What is the deficit?

The meaning of deficit is the situation that occurs when there is a shortage of something necessary. In the economic sphere, it is understood as a deficit when expenses exceed income, with the corresponding shortage of money. The concept of deficit is mainly linked to the commercial world of states and companies, but there are … Read more

What is demand?

Demand is understood from an economic point of view, the quantity of goods and services that companies and households wish to acquire within a market economy. When we speak of aggregate demand, said demand includes all possible goods and services. Demand, in turn, is associated with the demand curve, which is the line represented on … Read more

What is a Directive?

The directive is a normative provision of Community law. It binds the States of the Union, or more specifically, the recipient State in the achievement of goals or concrete results within a specified period. However, this leaves to the competent internal authorities the proper choice of the appropriate form and means for this purpose. The … Read more

What is a dividend?

The dividend is the part of the profit of a company that is distributed among the partners or shareholders of a company. Its amount must be approved by the General Meeting of Shareholders at the proposal of the board of directors. Before entering the matter, we will have to establish what is an active and … Read more

What is dropshipping?

The meaning of dropshipping is a type of retail sale, where the retailer does not keep the goods at their facilities, but instead transfers the customer's order and shipping details to the wholesaler, who must directly dispatch the merchandise to the customer . The difference between the wholesale price and the retail price will be … Read more

What are direct costs?

Direct costs are all those expenses incurred by the company directly to produce a good or service. In short, it is that part of the cost of the product that does not require any type of distribution of general costs or allocation of a proportional part of certain costs of the company. Examples of direct … Read more

What is a demand deposit?

The sight deposit is a type of Bank deposit. In financial terms, the demand deposit is synonymous with a checking account. It has the peculiarity of allowing its holder to withdraw part or all of the money accumulated in the deposit. To make the total or partial withdrawal, it is not necessary to make a … Read more

What is dumping?

Dumping refers to the set of practices by which a company sells its products at a price lower than what it cost to produce. Therefore, for companies the objective of dumping is none other than to compete directly in the market in order to be above the competition and exercise greater control over the market … Read more

What is tax deduction?

Deduction in economic and financial terms is the action of deducting in whole or in part an economic amount that weighs on a certain act or good. The term deduct also applies to a thing, object or economic quantity, when it is deductible. The relief is therefore a reduction on a certain economic burden. When … Read more

What is a guarantee?

A guarantee is a contract by means of which a unilateral solidarity commitment is established by which a person will benefit from the payment of obligations. Therefore, in any bank guarantee the main participants of the guarantee contract will be three: the person requesting said aid, the debtor; on the other hand, the person who … Read more