Business Segment (SBU) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is a Business Segment?A segment refers to the separate part of the business that runs its operations and generates its own revenue. A segment is a sector or subdivision of a whole, although distinct, a segment is related to other parts or segments of a whole. A...

Routing Transit Number – Explained

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

Update Table of Contents What is the Routing Transit Number?How Does the Routing Transit Number Work?Recent News Regarding Routing Transit Number What is the Routing Transit Number?A routing transit number (RTN) is a code used in the United States to identify a bank...

Hurdle Rate – Explained

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

What is a Hurdle Rate?A Hurdle Rate refers to the least rate of return expected on an investment or project. It is the minimum return that managers and investors expect on a project. The amount of risk present in an investment or project often informs the hurdle rate,...

Human Capital – Explained

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

What is Human Capital?Human capital refers to the value of human skills, knowledge, and experience within an organization. Human capital is an intangible asset that comprises of worker’s education, training, expertise, intelligence, loyalty, and...

Honorarium – Explained

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

What is an Honorarium?An honorarium is otherwise called an ex gratia payment. It is a voluntary payment made to an individual for the services they render, this type of fee is not legally required. This type of payment is often made to a volunteer or guest speaker as...

Homestead Exemption – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Homestead Exemption?In the United States, a homestead exemption is a legal protection that safeguards the value of a home from taxes and creditors given the death of the homeowner spouse or following the declaration of bankruptcy. A homestead exemption is a...

Home Equity Loan – Explained

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

Update Table of Contents What is a Home-Equity Loan?How Does a Home-Equity Loan Work?Tax Considerations for Home-Equity LoansHome-Equity Loans vs. Home-Equity Lines of CreditPros of Home-equity loansCons of Home-equity loansQuestions to Consider When Shopping for a...

Heuristics – Explained

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

What are Heuristics?Heuristics are predispositions to a given circumstance caused by prior experience or exposure. It is a form of cognitive bias. Stereotyping is a function of heuristics. In function, heuristics are problem-solving shortcuts often used in the...

Current Liabilities – Explained

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

What are Current Liabilities?A current liability refers to a debt that is due within 12 months, this type of debt or obligation must be repaid within a current period, which is often one year of its life cycle. Companies or individuals accrue debts or financial...

Free Rider Problem – Explained

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

What is the Free Rider Problem?The free rider problem refers to a case where a few individuals tend to utilize beyond their fair share or pay less than the standard cost of a shared product or service. This situation is treated as market failure that takes place when...