What is Value-Based Pricing? Value-based pricing is a strategy for pricing goods or services that adjusts the price based on its perceived value rather than on its historical price. The value-based pricing strategy is used to increase revenue by increasing prices without a significant effect on volume. When is Value-Based Pricing Used Value-based pricing is…
What is Affiliate Marketing? Affiliate marketing occurs when an individual or company markets another entity’s or company’s products or services. If someone buys the product being offered because of your marketing efforts, then you are awarded a commission based on their purchase. How It Works The affiliate marketing method provides financial incentives for individuals to…
What are Articles of Incorporation? The Articles of Incorporation (AoI) is known as a charter document; it helps establish the legal existence of a company in North America (United States, Canada, and Mexico) and some jurisdictions worldwide, including Japan and South Korea. It’s a regulatory document that outlines a company’s operations and its purpose. Regulatory authorities…
What is Indemnity? The word indemnity means security or protection against a financial liability. It typically occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party. In corporate law, an indemnity agreement serves to hold Board Directors and…
What is a Focus Group? A focus group consists of a group of individuals who are asked questions about their opinions and attitudes toward certain products, services, or concepts. Focus groups are a common qualitative market research technique used by companies or other entities and are intended to provide an understanding of consumer perception about…
What are Consignment Sales? Consignment sales are a trade agreement in which one party (the consignor) provides goods to another party (the consignee) to sell. However, the consignee has the right to return unsold goods to the consigner. In other words, a consignment sale is an agreement in which a third party is entrusted with…
What is Market Neutral? Market neutral refers to a type of investment strategy wherein an investor can profit from either an increase or a decrease in stock prices. It is usually done in order to avoid a given type of market risk and may be executed in one or more markets. A market neutral strategy…
What is Voluntary Liquidation? Voluntary liquidation is when a company decides to dissolve itself on its own terms, as approved by the shareholders of the company. The decision usually occurs when a company decides that it has no reason for operating anymore, or if it is not feasible to operate anymore. The key factor here…
What is Unlimited Liability? Unlimited liability is the legal obligation of company founders and business owners to repay, in full, the debt and other financial obligations of their companies. The legal obligation generally exists in businesses that are sole proprietorships or general partnerships. Under the two business structures, each company owner is equally responsible for…
What is a Marketing Plan? A marketing plan is a document that lays out the marketing efforts of a business in an upcoming period, which is usually a year. It outlines the marketing strategy, promotional, and advertising activities planned for the period. Elements of a Marketing Plan A marketing plan will typically include the following…
