What is a Wraparound Mortgage? In economics, a wraparound mortgage is a unique financing option that allows a mortgage owner to get a second mortgage to support the payment of the original real estate mortgage plan. A wraparound mortgage is also known as an agreement for sale, a wrap loan, or an all-inclusive mortgage. The original property buyer ex...

What is Dead Weight Loss? Deadweight loss is when the economy produces inefficiently and total surplus (either consumer surplus or producer surplus) is lost.  Related Topics Budget Constraint Radner Equilibrium Opportunity Cost Opportunity Set Marginal Analysis Utility Self Interest Cost-Benefit Analysis Enlightened Self-Interest Fisher's Separation...

What is a Proxy Fight? A proxy fight (also known as a "proxy contest", "proxy battle", or "proxy war") is an effort by the shareholder or group of shareholders of a corporation to convince other shareholders to cast their corporate votes (by granting a representative or proxy the authority to vote those shares) the way the urging shareholders prefer...

What is Two-Bin Inventory Control? The two-bin inventory control, often referred to as Kanban, is a model or system used in determining when resources or inputs should be restocked or recharged. This system is mostly used in the manufacturing sector. Items in the second bin are used to continue production when the first bin gets depleted. In other w...

What is an Alpha Test? An alpha test is exposing the product to a group of internal constituents to monitor their impressions, perceptions, and use of the product.  What is the Purpose of the Alpha Test?  The main purpose of the Alpha test is to test the functionality of the product and to note necessary modification or improvements. So it is more c...

What is Boil The Ocean? Boiling the ocean refers to an attempt to perform a seemingly impossible task. Also, it is used to refer to when the scope of a task or project is unnecessarily increased so as to become difficult to achieve.  In strategy, it refers to situations in which a company takes on a bigger project or assumes a goal that is impossibl...

What is the American Council Of Life Insurance? The American Council of Life Insurance refers to a national trade association of the American life insurance careers. ACLI came into existence in 1976, with its headquarters in Washington D.C. Its membership has about 300 companies that operate in the United States and abroad. The companies account for...

What are Barriers to Entry? Barrier to entry is a term used in economics throwing light on what challenges a competitor would encounter when entering a specific sector or industry.  Examples of general barriers to entry include:  high capital asset costs, licensing or regulatory approvals, exclusive tax-based privileges offered to current organizati...

Can I Fire My Co-Founder Who Has More Equity? Cofounders of a company generally establish their ownership percentage very early in the relationship. Without a formal relationship, the default rule is that all founders are equal owners of the company. This can result in impasse when the company owners are unable to reach agreement on business matters...

What is a Cross-Functional Team? A Cross-Functional Team (CFT), Multidisciplinary Team or an Interdisciplinary Team, also known as  is a group of people whose members hold different backgrounds, expertise, and functions working toward shared objectives. Note that team members can also differ on many other dimensions (besides their discipline or func...