Category: CORPORATE FINANCE

Perfect Competition: Definition, Market, Meaning, Example, Graph

Perfect competition is used to describe a market structure in which businesses only make just enough profit to keep running. It is considered the most ideal market structure because it leads to the efficient allocation of resources and benefits both consumers and producers. Perfect competition often gets overlooked because no …

LTV/CAC Ratio: Definition, Calculation, Example, Formula, Benchmark

When it comes to customer acquisition, there are many factors that businesses need to consider, including the cost of acquiring a new customer and the lifetime value of that customer. The LTV/CAC ratio is a metric used to measure the effectiveness and efficiency of a company’s customer acquisition strategy. By …

Discount Bond: Definition, What It Is, Meaning, Valuation, Example

What is a Discount Bond? In the intricate realm of finance, discount bonds stand as a compelling instrument, commanding attention for their distinct characteristics and investment allure. A discount bond, also known as a zero-coupon bond, denotes a fixed-income security issued at a price significantly below its face value. Unlike …

Blended Rate: Definition, Calculation, Formula, Example

When it comes to loans and mortgages, a change in interest rates is not a very uncommon thing. This can happen due to several reasons such as economic factors, market trends, and policies of lending institutions. When this happens, the interest rate of your loan may also change. Blended rate …

Shutdown Point in Economics: Definition, Example, Types, Meaning

It’s a very unfortunate event when businesses have to come to an end. Many reasons can lead a business to shut down, such as financial struggles, market saturation, or even natural disasters. Whatever the reason may be, business owners need to understand when it’s time to close their doors and …

Reneging on a Contract or Job Offer

When it comes to business deals and job offers, it is considered unethical to back out or renege on a contract after agreeing to its terms. This can not only damage businesses’ reputations but also have legal consequences. However, there are certain circumstances where reneging may be necessary or even …