What is Bait and Switch? Bait and switch is a fraudulent activity whereby a company advertises goods at an incredibly low price with the aim of substituting for them with inferior or pricier alternatives at the time of purchase. Just like the worm at the end of a fishing rod, companies use lower pricing to…
What is Strategic Planning? Strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a company’s overall long-term goals or desires. It is a concept that focuses on integrating various departments (such as accounting and finance, marketing, and human resources) within a…
What is a Special Purpose Vehicle (SPV)? A Special Purpose Vehicle (SPV) is a separate legal entity created by an organization. The SPV is a distinct company with its own assets and liabilities, as well as its own legal status. Usually, they are created for a specific objective, often to isolate financial risk. As it…
What is Ramp-Up? In business, ramp-up is a term that describes a significant increase in the output of a company’s products or services. Essentially, ramp-up implies bringing the company’s capacity utilization close to maximum. It can be achieved through substantial capital expenditures or improvements in product development, and triggered by a company entering new markets…
What is a Non-Profit Business Plan? A non-profit business plan is simply a roadmap for a non-profit organization, one which outlines the organization’s goals and objectives, and how it plans to attain them. A non-profit is a business entity that is started for any specified purpose other than making a profit. The most common reason…
What is a Multinational Corporation (MNC)? A multinational corporation (MNC) is a company that operates in its home country, as well as in other countries around the world. It maintains a central office located in one country, which coordinates the management of all of its other offices, such as administrative branches or factories. It isn’t…
What is Value Network Analysis? Value network analysis is a business methodology that sets the relationship between business activities and the value network by evaluating members of an organization. It is usually performed by visualizing the link among various business activities using different modeling tools such as system dynamics, social network modeling, and process instruments. Evaluation…
What is Variable Ratio Write? Variable ratio write is an options trading strategy where, regardless of fluctuations in the price of the underlying asset, there is a limited potential of profit and unlimited losses. The limited profit potential is attributed to the investor’s pursuit to capture the premium reward for the call option. …
What is the Value Line Composite Index? The Value Line Composite Index was launched in 1982. It was the first market index to trade in the futures market. The index comprises 1,681 companies drawn from the New York Stock Exchange, NASDAQ, Toronto Stock Exchange, American Stock Exchange, and over-the-counter markets. There are two main forms…
What is an Executive Summary? An executive summary is the first section of a business plan or proposal that provides a brief overview of the document and contains its main points. In other words, it is a condensed version of a complete business plan or proposal. It is primarily used in the business world, but…
