Herstatt Risk – Explained

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

What is Herstatt Risk?Herstatt risk, also known as settlement risk or cross-currency settlement risk, is the risk associated with settlement of foreign exchange transactions. This type of risk was largely eliminated by the use of the Continuous Linked Settlement...

Hang Seng Index (HSI) – Explained

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

What is the Hang Seng Index?The Hang Seng Index, abbreviated as HSI, is an index of the largest companies traded on the Hong Kong Exchange. The breakdown of the index is weighted based upon the market capitalization of the underlying companies. Each underlying company...

Hedgehog Concept – Explained

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

What is the Hedgehog Concept?The Hedgehog Concept calls on companies to identify their core value proposition (or the primary thing that they do well) and focus on that. The concept says that scattering ones interests and objective causes a lack of focus, competency,...

Centrally Planned Economy – Explained

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

What is a Centrally Planned Economy?A planned or centralized economy is one in which the key questions of the economy about what, how, and for whom to produce are resolved directly by the State.How Does a Centrally Planned Economy Work?In a centrally planned economy,...

Cash and Accrual Method Accounting – Explained

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

What is Cash Basis Accounting?The cash method is used by individuals. The substantial difference lies in the time period to which costs and revenues are attributed. The US tax period is one year with a pre-determined beginning and end date. Most individuals and...

Limited Flexibility Exchange Rate System – Explained

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

What is the Limited Flexibility Exchange Rate System?The International Monetary Fund’s name for an exchange rate system with a managed float is the Limited Flexibility Exchange Rate System. A flexible exchange-rate system is a monetary system that allows the...

Lifetime Value of Customer – Explained

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

What is Customer Lifetime Value? The life time value is regarded as an estimate regarding the average revenue that the company is going to generate from the customer during the lifespan of customer or company. The customer is attached to the company and spends money...

Nationally Recognized Statistical Rating Organization – Explained

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

Update Table of Contents What is the Nationally Recognized Statistical Ratings Organization?How Does the Nationally Recognized Statistical Rating Organization Work? What is the Nationally Recognized Statistical Ratings Organization?Credit rating agencies asses the...

New to Market – Explained

by TheBusinessProfessor | Feb 23, 2025 | Sales

What is New-to-Market?New to Market is a term that refers to an enterprise that is entering a new market or market segment. Access to a new market or market segment helps in expanding the business and client base. It is important to follow a few steps before entering...

New to Export – Explained

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

What is New-to-Export?New-To-Export is a term used for describing the enterprises that are new in the export business. Companies enter the export business to gain access to new markets and customers. There are certain rules required to be followed while sending a...