What is Exchange Control? Exchange controls are government-imposed controls and restrictions on private transactions conducted in foreign currency. The government’s major aim of exchange control is to manage or prevent an adverse balance of payments position on national accounts. It involves ordering all or part of foreign exchange received by a country into a common…
What is a Hiring Freeze? A hiring freeze is a scenario where a company stops hiring new employees or creating new positions to be filled. It is common when a company experiences financial distress and needs to begin cost-cutting to reduce operating costs. Hiring freezes are the preferred option by companies to avoid laying off…
What is a Social Enterprise? A social enterprise refers to a business with certain social objectives as its primary goal while using a commercial structure to run the organization. Social enterprises usually attempt to make a strong societal impact while maximizing their profit as well, which is then used to fund their social programs. Understanding…
Who is a Social Entrepreneur? A social entrepreneur refers to an individual who pursues novel ideas with the potential to solve or alleviate certain community-oriented problems. Social entrepreneurs often are willing to take the risks associated with their venture to help address issues, enabling positive change in society. In order to understand the term social…
What is Social Economics? Social economics, also known as socioeconomics, is the social science and branch of economics that studies the interrelation between economic activity and social behavior. Social economics analyzes how the economy is affected by social norms, ethics, sentiments, and other factors. Understanding Social Economics Social economics attempts to explain how social factors…
What is a Social Audit? In business, a social audit refers to a formal evaluation (or audit) of a company’s procedures and endeavors with regard to corporate social responsibility (CSR) and societal impact. Many companies formulate goals and objectives with regard to CSR initiatives, and the social audit is used to review to what extent…
What is the Evening Star Pattern? The Evening Star pattern is a type of reversal pattern of asset price charts. It usually appears at the top of an uptrend and is a bearish signal. Traders do not commonly see an Evening Star pattern, but it is a reliable indicator for technical analysis. Understanding Evening Star…
What is Ex Gratia Payment? An ex gratia payment is a type of payment made by an organization to an individual for damages or claims without recognizing any legal obligation. “Ex gratia” means “by favor” or “by virtue of grace” in Latin. Thus, an ex gratia payment is a voluntary payment that is not a…
What is Ex Works (EXW)? Ex Works (EXW) is one of the International Commercial Terms (Incoterms), in which buyers are responsible for the shipment and subject to risks. It is a commonly used shipping agreement. In addition to EXW, another ten Incoterms describe the responsibilities between sellers (or shippers) and buyers (or consignees) in terms…
What is Excess Cash Flow? Excess cash flow refers to the cash held by a company that can trigger a mandatory repayment of debt according to the company’s bond indenture. It is a term typically used in the restrictive covenants in loan agreements or bond indentures. Understanding Excess Cash Flow Debt is a cheap and…
