While the scenarios above reduce the agency problem, they could be seen as agency costs in and of themselves. Dealing with the agency problem is never free. Extra compensation tied to firm performance is a cost that shareholders pay to reduce the agency problem—making it an agency cost. Offe...
Debt is unavoidable for most people and businesses. It can help us make major purchases or help finance our growth. But it's important to understand how it works. Not only are you paying the principal balance, but you're also responsible for the interest. This is referred to as the cost...
Income is the starting point of personal finance. It is the entire amount of cash inflow that you receive and can allocate to expenses, savings, investments, and protection. Income is all the money you bring in. This includes salaries, wages, dividends, and other sources of cash inflow. Spe...
Agency cost is the price that a company pays when managers and shareholders don't have the same vision for the business and their...
This means PPC is typically more cost-effective compared to advertising models that involve paying based on views or impressions that might not lead to any interactions. Depending on your advertising platform, PPC ads can appear in the following places: ...
The Latest in Loan-Level Price Adjustments Recent LLPA matrix revisions by the Federal Housing Finance Agency, which oversees Fannie and Freddie, introduced more favorable terms for homebuyers making low down payments, added credits for low-income homebuyers and increased the credit score needed to ...
There is a difference in cost between these two options. For example, if you asked an insurance company how much would it cost to buy a $500 a month lifetime income under each option, the 2nd type, which reduces on either death, would be cheaper. The reason is that with a "reducing...
This is where KPIs come into play. If you're using lots of marketing strategies, you might be tempted to track every possible metric for each channel. There is nothing wrong with this approach. In fact, you should track as many metrics as you can. ...
It can be said “that value proposition, value architecture, value finance, and value network articulate the primary constructs or dimensions of business models.” (Al-Debei and Avison, 2010). Osterwalder (2004) ontology [structure] of a business model is called the business model canvas (BMC...
Probably the most direct and regulated way to invest in blockchain tech is by investing in stocks of publicly traded companies that are developing blockchain networks. You can also gain indirect exposure by investing in companies involved in decentralized finance, financial technology (FinTech), meta...