Paid Search Marketing – Explained

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

What is Paid Search Marketing?A kind of web marketing that connects your ads with the searchers finding actively the information you provide, is referred to as Paid Search Marketing. It is scalable and cheaper. The smartest and most well-known campaign is PPC (Pay Per...

Page Rank – Explained

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

What is Page Rank?An algorithm that Google search uses for ranking websites in its search engine results is called Page Rank. This term is on the name of Larry Page, who is one of the pioneers of Google. Page Rank is a method of measuring how much important web pages...

Push Down Accounting – Explained

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

What is Push Down Accounting?Push Down Accounting (PDA) is an accounting convention often used when a parent company purchases a subsidiary. The subsidiary is purchased at a determined price instead of its historical cost. Further, the debt and cost of purchase...

Option Premium – Explained

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

What is an Option Premium?Option Premium is the value that the writer of an option receives from an investor purchasing the option contract. How Does an Option Premium Work?An option sets a price (strike price) at which the option holder can either purchase or sell...

Ability to Pay Principle – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Ability-To-Pay Principle?The Ability to Pay Principle is a taxation principle. It states that the tax amount applied on an economic body (generally a business) should be directly proportional to that entity’s ability to pay.How Does the...

Accelerated Depreciation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Accelerated Depreciation?Accelerated depreciation refers to any method of amortization/depreciation that produces higher depreciation deductions during the beginning years of a project.How Does the Accelerated Depreciation Method Work?For the fiscal and...

Prisoner’s Dilemma – Explained

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

What is a Prisoner’s Dilemma?When two individuals trying to resolve an issue act in their own self-interests rather than aiming for an optimal outcome, and as a result end up worsening the situation instead of resolving it, its called the Prisoners Dilemma...

Portfolio Management – Explained

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

What is Portfolio Management?Portfolio Management is managing the diverse investments of a company or an individual. A good Portfolio Manager tailors investments to the goals of its holder, allocates assets judiciously to maximize profits, and balances risky...

Abilene Paradox – Explained

by TheBusinessProfessor | Feb 23, 2025 | Management, Leadership, & Organizational Behavior

What is the Abilene Paradox?The Abilene Paradox, proposed by Harvery (1988), is a situation in which a group of people make a decision that’s against the general wishes or best interests of its constituent members. Usually, this occurs because individuals...

Operating Budget – Explained

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

What is an Operating Budget?First of all, a budget is a plan to spend money. Therefore, it follows that budgeting is the process of creating that plan on how the money will be spent. Within the budget, business entities will account for all costs and necessary...