Archives: Terms

Definition of Agency Theory Agency theory is a branch of economics dealing with the relationship between parties (known as the “principal” and the “agent”) in which one party (the agent) is engaged to act on behalf of another party (the principal). This relationship inherently involves some degree of trust and […]

Definition of the Agency Problem The agency problem occurs when there is a conflict of interest between the desires or objectives of a principal and an agent. In this context, the “principal” refers to an individual or organization that has authorized another, the “agent,” to perform services or make decisions […]

Definition of Agency Cost Agency cost is a type of internal company expense that arises from the conflicts of interest among stakeholders, particularly between owners (principals) and company executives or managers (agents). This concept is rooted in agency theory, which explores these conflicts within a firm. The cost primarily results […]

Definition of Age-Earnings Profile An age-earnings profile is a graphical representation that shows how individuals’ earnings change as they age. Typically, it reflects the average income people earn at various stages of their lives. The profile usually starts low as individuals enter the workforce, increases as they gain experience and […]

Definition of After-Tax Income After-tax income, also known as net income, is the amount of money an individual or entity has left after all federal, state, and withholding taxes have been deducted from their gross income. It represents the actual earnings that can be spent, saved, or invested by the […]

Definition of After-sales Service After-sales service refers to the support provided by a company to its customers after a product has been purchased. This can include various forms of customer assistance such as installation, maintenance, training, troubleshooting, upgrades, or the processing of returns and warranties. The quality of after-sales service […]

Definition of Adverse Supply Shock An adverse supply shock refers to a sudden and unexpected event that significantly decreases the supply of a good or service, leading to increased production costs and causing the supply curve to shift to the left. This reduction in supply can result from various factors, […]

Definition of Competitive Advantage A competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position. It means that the company is able to generate greater sales or margins and/or retain more customers than its competitors. This advantage can result from a variety […]

Unfortunately, it looks like the text for “advance corporation tax” is missing. However, I can provide a comprehensive explanation, including a definition, examples, and frequently asked questions, similar to the format of the previous entries. Definition of Advance Corporation Tax Advance Corporation Tax (ACT) was a mechanism under which companies […]

Definition of Administration Administration refers to the process and activities involved in managing the operations of a business, organization, or governmental body. It encompasses a wide range of functions, including planning, organizing, directing, and controlling resources to achieve organizational objectives. Administration involves the efficient allocation of resources, both human and […]