What is Run Rate? Definition: Run rate is a financial estimate that businesses use to predict future performance, assuming that the conditions currently allowing the business to thrive will also be the same in the future. The run rate uses a company’s current or latest performance figures to estimate how the company will perform in
What is Real GDP? Definition: Real GDP (Gross Domestic Product) is an economic measurement that calculated the a country’s economic output adjusted for inflation. Gross Domestic Product (GDP) is the term that describes a country’s economic output or in simpler terms, the goods and services that are generated within a country over a specified duration
What is Quantity Supplied? Definition: Quantity supplied is one of the many concepts in economics, and this particular concept represents the amount or quantity of goods or services that producers or distributors are willing to provide to the market or consumers at a specific market price. When dealing with quantity supplied, the amount of goods
What are Quick Assets? Definition: Quick assets are resources that can easily be liquidated or easily be converted into cash in less than a year or in the short-term. Companies usually categorize their assets as either long-term assets or quick assets. Liquidity is the name of the game when it comes to quick assets because
What is Sales mix? Definition: Sales mix is a financial metric that ascertains the proportion that each product or service sold, contributes to total sales. In its purest form, it is the ratio for each product relative to the overall sales volumes of products. Likewise, it is a collection of all the products and services
What is A Line of Credit? Definition: A line of credit (LOC) is a preset amount of money that a financial institution agrees to lend. Similarly, it is an arrangement that establishes the maximum amount of money that the customer can borrow. In this case, a borrower can take money as a loan, repayable after
What is Liquidation? Definition: Liquidation is an event that occurs when a business is no longer able to meet its financial obligations. In this case, the process of ending the business is triggered, resulting in the distribution of business assets to claimants. The underlying assets are often used to settle any financial obligations that the
What is a Loan Principal? Definition: A principal is the amount of money a person or a company borrows from a lender. It is also the amount of money, which a borrower agrees to pay a lender minus interest. Principal can also refer to the amount of loan remaining after making some payments. The principal
What is Marginal Analysis? Definition: Marginal analysis refers to the examination of costs and benefits upon the introduction of a new unit of production. The analysis comes into play when businesses want to ascertain whether they are getting the most value out of resources. Conversely, businesses must ensure that changes in the production process result
What is a Marginal Benefit? Definition: Marginal benefit is the benefit that consumers enjoy for paying for an additional good or service. Often referred to as marginal utility, the term also denotes the additional satisfaction that comes into play when consumers receive an additional good or service. Therefore, the measure describes the level of satisfaction