What is Book Value Reduction? A book value reduction lowers the value at which an asset is carried on the books. This reduction occurs because changes in the asset or market conditions have reduced its current market value. Key Takeaways A book value reduction is the result of the decreased market value of an asset.Book
What Is Boolean Algebra? Boolean algebra is a division of mathematics that deals with operations on logical values and incorporates binary variables. Boolean algebra traces its origins to an 1854 book by mathematician George Boole. The distinguishing factor of Boolean algebra is that it deals only with the study of binary variables. Most commonly Boolean
What Is the Boom and Bust Cycle? The boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle. During the boom the economy grows, jobs are plentiful and the market
What Are Boomerang Children? Boomerang children, or boomerang kids, are terms used to describe the phenomenon of an adult child returning home to live with their parents for economic reasons after a period of independent living. In 2016, 15% of millennials lived in their parents’ home, according to a Pew Research Center analysis of monthly
What Is the Booth School of Business? The University of Chicago’s Booth School of Business—often referred to colloquially as the “Booth School”—is the graduate business school of the University of Chicago. It is generally considered one of the finest graduate business schools in the world, with its Master of Business Administration (MBA) program rated as
What Is Bootstrapping? Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when they attempt to found and build a company from personal finances or the operating revenues of the new company. Bootstrapping also describes a
What Is the Balance of Payments (BOP)? The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year. It summarizes all transactions that a country’s individuals, companies, and government
What Is a Bordereau? A bordereau is a report prepared by an insurance company for a reinsurance company detailing either the assets that are covered in part by the reinsurance firm or the actual claims that have been made for damage to property protected by a contract between the two companies. In the language of the
What Is the Bornhuetter-Ferguson Technique? The Bornhuetter-Ferguson technique is a method for calculating an estimate of an insurance company’s losses. The Bornhuetter-Ferguson technique, also called the Bornhuetter-Ferguson method, estimates incurred but not yet reported (IBNR) losses for a policy year. This technique was created by two actuaries, Bornhuetter and Ferguson, and was first presented in 1975.
What Is Borrowed Capital? Borrowed capital consists of money that is borrowed and used to make an investment. It differs from equity capital, which is owned by the company and shareholders. Borrowed capital is also referred to as “loan capital” and can be used to grow profits but it can also result in a loss
