Pro Forma – Explained

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

What is Pro Forma?Pro forma is a Latin phrase that means as a matter of form. In business and investing, it refers to the manner in which a firm calculates and presents its financial results. The pro forma calculation method emphasizes current and projected...

Transfer Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Transfer Tax?A transfer tax refers to any kind of tax which is imposed on ownership transfer or title transfer to property from an entity to another. In some states, a transfer tax is seen as an excise tax.How is a Transfer Tax Used?Transfer tax can be...

Arbitrage Pricing Theory – Explained

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

What is Arbitrage Pricing Theory?The arbitrage pricing theory is a model used to estimate the fair market value of a financial asset on the assumption that an assets expected returns can be forecasted based on its linear pattern or relationship to several...

Unicorn (Company) – Explained

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

What is a Unicorn Company?A unicorn company is a term used to describe a privately-held, startup company with a valuation of $1 billion or more.

United States Agency for International Development (USAID) – Explained

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

What is USAID?The United States Agency for International Development (USAID) is an agency run by the U.S government to foster international development, alleviate extreme poverty globally, and also promote self-sustenance and resilience in countries of the world. This...

Usury – Explained

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

Update Table of Contents What is Usury?How Does Usury Work? What is Usury?Usury describes an act of lending money to borrowers with high and exorbitant interest rates. The interest rates of money borrowed under usury agreement is often higher than what the law...

Suggestive Selling – Explained

by TheBusinessProfessor | Feb 23, 2025 | Sales

What is Suggestive Selling?Suggestive selling is a sales approach whereby skilled sales attendants persuade customers to purchase additional and complementary products that will suit their needs. Suggestive selling is also called upselling, ad-up selling, or...

Trust Indenture (Bonds) – Explained

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

What is a Trust Indenture?A trust indenture is an agreement used during the signing of a bond contract between a bond issuer and a trustee that documents the terms and conditions governing the trustee’s conduct as well as the trust beneficiaries’ rights....

Trial Balance – Explained

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

What is a Trial Balance?A trial balance is an accounting tool. It consists of a bookkeeping worksheet in which the balances of all general ledger accounts are arranged into debit and credit accounts. The columns total in such a way that both column totals balance our...

Total Shareholder Return – Explained

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

What is Total Shareholder Return?In simple terms, total shareholder return (or, TSR) is the total amount returned by an investment to the investor. TSR is a common performance metric employed by financial analysts and is expressed as an annualized percentage of the...