Asset-Based Approach – Explained

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

What is an Asset-Based Approach?An asset-based approach is a way of determining the value of a business giving focus to the net asset value which is calculated by deducting total liabilities from total assets. There could be some challenges of deciding which of the...

Repeat Sales Method – Explained

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

What is the Repeat-Sales Method?Repeat sales method calculates price change of a specific real estate over a different time frame. The repeat sales method is used to provide information about housing price indexes to investors, home buyers and sellers and the housing...

Relative Valuation Model – Explained

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

What is a Relative Valuation Model?A type of business valuation method that analyzes the value of a company to the value of its competitors or industry peers in order to determine the financial worth of such a company is termed the Relative Valuation Model. It makes...

Reintermediation – Explained

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

What is Reintermediation?There are various contexts in which reintermediation can be used in finance, each context dealing with an additional step into an already existing system or the introduction of money into such a system. In banking and finance, the movement of...

Recursive Competitive Equilibrium – Explained

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

What is the Recursive Competitive Equilibrium (RCE)?The recursive competitive equilibrium (RCE) is said to be an equilibrium concept. An equilibrium concept in the sense that, when external economic influences are absent, and economic forces like supply and demand are...

Queuing Theory (Economics) – Explained

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

What is Queuing Theory?Queuing theory which is also spelled as “Queueing Theory” is simply defined as the mathematical study of the crowdedness and delays associated with waiting in lines. It looks at every step of waiting in line in order to be served and...

Quantity Theory of Money – Explained

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

What is the Quantity Theory of Money?The quantity theory of money, sometimes called “The Fisherian Theory” simply states that a change in price can be related to a change in the money supply. In simple terms, it states that the quantity of money available...

Regret Theory – Explained

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

What is Regret Theory?Regret theory or anticipated regret states that when making a decision individuals anticipate regret from a wrong choice and consider this regret during any form of decision making to reduce or eliminate the possibility of the its occurrence. The...

Resource Curse (Economics) – Explained

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

What is the Resource Curse?The resource curse is a situation where a country that enjoys an abundance of natural resources (non-renewable natural resources such as fossil fuels) has little or no economic growth and is economically unstable. This situation connotes a...

Expanded Accounting Equation – Explained

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

What is the Accounting Equation?The basic accounting equation is written as: Assets = Liabilities + Owners Equity What is the Expanded Accounting Equation?The expanded accounting equation is written as: Assets = Liabilities + Contributed Capital + Beginning Retained...