Production Possibility Frontier – Explained

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

What is the Production Possibility Frontier?The Production Possibility Frontier refers to a curve that presents the possible amounts at which two distinct products can be manufactured when the resources and technology that both goods require for their production are...

Principles Based Accounting Standards – Explained

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

What are Principles-based Accounting Standards?Principles-based Accounting Standards refers to a set of rules and guidelines that organizations must follow when making financial reports. Different states and countries have accounting principles that guide them when...

Price-to-Equity (Price-to-Book) Ratio – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is a Price-to-Equity Ratio?The Price to Equity Ratio, also known as the Price to Book Ratio, compares a company’s market value to its book value. This is calculated by dividing price per share by book value per share( BVPS). Price to Equity = Price Per...

Times Interest Earned – Explained

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

What is Times Interest Earned?Times interest earned (TIE) is used to measure if a company can pay up its debts or not. This calculates the number of times a company can pay up its interest charges before the deductions of tax. It is basically calculated by estimating...

Lending Facility – Explained

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

Update Table of Contents What is a Lending Facility?How Does a Lending Facility Work?Lending Facility and Term Auction FacilityHistory and Development of Lending Facilities What is a Lending Facility?The lending facility is a means in which financial assistance is...

Lender of Last Resort – Explained

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

What is a Lender Of Last Resort?A lender of last resort (LOLR) is the institution that gives loans to institutions that are experiencing a lack of liquidity or an institution that guarantees liquidity or credit to financial institutions, the institution offers loans...

Tight Market (Trading) – Explained

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

What is a Tight Market?A tight market is defined as a market with high trading volume and narrow bid and ask margins. One characteristic of the tight market is abundant liquidity and high competition on both the buyers and sellers part. The term may also indicate a...

Straight Through Processing (Financial Transactions) – Explained

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

What is Straight Through Processing?Straight-Through Processing (STP) is a method used to speed up financial transactions processing time, by processing without manual intervention (straight-through), by financial companies. The main goal of STP is its ability to...

Single Market (Trade) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is a Single Market?In a single market, there is a free flow of goods and services, free movement of labor and physical and intellectual properties for all concerned and freedom of movement. A working single market encourages competition and exchange, improves...

Overseas Private Investment Corporation – Explained

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

What is an Overseas Private Investment Corporation?An Overseas Private Investment Corporation (OPIC) is a government body of the United States which was established in 1971, that offers medium to long-term funding for projects in developed and emerging markets,...