Exchange Rate – Explained

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

What is an Exchange Rate?An exchange rate refers to the value of one currency in relation to another currency. It is the rate at which a currency will be exchanged for another currency. In finance, an exchange rate reflects the worth of one currency over others or...

Least Squares Method – Explained

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

What is the Least Squares Method?The least squares method is a procedure of finding the best fit for a data set. This method uses statistics and mathematical regression analysis to find the line of best fit when a data set is given. Using the least squares regression...

Law of Supply and Demand – Explained

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

What is the Law of Supply and Demand?The law of supply and demand reflects the relationship between the amount of goods or services demanded and the available supply of goods and services. The law of supply and demand states that a change in one causes a change in the...

Kiddie Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Kiddie Tax?The Kiddie Tax is a special tax law that was created in 1986, it was created to address investment tax and unearned income tax for people less than 17 years. In the United States, the kiddie tax rule is contained in the Internal Revenue Code 1. It...

Itemized Statement – Explained

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

Update Table of Contents What is an Itemized Statement?How is an Itemized Statement Used?Example of an Itemized Statement What is an Itemized Statement?An itemized statement is a document that contains a detailed list of activities that occur during a given period. A...

Itemized Deduction – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is an Itemized Deduction?Itemized deductions are eligible expenses that can be deducted on the adjusted gross income (AGI) of taxpayers. Individual taxpayers who qualify for itemized deductions can claim the deduction on their federal income tax returns which...

Conflict Theory – Explained

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

What is Conflict Theory?Conflict theory argues that society, individuals, and groups within social confines interact with one another not on the basis of consensus but on conflict. More specifically, it claims that the society is consistently in a state of conflict,...

Confirmation Bias – Explained

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

What is Confirmation Bias?Confirmation bias refers to a type of bias in which individuals favor information that aligns with their opinions or perspectives combined with a tendency to disregard all contrary information. In psychology, confirmation bias is a situation...

Capital Market Line – Explained

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

What is the Capital Market Line (CML)?Capital market line (CML) is a graph representing a portfolio’s expected return based upon a given level of risk. On the horizontal axis is the portfolio standard deviation. On the vertical axis is the expected rate of...

Capital Structure Arbitrage – Explained

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

What is Capital Structure Arbitrage?Capital structure arbitrage refers to a strategy used by companies where they take advantage of the existing market mispricing across all securities to make profits. In this strategy, there is buying undervalued securities and...