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Definition A bond indenture is a legal document that lays down the terms and conditions associated with the issue of bonds by a company. It becomes a crucial document if the issuer faces financial difficulties and is unable to meet its commitment to pay interest or repay the principal amount. What does...

Definition A purchase requisition is put up by a user to the purchasing department within the company. On the basis of this requisition, the purchasing department arranges to procure the required material from a supplier. What does purchase requisition mean? In most companies, individual departments are not allowed to raise purchase orders directly....

Definition Total manufacturing cost is the amount that a company spends on producing goods in a specific period. It includes direct labor, direct materials, and manufacturing overheads. What does total manufacturing cost mean? Calculating the total manufacturing cost allows a firm to determine the sum that it is spending to make the goods...

Definition Slow economic growth accompanied by inflation is referred to as stagflation. When the economy is in this condition, prices rise, productivity falls, and unemployment increases. What does stagflation mean? Stagflation is highly detrimental to a nation’s economy. Left unchecked, it can spiral out of control and lead to further economic distress. A...

Definition The supply of a good is said to be inelastic if a change in the price offered for it does not result in a proportionate change in the quantity supplied. What does inelastic supply mean? Consider a situation where a particular good is selling for $100. At this price, producers supply one...