What Is Business Risk? Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Anything that threatens a company’s ability to achieve its financial goals is considered a business risk. There are many factors that can converge to create business risk. Sometimes it
What Is Business Segment Reporting? Business segment reporting breaks out a company’s financial data by company divisions, subsidiaries, or other kinds of business segments. In an annual report, business segment reporting provides an accurate picture of a public company’s performance to its shareholders. Management uses business segment reporting to evaluate the income, expenses, assets, and
What Are Business Tax Credits? Business tax credits are an amount that companies can subtract from the taxes owed to a government. Business tax credits are applied against the taxes owed, as opposed to a deduction that is used to reduce taxable income. Businesses apply the tax credits when they file their annual tax return.
What Is Business-to-Business Advertising? Business-to-business advertising refers to any marketing efforts directed toward other businesses rather than to individual consumers. Business-to-business advertising, or B2B advertising, takes place between companies that are typically found in the middle of the supply chain for any product or service that does not reach the average consumer. B2B advertising may
Investopedia / Katie Kerpel What Is a Business Valuation? A business valuation, also known as a company valuation, is the process of determining the economic value of a business. During the valuation process, all areas of a business are analyzed to determine its worth and the worth of its departments or units. A company valuation
What Is a Bust-Out? A bust-out is a type of credit card fraud where an individual applies for a credit card, establishes a normal usage pattern and solid repayment history, then racks up numerous charges, and maxes out the card with no intention of paying the bill. Key Takeaways A bust-out is a type of
What Is a Butterfly Spread? The term butterfly spread refers to an options strategy that combines bull and bear spreads with a fixed risk and capped profit. These spreads are intended as a market-neutral strategy and pay off the most if the underlying asset does not move prior to option expiration. They involve either four
What Is Bill-and-Hold Basis? Bill-and-hold basis is a method of revenue recognition whereby revenue is recognized at the point of sale, but the goods aren’t delivered to the buyer until a later date. Note that this deviates from the generally accepted accounting principle (GAAP), which is to recognize revenue for a transaction at the point
What Is a Buy-Up? A buy-up is a type of rebate associated with home mortgage loans. It involves the lender offering an upfront cash incentive to the borrower in exchange for accepting a higher interest rate on the loan. Generally, buy-ups are more advantageous to the borrower if they expect to resell the purchased property
What Is Buy and Hold? Buy and hold is a passive investment strategy in which an investor buys stocks (or other types of securities such as ETFs) and holds them for a long period regardless of fluctuations in the market. An investor who uses a buy-and-hold strategy actively selects investments but has no concern for short-term price movements and
