What is a Reverse Auction? A reverse auction is like the opposite of a normal auction. Here, buyers place request for items, and sellers are required to come up with competitive bids. The buyer then gets to pick the seller with the lowest price. To avoid confusion with the regular auction, we'll explain how it works. In a regular auction, the seller...

What is an accord and satisfaction? An accord and satisfaction is a resolution of a contested debt. For example, the payor and holder of a negotiable instrument may have a dispute as to the amount and duty of payment of the instrument. Often a payor of the debt will offer a lesser amount than what is claimed by the holder in full satisfaction of the...

What is Ordinary Income? An ordinary income is a pretax income earned by individuals and organizations which is taxable using ordinary rates. Examples of ordinary income are salaries, wages, interests earned on bonds, tips, commissions and other forms of income different from long-term capital gains. Long-term capital gains are not ordinary income, ...

What is a Fiscal Year? A fiscal year refers to a financial year customized for 12 months within which governments use to account, budget, and prepare financial statements. A fiscal year usually runs for 12 months. However, it is not a must for it to start on January 1st and end on December 31st. So, countries fiscal years may differ. For instance, i...

What role do Professors Play in Business Schools? The purpose of this article is to tell you everything you need to know about what is a professor and what are their roles - particularly in business education.  I use the word professor throughout, but I am primarily talking about business school professors.  Lets begin by identifying who teaches in ...

What is a Piecemeal Opinion? A piecemeal opinion is a report that an external auditor issue regarding the financial statement opinion of specific line items. An auditor may give a piecemeal opinion when the about statement information is not complete. Generally accepted auditing principal (GAAP) no longer allows this type of opinion because it contr...

What is a Market Order? A market order refers to an instruction to buy or sell a security immediately (at the current price). A market order does guarantee execution. However, it does not guarantee the price at which it will be sold. The execution usually happens either at the current price or near the current price. When a sell order is immediately...

What is Outsourcing? Outsourcing refers to a business practice of hiring someone outside of the organization to carry out a task or project that is traditionally performed in person, in-house, or by employees of the firm.  Outsourcing is generally thought to provide the following benefits:  reduce the cost of completing business-related projects, av...

What is an Acquittance? An acquittance is proof that an individual (a debtor) has been discharged from a debt obligation. An acquittance is a document or a receipt that reveals that a debtor has made full payment of their debt obligation. It is an evidence showing that the debtor has satisfied all the terms of a debt obligation. Back to:BANKING, LEN...

What is a Depositary Receipt? A depositary receipt refers to a financial instrument for negotiation issued by a bank that represents the publicly traded shares of a foreign company. The financial certificate gives investors a chance to hold foreign countries equity shares since the shares cant leave their home country. It also gives investors the op...