What Is Disbursement?Disbursement means paying out money. The term disbursement may be used to describe money paid into a business' operating budget, the delivery of a loan amount to a borrower, or the payment of a dividend to shareholders. Money paid by an intermediary, such as a lawyer's payment to a third party on behalf of a client, may also be called a disbursement. To a business, disbursement is part of cash flow. It is a record of day-to-day expenses. If cash flow is negative...

What Is Disbursement?Disbursement means paying out money. The term disbursement may be used to describe money paid into a business' operating budget, the delivery of a loan amount to a borrower, or the payment of a dividend to shareholders. Money paid by an intermediary, such as a lawyer's payment to a third party on behalf of a client, may also be called a disbursement. To a business, disbursement is part of cash flow. It is a record of day-to-day expenses. If cash flow is negative...

What Is an Unlimited Liability?Unlimited liability refers to the full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners’ personal assets, which is different than the popular limited liability business structure. 0 seconds of 1 minute, 15 secondsVolume 75% 1:14Unlimited LiabilityKEY TAKEAWAYSAn unlimited liability company involves general partners and sole propri...

What Is an Unlimited Liability?Unlimited liability refers to the full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners’ personal assets, which is different than the popular limited liability business structure. 0 seconds of 1 minute, 15 secondsVolume 75% 1:14Unlimited LiabilityKEY TAKEAWAYSAn unlimited liability company involves general partners and sole propri...

What Is Unlevered Beta ?Beta is a measure of market risk. Unlevered beta (or asset beta) measures the market risk of the company without the impact of debt. 'Unlevering' a beta removes the financial effects of leverage thus isolating the risk due solely to company assets. In other words, how much did the company's equity contribute to its risk profile.KEY TAKEAWAYSLevered beta (commonly referred to as just beta or equity beta) is a measure of market risk. Debt and equity are fa...

What Is Unlevered Beta ?Beta is a measure of market risk. Unlevered beta (or asset beta) measures the market risk of the company without the impact of debt. 'Unlevering' a beta removes the financial effects of leverage thus isolating the risk due solely to company assets. In other words, how much did the company's equity contribute to its risk profile.KEY TAKEAWAYSLevered beta (commonly referred to as just beta or equity beta) is a measure of market risk. Debt and equity are fa...

What Is a Joint Probability?Joint probability is a statistical measure that calculates the likelihood of two events occurring together and at the same point in time. Joint probability is the probability of event Y occurring at the same time that event X occurs.The Formula for Joint Probability IsNotation for joint probability can take a few different forms. The following formula represents the probability of events intersection: \begin{aligned} & P\ \left ( X\bigcap Y \right ) \\ &\textbf{whe...

What Is a Joint Probability?Joint probability is a statistical measure that calculates the likelihood of two events occurring together and at the same point in time. Joint probability is the probability of event Y occurring at the same time that event X occurs.The Formula for Joint Probability IsNotation for joint probability can take a few different forms. The following formula represents the probability of events intersection: \begin{aligned} & P\ \left ( X\bigcap Y \right ) \\ &\textbf{whe...

What Does Not for Profit Mean?Not-for-profit organizations do not earn profits for their owners. All of the money earned by or donated to a not-for-profit organization is used in pursuing the organization’s objectives and keeping it running; income is not distributed to the group’s members, directors, or officers.1 Typically, organizations in the nonprofit sector are tax-exempt charities or other types of public service organizations; as such, they are not required to pay most taxes. Some wel...

What Does Not for Profit Mean?Not-for-profit organizations do not earn profits for their owners. All of the money earned by or donated to a not-for-profit organization is used in pursuing the organization’s objectives and keeping it running; income is not distributed to the group’s members, directors, or officers.1 Typically, organizations in the nonprofit sector are tax-exempt charities or other types of public service organizations; as such, they are not required to pay most taxes. Some wel...

What Is a Quarter (Q1, Q2, Q3, Q4)?A quarter is a three-month period on a company's financial calendar that acts as a basis for periodic financial reports and the paying of dividends. A quarter refers to one-fourth of a year and is typically expressed as Q1 for the first quarter, Q2 for the second quarter, and so forth. For example, a quarter is often shown with its relevant year, as in Q1 2021 or Q121, which represents the first quarter of the year 2021.KEY TAKEAWAYSA quarter is a three...

What Is a Quarter (Q1, Q2, Q3, Q4)?A quarter is a three-month period on a company's financial calendar that acts as a basis for periodic financial reports and the paying of dividends. A quarter refers to one-fourth of a year and is typically expressed as Q1 for the first quarter, Q2 for the second quarter, and so forth. For example, a quarter is often shown with its relevant year, as in Q1 2021 or Q121, which represents the first quarter of the year 2021.KEY TAKEAWAYSA quarter is a three...

What Is Unlevered Free Cash Flow (UFCF)?Unlevered free cash flow (UFCF) is a company's cash flow before taking interest payments into account. Unlevered free cash flow can be reported in a company's financial statements or calculated using financial statements by analysts. Unlevered free cash flow shows how much cash is available to the firm before taking financial obligations into account. UFCF can be contrasted with levered cash flow (LFCF), which is the money left over after all ...

What Is Unlevered Free Cash Flow (UFCF)?Unlevered free cash flow (UFCF) is a company's cash flow before taking interest payments into account. Unlevered free cash flow can be reported in a company's financial statements or calculated using financial statements by analysts. Unlevered free cash flow shows how much cash is available to the firm before taking financial obligations into account. UFCF can be contrasted with levered cash flow (LFCF), which is the money left over after all ...

What Is an Endowment?An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution’s investable assets, also known as its “principal” or “corpus,” which is meant to be used for operations or programs that are consistent with the wishes of the donor(s). Most endowments are designed to keep the principal amount intact while using the investment in...

What Is an Endowment?An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution’s investable assets, also known as its “principal” or “corpus,” which is meant to be used for operations or programs that are consistent with the wishes of the donor(s). Most endowments are designed to keep the principal amount intact while using the investment in...

What Is Business-to-Consumer (B2C)? The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies. B2C became immensely popular during the dotcom boom of the late 1990s when it was mainly used to refer to online retailers who sold products and services to consumers through the internet. As a...

What Is Business-to-Consumer (B2C)? The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies. B2C became immensely popular during the dotcom boom of the late 1990s when it was mainly used to refer to online retailers who sold products and services to consumers through the internet. As a...

What Is Systematic Sampling?Systematic sampling is a type of probability sampling method in which sample members from a larger population are selected according to a random starting point but with a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population size by the desired sample size. Despite the sample population being selected in advance, systematic sampling is still thought of as being random if the periodic interval is determined b...

What Is Systematic Sampling?Systematic sampling is a type of probability sampling method in which sample members from a larger population are selected according to a random starting point but with a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population size by the desired sample size. Despite the sample population being selected in advance, systematic sampling is still thought of as being random if the periodic interval is determined b...

What Is a Harmonic Mean?The harmonic mean is a type of numerical average. It is calculated by dividing the number of observations by the reciprocal of each number in the series. Thus, the harmonic mean is the reciprocal of the arithmetic mean of the reciprocals. The harmonic mean of 1, 4, and 4 is: \frac{3}{\left(\frac{1}{1}\ +\ \frac{1}{4}\ +\ \frac{1}{4}\right)}\ =\ \frac{3}{1.5}\ =\ 2(11​ + 41​ + 41​)3​ = 1.53​ = 2 The reciprocal of a number n is simply 1 / n.The Basics of a Harmonic MeanT...

What Is a Harmonic Mean?The harmonic mean is a type of numerical average. It is calculated by dividing the number of observations by the reciprocal of each number in the series. Thus, the harmonic mean is the reciprocal of the arithmetic mean of the reciprocals. The harmonic mean of 1, 4, and 4 is: \frac{3}{\left(\frac{1}{1}\ +\ \frac{1}{4}\ +\ \frac{1}{4}\right)}\ =\ \frac{3}{1.5}\ =\ 2(11​ + 41​ + 41​)3​ = 1.53​ = 2 The reciprocal of a number n is simply 1 / n.The Basics of a Harmonic MeanT...

What Is Leverage?Leverage results from using borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.KEY TAKEAWAYSLeverage refers to the use of debt (borrowed funds)...

What Is Leverage?Leverage results from using borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.KEY TAKEAWAYSLeverage refers to the use of debt (borrowed funds)...