What is Business Process Modeling? Business Process Modeling is a technique used to model or demonstrate a business process before implementing it.   Business models provide ways of expressing business processes or strategies in terms of business activities and collaborative behavior.   What is Business Process Simulation Software? Simulation softwa...

What is Economic Profit? Economic Profit is defined as the difference between total revenue and total cost of inputs. Revenue is the amount derived from the sale of goods or the delivery services.  The total costs of inputs include all expenses and all profits forgone to undertake the activity. How to Calculate Economic Profit? To calculate economic...

What is Affordable Market Value? Affordable market value (AMV) is a mechanism used by the Federal Deposit Insurance Corporation (FDIC) in the United States to make housing more affordable for buyers. It refers to the sale price of a property or housing unit sold through the FDICs Affordable Housing Program. The FDIC assigns affordable market value t...

What is a Consumption Tax? A consumption tax refers to a tax, levy or tariff imposed on the purchase of goods and services. Consumption taxes are money or taxes that individuals pay on consumption, examples of such taxes are sales taxes, tariffs, value-added taxes, excise, among others. Taxes paid on what people spend is also referred to as consumpt...

What is the Private Sector? The private sector is the aspect of the economy made up by non-governmental individuals or entities. As such, it includes all for-profit businesses that are not government-owned or managed. I t is sometimes referred to as the citizen sector. Companies and corporations which are run by the government belong to the public s...

What is Carryover Basis? A carryover basis is a method used to determine an assets tax basis when transferring it to another person. The use of a carryover happens when an individual gifts another person the asset. In this case, the basis will generally be the same as the person giving or transferring it. How Does Carryover Basis Work?  A carryover ...

What is a Joint-Stock Company? A Joint Stock Company is another manner of indicating a corporation. As such, the phrase is no longer commonly used in the United States. In reality, a joint stock company is any type of company that is jointly owned by investors or shareholders who own its shares. In the modern world, joint-stock companies outnumber s...

How are Arbitration Awards Enforced? The method of enforcing an arbitration award will vary depending upon the jurisdiction. In a common-law arbitration jurisdiction, a party must generally initiate a legal action to enforce an arbitration award as a contract.  Most statutory-arbitration jurisdictions establish a process for enforcing arbitration aw...

Provisional Patent Application: Basic Drafting Principles The provisional patent is a very useful tool for inventors. It allows the inventor to create a placeholder with the United States Patent and Trademark Office (USPTO) concerning your invention. More specifically, it allows you to establish a date of filing for utility patent protection. As lon...

What is Rent-Seeking in Economics? Rent-seeking refers to a concept in economics and public choice theory that seeks to increase the existing wealths share but without creating a new one. Rent-seekings interest is to obtain financial gain by manipulating the environment with economic activities. A good example is where an industry or company politic...