Capital Gain – Explained

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

What is a Capital Gain?A capital gain is the returns acquired from the disposing of assets. Capital gain is achieved when the selling price is higher than the buying price. However, there will be a loss when the buying price is higher than the selling price.Note: This...

Capital Formation – Explained

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

What is Capital Formation?Capital formation is the growth in the stock of actual capital in the economy over a particular financial period. In other terms, it means the creation of things that enhance more production. This term is mostly used in the study of...

Capital Expenditures (CapEx) – Explained

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

What is Capital Expenditure?Capital Expenditure (CAPEX) is the amount of financial resources that a company uses to purchase capital goods with the aim of expanding the operational scope of the company. Examples of CAPEX include building a new plant or buying vehicle...

Cap and Trade – Explained

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

What is Cap and Trade or Emissions Trading?Emissions trading is also known as allowance trading, or cap and trade refer to the approach that is used to reduce pollution and has been confirmed to protect the environment and human health successfully. An emission...

Black Hat SEO – Explained

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

What is a Black Hat SEO?Black hat seo refers to a set of practices that are used to increase a site or a pages rank in search engines through means that violate the search engines terms of service. Black hurt is a term originated in Western movies and recently it is...

Benchmarking – Explained

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

What is Benchmarking?Benchmarking is the comparison of one’s business and performance measurement to the best industry and other companies’ best practices. The information gained from this method can then be utilized in the identification of gaps in the...

Bounded Rationality – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is Bounded Rationality?Bounded rationality is the theory that when people make decisions, their ability to reason through the problem is limited by: available information cognitive capacity or ability, time to think about the situation. This management concept...

Acceptance Sampling – Explained

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

What is Acceptance Sampling?Acceptance Sampling is a method used in the industry for quality control. This method uses statistical sampling to inspect or test a random sample for determining whether the quality of a batch of product or service is acceptable or not....

Brundtland Report – Explained

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

What is the Brundtland Report?The Brundtland Report, also commonly known as Our Common Future, is a publication released by the World Commission on Environment and Development (WCED) in 1987. Sponsored by the United Nations, the WCED discussed the causes of...

Bullwhip Effect – Explained

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

What is the Bullwhip Effect (Supply Chain)?The Bullwhip effect is the theory that orders for goods at the start of the supply chain have a greater impact further down the chain. The bullwhip effect relates to orders sent to producers and suppliers that create greater...