Waterfall Payment Scheme – Explained

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

Update Table of Contents What is a Waterfall Payment Scheme? What is a Waterfall Payment Scheme?A waterfall payment is a payment scheme in which higher-interest loans or higher-tiered creditors receive payment before lower-interest loans or subordinate lenders receive...

Warrant (Finance) – Explained

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

Update Table of Contents What is a Warrant?A Little More on What are WarrantsReferences for WarrantsAcademic Research on Financial Warrant What is a Warrant?A warrant is defined as permit that investors or employees have to buy or sell a number of ownership interest...

Value of Marginal Product – Explained

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

What is the Value of Marginal Product (VMP)?The Value of Marginal Product (VMP) calculates the amount of a firm’s revenue that a unit of productive output contributes. VMP helps to prevent labor exploitation in industries.The Value of Marginal Product is a...

Vertical Coordination – Explained

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

What is Vertical Coordination?Vertical coordination describes a process whereby teamwork is harnessed in an organization in order to attain success in a project. This process entails techniques put together by employees within vertical hierarchical levels to...

Variance Analysis – Explained

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

What is a Variance Analysis?Variance analysis is used in budgeting and management accounting. It is a study of the variation (difference) between an actual (forecasted) action and a planned action. Variance analysis carries out a quantitative investigation to find out...

Volume Weighted Average Price – Explained

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

What is a Volume Weighted Average Price?The volume weighted average price (VWAP) is a method in which the total amount traded in every transaction is divided by the total number of shares traded for the day. VWAP is then regarded as the ratio of the value traded...

Vertical Analysis (Common Size Analysis) – Explained

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

What is Vertical Analysis?Common-size analysis, also known as vertical analysis, converts each line of financial statement data to an easily comparable, or common-size, amount measured as a percent. The result is the creating of a Common-Size Financial StatementThis...

Tranche – Explained

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

What is a Tranche?Tranches refer to pieces of securities or debts created to group characteristics or divide risk so as to be marketable to various investors. Each portion or tranche refers to one of the various related securities offered simultaneously but with...

Time Value of Money – Explained

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

What is the Time Value of Money?Time Value of Money is the potential earning capacity of money available in the present which is greater than its value in the future for the same amount. It is a core financial concept that emphasises on the value of money in hand due...

T Account – Explained

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

What is a T-Account? Financial reports that use the double-entry bookkeeping method are referred to as T-Account informally. The appearance of the book keeping entries resembles the letter T, hence the moniker. Its a ledger account that has the account title at the...