The definition of opportunity cost is what we give up when making an economic decision, including the benefits that could have been achieved by choosing the alternative option. This term was a creation of Friedrich with Wieser in his Theory of the Social Economy in 1914. The opportunity cost is, therefore, the different resources that … Read more
When we mention the expression Ceteris paribus we are referring to a term or phrase in Latin (originally Other things being equal) which refers to everything else being constant. It is normally used in economic and financial analysis, to be able to explain certain aspects and save time. When the term ceteris paribus is used, … Read more
The definition of opportunities in the business field refers to the possibility of improving a company. They are positive factors and with the option of being exploited by the company. To recognize opportunities, you have to answer a series of questions such as: What positive opportunities does the business face? What technology changes are taking … Read more
The operating margin is also known as the EBIT margin or the operating margin. It is a financial ratio that expresses the profitability of a specific company, depending on the profits it has obtained, and before taxes are deducted and interests. In order to have this margin, it is necessary to divide the EBIT by … Read more
The concept of Aggregate Offer (OA) is referred to in macroeconomía to the production that companies would be willing to sell based on an average price level, certain costs and certain business expectations. Broadly speaking, companies will want to sell all their output at the highest possible prices. However, both production costs and business expectations … Read more
An obligation is a type of debt instrument that is not secured by physical assets. This type of financing is widely used by both governments and large companies in order to obtain funds or liquidity in the form of a loan. The obligations (debenture in English) are one of the most common forms of financing … Read more
Coming from the Greek, "oligo", few, and, "polio", seller, when in a market there is a small or limited number of producers, compared to all the plaintiffs, it is understood that there is an Oligopoly. Also in this case, the oligopolists are in a privileged situation, which allows them to obtain a greater margin of … Read more
Own funds are the part of the assets of the company that belongs to the owners. It is the part of resources belonging to the company or the company's own financing. The higher the equity of a company, it will have a better image in front of banks and creditors. Formerly known as a synonym … Read more
The definition of OPA refers to the acronym of takeover bid. It is a stock market operation for which a company or person makes an offer for the acquisition of all or part of the shares of a listed entity. bag at a specific price. OPAs are operations motivated by exceptional demands for shares and … Read more
The term outplacement is used very frequently in the business world, more specifically in the sector of human resources. The meaning of outplacement is the different mechanisms that an organization adopts to assist an employee who is left without a job after a restructuring. There are a number of essential aspects that are included in … Read more
