Economic Value Added (EVA) In corporate finance, Economic Value Added (EVA) or ‘Economic Profit’ is a calculation of the financial performance of a company based on the residual income…
Corporate Venture Capital (CVC) Corporate venture capital (CVC) is the practice of directly investing corporate funds into external startup companies. It is the investment of corporate funds directly in…
After Tax Operating Income (ATOI) After all, taxes are collected, after-tax operating income (ATOI) is the income of a corporation or organization operating. The non-GAAP calculation excludes all after-tax gains…
Tax Deduction A tax deduction is a deduction that decreases a person’s tax burden by reducing his or her taxable income. A standard deduction is a single…
Perils of the Sea Perils of the Sea refers to extraordinary forces of nature that maritime ventures might encounter in the course of a voyage. The term ‘perils of…
Profit-Volume (PV) Chart A chart or graph showing profit-volume (PV) illustrates the relationship between profit and volume of sales. Businesses may use profit-volume (PV) charts to set revenue…
Overhead Expenditure Overhead Expenditure Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. Overhead or expenses, refer to those expenses…
Tax Shield A Tax Shield is an eligible deduction for a person or company from taxable income gained by claiming permissible deductions such as mortgage interest, medical…
Tariff Tariff, also known as customs duty, is a type of tax levied on the goods or services imported. Through the price of goods and services…
Organized Market Organized Market is a formal market in a specific place in which buyers and sellers meet to trade according to agreed rules and procedures. This is a…
Initial Investment The initial investment is the amount required to start a business or a project. It is also known as start-up costs are net cash outflows…
Open Market Operations Open Market Operations This refers to the purchase or sale of securities in the market by the central bank on its own initiative to control…