What Is a Business Ecosystem? A business ecosystem is the network of organizations—including suppliers, distributors, customers, competitors, government agencies, and so on—involved in the delivery of a specific product or service through both competition and cooperation. The idea is that each entity in the ecosystem affects and is affected by the others, creating a constantly evolving
What Is Business Ethics? Business ethics studies appropriate business policies and practices regarding potentially controversial subjects, including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, fiduciary responsibilities, and much more. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can follow to gain public approval. Key
What Are Business Expenses? Business expenses are costs incurred in the ordinary course of business. They can apply to small entities or large corporations. Business expenses are part of the income statement. On the income statement, business expenses are subtracted from revenue to arrive at a company’s taxable net income. Business expenses may also be
What Is a Business Guarantee? The term “business guarantee” refers to credit cards in which the business itself—rather than its individual owners or employees—is responsible for repaying the debts incurred. Business guarantees are commonly when businesses issue company credit cards to their employees. When applying for such cards, the credit card company will first evaluate
What Is Business Insurance? Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the
What Is Business Intelligence (BI)? Business intelligence (BI) refers to the procedural and technical infrastructure that collects, stores, and analyzes the data produced by a company’s activities. BI is a broad term that encompasses data mining, process analysis, performance benchmarking, and descriptive analytics. BI parses all the data generated by a business and presents easy-to-digest reports
What Is a Business Interest Expense? A business interest expense is the cost of interest that is charged on business loans used to maintain operations. Business interest expenses may be deductible as an ordinary business expense for certain businesses. Key Takeaways A business interest expense is the cost of interest on a business loan used
What Is Business Interruption Insurance? Business interruption insurance is insurance coverage that replaces business income lost in a disaster. The event could be, for example, a fire or a natural disaster. Business interruption insurance is not sold as a separate policy but is either added to a property/casualty policy or included in a comprehensive package
What Is the Business Judgment Rule? The Business Judgment Rule is a legal doctrine that helps to guard a corporation’s board of directors (B of D) against frivolous legal allegations about the way it conducts business. A legal staple in common law countries, the rule states that boards are presumed to act in “good faith”—that is
What Is Business Liability Insurance? Business liability insurance protects the financial interests of companies and business owners in the event that they face formal lawsuits or any third-party claims. Such policies cover any direct financial liabilities incurred, as well as any legal defense expenses. The three main types of business liability insurance are: General liability insuranceProfessional liability
