Flow Through Entity (Tax) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Flow-Through Entity?A flow-through entity is a business entity is which income of the entity passes on to the investors or owners of the entity. In this legal entity, income flows through to the owners of the entity or investors as the case may be. Hence,...

Financial Statement Footnotes – Explained

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

What are Footnotes to The Financial Statements?When companies file their annual financial statements, they often add footnotes beneath the statement. Footnotes to the financial statements refer to extra information that a company supplies about its finances when...

Footsie (FTSE) – Explained

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

What is the Footsie?Footsie is a nickname ascribed to the Financial Times-Stock Exchange 100 Share Index (FTSE 100 Index or FTSE 100). The Financial Times-Stock Exchange 100 Share Index is an autonomous organization owned and controlled by the London Stock Exchange...

Foreign Account Tax Compliance Act (FACTA) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Foreign Account Tax Compliance Act (FATCA)?In the United States, the Foreign Account Tax Compliance Act (FATCA) is a law that requires all citizens of the US who are either at home or in foreign countries to file a report on their account holdings. FATCA...

Obligation Bond – Explained

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

Update Table of Contents What is an Obligation Bond?How Obligation Bonds are Used?Making Investment in Municipal BondsAcademic Research on Obligation Bonds What is an Obligation Bond?An obligation bond refers to a form of municipal bond that secures a mortgage on...

Obsolete Inventory – Explained

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

What is Obsolete Inventory?Inventory refers to the materials and goods that are a part of a firms stock, and are up for sale. Obsolete inventory, also known as excess inventory or dead inventory, is the inventory that remains unused when the product life cycle ends....

Impact Investing – Explained

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

What is Impact Investing?Impact investing refers to a form of investment that is tailored towards generating significant environmental and social impact. Companies and organizations that are socially responsible are scouted by investors or individuals that want to...

Impaired Asset – Explained

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

What is an Impaired Asset?A company’s asset whose market value is lower than the value presented on the company’s balance sheet or the book value of the asset is an impaired asset. Impairment occurs to the value of an asset when there is a sudden decrease...

Imperfect Competition – Explained

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

What is Imperfect Competition?Any competition in the market that does not have all the attributes of a perfect competition is imperfect competition. However, perfect competition is best practiced in theory than in reality, this means that it is not attainable in the...

Import Duty – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is an Import Duty?When goods are purchased from abroad and imported into a country, a type of tax is charged on the goods, this is called the import duty. An import duty refers to the tax an importer pays on the goods being shipped or transported into a country,...