A gross income multiplier (GIM) is a rough measure of the value of an investment property. It is calculated by dividing the property’s sale price by its gross annual rental income. Investors can use the GIM—along with other methods like the capitalization rate (cap rate) and discounted cash flow method—to value commercial real estate properties like shopping centers and apartment complexes.
Legislative risk is the potential that regulations or legislation by the government could significantly alter the business prospects of one or more companies. These changes can adversely affect investment holdings in that company. Legislative risk may occur as a direct result of government action or by altering the demand patterns of the company’s customers.
A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. The goal is to identify and score relative performance based on goal attainment for specified outcomes. This type of budget is commonly used by government bodies and agencies to show the link between taxpayer funds and the outcome of services provided by federal, state, or local governments.
Legislative risk is the potential that regulations or legislation by the government could significantly alter the business prospects of one or more companies. These changes can adversely affect investment holdings in that company. Legislative risk may occur as a direct result of government action or by altering the demand patterns of the company’s customers.
A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. The goal is to identify and score relative performance based on goal attainment for specified outcomes. This type of budget is commonly used by government bodies and agencies to show the link between taxpayer funds and the outcome of services provided by federal, state, or local governments.
In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages. A financial crisis is often associated with a panic or a bank run during which investors sell off assets or withdraw money from savings accounts because they fear that the value of those assets will drop if they remain in a financial institution. Other situations that may be labeled a financial crisis include the bursting of a speculative financial bubble, a stock market crash, a sovereign default, or a currency crisis. A financial crisis may be limited to banks or spread throughout a single economy, the economy of a region, or economies worldwide.
Monetarism is a macroeconomic concept, which states that governments can foster economic stability by targeting the growth rate of money supply. Essentially, it is a set of views based on the belief that the total amount of money in an economy is the primary determinant of economic growth.
A Master of Public Administration (MPA) is a master’s level degree in public affairs that prepares recipients of the degree to serve in executive positions in municipal, state, and federal levels of government, and nongovernmental organizations (NGOs). The focus of the program centers on principles of public administration, policy development and management, and implementation of policies. It also prepares the candidate to deal with specific challenges faced in public administration.
The direct method is one of two accounting treatments used to generate a cash flow statement. The statement of cash flows direct method uses actual cash inflows and outflows from the company’s operations, instead of modifying the operating section from accrual accounting to a cash basis. Accrual accounting recognizes revenue when it is earned versus when the payment is received from a customer.
A bell curve is a common type of distribution for a variable, also known as the normal distribution. The term bell curve originates from the fact that the graph used to depict a normal distribution consists of a symmetrical bell-shaped curve.