What is Locational Obsolescence? Locational obsolescence is a type of depreciation on a real estate property that is caused by factors other than the property itself. The factors can either be environmental or other external factors that occur in the property’s location. For example, the establishment of an industrial plant in the neighborhood…
What is Nationalization? Nationalization is the process in which a country or a state takes control of a specific company or industry. With nationalization, control that once resided within a corporation now lies with the government. When companies that were once part of the private sector are transformed into a public good, it is often…
What are Atomic Swaps? Atomic swaps are automated, self-enforcing cryptocurrency exchange contracts that allow cryptocurrencies to be traded peer-to-peer without the need for a trusted third party. As of 2017, cryptocurrencies could only be traded and bought through platforms such as Coinbase, Kraken, Coinsquare, and more. Trade execution was anonymous, and not peer-to-peer until an…
What is a Voucher? A voucher is an internal document within a company that is issued by the accounts payable (AP) department. It can be seen as a “memorandum” of the liabilities of the company, and it is used to authorize a payment. In each company, there exists an accounts payable department that is in…
What is a Minimum Viable Product (MVP)? A minimum viable product (MVP) is a product development model in which, initially, a product is developed with just sufficient features to satisfy early customers and solicit feedback for future product development. Generally, an MVP must possess the following characteristics: Sufficient value to convince a customer to purchase…
What is a Product Line? A product line refers to an array of related products under the same brand. In other words, a product line is a collection of similar products that are sold to customers. Understanding Product Lines Products under a product line are related either by functionality, target market, price range, or brand….
What is a Licensing Agreement? A licensing agreement is a contract between two parties (the licensor and licensee) in which the licensor grants the licensee the right to use the brand name, trademark, patented technology, or ability to produce and sell goods owned by the licensor. In other words, a licensing agreement grants the licensee…
What is a Joint Probability? A joint probability, in probability theory, refers to the probability that two events will both occur. In other words, joint probability is the likelihood of two events occurring together. Formula for Joint Probability Where: P(A ⋂ B) is the notation for the joint probability of event “A” and “B”. P(A)…
What is A Priori Probability? A priori probability, also known as classical probability, is a probability that is deduced from formal reasoning. In other words, a priori probability is derived from logically examining an event. A priori probability does not vary from person to person (as would a subjective probability) and is an objective probability….
What is Variable Universal Life (VUL) Insurance? Variable Universal Life Insurance is a life insurance policy that builds cash value. The accumulated cash in the policy can be invested in a number of different ways. The investments are chosen by the policyholder, in accordance with their financial goals and risk tolerance. Variable universal policies differ…
