What Is Over-Collateralization? Over-collateralization (OC) is the provision of collateral that is worth more than enough to cover potential losses in cases of default. For example, a business owner seeking a loan could offer property or equipment worth 10% or 20% more than the amount being borrowed. Over-collateralization may be used by companies issuing bonds
What Are Organic Sales? Organic sales are revenues generated from within a company. Organic sales encompass those streams of revenues that are a direct result of the firm’s existing operations as opposed to revenues that have been acquired through the purchase of another company or business unit in the past year. The sale or disposal
What Is an Organizational Chart? An organizational chart is a diagram that visually conveys a company’s internal structure by detailing the roles, responsibilities, and relationships between individuals within an entity. It is one way to visualize a bureaucracy. Organizational charts are alternatively referred to as “org charts” or “organization charts.” Key Takeaways An organizational chart
What Is an Organizational Structure? An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company. For example, in a centralized structure, decisions flow
What Is Organized Labor? Organized labor is a strategy of workers joining together to engage in collective bargaining for higher wages, job benefits, or better working conditions. Organized labor associations are also known as unions. Key Takeaways Organized labor is a strategy where workers join unions to engage in collective bargaining with their employers.Organized labor
What Is Original Cost? Original cost is the total price associated with the purchase of an asset. The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use. These costs include the purchase price and such factors as commissions
What Is Origination? Origination is the multi-step process that every individual must go through to obtain a mortgage or home loan. The term also applies to other types of amortized personal loans. Origination is often a lengthy process and it’s overseen by the Federal Deposit Insurance Corporation (FDIC) for compliance with Title XIV of the
What Is an Origination Fee? A mortgage origination fee is an upfront fee charged by a lender to process a new loan application. The fee is compensation for executing the loan. Loan origination fees are quoted as a percentage of the total loan, and they are generally between 0.5% and 1% of a mortgage loan
What Are Origination Points? Origination is a step-by-step process that every borrower must complete to obtain a mortgage or home loan. Meanwhile, origination points represent the fees that borrowers pay to lenders or loan officers to compensate for evaluating, processing, and approving mortgage loans. They represent a way to pay closing costs and these fees are
What Is an Orphan Block? In blockchain terms, orphan blocks are blocks mined simultaneously as another block but not accepted by the blockchain. Most of the time, this is because there are not enough blocks generated from that block for the network to recognize it as the longest fork. The Bitcoin blockchain discards orphan blocks;
