BACKWARD INTEGRATION
A type of vertical which involves the purchase of suppliers. Companies will take backward integration it will lead to a cost savings and improved efficiency, For example, backward integration may decrease cost of transportation, increase profit margins and induce more competitiveness on the firm,
Contrary to it, forward integration is a kind of vertical integration which involves the control or purchase of distributors.
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Target Return
Pricing model used in valuing a business based on what an investor expects from any capital invested in the firm. It is computed by adding the amou ...
Remainder Man
An individual who receives the remaining principal in a trust account after all required payments have been made, such as those to the beneficiary ...
Average Collected Balance
The total average of the collected funds in a bank account in a month. The balance is calculated by adding the collected balance and dividing it by ...
Bankable Funds
Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typica ...
Prudent-Person Rule
A legal maxim that restricts the discretion in a client's account to investments that a prudent person seeking reasonable income and preservati ...
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