Collar Agreement – Explained

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

What is a Collar Agreement?A collar agreement is a popular method to lock-in a given scope of possible return outcomes or by hedging risks. A collar is a well-known financial strategy to limit the potential outcomes of an uncertain variable to an acceptable range. The...

Product Life Cycle – Explained

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

What is a Product Life Cycle?Product life cycle measures the total lifespan of a product. It begins when a product is first conceived in the development stage and continues through when it first goes to market. Finally, it ends when the product is removed from the...

Retargeting (Advertising) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Retargeting?Retargeting is a digital advertising campaign strategy that puts your advertisements in front of the potential customers who have already visited your website. Statistics show, 96-98% of customers leave a website without taking any action or...

Socially Responsible Investment – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Ethics & Social Responsibility

What is Socially Responsible Investment?A Socially Responsible Investment (SRI) is a type of investment aimed at making profit but only by investing in socially responsible projects or businesses. For socially responsible investors, businesses they can invest in...

Warrant (Stock) – Explained

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

What is a Warrant?In finance a warrant is an authority that is given to an investor by a company to purchase its stock at a certain fixed price within a specific period of time regardless of the company’s stock valuation. The stock price offered by the issuing...

Resources Process Values Framework – Explained

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

What is the Resources Processes Values Framework?The Resources Processes Values Framework is utilized to efficiently allocate employees to certain tasks or responsibilities. Three sets of factors have an effect on what an organization’s capabilities, its...

Small Business Investment Company (SBIC) – Explained

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

What is a Small Business Investment Company (SBIC)?A small business investment company (SBIC) is a privately-owned investment company that offers provide equity, loans, or other debt investments for small businesses. SBICs are able to borrower money from the federal...

Sinking Fund – Explained

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

What is a Sinking Fund?A sum of money set aside periodically to create a fund that covers debt repayment for money borrowed on bonds, is called the Sinking Fund. It reduces the difficulties in managing payments for large outlays once the bonds have matured.How Does a...

Real Estate Investment Trust (REIT) – Explained

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

What is a Real Estate Investment Trust?Investments made in dividend paying fixed assets, specifically in real estate, are called Real Estate Investment Trust (REIT). REITs raise capital through an Initial Public Offering (IPO), these funds are then used to buy and...

Royalty Based Financing – Explained

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

What is Royalty-Based Financing?Investing in a business on the condition of receiving a percentage of the ongoing operating profits, until the principal investment and an additional prefixed cap is recovered, is called Royalty Based Financing (RBF), or Revenue Based...