Comparative Advantage – Explained

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

What is Comparative Advantage?Comparative advantage refers to the capacity of a country to produce goods and services at an opportunity cost rate lower than other countries. Since the goods and services are produced at lower costs, they are also sold at lower prices....

Commercial Bank – Explained

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

Update Table of Contents What is a Commercial Bank?How Does a Commercial Bank Work? What is a Commercial Bank?A commercial bank is a financial establishment that collects deposits and offer a basic range of financial services to its customers. These services include,...

Cost of Equity – Explained

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

What is the Cost of Equity?Cost of Equity has two meanings: Company – A company’s expected return on a prospective project or business opportunity. Investors – The cost of equity is the rate of return demanded by investors. A company expects a return...

Cost of Goods Sold – Explained

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

What are Cost of Goods Sold (COGS)?Before the end result of any production or manufacturing is attained, funds and other factors of production must be involved. Cost of Goods Sold (COGS) refer to the total costs of the production of goods that a company puts up for...

Cash Conversion Cycle – Explained

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

What is the Cash Conversion Cycle?A Cash Conversion Cycle (CCC) is a cash flow calculation that measures the number of days that it takes for a company to realize cash flows from sales after the conversion of its investments in inventory and other resources. It is a...

Dividend Yield – Explained

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

What is a Dividend Yield?When calculating dividend yield, it is calculated as a percentage of the annual dividend per share of a stock in relation to the current price of the stock. There are two methods used in measuring dividend yield and they include trailing...

Viral Marketing – Explained

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

What does Going Viral Mean? Viral marketing, also referred to as viral advertising, is a marketing strategy or technique to increase brand awareness by inspiring people to accept a message and share the same message with others voluntarily via the internet or by word...

Capital (Business) – Explained

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

What is Capital?Capital as a financial term as a wide range of meaning. It can mean the financial strength of an individual or business, money used to start a business, money invested for profits or a factor for producing goods and services. However, in this context,...

Compound Annual Growth Rate – Explained

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

What is a Compound Annual Growth Rate?The compound annual growth rate (CAGR) is a measurement of growth of an investment over a multiple periods of time in an investment’s lifespan. CAGR is the rate of return of an investment from its initial value to end value...

Cox-Ingersoll-Ross Model – Explained

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

What is the Cox-Ingersoll-Ross Model?The Cox-Ingersoll-Ross model (CIR) is regarded as an interest rate model. It is a mathematical formula based on a stochastic differential equation in which one or more of the terms is a stochastic process, giving a solution known...