Payback Period – Explained

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

What is a Payback Period?The payback period is the time it takes to recover the money invested in a project or investment. It does not take into account the time value of money or the expected rate of return. To incorporate these metrics, it is better to employ other...

Paid in Capital – Explained

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

What is Paid-In Capital?Paid-in capital, also known as contributed capital, is used to describe the amount of capital that investors have paid in during the issuance of either common or preferred stock. This process also includes the par value of different...

Open End Credit – Explained

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

What is Open-End Credit?Open-end credit, also called revolving credit, can be defined as a line of credit that gives the borrower a certain limit of credit and the ability to  borrow as little or as much of that money and repay any amount utilized below the set limit...

Organic Search – Explained

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

What are Organic Search Results?There are different ways to search items using a search engine. Organic search is a foremost search method where multiple items can searched when they are converted into a chain or searched as a sequence. Organic search results are also...

Leading Economic Indicators – Explained

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

What are Economic Indicators?Economic indicators are reports that inform about how well the country’s economic performance is in a particular location. How are Economic Indicators Created?Generally, government authorities or private entities publish such reports...

Legal Tender – Explained

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

What is Legal Tender?Legal tender is a type of currency or medium of exchange. It is money that is valid and acceptable for the settlement of debts which must be recognized when issued. What Constitutes Legal Tender? Both bills and coins are regarded as forms of...

Lead Time – Explained

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

What is Lead Time?Lead time is a term that refers to the time between the beginning of the beginning and completion of a process. For example, in a manufacturing company, lead time is the time the company begins to manufacture a product and the time manufacturing is...

Loss Carryback – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Loss Carryback?Loss carryback refers to a situation where a company faces a net operating loss and decides to apply it to the tax returns of the previous year. This leads to a reduced tax bill for the year this loss is carried back to since it lowers the tax...

Lookback Option – Explained

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

What is a Lookback Option?A lookback option is a type of option that gives the holder the opportunity of knowing its history when deciding on the appropriate time to exercise it. This option has a benefit of reducing the uncertainties arising when timing the market...

London Metal Exchange – Explained

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

What is the London Metal Exchange?The London metal exchange refers to a future exchange that occupies the largest world market that relies on the future contracts of bases and other metals. The London metal exchange provides cash trading as well as daily, weekly and...