What is Stagflation? Definition: Stagflation, a combination of stagnate and inflation, is a situation where an economy suffers from high levels of inflation, rising unemployment levels, and stagnating economic growth. Unsurprisingly, the term was coined to describe the effects of inflation and economic stagnation. High levels of inflation are not usually common in situations where
What is the Statement Of Owner’s Equity? Definition: The statement of owner’s equity is a concept in economics that is all about demonstrating the changes that business experiences in its capital balance during a specific financial reporting duration. The capital balance changes are usually caused by net income, net loss, withdrawals, and contributions. The statement
What is Straight Line Amortization? Definition: Straight line amortization is a concept in accounting which deals with the allocation of interest rates, especially on intangible assets at a consistent rate during the life of that asset. Straight line amortization is particularly used on bonds to allocate interest, and it also refers to the process in
What is Return On Common Stockholders Equity (ROCE)? Definition: Return on common stockholders (ROCE) is a metric that measures the ability of a company to return value to shareholders. It is simply the ability of a company to generate net income for the benefit of shareholders. In its purest form, it is the proportion of
What is a Sales Budget? Definition: A sales budget is essentially a projection of the amount of goods and services that a firm expects to sell in a given period. The estimate includes figures for monthly as well as quarterly figures that the firm expects to make on executing a given sales strategy. The statement,
What is A Retailer? Definition: A retailer is an individual or an entity that deals directly with consumers. In this case, it can be a business that sells and goods and service to consumers through brick and mortar store or an online platform. Retailer Examples A Retailer can be a small store or a large
What is a Risk Taker? Definition: A risk taker in the business world is anyone willing to take calculated risks, so that they can achieve a specific goal. There is always some level of risk involved in everything we do as human beings. Stepping out of your house every day exposes you to quite a
What is Risk Premium? Definition: Risk premium is the returns that investors expect when they risk their money in an investment. You have probably heard the saying that there is no reward without risk, and that is entirely true, especially in the investment and insurance worlds. Risk premium is a common term used in the
What is Run Rate? Definition: Run rate is a financial estimate that businesses use to predict future performance, assuming that the conditions currently allowing the business to thrive will also be the same in the future. The run rate uses a company’s current or latest performance figures to estimate how the company will perform in
What is Real GDP? Definition: Real GDP (Gross Domestic Product) is an economic measurement that calculated the a country’s economic output adjusted for inflation. Gross Domestic Product (GDP) is the term that describes a country’s economic output or in simpler terms, the goods and services that are generated within a country over a specified duration