What Is a Reasonableness Standard? The term “reasonableness standard” has several applications in finance and law. In general, the standard is related to the requirement that expectations placed upon a party are considered reasonable. A fiduciary relationship, for example, is a professional standard between a client and service provider that both puts the client’s interests
What is a Reassessment A reassessment refers to a periodic reevaluation of a property’s value for tax purposes. State and local governments assess property taxes based on two variables: property values and tax rates. Local laws vary, but reassessment generally takes place every one to five years or when a property changes hands. Some municipalities also
What Is Rebalancing? Rebalancing refers to the process of returning the values of a portfolio’s asset allocations to the levels defined by an investment plan. Those levels are intended to match an investor’s tolerance for risk and desire for reward. Over time, asset allocations can change as market performance alters the values of the assets.
What Is a Rebate Option? A rebate option is an offer for a cash return on the purchase of a consumer good or service. Rebates can come in many different forms. Flat-rate rebates are automatically subtracted from the purchase price. Conditional rebates are only valid under certain conditions, such as “buy one, get one free.”
What Is a Rebound? In finance and economics, a rebound refers to a recovery from a prior period of negative activity or losses—such as a company posting strong results after a year of losses or introducing a successful product line after struggling with false starts. In the context of stocks or other securities, a rebound
What Is Recapitalization? Recapitalization is the process of restructuring a company’s debt and equity mixture, often to stabilize a company’s capital structure. The process mainly involves the exchange of one form of financing for another, such as removing preferred shares from the company’s capital structure and replacing them with bonds. Key Takeaways: Recapitalization is the
What Is Recapture? Recapture is a condition set by the seller of an asset that gives him/her the right to purchase back some or all of the assets within a certain period of time. In this way, it is similar to a repurchase agreement (repo). Recapture also refers to a situation in which an individual
What Is a Recapture Clause? A recapture clause refers to a lease provision common in commercial properties that allows the landlord to terminate a lease and retain possession of a property. Key Takeaways A recapture clause is a component of a commercial lease contract that says the landlord may reclaim the property ahead of the
What Is a Receipt? A receipt is a written acknowledgment that something of value has been transferred from one party to another. In addition to the receipts consumers typically receive from vendors and service providers, receipts are also issued in business-to-business dealings as well as stock market transactions. Key Takeaways Receipts are an official record
What Is the Accounts Receivables Turnover Ratio? The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is a quantification of a company’s effectiveness in collecting outstanding balances from clients and managing its line of credit process. An efficient company has a higher accounts receivable turnover
