What is an Encumbrance? An encumbrance is a restriction on the use of funds. It is used in public accounting to make sure that there are sufficient funds to meet certain obligations. Governments use encumbrances to avoid overspending on their finances. An encumbrance certificate is also used in real estate when there is a claim…
What are Fast-Moving Consumer Goods (FMCG)? Fast-moving consumer goods (FMCG), also called consumer packaged goods (CPG), refer to products that are highly in-demand, sold quickly, and affordable. Such items are considered “fast-moving” as they are quick to leave the shelves of a store or supermarket because consumers use them on a regular basis. Examples of Fast-Moving…
What Does Omni-channel Mean? Omni-channel (or omnichannel) refers to a sales approach that uses multiple channels to reach customers and provide them with an excellent shopping experience. It covers all the ways brands and customers interact with each other. Whether they are shopping at a physical store, by phone or mobile device or laptop, an…
What is Escheatment? Escheatment is the process through which unclaimed assets are turned over to the state. Every year, many bank accounts remain unclaimed and properties are left abandoned. After a period of time, the assets are turned over to the state. Once the property has been taken over by the government, the owner can…
Who is an Executor? The executor of a will is responsible for sorting out or distributing the finances of an individual after the latter’s death. They serve as a “legal personal representative” and manage the estate of the deceased in accordance with the terms stated in the will. They ensure that the debts and taxes…
What is Negotiation? Negotiation is a dialogue between two or more parties with the intention of reaching a mutually beneficial outcome or resolving a conflict. In negotiation, each party will try to persuade the other one to agree with his or her point of view. The goal is to avoid arguments and disputes and reach…
What is a Negotiable Order of Withdrawal (NOW)? A negotiable order of withdrawal, also known as a NOW account, is a type of deposit account that provides interest and allows the depositor to write drafts against the money that is held on deposit. In the U.S, commercial banks, lending associations, and mutual savings…
What is a Negotiable Certificate of Deposit (NCD)? A negotiable certificate of deposit (NCD) refers to a certificate of deposit with a minimum par value of $100,000, although typically, NCDs will carry a much higher face value. They are also known as jumbo CDs. NCDs are guaranteed by a bank and can be traded in…
What is a Household? A household refers to a social unit of people who live together under one roof and share resources, even if they are not related to each other. In the US, the Census Bureau categorizes households as family or non-family. A family household comprises members who are related by blood, whereas a…
