What is Product Quality? As marketers, we design products with the goal of meeting customer needs. A key attribute or characteristic of our products, whether they are goods or services or a combination thereof, is the quality of that product.  What does product quality really mean?  Product quality is the extent to which a good service or combinatio...

What is Organizational Fit? Behavior is a function of the individual (their personality and attitude) and the situation or context. Organizations seek to establish a degree of congruence or fit between the individuals that make up the organization.  Types of Organizational Fit?  There are two commonly-understood types of desired fit: Person-organiza...

What is Tax Basis? Though basis may have several meanings in the finance industry, the most commonly used is the one signifying the gap or difference between the price and costs involved in a transaction at the time of ascertaining taxes. This term refers specifically to tax basis or cost basis, and is considered using when tax experts determine cap...

What is Annualized Income Installment Method? An Annualized Income Installment Method is a tax reporting method that helps taxpayers effectively and accurately estimate their taxes. This method calculates an employee's (taxpayer's) estimated tax and helps to reduce the underpayment they might have incurred as a result of fluctuations in income. In t...

What is the Accelerated Deposit Rule? The Accelerated Deposit Rule says that if the employment taxes of an employer total $100,000 or more in one business day, the tax withholdings must be deposited in a tax withholding account or paid to the IRS the next day. If an employer triggers this rule, it must establish bi-weekly deposits for the next two y...

What is a Generation-Skipping Trust? Generation-skipping trust refers to a type of trust which is a legally binding agreement designed to enable a trustee to transfer assets to the next generation levels without it being taxed. The beneficiary of the trust (accumulated assets) can be the grandchildren, great-grandchildren or any other appointed pers...

What is an Earned Income Tax Credit? There earned income tax credit is a tax credit for low-income individuals. The EITC is a refundable credit, meaning that the individual can actually receive back from the federal government more money than they paid into taxes.  2021 Earned Income Tax Credit (for taxes due in April 2022) Number of children Maximu...

What is an Excess Accumulation Penalty? Excess accumulation penalty is a penalty that the Internal Revenue Service imposes on the owner of a retirement account or beneficiary when they fail to withdraw the minimum amount from the retirement account due for a year. Typically, the IRS stipulates that owners and beneficiaries of retirement accounts wit...

What is Cancellation of Debt (COD)? Cancellation of debt (COD) is an act of relieving a debtor of a debt obligation. It is sometimes referred to as debt forgiveness, when a creditor lets go of debt repayment, thereby relieving the debtor. There are many reasons a cancellation of debt can occur, in most cases, debtors plead with their creditors to fo...

What is the Supply-side Theory? The supply-side theory refers to an economic theory mentioning that if an economy supplies more goods and services, it would be the best way to achieve economic growth. Considering the fiscal level, the supply-side theory emphasizes on taxation and deregulation. But at the economic level, the core influencers are huma...