Tax Lien Certificate – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Tax Lien Certificate?Tax lien certificate refers to a document that investors acquire through auctioning of property whose owner has failed to pay taxes. The state law may impose a tax lien on the property as collateral to ensure that payment of taxes owed...

Tax Loss Carryforward – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Tax Loss Carryforward?A tax-loss carryforward refers to a situation where a firm generates a mechanism that helps them to keep track of its cumulative losses which are subtracted from future years profits until the cumulative losses balance comes to zero. In...

Tax Shield – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Tax Shield?A tax shield refers to an allowable deduction on taxable income, which leads to a reduction in taxes owed to the government. Such allowable deductions include mortgage interest, charitable donations, medical expenses, amortization, and...

Multiplier Effect – Explained

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

What is the Multiplier Effect?The multiplier effect is a term used in economics according to which the national income increases with more money spent. It also means that capital investment, be it at the public or organizational level, has a snowball effect on the...

Multistage Dividend Discount Model – Explained

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

What is a Multistage Dividend Discount Model?Multistage Dividend Discount Model revolves around the Gordon growth model. It is an equity valuation approach and applies fluctuating rates of growth to the calculation. This model implies that various growth rates are...

Multivariate Model – Explained

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

What is a Multivariate Model?The multivariate model is a widely used statistical measure that consider multiple variables for arriving at feasible results. Financial analysts utilize multivariate models in order to assess several scenarios for predicting investment...

Mutual Exclusion Doctrine – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Mutual Exclusion Doctrine?The Mutual Exclusion Doctrine refers to an agreement prevailing among federal, state and local taxing bodies inducing mutual exclusion while taxing the interest on government bonds. Hence, an individual doesn’t have to pay...

Aggregator Model – Explained

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

What is an Aggregator Model?An Aggregator Model is a networking E-commerce business model where a firm, known as an Aggregator, collects (or aggregates) data pertaining to goods and/or services offered by several competing websites or application software (commonly...

Accrual Principle – Explained

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

What is the Accrual Principle?The accrual principle, also known as the accrual concept, is a concept used in accounting that mandates the recording of accounting transactions in the actual period of occurrence, rather than the period of occurrence of related cash...

Accreting Principal Swap – Explained

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

What is an Accreting Principal Swap?An Accreting Principal Swap, variously known as accreting swap, accumulation swap, construction loan swap, drawdown swap, or step-up swap is an interest rate swap that involves an exchange of cash flows between two counterparties...