Franchise Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Franchise Tax?The franchise tax is not an income tax, rather, it is a tax imposed on corporations based on the capital or net worth of assets they have in a state. Some states in the United States impose the franchise tax on corporations that operate in the...

Continuous Improvement Plan – Explained

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

What is a Continuous Improvement Plan?A continuous (continual) improvement plan is a string of processes and procedures that a company puts in place to improve its services and products. This plan entails an on-going review of a company’s products and services...

Consular Invoice – Explained

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

What is a Consular Invoice? A consular invoice is a document signed by the consul of the importing country and consul of the exporting country that certifies the shipment of goods. A consular invoice serves as proof that the shipment of goods was sighted, stamped or...

Constructive Receipt – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Constructive Receipt?Constructive receipt is a doctrine used by the Internal Revenue Service (IRS) that requires individuals and businesses to pay income taxes on their earnings even if the earnings have not been received. When the IRS applies the constructive...

Labor Force Participation Rate – Explained

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

What is the Labor Force Participation Rate?The labor force participation rate (LFPR) measures the proportion of a countrys population that is active in the labor market. The rate examines the number of the working-age population that forms the active workforce of an...

Financial Holding Company – Explained

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

Update Table of Contents What is a Financial Holding Company?How Does a Financial Holding Company Work? What is a Financial Holding Company?A financial holding company (FHC) is a type of corporation that engages in banking-related activities but offers non-banking...

Federal Open Market Committee – Explained

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

What is the Federal Open Market Committee (FOMC)?In the United States, the Federal Open Market Committee (FOMC) is an arm of the Federal Reserve Board that controls monetary policy. The Federal Reserve System is responsible for overseeing and regulating the open...

Foreign Tax Credit – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Foreign Tax Credit?The foreign tax credit refers to a credit that individuals who pay taxes to foreign government receive from the Internal revenue Service. This tax credit is a means of preventing individuals from paying double taxes on income, earnings or...

Chartered Accountant (UK) – Explained

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

What is a Chartered Accountant?Chartered accountant (CA) is a term used as a professional designation for accountants who have met the requirements of the Institute of Chartered Accountants and have sat for and passed the exams. Accounting professionals can earn a...

Capital Maintenance – Explained

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

What is Capital Maintenance?Capital maintenance is a concept that maintains that profit can only be accounted for when there is proper maintenance of capital and when costs have been fully recovered or restored.  Capital maintenance, otherwise called Capital recovery,...