Terminology | Business Economics - A Library of Information

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[ 07/06/2018 ] Lien – Simple, Business and Legal Definitions Terminology
[ 07/02/2018 ] Bookkeeping – Controls in Accounting (Lesson 95) Advanced Bookkeeping
[ 03/27/2018 ] Bookkeeping – Employer Provided Vehicle (Lesson 94) Advanced Bookkeeping
[ 02/24/2018 ] Bookkeeping – Other Employer Provided Benefits (Lesson 93) Advanced Bookkeeping
[ 02/17/2018 ] Return on Equity Report Analysis - How to Read the Statements

Lien – Simple, Business and Legal Definitions

07/06/2018 David J Hoare

A documented right to property owned by a debtor and granted to a creditor is referred to as a ‘lien’. Although relatively a simple definition, it gets much more complicated when used in various contexts. […]

Economies of Scale

02/07/2017 David J Hoare

Of the basic business principles, economies of scale has the greatest impact on profitability over any other business principle. As an enterprise’s investment is spread over higher volume the cost per unit of production […]

Discounts – Various Meanings in Business

01/03/2017 David J Hoare

The term ‘discounts’ is a broad and varied meaning word when it comes to use in business. It literally has four distinct definitions. Each definition is used within a certain context of business. The first […]

Economic Substance Principle

12/26/2016 David J Hoare

The Internal Revenue Service uses an economic substance test to identify sham transactions that exist solely to reduce or eliminate taxes. In addition, the courts use this same doctrine to rule on the legitimacy of activity […]

Business Trusts

12/21/2016 David J Hoare

The common law definition of a business is an investment of capital or property by individuals which creates the means to carry on towards the goal of generating a profit. Every state recognizes different legal […]

Gross, Operational and Net Profit (Differences)

11/02/2015 David J Hoare

The word ‘Profit’ is used loosely in the business word. Profit refers to the amount earned net of costs in a transaction. The key is defining a transaction. There is the direct transaction whereby a […]

Profit Shifting in Small Business – Internal Shifting

07/11/2015 David J Hoare

Profit shifting in business is a term with two different interpretations. The more modern use of profit shifting refers to large multinational U.S. based companies shifting their respective profits to other nations with a friendlier […]

Leverage in Business

07/08/2015 David J Hoare

In the simple lever and fulcrum machine the force is magnified onto a load. The machine creates a mechanical advantage, a form of force amplification. In business the principle is exactly the same. Except here […]

Owner’s Draw in Business

06/22/2015 David J Hoare

When an owner of a small business operation transfers money from the business bank account to their personal bank account the transaction is commonly referred to as a ‘Draw’. There are other terms but this […]

Negative Basis in Business – Tax Shelters

04/21/2015 David J Hoare

Almost one third of all the small businesses I’ve seen in my career had negative basis. Most of the owners, actually almost every one of them did not understand what I meant by negative basis. […]