By W. Davis Folsom, Rick Boulware

ISBN-10: 0816046433

ISBN-13: 9780816046430

Designed for the non-specialist, scholars and common readers, this encyclopedia may help any beginner comprehend the advanced and infrequently complicated innovations and phrases which are utilized in the area of industrial. 5 normal components of commercial are coated: accounting, banking, finance, advertising, and administration. Encyclopedia of yankee enterprise includes entries on subject matters akin to annual file, balanced funds, capital, deflation, alternate fee, joint ventures, advertising inspiration, mutual cash, revenue sharing, and zero-sum online game.

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When funds are obtained with a non-interest-bearing note, the proceeds from that note are less than the face value of the note, requiring the creation of an account called Discount on 17 Note Payable, a contra liability. The account Discount on Note Payable is amortized over the life of the note as interest expense accrues on the borrowed funds. See also DEPRECIATION, DEPLETION, AMORTIZATION. amortized loan An amortized loan is one in which the principal and interest are repaid over time via a series of equal payments made over regular intervals of time.

When a country like the United States has a currentaccount deficit, three things can occur. First, foreigners can exchange the excess dollars for their own currency. This increases the supply of dollars as well as the DEMAND for other currencies, causing the value of the dollar to fall in world currency markets. A decreasing dollar will make imports more expensive and exports cheaper to foreigners, reducing the current account deficit. balance of payments Balance of payments is a summary of a country’s economic exchanges with the rest of the world for a given period of time.

In the United States, personal income taxes are slightly progressive, meaning the marginal tax rate increases as income increases. During periods of peak economic activity, the higher marginal tax rates reduce consumers’ disposable INCOME, which in turn slightly reduces their consumption spending. This automatically slows the rate of growth in the economy, and economists suggest it helps reduce the potential for INFLATION. Similarly, during recessions, when economic output is declining, workers are often laid off or put on temporary furlough.

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Encyclopedia of American Business by W. Davis Folsom, Rick Boulware


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