What is Marginal Revenue?  Marginal revenue is the amount of value received by a seller for selling one more unit of product or service.  Generally, marginal revenue is calculated by dividing total revenue by total quantity sold prior to sale of another unit. Then the same calculation is completed after selling another unit. The difference of these ...

What is a Marketing Information System?  A marketing information system is a decision-making tool. More specifically, it is a computer system that's designed to collect store analyze and distribute marketing data that helps us to understand what's really going on inside and outside of our organization. The marketing information system starts with a ...

What is Corporate Inversion? Corporate inversion is a process employed by big companies that are based in the U.S., in an attempt to reduce the tax burden on income or gains. Basically, the company seeks to allocate income away from the country of incorporation to a foreign country. In most cases, companies pick a nation with a lower tax burden, les...

What is the Innocent-Spouse Rule? In the United States, the innocent spouse rule is a provision that grants a spouse relief from penalties of improperly reported tax returns of their spouse. If a spouse is guilty of underpayment of taxes of files tax returns inaccurately, the partner (other spouse) can partake from the penalties of the offenses. In ...

What is a Merged Currency? An approach to exchange rate policy is for a nation to choose a common currency shared with one or more nations is also called a merged   currency.  A merged currency approach eliminates foreign exchange risk altogether. Just as no one worries about exchange rate movements when buying and selling between New York and Calif...

What is Political Risk? The risks that the return on investments could face due to political changes or lack of stability in an economy are known as political risks. Such inconsistencies can include a change in government structure, foreign policy officers, army officers, or legislative organizations. Also referred to as geopolitical risk, it appear...

What is a Progressive Tax? Progressive Tax is the practice of charging different income levels in accordance with the taxpayer's ability to pay. Under Progressive Tax, lower income groups are charged a lower rate of tax while higher income groups pay taxes at a higher rate. The highest income earners pay taxes at the highest rates.  How Does a Progr...

What is a Professional Risk Manager? An individual with the certification of the Professional Risk Managers' International Association is called a professional risk manager (PRM). This is an expert who meets the requirement for financial risk managers and passed the certification examination of the association. There are four exams that professional...

What is Self-Employment Tax? Self-employment tax is a type of tax payable by individuals such as small business owners who work for themselves. It consists of Social Security and Medicare taxes that the federal government deducts from income of such individuals. Any self-employed individual with a net income of $400 or more per tax year is liable to...

What is an Associate In Loss Control Management? The Associate in Loss Control Management is a professional designation given to individuals by the Insurance Institute of America after completing the five national exams successfully. Two of the five national exams are for the ALCM program, while three are for Chartered Property Casualty Underwriter ...