What is a Private Investment Company? Private investment companies are not covered under the section 3C1 of the 1940 Investment Company Act. They are not required to register with Securities Exchange Commission (SEC) but their investors and investments in stocks or bonds are limited.  A private Investment company is made up of a minimum of 100 inves...

What is an Advertising Allowance? An advertising allowance refers to money (allowance) that manufacturers of products pay retailers to publicize their products. Advertising allowance comes in diverse forms, while some manufacturers or service providers pay money to retailers, others offer retailers discounts on products or service purchased as a for...

What is the S&P CoreLogic Case-Shiller National Home Price Index? The S&P/ CoreLogic Case-Shiller Home Price Indexes -also known simply as the Case-Shiller Home Price Indexes - refers to a group of indexes that measures or tracks the average changes in the prices of single-family-detached residences (houses) throughout the United States by o...

What are Hard and Soft Skills? Hard skills are a set of skills or expertise that employees need to carry out a job successfully.  Hard skills are often specific to a particular job, and employers list them in the job descriptions when advertising jobs online.  Examples of hard skills include: language proficiency, machine operation, typing skills, p...

What is the Business Cycle? From a conceptual observation, the business cycle is defined as the economy-wide fluctuations in trade and the general economic activity. The cycle is upward as well as the downward movement of various levels from gross domestic products.  More simply, the business cycle signifies variations in the production of goods and...

How is an LLC formed? The LLC does not arise by default and must be filed with the secretary of states office. The process for filing the LLC is relatively simply in every state. Most states have an electronic system that allows the organizer of an LLC to easily create the entity.  What is the process for forming an LLC ? The process and information...

What is the  United Nations (UN)? The UN formed after Word War II to save succeeding generations from the scourge of war. The UN has a representative from nearly every commonly recognized country in the world. This structure provides all member nations a forum to voice concerns about threats to peace and stability. Collectively, the UN focuses on me...

What is the Collateralized Loan Obligation? A CLO is a security that is backed up by the collateral of a set of debt instruments like bonds and mortgages. It is a credit derivative. How Does a Collateralized Loan Obligation Work? The issuer of the CDO mainly uses it in covering a portfolio of assets with credit risk, but it can also be utilized in e...

What is the Organizing Function of Management? Organizing is the process of assembling the people, organizing resources, and distributing the planned work necessary to carry out the managers plan.  How Managers Organize Organizing is driven by goals identified during the managerial planning process. It includes developing an organizational structure...

When are Owners of a Business Entity personally liable? Generally, individuals are responsible for their own conduct. The rules of agency may make an individual vicariously responsible for the acts of an agent, if that agent is acting with authority or within the scope of her employment. What is Limited Personal Liability? Some business entities lim...