What is a Merchandising Businesses?  A merchandising business is a business that generates revenue by selling goods (a product or inventory).   What are the Types of Merchandising Business? There are two types of merchandising businesses: Wholesale company Retail company What is a wholesale company?  A wholesale company sells items in bulk to other ...

What is a Treasury Note? A treasury note is a US government debt instrument with fixed interest rate and can be resold in the market to increase its value. Treasury notes have a maturity of at least a year and can last up to 10 years. Treasury Notes can be obtained by either a competitive or non-competitive bid, where investors specify the amount th...

What is a Pump-and-Dump? Pump and dump refer to a type of securities fraud or scheme that tries to inflate prices of stock through misleading, false, or greatly exaggerated statements. Those involved in this scheme do this so that they can be able to sell their cheap stock at a higher price. Once they are through with selling and making profits, the...

What is Bounded Rationality? Bounded rationality is the theory that when people make decisions, their ability to reason through the problem is limited by: available information cognitive capacity or ability, time to think about the situation. This management concept recognizes that decision making takes place within an environment of incomplete info...

What is the Trickle-Down Effect? The trickle-down effect is a model used in marketing, which states that fashion trends move from the higher classes to the lower classes in society. This model states that fashion sense flows vertically in the society, with each social class being influenced by the other. When these products are first supplied to the...

What is the Labor Surplus Area? Labor Surplus Area is commonly known as LSA. It can be defined as civil jurisdiction. In previous 2 calendar years, the average yearly unemployment rate was figured 20% and sometimes more than this percentage. This is the highest unemployment rate of the civilian population comparing with statistics concerning civilia...

What is a Blanket Lien? A blanket lien is a type of lien that gives a lender the legal claim of right in all assets or a group of assets of the debtor. Generally, a blanket liens attempts secure a loan by attaching assets of the debtor as collateral.  Prior to default, a blanket lien is in the form of a security interest. In the event of a debtor de...

Why do Central Banks Care About Exchange Rates? A central bank will be concerned about the exchange rate for multiple reasons: (1) Movements in the exchange rate will affect the quantity of aggregate demand in an economy; (2) frequent substantial fluctuations in the exchange rate can disrupt international trade and cause problems in a nation’s banki...

What is an Acceleration Clause? An acceleration clause is a contract provision that permits a lender to demand an entire amount owed on a loan when the borrower breaches a loan agreement. Acceleration clause or contract commonly occur in real estate, mortgages, and other loan or debts agreement.  Basic criteria for repayment of loan are usually outl...

What is the American Bankruptcy Institute? The American Bankruptcy Institute refers to a nonpartisan research organization and association that provides education to bankruptcy professionals. ABI was founded in 1982 with its base in, Alexandria Virginia. The ABI consists of over 12,000 accountants, attorneys, judges, lenders, bankers among other ban...