Demand

What is Demand? Definition: The demand for a product or a service is determined by the ability and willingness of consumers to purchase it. It’s important to remember that both conditions must be satisfied. There should be a need for the product or service in question, and this need should be...

Dependency Theory

What is Dependency Theory? Definition: The dependency theory states that rich nations have benefitted tremendously over the years by importing raw materials and commodities from poor countries. But the increase in wealth in the developed world has been at the expense of the poor nations. What does Dependency Theory mean? The...

Depreciation Schedule

What is a Depreciation Schedule? Definition: A depreciation schedule helps a business to keep track of the decline in the value of its long-term assets. All assets do not depreciate at the same rate. The accounting department in a firm uses a depreciation schedule to maintain a record of the reduction...

Detail Oriented

What is Detail Oriented? Definition: A detail oriented person pays close attention to the job at hand and has the ability to stay focused throughout the working day. When handling complex tasks, a person with this attribute will look closely at every aspect of the issue before going to the next...

Diluted Earnings Per Share (EPS)

What is Diluted Earnings Per Share (EPS)? Definition: Diluted earnings per share (EPS) convey the earnings figure after considering that all outstanding convertible securities have been exercised. It is different from the basic EPS, which tells us the earnings per share for the shares that are currently outstanding. What does Diluted...

Diminishing Marginal Product

What is Diminishing Marginal Product? Definition: An increase in one input while holding other inputs steady will lead to a rise in output. But this rise will not be consistent. The increase in output may be substantial in the initial stages, but additional units of the input will lead to slower...

Discount Rate

What is a Discount Rate? Definition: The term “discount rate” can be used to mean:⇨ The rate at which a future cash flow is discounted to determine its present value.⇨ The Fed discount rate, which is the rate of interest charged by the U.S. Federal Reserve when it lends to banks....

Discretionary Expenses

What are Discretionary Expenses? Definition: Non-essential expenses, or those that can be cut down without impacting day-to-day activities, are referred to as being discretionary expenses. What do Discretionary Expenses mean? A company may reduce or even eliminate its advertisement expenditure and not experience an immediate decline in sales. Similarly, if an...

Diversification

What is Diversification? Definition: The level of risk that an investment portfolio is exposed to can be managed through diversification. It is also possible to enhance investment returns by diversifying your holdings. A diversified investment portfolio is one that deploys its funds in different financial securities and a range of asset...