JOHN

Its a market pricing method in which costs are deducted from what customers are willing to pay, to see if an adequate profit margin is possible.

Statement Formation:

Amway the well known company, used the backward pricing method to price its skin care products

Redundancy is the state of not or no longer needed or useful.

Statement Formation:

The redundancy of the 19th Century heavy Plant & Machinery is because of better inventions. 

Its the process of removing a currency from general usage or circulation when there is a change of national currency.

Eg and Statement Formation:

Gold was demonetized, when it ceased to be used as an everyday currency.

A marketing technique of offering two or more complementary goods or services together as a package deal. Bundled items are sold at a price attractively lower than the total of their individual selling prices. 

Sentence Formation:

By bundling both premium television set top box and high speed internet, AirTel was able to maintain high sales in…[Read more]

An individual who actively takes part in a conversation with other individuals; someone who speaks or facilitates a conversation is called an Interlocutor

Sentence Formation:

I was one of the interlocutors during the group discussions in the 5-day EQSIS Training Programme. 

Equity Theory is a concept that people derive job satisfaction and motivation by comparing their efforts (inputs) and outcome (outputs) with those of the other people in the same or other firms.

Sentence Formation:

He did not believe in the equity theory and subscribed to the idea that people were happy when they did not have to do any…[Read more]

A Pyramid Scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or supply of products or services. As the recruiting multiplies, recruiting becomes quickly impossible and most members are unable to make a profit. Such Pyramid Schemes are u…

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Hedging means reducing risk

A Hedge Fund is an investment fund usually used by wealthy individuals and institutions. Hedge Funds are exempt from many rules and regulations governing other mutual funds which allows them to accomplish aggressive investing goals. They are restricted by law to no more than 100 investors per fund and as a result most…

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A  p/e Ratio (Price-Earnings Ratio) is used to determine how much investors are willing to pay for a stock relative to a company’s earnings.

Its calculated by dividing the current price of a stock with the company’s earnings per share

Wash Trading is an illegal trade practice in which a trader buys stocks through one broker and sells them through another broker. The trader does not incur any market risks, but does this to manipulate the market and encourage other investors to move into a buying position.

A Blue Chip Stock is a stock of an established company that has consistently shown qualities like generating consistent earnings, paying generous dividends or increasing revenue

They are generally regarded as safe and sound investments due to their financial strength and market reputation, also they are less riskier.

Two most popular lists of B…[Read more]

Abilene Paradox refers to a situation wherein no member of a group decides to contest a decision taken by the group, believing it to be the consensus of everyone, when in reality, none of the group members agree with the decision. However, none of them speak up for the fear of going against the wishes of others and end up regretting for not…

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A Trading System which involves human decision making for entering and exiting trades.

Manual Trading is a traditional trading approach where a trader analyses the market, enters, manages and exits a trade by their own observations.

Sentence Formation:

Excessive human input is required to do Manual Trading.

Core Competency/Distinctive Competency is a unique ability that a company acquires or develops, and that which cannot be easily imitated. Core Competencies are what which gives a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field.

Eg and Sentence Formation: 

The Core Competencies of W…[Read more]

A Conglomerate, is a large corporation run as a single business, but made up of several firms (acquired through mergers or takeovers) supplying diverse goods/services.

Eg and Statement Formation:

Samsung is a large multi-national conglomerate supplying differentiated products all over the world under one name. 

(β) BETA is a numeric value that measures the fluctuations of a stock to changes in the overall stock market.

BETA measures the responsiveness of a stock’s price to changes in the overall stock market. BETA helps the investor to decide whether he wants to go for the riskier stock that is highly correlated with the market (beta above 1), or with a…[Read more]

A measurement of the quality standards of an organization’s policies, products, programs, strategies etc.. and their comparison with standard measurements of its peers.

The objectives of Bench-marking are:

• To determine what and where improvements are called for.
• To analyze how other organizations  achieve their high performance levels.
• To…

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Sawbuck is a term used to denote a 10 dollar bill in the U.S

The slang is derived from the Roman Numeral for X, since it looks like a sawbuck (a device used for sawing wood into pieces)

Sentence Formation:

The gentleman was glad to receive a Sawbuck when he expected only nine dollars and change.