Recurring Revenue – Explained

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

What is Recurring Revenue?Recurring revenue refers to the specific percentage of an organizations revenue that persists in the coming years. Contrary to one-off sales, recurring revenues can be easily predicted, are consistent, and can be predicted to take place at...

Total Utility (Economics) – Explained

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

What is Utility Maximization?The actions of a consumer are directed toward utility maximization, where a consumer tries to achieve the best possible satisfaction at the most reasonable cost.What is Total Utility?Total utility refers to the amount of satisfaction that...

Liquidity Premium – Explained

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

What is a Liquidity Premium?Liquidity premium refers to a premium that investors demand when the conversion of security into cash at fair market value becomes difficult. The assets are considered illiquid when there is high liquidity premium. For this reason,...

Proportional Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Proportional Tax?A proportional tax is a type of income tax mechanism where the taxing authority levies all taxpayers the same percentage regardless of what their income is. In other words, the proportional tax applies to all types of income earners (high,...

Times-Revenue Method – Explained

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

What is the Times-Revenue Method?The times-revenue method refers to a method of valuing a company. It applies multiples to current revenues to arrive at a valuation.How Does the Times-Revenue Method Work?Times revenue method is popular among individuals who own small...

Rent Seeking (Economics) – Explained

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

What is Rent-Seeking in Economics?Rent-seeking refers to a concept in economics and public choice theory that seeks to increase the existing wealths share but without creating a new one. Rent-seekings interest is to obtain financial gain by manipulating the...

Satisficing – Explained

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

What is Satisficing?Satisficing is a strategy used in decision making that seeks a result that is good enough to tackle a situation but is understood to not be the optimal solution. The strategy narrows down the scope of available options that have the possibility of...

Current Assets (Quick Assets) – Explained

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

What is a Current Asset?A current asset, also known as a quick asset, refers to cash or an asset that a company can convert into cash quickly. Quick assets are under a subset known as current assets, and they do not include inventory. Note that to convert inventory...

Covariance – Explained

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

What is Covariance?Covariance is a metric used in statistics and probability theory to measure the directional relationship between the returns of two risky assets (two variables). What the metric does is to evaluate to what extent and how much the variables move...

Promoting Yourself by Quitting Your Job

by TheBusinessProfessor | Feb 23, 2025 | Professionalism & Career Development

How to Promote Yourself by Quitting Your JobThe title of this article may seem counter-intuitive. How can you promote yourself by quitting your job? The answer is that quitting may lead to other (better) opportunities. While you are not technically promoting yourself...