Month: December 2020

Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

The Kelley School of Business, the business college of Indiana University, offers both undergraduate and graduate programs in many fields, including finance, accounting, marketing, and management. It is one of only three schools to have all of its graduate and undergraduate programs ranked in the top 20 by U.S. News and World Report.

New indications is a term that medical companies and professionals use to signify that a procedure or drug has been recognized to be advisable or necessary. New indications refer to new applications of an existing prevention, diagnosis or treatment of a disease. It is a positive report provided by credible professionals through established testing techniques. The next step is usually clinical trials before official approval by the country’s regulatory association.

A franchisee is a small business owner who operates a franchise. The franchisee has purchased the right to use an existing business’s trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business. Franchisees become owners and independent operators of third-party retail outlets called franchises.

An earnout is a contractual provision stating that the seller of a business is to obtain additional compensation in the future if the business achieves certain financial goals, which are usually stated as a percentage of gross sales or earnings. If an entrepreneur seeking to sell a business is asking for a price more than a buyer is willing to pay, an earnout provision can be utilized. In a simplified example, there could be a purchase price of $1,000,000 plus 5% of gross sales over the next three years. read more

The European Economic and Monetary Union (EMU) combined the European Union member states into a cohesive economic system. It is the successor to the European Monetary System (EMS).

Multicollinearity is the occurrence of high intercorrelations among independent variables in a multiple regression model. Multicollinearity can lead to skewed or misleading results when a researcher or analyst attempts to determine how well each independent variable can be used most effectively to predict or understand the dependent variable in a statistical model. In general, multicollinearity can lead to wider confidence intervals and less reliable probability values for the independent variables. That is, the statistical inferences from a model with multicollinearity may not be dependable. read more

The Euro Overnight Index Average (Eonia) is the effective overnight reference rate for the euro.

The Guideline Premium And Corridor Test (GPT) test is used to determine whether an insurance product can be taxed as insurance rather than as an investment. GPT limits the amount of premiums that can be paid into an insurance policy relative to the policy’s death benefit.

Kiddie tax is a term that refers to a special tax law created in 1986 dealing with investment and unearned income tax for individuals under 17 years of age.