What Is an Ordinary Loss? An ordinary loss is loss realized by a taxpayer when expenses exceed revenues in normal business operations. Ordinary losses are those losses incurred by a taxpayer which are not capital losses. An ordinary loss is fully deductible to offset income thereby reducing the tax owed by a taxpayer. Understanding Ordinary Loss Ordinary losses
What Are Ordinary Shares? Ordinary shares, also called common shares, are stocks sold on a public exchange. Each share of stock generally gives its owner the right to one vote at a company shareholders’ meeting. Unlike in the case of preferred shares, the owner of ordinary shares is not guaranteed a dividend. The vast majority
What Is Organic Growth? Organic growth is the growth a company achieves by increasing output and enhancing sales internally. This does not include profits or growth attributable to mergers and acquisitions but rather an increase in sales and expansion through the company’s own resources. Organic growth stands in contrast to inorganic growth, which is growth related
What Is Operating Netback? Operating netback is a non-generally accepted accounting principle (GAAP) financial measure commonly used in the oil and gas industry to determine how much profit companies generate from their ventures. It is calculated by subtracting all costs associated with getting the oil to market, including transportation, royalties, and production expenses, from revenues. O
What Is the Operating Ratio? The operating ratio shows the efficiency of a company’s management by comparing the total operating expense (OPEX) of a company to net sales. The operating ratio shows how efficient a company’s management is at keeping costs low while generating revenue or sales. The smaller the ratio, the more efficient the
What Is Operating Revenue? Operating revenue is the revenue that a company generates from its primary business activities. For example, a retailer produces its operating revenue through merchandise sales; a physician derives their operating revenue from the medical services that they provide. What constitutes operating revenue varies based on the business or the industry. Key
What Is Operational Risk? Operational risk summarizes the uncertainties and hazards a company faces when it attempts to do its day-to-day business activities within a given field or industry. A type of business risk, it can result from breakdowns in internal procedures, people and systems—as opposed to problems incurred from external forces, such as political
What Is Operational Efficiency? Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operating costs. The greater the operational efficiency, the more profitable a firm or investment is. This is because the entity is able to generate greater income or returns for the same or lower cost than
What Is Operations Management (OM)? Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations management teams attempt to balance costs
What Is Opinion of Title? The opinion of title is the legal opinion which attests to the validity of the title deed to a parcel of property. The opinion is sometimes issued in conjunction with an insuring title agency. Breaking Down Opinion of Title Opinions of title are usually issued by attorneys. Title companies use the
