Financial Modeling – Explained

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

What is Financial Modeling?Financial modeling refers to the presentation and analysis of financial data of a business or an investment, in order to know how future events and decisions can affect such performance. Financial models are helpful when a company or firm is...

Federal Funds Rate – Explained

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

What is the Federal Funds Rate?The federal funds rate is the interest rate that banks charge each other for overnight loans to meet reserve requirements. Depository institutions can also lend money to banks so that they can meet their reserve balances, the interest...

Senior Debt – Explained

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

Update Table of Contents What is Senior Debt?How Does Senior Debt Work?Secured and Unsecured Senior DebtSenior and Subordinated DebtExample of Senior Debt What is Senior Debt?In finance, a debt that takes priority over other debts is a senior debt. This type of debt...

Set Off Clause – Explained

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

Update Table of Contents What is a Set-Off Clause?How Does a Set-Off Clause Work?Lending Set-Off ClauseManufacturing Set-Off ClauseSet-Off Clause Advantages What is a Set-Off Clause?A set-off clause is a legal provision that allows a lender to take the deposits of a...

Shingle Theory – Explained

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

What is Shingle Theory?The Shingle theory was developed in the 1930s by the Securities and Exchange Commission (SEC). This theory is used to describe a broker-dealer that maintains good ethics and high conducts when transacting securities. According to the idea, when...

Standard Error – Explained

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

What is Standard Error?In statistics, the standard error refers to the deviation of a sample mean from the actual meaning of a particular population. When there is a diffusion of sample means around the actual mean of a population, standard error has occurred. In a...

Six Forces Model – Explained

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

What is the Six Forces Model?The six forces model is a business tool used in conducting a comprehensive evaluation of a market regarding competitiveness and profitability. There six key areas of the six forces model are: Competition – The present competition in...

Spillover Effect – Explained

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

What is the Spillover Effect?The spillover effect refers to the effect of a purportedly unrelated event in one context on another event in the other context. Also, a spillover effect can be described as the impact of a primary action on a secondary action even though...

Social Economics – Explained

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

What is Social Economics?Social economics is a study of the connection or relationship between social behavior and economics. It is an aspect of economics that studies how economic activities affect social behaviors and how the economy is also shaped by social trends...

Social Responsibility – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What is Social Responsibility?Social responsibility is a social theory that maintains that businesses, organizations, and entities should not just focus on making a profit; rather, they also have an obligation towards the benefit of the society. Social responsibility...