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…
What is Market Orientation? Market orientation is a business approach wherein the processes of product development and creation are focused on satisfying the needs of consumers. It is a type of marketing orientation technique that designs products with qualities that consumers want, which is completely different from the conventional marketing approach. In the conventional approach, the…
What is the Banking and Securities Industry Committee (BASIC)? The Banking and Securities Industry Committee (BASIC) was established in 1970 with the goal of standardizing, automating, and streamlining the processing of stock certificates. It was tasked with ensuring uniformity in the rules and regulations for the processing of both stocks and options. The BASIC attempted…
What are Restricted Funds? In the non-profit industry, restricted funds refer to a reserve of money that can only be used for specific projects or purposes. The funds can be restricted because the donor wants the money to go to a specific program or the donor wants the money to be utilized after a specific…
What is Reverse Polish Notation (RPN)? Reverse polish notation, or RPN, is one of the three commonly used calculation notations. The other two are polish notation and infix notation. The latter, infix notation, is the one most commonly used across the world and is probably the form of notation that is most familiar to readers….
What is Procurement? In business, procurement is the process of searching for, negotiating, and purchasing goods and/or services from suppliers. The procurement process frequently includes a formal bid to ensure the best possible price, quality, and terms. The process can also be referred to as buying or purchasing. Factors Considered in Procurement Purchasing decisions at…
What is Quid Pro Quo? In financial terms, a quid pro quo is a mutual agreement between parties that gives consideration to each member of the party in exchange for the goods or services which they have each benefited from receiving. It is similar to an exchange deal in which one company uses the services…
What is MM? In finance and accounting, MM (or lowercase “mm”) commonly denotes that the units of figures presented are in millions. The Roman numeral M denotes thousands. In this context, MM is the same as writing “M multiplied by M,” which is equal to “1,000 times 1,000,” which equals 1,000,000 (one million). While Roman…
What is the Ad Valorem Tax? The term “ad valorem” is Latin for “according to value,” meaning it is flexible and depends on the assessed value of an asset, product, or service. An ad valorem tax is charged by state and municipal governments and is based on the assessed value of a product or property….
