Factoring – Explained

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

What is Factoring? Factoring is a method of business funding. A business that has outstanding customer invoices sells these invoices to a finance company (factor) at a discount on the amount of the invoice. How is Factoring Used?Factoring is used to provide faster...

Society for Worldwide Interbank Financial Telecommunications (SWIFT) – Explained

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

Update Table of Contents What is the Society for Worldwide Interbank Financial Telecommunications (SWIFT)?How Does the Society for Worldwide Interbank Financial Telecommunications Work? What is the Society for Worldwide Interbank Financial Telecommunications...

Synergy – Explained

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

What is Synergy?Synergy is a concept that says, “the whole is greater than the sum of its parts”. It is combining the effort and performance of two companies to accomplish more than the the combination of what each company could accomplish individually....

Sunk Cost (Economics) – Explained

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

What is a Sunk Cost?A sunk cost is the money that has already been spent and cannot be retrieved. Traditional microeconomics theory proposes the sunk cost should not influence an investment decision as it is already gone, and the cost will remain the same irrespective...

Time to Market – Explained

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

What is Time to Market (TTM)?Time to Market is the period of time from the conception of a product to its final production or availability for sale in the market.  Types of Time To Market  The primary goal of every company is to provide quality products for their...

Timing of Tests of Controls – Explained

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

What is the Timing of Tests of Controls?Timing of Tests of Controls is an accounting or auditing practice that enables an auditor to embark on auditing procedure to test the standard of a control used by a client entity to avert financial misstatements. This test is...

Tier Structure – Explained

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

What is a Tier Structure?Tier refers to a series of rows or layers or a level or grade in the hierarchy of an organization or system. A tier structure describes a system with distinct levels or layers. In the arrangement of a tier system, one level must be completed...

Third Party Logistics – Explained

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

What are Third-party Logistics?Third-party Logistics, also called 3PL or TPL, describes an approach that organizations or companies use in the distribution and provision of services. This approach entails the use of a third-party company in the distribution of goods...

Tax Information Exchange Agreements – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Tax Information Exchange Agreement?Tax information exchange agreements (TIEA) was developed by the Organization for Economic Co-operation and Development (OECD). TIEA is a standard of exchange that provides information on civi tax matters or criminal tax...

Trans-Pacific Strategic Partnership – Explained

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

What is the Trans-Pacific Strategic Economic Partnership?The Trans-Pacific Strategic Economic Partnership Agreement (TPSEP) was signed in 2005. It refers to a free trade agreement that was signed by the governments of Brunei Darussalam, New Zealand, Singapore and...