GAP ANALYSIS
- Process in which a firm compares its actual performance to its projected performance to assess if they have met these expectations and used their resources efficiently. It answers two points: current state and target state.
- Asset-liability management technique which can be used to determine interest rate risk or liquidity risk, except credit risk. It is a simple IRR measurement method getting the difference between rate sensitive assets and rate sensitive liabilities over a specific time period. This analysis works best if assets and liabilities are comprised of fixed cash flows. Hence, a substantial shortcoming of gap analysis cannot handle options since options have unknown cash flows.
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Tit for Tat
Game theory mechanism subject to a payoff matrix similar to a prisoner’s dilemma. Anchored on the concepts of retaliation and altruism, this ...
Nonsegregated Disclosures
Information that must be presented legally anywhere in a lease agreement. These are required by the Federal Reserve Board Regulation M. The lease a ...
Product Line
A series of related products which are all made or manufactured by the same company.
Behavioral Economics
The scientific study on how the mind thinks and how each person reacts as it relates to the process of decision making in economics of individuals ...
Infant-Industry Theory
A theory stating the emerging domestic industries must be protected against foreign competition until they become established and mature. In econom ...
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The Types of Stock
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A Guide to Your Personal Income Tax: Basics
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