What is an Unlevered Cost of Capital? The unlevered cost of capital is the evaluating of the expected rate of return on a company's assets using a hypothetical debt-free situation. The unlevered cost of capital is purely theoretical, it is an evaluation of a company that maintains that the company can finance itself without any debt. Also, the cost ...

What is a Forward Triangular Merger? A forward triangular merger, also known as indirect merger, takes place when a subsidiary of the purchasing organization acquires a business firm. The company that undergoes acquisition merges into the shell firm that has control over all assets and liabilities of the target firm. How does a Forward Triangular Me...

What is a Tree Diagram? A tree diagram is a tool (especially a graphical representation) which is utilized in strategic decision making, market valuation, and for calculating probability. This diagram starts at a single point, with branches moving to create extra points. Most tree diagrams starts from one point, with their branches moving to create ...

What is the Investment Company Act of 1940? The Investment Company Act of 1940 compels investment company registration and requires monitoring of the product offerings which investment companies issue in the public market. This enactment vividly explains the importance and prerequisites of investment companies and specifications for investment produ...

What is a Collar Agreement? A collar agreement is a popular method to lock-in a given scope of possible return outcomes or by hedging risks. A collar is a well-known financial strategy to limit the potential outcomes of an uncertain variable to an acceptable range. The largest failing of a collar is restricted upside and the price drag of transactio...

What is Discrepancy of Assortment?  Discrepancy of assortment is the difference between the array of products that a producer makes and the array that consumers want to buy. In other words, as a producer, we may only produce one type of product or a narrow set of products The consumer may want to buy all sorts of things. At the same time, as they bu...

Contribute Intellectual Property to a Company Often, intellectual property is the most valuable assets a company has. For an extreme example, think of the music industry. At Michael Jackson's death his portfolio of music masters was worth more than $1 Billion.  In many cases, early founders will have worked together to create intellectual property t...

What is Multi-Channel Distribution?  Multi-channel distribution is simply the sale and transfer of product through multiple channels of distribution - typically both direct and indirect channels. Multi-channel distribution is a popular choice in today's world because it increases product availability in the sense that people can buy where they want ...

Bureau of Economic Analysis Definition The Bureau of Economic Analysis (BEA) of the United States Department of Commerce is a U.S. government agency that provides official economic data used to confirm and predict trends, changes, and business cycles. These notable reports are used to make informed economic policy or decisions by the government or f...

What Distorts the Results of Marketing Research? Missteps that can distort the result of marketing research include: Sampling Error Question Wording Poor Quality Data Data Validity Researcher Bias Each of these is discussed below.  Sampling Error When we study a sample or a subgroup of the population we might have too much sampling error. In other w...