What is Boulwarism? Boulwarism refers to a negotiating tactic invented by Lemuel Boulware, the former vice president of General Electrics. The term is also commonly referred to as Take-it or Leave-it. How do Take it or Leave it Offers Work? In labor union negotiations, boulwarism refers to an ultimate offer that does not permit any further revisions...

How do Economies of Scale Lead to Trading Advantages? A second broad reason that intra-industry trade between similar nations produces economic gains involves economies of scale. The concept of economies of scale means that as the scale of output goes up, average costs of production decline—at least up to a point.  The concept of economies of scale ...

What is a Certified Information Systems Auditor? Certified Information Systems Auditor (CISA) is a global professional designation awarded by the Information Systems Audit and Control Association (ISACA) to individuals who manage IT and business systems for organizations.   To earn the designation, an applicant must undergo training by ISACA, pass t...

What is Committed Capital? Committed capital is an agreement, based on a legal contract, between a private equity fund and an investor. The investor is then obligated to keep contributing money towards the private equity fund or the venture capital fund. The investor has the option of paying committed capital in a lump sum or make little contributio...

What happens if the business has losses? Business entities with pass-through taxation do not retain losses within the business entity. Losses are passed through to owners based either on the percentage of ownership or pursuant to a special allocation in a partnership. The losses can generally be used to offset the individuals profits. There are, how...

What is a strategic objective in a negotiation? Effective strategic planning will incorporate an orientation and method for achieving a particular outcome or objective.  Notably, the motivation to negotiate and the sources of power in a negotiation relate closely to the methods for achieving a strategic objective.  Recall, a strategic objective is m...

What is the Team Management Profile?  The Team Management Profile, proposed by Margerison and McCann, is a framework for assessing work preferences in team context, individual, and organizational preferences. What is the Team Management Profile Questionnaire? The Team Management Profile Questionnaire is “a 64 item normative, forced-choice instrument...

What is a Passive Activity? Passive activity refers to the activity where a taxpayer doesn't take part materially in the tax year. According to the Internal Revenue Service, passive activity is of two types. The first one includes commercial or business activity to which there were no contributions made by the taxpayer, and the second one includes r...

What is Procedural Justice? This type of justice focuses on the process rather than the outcome. Are fair rules or decision-making criterion employed in determining the reward to be distributed. For example, if someone's input is being evaluated to determine who receives an award.  Even if an individual receives the reward, they may feel that the pr...

What is an Individual Retirement Account? An individual retirement account refers to an investing tool used by individuals to earmark or set aside funds for retirement savings. Various IRA types exist, as of 2018 and they include Roth IRAs, traditional IRAs, SEP IRAs, and SIMPLE IRAs. Sometimes called individual retirement arrangements, IRAs can be ...