement assigns his obligation to a third party. An assigned trade occurs when a counterparty in a...

Black Box Accounting – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is Black Box Accounting?Black box accounting refers to the use of complex accounting methods by a company in order to confuse a casual reader or make the interpretation of financial statements extremely difficult. When using black box accounting, companies...