Vertical Market – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is a Vertical Market?A vertical market refers to a form of market that consists of a cluster of organizations and customers that are connected with one another through a given niche. Firms that prefer vertical market meet the specific needs of the market, and...

Velocity of Money – Explained

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

What is the Velocity of Money?The velocity of money refers to the rate or pace at which there is an exchange of money. In other words, it measures how frequently there is movement of money between transactions. Also, it determines the usage of one unit of currency in...

Veblen Good (Economics) – Explained

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

What is a Veblen Good?A veblen good refers to a good that experiences an increase in demand when the price increases. What Types of Goods are Veblen Goods?A veblen good is usually a premium quality product or a luxury product.Demand Curve for a Veblen Good?A veblen...

Vasicek Interest Rate Model – Explained

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

What is the Vasicek Interest Rate Model? The Vasicek interest rate model is a model that exhibits fluctuations or movements in interest rate. This mathematical model tells how factors such as market risk, time, and equilibrium price affect the interest rate movements....

Fixed vs Variable Costs – Explained

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

What is a Variable Cost?A variable cost is an expense that varies in accordance with the level of output. Such costs tend to go up or down as per the production activities of a company. Variable costs will increase in case the production increases and decrease in case...

Value-Based Pricing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Value-Based Pricing?Value-based pricing is a strategy that companies follow in order to establish prices on the basis of the value of the product or service that a customer perceives. On the other hand, the cost-plus pricing strategy includes manufacturing...

Value Proposition – Explained

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

What is a Value Proposition?A value proposition concerns the core value that a company’s product or service delivers to the customer, client, or end user. It can also be referred to a statement that tends to make customers aware of the company’s vision,...

Wrap-Around Loan – Explained

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

Update Table of Contents What is a Wrap-Around Loan?How Does a Wrap-Around Loan Work?Example of a Wrap-Around LoanExample of a wrap-around loanThings to consider for a wrap-around loan What is a Wrap-Around Loan?A wrap-around loan refers to a mortgage loan that one...

Annual Report – Explained

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

What is an Annual Report?An annual report is a publication which corporations are required to provide yearly to shareholders to explain their financial conditions and operations. An annual report doesn’t have to be bulky in size; five pages will do. The first...

Annual Percentage Yield – Explained

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

What is Annual Percentage Yield?This refers to the effective annual interest rate using compound interest. Any is mathematically denoted as: APY = (1+r/n) * n-1How Does Annual Percentage Yield Work?Similar to the annual percentage rate (APR), the APY is used for...