Central Limit Theorem – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is the Central Limit Theorem?The central limit theorem states that with the assumption that all samples are equal in size, the example six gets larger, the distribution of same means approximates that of a normal distribution. In other terms, CLT is a statistical...

Islamic Banking – Explained

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

Update Table of Contents What is Islamic Banking?How Does Islamic Banking Work?Islamic Banking HistoryWhat are the Rules of Islamic Banking?Types of Islamic Financing ArrangementIslamic Banking Advantages What is Islamic Banking?Islamic Banking refers to a system of...

New Growth Theory – Explained

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

What is the New Growth Theory?In economics, new growth theory is a theory that economists use to try and explain the long-run economic growth process, through an endogenous force like knowledge spillover, human capital, and information technology. The theory asserts...

Through Bill of Lading – Explained

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

What is a Through Bill Of Lading?A through bill of lading is used in the international shipment of goods. It allows the holder of the bill of landing to handle shipment from the point of origin to the final point of destination. A bill of lading is simply a contract...

Search Theory (Economics) – Explained

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

What is Search Theory?Search theory in microeconomics is the study of transactional frictions where buyers or sellers cannot instantly find a matching partner within the required time frame. The situation, therefore, requires them to search for a partner before...

Junk Bond – Explained

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

What is a Junk Bond?Junk bond refers to bonds that have the highest risk of default than those bonds that the governments and corporation issues. Note that a relationship is a debt where investors receive the interest payment, including the return of the principal...

Cascade Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Cascade Tax?A cascade tax refers to a fee that the government levies on certain goods at every stage of production (from production to consumer consumption). It is a turnover tax where there is progressive taxation that is inclusive of all the charges of the...

Conventional Fixed-Rate Mortgage – Explained

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

Update Table of Contents What is a Conventional Fixed Rate Mortgage?How Does a Fixed-Rate Mortgage Work?Amortized Fixed-Rate Mortgage Loans Adjustable Rate Mortgages Non-Amortizing Loans  What is a Conventional Fixed Rate Mortgage?A fixed-rate mortgage is a type of...

Company Lifecycle – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is a Company Lifecycle?Lifecycle refers to developmental stages that occur during the lifetime of a person or organism. Company Lifecycle is the various stages or phases of a business through which it develops. Commonly-understood stage of the business lifecycle...

Indirect Method (Accounting) – Explained

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

What is the Indirect Method?The indirect method is a method used in financial reporting in which the statement of cash flows begins with the net income before it is adjusted for the cash operating activities before an ending cash balance is achieved. The indirect...