Small Business Innovation Research Act (SBIR) – Explained

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

What is the Small Business Innovation Research (SBIR) Act?Small Business Innovative Research, commonly known as SBIR, is a United States Government program initiated to assist certain small businesses to carry out research and development. The SBIR was established...

Investment Company Act of 1940 – Explained

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

What is the Investment Company Act of 1940?The Investment Company Act of 1940 compels investment company registration and requires monitoring of the product offerings which investment companies issue in the public market. This enactment vividly explains the importance...

Individual Retirement Account (IRA) – Explained

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

What is an Individual Retirement Account?An individual retirement account refers to an investing tool used by individuals to earmark or set aside funds for retirement savings. Various IRA types exist, as of 2018 and they include Roth IRAs, traditional IRAs, SEP IRAs,...

Purchasing Power Parity (PPP) – Explained

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

What is Purchasing Power Parity (PPP)?Macroeconomic analysis is based on various metrics that are used to compare standards of living and economic productivity between countries across time. One such widely used metric is purchasing power parity (PPP). Purchasing...

Original Equipment Manufacturer (OEM) – Explained

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

What is an Original Equipment Manufacturer (OEM)?An original equipment manufacturer (OEM) is referred to as the company producing components to be used in the final products manufactured and sold by another company. The company purchasing from an OEM manufacturer is...

Profit Margin – Explained

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

What is Profit Margin?In Mathematical terms: Profit Margin = Net Profits (or Income) / Net Sales (or Revenue) Profit Margin = (Net Sales – Expenses) / Net Sales Profit Margin = 1- (Expenses / Net Sales) Profit margin is used to show the profitability capability...

Passive Income – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Passive Income?Passive income is the earnings obtained from limited partnership, rental property, or other enterprise where a person is not involved actively. This income is usually taxable, like active income. However, Internal Revenue Service (IRS) sometimes...

User Experience (UX) – Explained

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

What is User Experience (UX)?The International Organization for Standardization defines User Experience (UX) as, a persons perceptions and responses resulting from the use and or anticipated use of a product, system or service. According to the ISO, the user...

United States Customs Service – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is the United States Customs Service (USCS)?The United States Customs Service (USCS) was a federal government agency, established on July 31, 1789, following the American Revolutionary War. This agency was responsible for collecting import tariffs and other...

First In – First Out (FIFO) – Explained

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

What is the First In – First Out (FIFO) Accounting Method? First In First Out (FIFO), sometimes referred to as Last In Still Here (LISH), is a method of inventory valuation employed in the field of accounting, that is founded on the premise that the sale, usage...