Fair Market Value (FMV) – Explained

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

What is Fair Market Value? The price at which the property is sold on the open market is called fair market value (FMV). The Fair market value is different from appraised value or market value. It is based on economic principles of open and free market activity. The...

Fair and Accurate Credit Transactions (FACTA) Act – Explained

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

Update Table of Contents What is the Fair and Accurate Credit Transactions Act of 2003?How Does FACTA Work? What is the Fair and Accurate Credit Transactions Act of 2003?The Fair and Accurate Credit Transaction Act (FACTA) was a US law passed in 2003 that aims to...

First-Mover Advantage – Explained

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

What is First Mover Advantage?First-to-market advantage means that the initial occupier of a strategic position or niche takes control of resources and capabilities that cannot be matched by market competitors. A first-mover product or service is the first of its...

Edge Crush Test – Explained

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

What is the Edge Crush Test (ECT)?An edge crush test (ECT) is a testing method used to measure the durability of a corrugated board. The edge crush test (ECT) gives valuable information regarding the strength of particular board to resist crushing. Corrugate box...

Durable Goods – Explained

by TheBusinessProfessor | Feb 23, 2025 | Sales

What are Durable Goods?The goods which are not consumed or destroyed by use and last for a long time are called durable goods. Home appliances, types of machinery, cars all fall under the category of durable goods. Generally, consumer goods which last for 3 or more...

Dropshipping or Drop Shipment – Explained

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

What is a Drop Shipment?It is a supply-chain-management method where the retailer takes orders from the customer and processes it to the manufacturer or original supplier with the order and shipment details. Then, the manufacturer or the original supplier directly...

Downtick (Financial Markets) – Explained

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

What is a Downtick in the Market?When a financial instrument sells at a lower price than the previous transaction, it is called the downtick. It happens when a stocks price decreases from the preceding price. It is the opposite of uptick. It is generally used for...

Double Entry Accounting System – Explained

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

What is Double-Entry Accounting?Double entry accounting is used to balance the accounting equation. That is, Assets must always equal Liability + Owners Equity. As such, entering any amount on one side of the equation requires entering the same amount on the other...

Double Column Tariff – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Double Column Tariff?A Double Column Tariff is a tariff system which has two different duty rates for a particular product. Here, the import tax on the product depends on the country of its origin. The rate is assessed by the importing country’s trade...

Duty Free Zones – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Duty Free Zone?The Duty Free zone is an area where products are sold without the import, sales, value-added or other taxes. These products are sold to the international travelers with an understanding that they will take these products outside of the country...