Accumulation Option Definition.

An accumulation option is a life insurance policy provision that allows the policyholder to increase the death benefit by adding a specified percentage of the premiums paid to the policy’s cash value. What are the 5 settlement options for life insurance? 1. Cash settlement: This is the most common settlement option, whereby the policyholder receives … Read more

What Is Repo 105?

Repo 105 is an accounting technique that Lehman Brothers Holdings Inc. used to temporarily remove up to $50 billion of assets from its balance sheet in the months leading up to its 2008 bankruptcy. The technique involved selling securities to an investment bank and then immediately agreeing to buy them back at a higher price, … Read more

Incorporation: What It Is and Why You Should Do It.

Incorporation: What It Is, How It Works, and Why You Might Want to Do It. What are the powers of corporation? A corporation is an entity that is legally authorized to act on behalf of its shareholders. The shareholders of a corporation elect a board of directors to oversee the corporation’s affairs and make decisions … Read more

How Warm Calling Heats up Sales.

The term “How Warm Calling Heats up Sales” is business jargon which refers to the process of making sales calls to potential customers who have already shown some interest in your product or service. Warm calling is an effective sales technique because it allows you to target customers who are more likely to be interested … Read more

What Is Joint Tenancy?

Joint tenancy is a form of co-ownership of property whereby each joint tenant has an undivided interest in the property and equal rights to possession of the property. Joint tenants are generally required to have acquired their interests in the property at the same time and by the same conveyance. Upon the death of a … Read more

Demand For Labor.

The demand for labor is the quantity of labor that firms are willing and able to hire at a given wage rate. The demand for labor is a derived demand; it is derived from the demand for the products that the labor produces. The demand for labor is determined by the marginal revenue product of … Read more

Other Current Assets (OCA).

Other current assets (OCA) are those assets which are not classified as either cash or investments, but which are still considered to be liquid and capable of being converted into cash within one year. Common examples of OCA include accounts receivable, short-term loans receivable, and prepayments. The term “other current assets” is used in contrast … Read more

Commodity Price Risk Definition.

Commodity price risk is the risk that the price of a commodity will move up or down, impacting the profitability of companies that use that commodity. It is also known as commodity price risk or commodity market risk. How is commodity price volatility calculated? Commodity price volatility is calculated by taking the standard deviation of … Read more