Land Flip

What is a Land Flip? Definition: A land flip is a type of scam involving the sale of property at a price that is far higher than its real market value. Several people get together and sell and resell the same property to each other at increasing prices. Finally, they dispose...

Lean Business Model

What is Lean Business Model? Definition: The lean business model strives to make the manufacturing process as efficient as possible. It does this by reducing waste, decreasing machine downtime, and trying to deliver the greatest possible value to the customer. What does Lean Business Model mean? According to the tenets of...

Line of Credit

What is a Line of Credit? Definition: A line of credit allows a customer to borrow from a bank or a financial institution in a flexible manner. What this means is that a line of credit for, say, $100,000 may be established, but the borrower may draw only the sum that...

Liquidation

What is Liquidation? Definition: Liquidation is the process of closing down the operations of a company and selling its assets to pay off creditors and other stakeholders. A company may undergo voluntary liquidation or it may be forced to go into liquidation by the court if it is unable to meet...

Loan Principal

What is a Loan Principal? Definition: The loan principal is the amount that has been lent to the borrower. If a company applies to a bank for a loan and receives a sum of, say, $1 million, then this initial amount is referred to as the loan principal.The term could also...

Marginal Analysis

What is Marginal Analysis? Definition: Marginal analysis can be used to determine the impact on output that results from a small change in input.  A marginal change, usually of one unit, is made in one variable to see the effect that it has on the level of production or on profits....

Marginal Benefit

What is Marginal Benefit? Definition: Marginal benefit is the advantage or enjoyment that is obtained by consuming one additional unit of a product. This benefit typically decreases as more units are consumed. What does Marginal Benefit mean? The utility of a good or a service is based on the benefit that...

Marginal Cost

What is Marginal Cost? Definition: Marginal cost is defined as the change that takes place in total cost when an additional unit of output is produced. Businesses track their marginal cost so that they can optimize their production levels. What does Marginal Cost mean? The cost of production consists of fixed...

Marginal Product

What is Marginal Product? Definition: Marginal product refers to the additional output that is obtained by adding one unit of input. The output could be in the form of a product manufactured in a factory or a service provided by a business. The extra input could be in the form of...