Pigovian Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Pigovian Tax?A Pigovian tax, also spelled “Pigouvian”, is a tax on economic activity generating negative external charges that are borne by unrelated third parties and which does not reflect costs caused by negative externalities in the final...

Per Diem Interest – Explained

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

Update Table of Contents What is Per Diem Interest?How Does Per Diem Interest Work?Calculating Per Diem Interest What is Per Diem Interest?Per diem interest is interest charged on a loan at a daily rate, as opposed to the monthly or annual percentage rate. Generally,...

Capital Pool Company – Explained

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

What is a Capital Pool Company?A capital pool company (CPC) is a new shell company listed on the TSX Venture Exchange (TSX-V) has no commercial transactions and no assets except cash. The CPC’s goal is to identify and acquire an active business. The CPC uses its...

Capital Dividend – Explained

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

What is a Capital Dividend?A Capital Dividend is a dividend paid to shareholders of a corporation. The dividend funds come from the capital that was contributed to the company in exchange for an ownership interest. The funds do not come from profits or operational...

Banner Advertising – Explained

by TheBusinessProfessor | Feb 23, 2025 | SEO, Social Media, Direct Marketing

Update Table of Contents What is Banner Advertising?How is Banner Advertising Used?Banner Advertising TechnologyAcademics Research on Banner Advertising What is Banner Advertising?Banner Advertising, in regards to digital marketing, is a form of advertising that...

Banker’s Bank – Explained

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

Update Table of Contents What is a Bankers’ Bank?How Does a Bankers’ Bank Work?Bankers’ Bank and Credit UnionsExample of a Bankers’ Bank What is a Bankers’ Bank?A bankers’ bank is a type of bank that transacts with other banks, this...

Bank Reserve – Explained

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

What is a Bank Reserve?A bank reserve refers to a portion of currency or bank deposits that a bank is required to have as its holdings. This portion is not lent out as loans, instead, they are put aside in a liquid account to guarantee the solvency of the bank....

Continuity of Interest Doctrine – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Continuity of Interest Doctrine?The Continuity of Interest Doctrine (CID) is a tax principle whereby an acquisition is qualified as a tax-deferred transaction (reorganization) if the shareholders of the acquired company hold an equity stake in the...

Continuity of Business Enterprise Doctrine – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Continuity Of Business Enterprise Doctrine?The continuity of business enterprise doctrine is a taxation principle in which an acquiring firm must continue the acquired firm’s business before the acquisition can qualify as a tax-deferred...

Bandwagon Effect – Explained

by TheBusinessProfessor | Feb 23, 2025 | Management, Leadership, & Organizational Behavior

What is the Bandwagon Effect?The bandwagon effect is a psychological theory whereby people exhibit certain habits primarily because others are engaged in the habit. This theory connotes a contagious effect in which people do something only because others are doing...