Qualified Opinion (Auditor) – Explained

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

What is a Qualified Opinion?A qualified opinion is the opinion of an auditor over the financial statement of a company or information provided, stating that they are incomplete. In an audit, an audit is required to give a professional opinion about the financial data...

PRAM Model – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

What is the PRAM Model?PRAM is an acronym which means: P – Plans R – Relationships A – Agreement M – Maintenance PRAM is a sequential model often used for parallel algorithms and parallel computation. PRAM is also a model applied in...

Poverty Trap – Explained

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

What is the Poverty Trap?A poverty trap is a phenomenon that people can easily relate with because it exists in different economies, especially in the developing economies. A poverty trap is a mechanism that describes a situation whereby people find it extremely...

Probability Distribution – Explained

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

What is a Probability Distribution?A probability distribution is a mathematical and statistical theory that describes the likelihood of the occurrence of the possible values of a random variable. A probability distribution assigns or plots the possible values of a...

Cost of Carry – Explained

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

What is Cost of Carry?The cost of carry is defined as the costs that an investor incurs as a result of holding a position in the market. The expenses of holding an asset are called cost of carry, such expenses include storage expenses, insurance, interest costs, and...

Compounding – Explained

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

Update Table of Contents What is Compounding?How Does Compounding Work?Compounding as the Basis ofFuture ValueCompounding for Investing Strategy What is Compounding?Compounding is a term used in different disciplines and fields of study. In the context of investment,...

Cost and Freight – Explained

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

What is Cost and Freight (CFR)?Cost and freight (CFR) is a term associated with international trade or international shipping that puts the responsibility of transporting purchased goods on the seller. The seller pays all costs associated with the carriage of goods...

Credit Union – Explained

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

Update Table of Contents What is a Credit Union?How Does a Credit Union Work?Requirements for Credit Union MembershipAdvantages of Credit UnionsDisadvantages of Credit UnionsCredit Unions vs. BanksSpecial Considerations  What is a Credit Union?A credit union is a...

Deferred Income Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Deferred Income Tax?A deferred income tax is a tax (liability) that appears on a company’s balance sheet that is due for the current period buy is yet to be paid. This type of tax is a portion of a company’s taxable income for a current year which...

Bifurcation – Explained

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

What is Bifurcation?Bifurcation is a process of dividing something into two independent branches or separate units. This term can be used in relation to diverse concepts and disciplines. For instance, bifurcation can occur in the context of a family, finance,...