What is Distributable Net Income (DNI)? Distributable Net Income (DNI) is the net income of a company that is available for distribution to its shareholders….
Buyout – Definition, Types, Advantages and Disadvantages
What is Buyout? A buyout is a process of acquisition and an investment transaction of buying all or a controlling percentage of the shares of…
Buy In Management Buyout (BIMBO)
What is A Buy-In Management Buyout bimbo? A buy-in management buyout (BIMBO) is a corporate takeover in which an outside management team joins a company,…
Bridge Loan – Definition, Types, Pros and Cons
What is Bridge Loan? A bridge loan is a short-term loan used for funding an enterprise or business until the company finally gets its long-term…
Earned Income and Earned Income tax Credit (EITC)
What Is Earned Income? Earned income is the money received as pay for work or labor performed. When you earn money, it is usually taxable…
Earmarking – Definition and Examples
Earmarking is a type of funding used by the government, people, or organization to allocate money to specific projects, programs, or initiatives. Earmarks provide an…
Combined Ratio Formula – Definition and Calculation
The combined ratio is a key metric that insurance companies use to measure profitability and evaluate performance. This ratio is determined by dividing the total…
Hedonic Pricing – Advantages and Disadvantages
Hedonic pricing is a pricing model that considers factors such as the cost of producing the good and its internal features, as well as external…
Commercial Bank – Importance, Functions and Examples
A commercial bank is a financial institution that is involved in accepting deposits, offering checking account services, making various loans, and offering basic financial products…
Capital Markets – Definition, Importance and Tips
Capital markets are where securities are traded between investors. It includes primary markets, where new issues are first sold to the public, and secondary markets,…
Herd Mentality – Definition, History and Examples
Herd mentality is a term used to describe the tendency of people to conform to the norms and behaviors of their social group. This can…
Commercial Credit – Definition, Types and Examples
Commercial credit is a pre-approved amount of money that a company can borrow to meet various financial obligations. Commercial credit is an important tool for…
Budgetary Slack – Role, Causes and Drawbacks
Budgetary slack is your built-in cushion that an organizational budget might have because a manager wants to optimize the company’s performance in comparison to the…
Capital Gain – Definition, Strategies and Examples
A capital addition is an increment in an investment or asset’s value that is realized once the asset is sold. It happens when the sale…
Capital Budgeting – Definition, Methods and Objectives
Capital budgeting is a bookkeeping or accounting principle that businesses use to figure out projects that add value to them. With the help of different…
