What is Kantian Ethics? Kantian ethics are a set of universal moral principles that apply to all human beings, regardless of context or situation. Immanuel Kant, a German philosopher, calls the principles Categorical Imperatives, which are defined by their morality and level of freedom. Who was Immanuel Kant? Immanuel Kant (Prussia, 1724-1804) was one of…
What is the Average Inventory? The average inventory is the mean value (that can be different from the median value) of an inventory during a determined period of time. The average inventory is thus a mathematical calculation. It estimates, on average, the value or the number of goods stored. Below is the formula to calculate…
What is Attribution Analysis? Attribution analysis, also known as “return attribution” or “performance attribution,” is an evaluation tool used to explain and analyze a portfolio’s performance against a particular benchmark. It is used to identify sources of excess returns from a firm or fund manager’s active investment decisions. Components of Attribution Analysis Attribution analysis compares…
What is Negative Equity? The concept of negative equity arises when the value of an asset (which was financed using debt) falls below the amount of the loan/mortgage that is owed to the bank in exchange for the asset. It normally occurs when the value of the asset depreciates rapidly over the period of use,…
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….
