Winner’s Curse – Explained

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

What is the Winner’s Curse?The winner’s curse can be described as buyer’s remorse. It is where a person buys something and then feels that he or she has paid more than its real worth. It can also result when an individual makes an offer to sell...

Structured Finance – Explained

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

What is Structured Finance?Structured finance is a type of finance specifically designed for large corporations with unique or complicated financial needs that surpass the standard financial products available for firms. In order to match the financial needs of large...

Cancellation of Debt – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Cancellation of Debt (COD)?Cancellation of debt (COD) is an act of relieving a debtor of a debt obligation. It is sometimes referred to as debt forgiveness, when a creditor lets go of debt repayment, thereby relieving the debtor. There are many reasons a...

End User (Marketing) – Explained

by TheBusinessProfessor | Feb 23, 2025 | SEO, Social Media, Direct Marketing

What is an End User?The end-user refers to the ultimate person who consumes a product or service. This term offers a sense of distinction between the individual who buys and makes use of goods or services, and the ones who design, develop, or manufacture the product....

Active Management (Investing) – Explained

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

What is Active Management?Active management refers to using a human element, like a single manager, co-managers, or even a team of managers, to actively manage the portfolio of a fund. Active managers depend on forecasts, analytical research, and their personal...

Active Investing – Explained

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

What is Active Investing?Active investing is an investment technique which involves the investor engaging in ongoing buying and selling. Active investors buy investments and constantly monitor their activity to capitalize on profitable conditions.How Does Active...

Capital Account (Economics) – Explained

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

What is a Capital Account?A capital account is an account that gives a summary of the transactions executed by a country with other entities and countries, it reflects the capital expenditure and income of the country. A capital account is often used in macroeconomics...

SIPOC Diagram – Explained

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

What is a SIPOC Diagram?SIPOC is an acronym for: S – suppliers I – inputs P – process O – outputs C – customers A SIPOC diagram is a tool used for the identification of all the elements of a business. It is commonly employed in six sigma...

Shrinkage (Inventory) – Explained

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

What is Inventory Shrinkage?Shrinkage is described as a reduction or loss of inventory due to theft of inventory, spoilage, and other factors. The difference between the inventory that a company records on its balance sheet and the actual inventory available in the...

Short Run (Economics) – Explained

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

What is the Short Run?The short run is a term often used in economics, it describes a future period during which one input is fixed while others are variable. The variation in the inputs is owing to the fact that the time available is not enough for all inputs to be...