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A Power of Attorney is a legal instrument that is used to delegate legal authority to another. The Principal is the person who signs, or executes, a Power of Attorney. The Power of Attorney gives legal authority to an Agent or Attorney-in-Fact to make property, financial and other legal decisions on behalf of the Principal.
An Agent can be given broad legal authority or very limited authority by a Pricnipal. The Power of Attorney is generally used to help in the event of the illness or disability of a Principal, or in legal transactions where the Principal cannot be present to sign necessary legal documents.
You may read up more on Power of Attorney by clicking here.
The expression Fixed Yield means that the yield, or gain, on a money instrument is set at a fixed, or constant, rate. It is often referred to as a Fixed Yield Income which would have the same meaning, only that the money instrument would be income. The rate does not change or alter over the course it runs regardless of economic or other social factors. This strategy helps to keep money instruments in check so that if for some reason expected rates of return are not achieved, there would not be any extra monetary pressure on the company or institution that has enforced the Fixed Yield plan.
For example, a company may hire 20 workers to pack boxes of bananas for export. They are paid a salary of $12,000 per annum with a Fixed Yield of 5% per annum on their incomes. This means that at the end of each financial year, they would be entitled to a fixed salary increase of 5% regardless of how good or bad business is. So we say that they a Fixed Yield Income. Another example of Fixed Yield would be a business investing money into a viable project in tandem with another business. The rate of return is set at a particular figure or percentage, meaning that the gain that is made on their investments is fixed. So they would be getting a Fixed Yield on their investments.
A Trade Deficit occurs when a country imports goods valued at more than goods that they are exporting. This is not good for a country as they are in fact spending more than they are earning. What will happen eventually is that they will have to borrow money on the world market to take care of the business of running the country, putting it in debt. As the debt accumulates, the country will be pressured to take drastic measures to try and repay the debt and more than likely borrow more money from one place to pay another, resulting in a vicious cycle.
To give an example of a Trade Deficit, a country may import goods valued at $200 million and export goods valued at $10 million dollars. The trade deficit would then be $190 million.
I am sure that you have heard about companies offering rebates on purchases. A Rebate is simply a sales promotion technique in which the customer is offered a return on the price of purchased goods, whether in single units or in bulk. This applies or can apply to any purchase, be it electronics, clothing, merchandise, you name it. This type of promotion helps to boost sales as customers are normally happy to get something back from the merchants they do business with. However, there are times when certain terms have to be met in order for a rebate to be applied.
An example of that would be of a cell phone dealer offering a 45% rebate on phones purchased before a certain date or that the customer has to fill out a one year plan with a cellular provider to get 100% rebate on cell phones. Another example would be of a clothing wholesaler offering 25% rebate on all winter clothes that are bought during summer. In all three cases, there were certain stipulations that had to be met in order for the customer to get a rebate.
LIFO, or “Last In First Out“, is a method of inventory control where stock that was purchased last is sold before stock that was purchased before. To put it another way, products that were last placed in the store are sold or used before older produced or acquired goods or materials. This kind of stock rotation ensures that fresh stock is always available for sale. In most cases, previously acquired goods would have already been on the shelves awaiting sale.
For example, a store owner purchases some goods on the ninth of January and then makes another purchase on the eighth of February. The goods that were purchased during February would be put out for sale in front of the goods that were purchased in January. Hence, the Last goods that came In are the First goods to go Out.
FIFO, or “First In First Out“, is a method of inventory control where stock that was purchased first is sold before stock that was purchased after. To put it another way, products that were first placed in the store are sold or used before more recently produced or acquired goods or materials. This ensures that stock does not spoil or expire before they are sold.
For example, a shop keeper buys some goods on the first of April. He then makes another purchase on the tenth of the same month. The goods that were purchased on the first of the month would be put out for sale ahead of the goods that were purchased on the tenth. Hence, the First goods that came In are the First goods to go Out.
A Trade Barrier is a condition that is imposed by a government to limit the free exchange of goods internationally. Another term that can be used for it is Trade Sanctions. There are differing reasons why any government would impose trade barriers upon a country. We can think of the one that exists now between the United States and Cuba. The trade barrier is in place because of Cuba’s communist government. This means that Cuba is unable to freely exchange goods with the U.S. and any other territory that it controls. This of course affects Cuba’s economy and is aimed at breaking communist rule in that country.
Trade Barriers are also imposed on countries internationally for these other reasons:
1. Civil war in the country that is hurting international trade
2. A style of government that is not accepted by its trading partners
3. Illegal activities on the world market that continue unchecked
4. The presence of certain diseases in a country that could affect the population or economy of its trading partners
5. Where agriculture is concerned, the presence of pests and other conditions that could affect the agricultural industry of a trading partner nation
Recession is defined as a stage of the business cycle in which economic activities go into a slow decline. As history has showed, recession usually follows a boom and comes before a depression. One of the main characteristics of recession is rising unemployment and falling levels of output and investment. In this state, the economy in general of a country can go into recession and thus affect all businesses.
Have you ever wanted to borrow money but just never had the collateral that is needed? Many persons have been faced with that dilema. It is now possible to have an unsecured debt (spin-off from an unsecured loan). An Unsecured Debt is money that is borrowed without supplying any collateral. This means that anybody can now get a loan without needing to have a house or car or land.
This is a high risk debt, however, because if the borrower falls into hard times, the debt may never be fully repaid. Banks and other lending institutions implemented the Unsecured Debt policy to level the playing field, allowing just about anybody the ability to access a loan.
Venture Capital is the money that is used to finance new companies or projects, especially those that have high earning potential and high risk. The source of this type of capital varies but does not really matter as long as it can be found. So if an individual wants to start up a company that sells water, but doing so in a violent neighbourhood, Venture Capital is what the individual would need. The deal with it is that water has high earning potential since evryone needs water to survive. The neighbourhood would make setting up the business high risk because of its violent legacy whcihmay include robberies and so on. Nonetheless, it is still possible to setup the business despite that.
