What is the Supremacy Clause? Article VI, Section 2 of the US Constitution provides that the Constitution is supreme over all laws and that federal law is supreme over state law.  What is Preemption? Congress can expressly reserve an entire area of law for federal regulation. In such a case, the federal law preempts state law.  Generally, the state ...

What is a Qualified Professional Asset Manager? A qualified professional asset manager is a designation for a registered investment advisors who work with or manage retirement fund assets. QPAM status is an exemption from the restrictions that the Employee Retirement Income Security Act (ERISA) places on transactions involving retirement funds. How ...

Why is Product Packaging Important?  How we package our product is important for how we create or increase consumer value. A key functions of a product's packaging is preserving the product or keeping it safe. Keeping it from being damaged in transportation or keeping it fresh during storage. Packaging can also make the product easier to use. Think ...

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...

What is a Product Life Cycle? Product life cycle measures the total lifespan of a product. It begins when a product is first conceived in the development stage and continues through when it first goes to market. Finally, it ends when the product is removed from the market.  Product life cycles are broken down into five distinct phases:  development,...

What is a Schedule K-1? A Schedule K-1 refers to a tax form that businesses partners use to report their partnership earnings or income, losses, dividends and credits. A schedule K-1 is a tax document that the Internal Revenue Service (IRS) requires business partners to file for tax purposes. The tax document is prepared to report each partners shar...

What is a Fairness Opinion? Fairness Opinion is a term commonly used in finance and investment market. It refers to the professional opinion given by a financial advisor, a professional third party or an investment bank on whether the terms and price of a transaction is favorable to both parties involved. Fairness opinion is given after the transact...

What is Carriage And Insurance Paid? Carriage and Insurance Paid (CIP) is an Incoterm. It represents the situation where the seller delivers goods in his own country for transportation to the buyer in another country. Under a CIP agreement, the seller must purchase insurance against the risk borne by the buyer for the loss or damage of the goods dur...

What is the Central Driving Forces Model? The central driving forces model is an approach to analyzing the strategic position of an entrepreneurial venture. The model assesses founders, opportunities, and resources. It assesses whether there are consistent elements (fits) or inconsistent or incongruous element (gaps) in the company's strategic posit...

What is Useful Life? Useful life is a term that can be applied to asset, whether long-term assets or short-term assets. The useful life of an asset refers to the period of time during which the asset was used for the intent it was purchased. This is the estimated lifespan of an asset, the number of years that an asset it estimated to remain in servi...