What is Ceteris Paribus? A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis.  The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product’s price, are changing. Economists call this assumption c...

What is performance of a divisible contract? A divisible contract is one that has multiple parts or is divided up into segments. Each segment exists and can be completed independently. That is, each segment has duties that require completion. An installment contract is an example of a divisible contract. Each installment has duties or obligations th...

What is the Objective Analysis Tree? Objective Analysis Tree is is a project planning tool that helps to analyze and graphically break down objectives into smaller and more manageable parts. The Objective Analysis Tree is a tool derived from its parent tool the Problem Analysis Tree. The Objective Analysis Tree basically converts the problematic iss...

What is a Command Economy? A command economy is an economy whereby all means of production are owned and controlled a central authority (the Government).  How Does a Command Economy compare to a Planned Economy?  A command economy constitutes a planned economy when the government controls or manages what is produced, how it is produced, and the pric...

What is the Bargaining Mix? The bargaining mix is the makeup of interests at stake in a negotiation. How to define the issues or negotiation goals? Developing a negotiation strategy usually begins with an analysis of what is to be negotiated or the bargaining mix.  Remember, a negotiation concerns situation in which the parties perceive a conflict i...

What is the Adverse Selection of Wage Cuts Argument? The adverse selection of wage cuts argument points out that if an employer reacts to poor business conditions by reducing wages for all workers, then the best workers, those with the best employment alternatives at other firms, are the most likely to leave. The least attractive workers, with fewer...

What is bankruptcy? Bankruptcy is both a status and system of laws aimed at protecting individuals and businesses (collectively, individual). An individual is bankrupt when she is insolvent or the value of her debts exceeds the value of her assets. The bankruptcy system is a body of laws that allows for the elimination or restructuring of an individ...

What is Crisis Management? Crisis management, a facet or risk management, is a process-based approach to addressing highly unfavorable situations arising within an organization. It involves developing a strategy and plan for addressing the cause and consequences of an unfavorable situation. It generally involves establishing new processes defined by...

What is a Down Round? When a company's valuation at the time of an investment round is lower than its valuation during the preceding round, it is called the down round. During the down round, the investors pay a lower price to purchase the company's stocks and convertible bonds than the previous investors. There are several reasons which may lead to...

What is Time to Market (TTM)? Time to Market is the period of time from the conception of a product to its final production or availability for sale in the market.  Types of Time To Market   The primary goal of every company is to provide quality products for their customers in the shortest time possible. The major types of TTM are: Speedy TTM- This...