“Accounting profit” and “economic profit” are two key financial terms that businesses must keep track of to monitor their performance and control expenses. Today’s blog post will discuss these two terms in detail. Economic Profit Economic profit is estimated based on assumptions and is a theoretical value. Economic profit measures the business’s profitability and includes …
The “three-second rule” in negotiation practice is not scientifically proven. Negotiation is a complex and multifaceted process that involves different strategies, depending on the context. However, the “three-second rule” in negotiation can be used as a guideline so as not to make decisions or give responses too quickly during a negotiation. The effectiveness of this …
Every business wants growth. Growth can happen in many ways (e.g., entering new markets, developing new products, or increasing sales in existing markets). All these events can happen either in isolation or combination, and they can all help businesses grow. All these forms of growth are organic forms of growth. Mergers and acquisitions (M&A) are …
A business has a continuous cash inflow and outflow. They sell products and services and earn revenue. However, earned revenue is typically not equal to cash-on-hand. It takes time for a business to receive revenue after providing a service. For small businesses, this duration could be a few moments to a few days, but for …