Inelastic Demand: Definition, Examples, Meaning, Formula, Curve

In economics, there is a concept known as “inelastic demand.” This term refers to a situation in which consumers are not very likely to change their behavior when it comes to purchasing a particular product. For example, people need food to survive, so the demand for food is considered inelastic. …

The Business Credit Score: What You Need to Know

If you’re a business owner, then you know that credit is important. But what many people don’t realize is that your business has its own credit score, just like an individual does. This score impacts your ability to get loans, lines of credit, and other financings for your business. In …

Cost Driver: Definition, Examples, Formula, Types

It’s a well-known fact that managing costs are essential for any business to maintain a healthy profit margin. But that’s not always so clear which specific costs are the most crucial to manage. In other words, what are the cost drivers of a business? Many different factors can contribute to …

Credit Reports: What You Need to Know

A credit report is a document that lists all of the credit accounts that you have open, as well as your payment history on those accounts. This information is used by lenders and other businesses to determine your credit score. Your credit score is a number that reflects how likely …

Mezzanine Financing: Definition, Examples, Meaning, vs Bridge Loan

Companies usually incorporate two types of finance in their capital structure. These comprise debt and equity. However, companies may also receive funds from hybrid instruments. These may include features of both equity and debt finance. One of the most common types of hybrid finance comes through mezzanine financing. Therefore, it …