instruction
stringlengths
5
1.05k
output
stringlengths
6
22.3k
input
stringclasses
1 value
what happens if you don t pay your franchise tax
different states have penalties for late payments of franchise taxes which the franchise tax board will track and penalize corporations for in delaware the penalty for non payment or late payment is 200 with an interest of 1 5 per month 1the bottom linefranchise taxes allow corporations to do business within a state th...
what is a franchisee
a franchisee is an independent business owner who operates a third party retail outlet called a franchise in doing so the franchisee has purchased the right to use an existing business s trademarks associated brands and proprietary knowledge to market and sell the same brand and uphold the same standards as the first b...
when a business wants to garner more market share or increase its geographical presence at a low cost one solution is to create a franchise using its product and brand name the franchisor is the original or existing business that sells the right to use its name and idea the franchisee is the individual who purchases th...
the franchisee franchisor relationshipthe relationship between a franchisee and a franchisor is inherently one of advisee and advisor the franchisor provides guidance and support on hiring and training staff setting up shop advertising its products or services sourcing its supply and so on in return for the franchisor ...
does a franchisee own a business
yes a franchisee is the owner of the business the owner is licensed to use products supplied by the franchisor the franchisee is contractually obligated to use only products and services supplied by or authorized by the franchisor this limits the business owner s scope and autonomy a mcdonald s franchisee cannot sell a...
is a franchisee the same as a franchisor
no the franchisor is the entity that owns the intellectual property patents and trademarks of the brand or business being franchised a franchisee buys the right to operate a location of the franchisor can a franchisee be fired or removed a franchisee can effectively be fired the franchisor can shut down one of its lice...
what is a franked dividend
a franked dividend is an arrangement in australia that eliminates the double taxation of dividends the shareholder can reduce the tax paid on the dividend by an amount equal to the tax imputation credits 1 an individual s marginal tax rate and the tax rate for the company issuing the dividend affect how much tax an ind...
what is fraud
fraud is an intentional act of deceit designed to reward the perpetrator or to deny the rights of a victim some of the most common types of fraud involve the insurance industry the stock market and the mortgage market but the targets usually include individuals as well as businesses sydney saporito investopediaundersta...
what is a recent example of a massive financial fraud
sam bankman fried founder and chief executive of the cryptocurrency exchange ftx was convicted of misappropriating about 8 billion of his customers deposits he stole the money for his personal use to pay off loans and to make political contributions he was sentenced to 25 years in prison on march 28 2024 5
what is medical fraud
most medical fraud involves false billing of insurance companies or the federal medicaid and medicaid systems for patient care that was never performed or was performed unnecessarily the fraud may be perpetrated by medical professionals by dishonest third party vendors by con artists pretending to be medical profession...
what is identity theft
identity theft is the use of an individual s personal or financial information to carry out fraud in that person s name identity theft has ballooned in recent years because there are so many ways to steal information beyond straightforward pickpocketing most are digital methods like installing skimmers at atms and fuel...
the federal home loan mortgage corp fhlmc or freddie mac is a stockholder owned government sponsored enterprise gse chartered by congress in 1970 to keep money flowing to mortgage lenders which in turn supports homeownership and rental housing for middle income americans
freddie mac purchases guarantees and securitizes home loans and is a mainstay of the secondary mortgage market 1history of freddie macfreddie mac was created when congress passed the emergency home finance act in 1970 a wholly owned subsidiary of the federal home loan bank system fhlbs it represented an attempt to redu...
how freddie mac works
the federal home loan mortgage corp or freddie mac was created to enhance the flow of credit to different parts of the economy along with fannie mae it is a key player in the secondary mortgage market freddie mac doesn t originate or service home mortgages rather it buys home loans from banks and other commercial mortg...
how hard is it to get a freddie mac loan
to get a freddie mac loan you will have to meet the lender s criteria depending on the size of the loan you ll need a certain income as well as credit score to qualify you can receive a pre qualification letter that will let you know what amount of loan you can qualify for but this pre qualification is not a guarantee ...
do you need a down payment for a freddie mac loan
you do need a down payment for freddie mac loans however if you meet certain qualifications you can get a loan for as little as 3 down 6
does freddie mac have a 3 down program
freddie mac does have a program in which you can put 3 down on a home you must qualify for this program called homeone which serves first time buyers or cash out refinance borrowers you can use this loan to buy a single family home townhome or condo 6the bottom linethe federal home loan mortgage corp fhlmc or freddie m...
what is free carrier fca
free carrier is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer when used in trade the word free means the seller has an obligation to deliver goods to a named place for transfer to a carrier the destination is typically an airport shi...
how free carrier fca works
buyers and sellers engaged in economic trade requiring the shipment of goods can use fca shipping terms to describe any transportation point regardless of the number of transportation modes involved in the shipping process the point must be a location within the seller s home country however it s the seller s duty to s...
what is the difference between fca and fob
fca and fob are shipment terms used in different types of transportation fob delivery applies only to sea shipments and occurs when cargo is loaded onto a vessel loading the goods onto the vessel is the seller s responsibility under fca many more types of transport are allowable and loading onto the carrier is the buye...
what is the difference between fca and ddp
under ddp shipping terms the seller has to pay for the transportation costs in addition the seller holds all risks and responsibilities for the transportation of the goods until the buyer receives them fca shipping terms are usually paid for by the buyer since the carrier is nominated by the buyer who pays for fca ship...
what is free cash flow fcf
free cash flow fcf represents the cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets unlike earnings or net income free cash flow is a measure of profitability that excludes the non cash expenses of the income statement and includes spending on equipme...
how to define good free cash flow
fortunately most financial websites provide a summary of fcf or a graph of fcf s trend for most public companies however the real challenge remains what constitutes good free cash flow many companies with very positive free cash flow also have dismal stock trends and the opposite can also be true using the trend of fcf...
how is free cash flow calculated
there are two main approaches to calculating fcf the first approach uses cash flow from operating activities as the starting point and then makes adjustments for interest expense the tax shield on interest expense and any capital expenditures capex undertaken that year the second approach uses earnings before interest ...
what does fcf indicate
free cash flow indicates the amount of cash generated each year that is free and clear of all internal or external obligations in other words it reflects cash that the company can safely invest or distribute to shareholders while a healthy fcf metric is generally seen as a positive sign by investors it is important to ...
how important is fcf
free cash flow is an important financial metric because it represents the actual amount of cash at a company s disposal a company with consistently low or negative fcf might be forced into costly rounds of fundraising in an effort to remain solvent if a company has enough fcf to maintain its current operations but not ...
what is free cash flow to equity fcfe
free cash flow to equity fcfe is a measure of how much cash is available to the equity shareholders of a company after all expenses reinvestment and debt are paid fcfe is a measure of equity capital usage understanding free cash flow to equity fcfe free cash flow to equity is composed of net income capital expenditures...
what does fcfe tell you
the fcfe metric is often used by analysts in an attempt to determine the value of a company this method of valuation gained popularity as an alternative to the dividend discount model ddm especially if a company does not pay a dividend although fcfe may calculate the amount available to shareholders it does not necessa...
where
this model is used to find the value of the equity claim of a company and is only appropriate to use if capital expenditure is not significantly greater than depreciation and if the beta of the company s stock is close to 1 or below 1
what is free cash flow to equity fcfe made of
capital expenditures debt net income and working capital comprise free cash flow to equity fcfe
what is the formula for fcfe
add capital expenditures and net debt issued then subtract cash from operations and you have free cash flow to equity who uses fcfe analysts often use free cash flow to equity to try to determine a company s valuethe bottom linefree cash flow to equity measures how much cash is available to a company s equity sharehold...
what is free cash flow to the firm fcff
free cash flow to the firm fcff represents the amount of cash flow from operations available for distribution after accounting for depreciation expenses taxes working capital and investments fcff is a measurement of a company s profitability after all expenses and reinvestments it is one of the many benchmarks used to ...
what is free cash flow yield
free cash flow yield is a financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share the ratio is calculated by taking the free cash flow per share divided by the current share price 1 free cash flow yield is similar in nature to the earnings yie...
what does the free cash flow yield reveal
generally the lower the ratio the less attractive a company is as an investment because it means investors are putting money into the company but not receiving a very good return in exchange a high free cash flow yield result means a company is generating enough cash to easily satisfy its debt and other obligations inc...
what is free enterprise
the term free enterprise refers to an economy where the market determines prices products and services rather than the government businesses and services are free from government control in a free enterprise environment free enterprise is characterized by different factors including private property rights alternativel...
what is the main goal of free enterprise
the main goal of free enterprise is to allow citizens to dictate market and decide the value of trade instead of relying on government intervention or public policy free enterprise s main goal is to allow markets to move themselves without constraint self discovering efficiencies and inaccuracies
what is the main benefit of free enterprise
some may argue the main benefit of free enterprise is freedom in one sense individuals may transact with little to no restricting barriers especially those set by policy or trade regulation in another sense individuals are allowed to creatively express and transact based on a seemingly endless range of consumer choices...
what is the difference between capitalism and free enterprise
free enterprise and capitalism are related though the two terms are different free enterprise refers to how a free market system has minimal barriers regarding the exchange of wealth or transacting of goods and services on the other hand capitalism is primarily centered on the creation of that wealth or production of t...
what is the difference between socialism and free enterprise
whereas free enterprise is the notion around letting goods and services freely generate market results on their own socialism is focused on governing how resources are distributed these government policies may dictate how resources are used who receives goods or what pricing mechanisms certain market participants may f...
what is free float methodology
the free float methodology is a method of calculating the market capitalization of a stock market index s underlying companies with the free float methodology market capitalization is calculated by taking the equity s price and multiplying it by the number of shares readily available in the market rather than using all...
how to calculate market capitalization using the free float method
free float methodology is calculated as follows ffm share price x number of shares issued locked in shares the free float methodology has been adopted by many of the world s major indexes it is used by the s p 500 index by morgan stanley capital international msci world index and by the financial times stock exchange g...
how do you calculate free float
to calculate free float you take a company s outstanding shares and subtract its restricted shares to get the company s free float market capitalization take the free float number and multiply it by a company s share price
is the s p 500 index free float
yes the s p 500 index utilizes a free float methodology this means that for all of the companies in the s p 500 their market cap is free floating only the available shares for public trading are taken into consideration for the calculation no restricted shares 1
how do you calculate market cap
market cap or market capitalization is calculated by taking a company s outstanding shares and multiplying them by the company s share price for example if a company had 50 000 shares outstanding and a share price of 10 its market cap would be 500 000 the bottom linefree float methodology is a method of calculating a c...
what is the free look period
the free look period is the required time period in which a new life insurance policy owner can terminate the policy without any penalties such as surrender charges a free look period often lasts 10 or more days depending on the insurer and state law during the free look period the contract holder can decide whether or...
how free look periods work
insurance policies are legal contracts that grant rights and responsibilities to both the insurer and policyholder if you are not satisfied with the terms and conditions of the policy you have purchased you can cancel and return the policy within a specified period after receiving it and your premiums will be fully ref...
what is a 30 day free look period
if a life insurance policy has a 30 day free look period it mean you have 30 days from when your policy starts to cancel the policy with no penalties the length of a free look period will vary by provider and by state can you cancel life insurance policy at any time you can cancel a life insurance policy at any time ho...
when does a free look period begin
a free look period for a life insurance policy begins when you receive the policy or the day the policy is delivered check with the insurance company for what date they are considering as the delivery date the bottom linefree look periods provide you a time period to decide whether you want to keep your insurance polic...
what is a free market
the free market is an economic system based on supply and demand with little or no government control one of the central principles of a free market is the concept of voluntary exchange which is defined as any transaction in which two parties freely trade goods or services free markets are characterized by a spontaneou...
what are some examples of free market economies
most countries exhibit a combination of qualities from free market and command economies even those with limited government regulation still maintain some level of intervention countries that rank highly in indices of economic freedom based on factors related to free markets like low taxes and minimal regulations inclu...
what is the opposite of free market
the opposite of a free market is a planned economy or a command economy in such an economic system the government controls most or all of the means of production and distribution of wealth the government may also dictate prices of goods services and labor
what is an example of voluntary exchange in everyday life
examples of voluntary exchange abound in everyday life in the u s for instance you may go to a coffee shop every morning the owner of the store can freely choose how they would like to set their prices as a consumer you can freely able to choose whether or not to make a purchase the bottom linea free market is one wher...
what is a free market
the free market is an economic system based on supply and demand with little or no government control one of the central principles of a free market is the concept of voluntary exchange which is defined as any transaction in which two parties freely trade goods or services free markets are characterized by a spontaneou...
what are some examples of free market economies
most countries exhibit a combination of qualities from free market and command economies even those with limited government regulation still maintain some level of intervention countries that rank highly in indices of economic freedom based on factors related to free markets like low taxes and minimal regulations inclu...
what is the opposite of free market
the opposite of a free market is a planned economy or a command economy in such an economic system the government controls most or all of the means of production and distribution of wealth the government may also dictate prices of goods services and labor
what is an example of voluntary exchange in everyday life
examples of voluntary exchange abound in everyday life in the u s for instance you may go to a coffee shop every morning the owner of the store can freely choose how they would like to set their prices as a consumer you can freely able to choose whether or not to make a purchase the bottom linea free market is one wher...
what is the free rider problem
the free rider problem is the burden on a shared resource that is created by its use or overuse by people who aren t paying their fair share for it or aren t paying anything at all the free rider problem can occur in any community large or small in an urban area a city council may debate whether and how to force suburb...
when the free rider problem arises
the free rider problem as an economics issue only occurs under certain conditions economists point out that no business would voluntarily produce goods or services under these conditions when the free rider problem looms businesses back away either the shared resource will not be provided or a public agency must provid...
what is a free trade agreement fta
a free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them under a free trade policy goods and services can be bought and sold across international borders with little or no government tariffs quotas subsidies or prohibitions to inhibit their exchange the concept o...
how a free trade agreement fta works
in the modern world free trade policy is often implemented by means of a formal and mutual agreement of the nations involved however a free trade policy may simply be the absence of any trade restrictions a government doesn t need to take specific action to promote free trade this hands off stance is referred to as lai...
why were free trade zones created in china
starting in 2013 china began establishing free trade zones around key ports and coastal areas these were areas where national regulations were relaxed in order to facilitate foreign investment and business development 12
what is a free trade area
a free trade area is a group of countries that have agreed to mutually lower or eliminate trade barriers for trade within the area this allows participating countries to benefit from reduced tariffs while maintaining their existing protections for trade with countries outside of the area
what are the arguments against free trade
opponents often assert that free trade invites foreign competition with domestic industries causing job loss and harming key industries in some cases free trade causes manufacturers to move their operations to countries with fewer regulations rewarding companies that cause pollution or use abusive labor practices in ot...
what is a free trade area
a free trade area is a region in which several countries sign a free trade agreement and maintain little to no barriers to trade in the form of tariffs or quotas among one another free trade areas facilitate international trade and any associated gains along with the international division of labor and specialization t...
how these questions are answered in a specific free trade agreement tends to be based on political influences within and power relations among countries this shapes the degree of how free the trade is and its scope the goal is to create a trade policy upon which all participating countries can feasibly agree
benefits of free trade areasthe benefits of free trade areas include providing consumers with increased access to less expensive and or higher quality foreign goods and the lowering of prices as governments reduce or eliminate tariffs producers can acquire a greatly expanded market of potential customers or suppliers f...
what is a free trade area
a free trade area is an agreement formed by a group of like minded countries that agree to reduce trade barriers such as tariffs and quotas among others it encourages international trade among the member countries
what are the advantages of a free trade area
the advantages include greater access to low priced high quality goods lower prices overall greater efficiency and innovation in production increased economic development and living standards and overall economic growth
what are the disadvantage of a free trade area
it can cause jobs to migrate to a country where the cost of production is lower harm the growth of nascent industries that are just beginning to develop allow an economy to become dependent on too few products endanger security if a country becomes dependent on the importation of a vital resource and lead to reduced en...
what is freemium
a combination of the words free and premium freemium is a type of business model that offers basic features of a product or service to users at no cost and charges a premium for supplemental or advanced features a company using a freemium model provides basic services on a complimentary basis often in a free trial or l...
how to convert a free user to a paid user
converting a free user to a paid one is at the crux of many businesses dilemmas especially when a business s longevity is hinging on converting users there can be additional pressure to upsell their free users and make a larger profit margin off them ultimately for the freemium model to work and move people along to mo...
is a free trial the same as a freemium
free trials and freemiums are slightly different free trials are typically time bound and only allow a user to test out a few parts of a product or service meanwhile freemium models allow their free users to access the full application indefinitely
do freemiums increase the number of customers
freemium models lower new users barriers to entry increasing a business s number of total customers by allowing some to test out a limited version of the product without financial commitment
which companies use freemium
many companies use freemium models including spotify dropbox hinge slack and asana can freemium lead to a loss of income theoretically businesses with freemium models can lose money if their conversion rate to premium users is too low the bottom linefreemium is a type of business model that offers basic features of a p...
what is a frequency distribution
a frequency distribution is a representation either in a graphical or tabular format that displays the number of observations within a given interval the frequency is how often a value occurs in an interval while the distribution is the pattern of frequency of the variable the interval size depends on the data being an...
what are the types of frequency distribution
the types of frequency distribution are grouped frequency distribution ungrouped frequency distribution cumulative frequency distribution relative frequency distribution and relative cumulative frequency distribution
what is the importance of a frequency distribution
a frequency distribution is a means to organize a large amount of data it takes data from a population based on certain characteristics and organizes the data in a way that is comprehensible to an individual who wants to make assumptions about a given population
how can i construct a frequency distribution
to construct a frequency distribution first note the specific classes determined by intervals in one column then sum the numbers in each isolated category based on how many times it shows up the frequency can then be noted in the second column the bottom linea frequency distribution is used to display the number of obs...
what is freudian motivation theory
freudian motivation theory posits that unconscious psychological forces such as hidden desires and motives shape an individual s behavior like their purchasing patterns this theory was developed by sigmund freud who in addition to being a medical doctor is synonymous with the field of psychoanalysis understanding freud...
what is frictional unemployment
frictional unemployment is a type of short term unemployment that occurs when workers look for new employment or transition out of old jobs and into new ones this temporary period of unemployment is the result of voluntary transitions within an economy it stands in contrast with structural unemployment which stems from...
what is the main cause of frictional unemployment
frictional unemployment is mainly caused by voluntary conversions to new jobs within a highly functioning economy frictional unemployment is often caused by people willingly step aside from their job to seek jobs with better pay opportunity or work life balance
why is frictional unemployment a problem
frictional unemployment may be difficult on employers as employees are more willing to voluntarily step aside from their jobs companies must be mindful to invest resources in top performers else those individuals are likely to look for other opportunities on the other hand frictional unemployment may also be difficult ...
what is the difference between frictional and cyclical unemployment
cyclical employment is the natural ebb and flow of the economy as the economy develops more jobs are created and more workers are employed as the economy cools those jobs may be eliminated and cyclical unemployment occurs on the other hand frictional unemployment occurs usually when the economy is doing well frictional...
friedrich engels was a german philosopher writer and social scientist during the 19th century known for his collaboration with karl marx friedrich engels helped define modern communism friedrich engels is the co author of the communist manifesto an 1848 pamphlet regarded as one of the world s most influential political...
investopedia alex dos diazearly life and educationfriedrich engels was born on nov 20 1820 in barmen prussia today s germany he was the eldest son of a wealthy textile manufacturer at age 17 engels traveled to manchester england to learn the family business at the ermen engels cotton plant although raised in a family e...
what encouraged engels to write the condition of the working class in england
the book recounts engels experience while working in manchester england recalling the use of child labor environmental damage low wages bad conditions poor health and the high death rates among laborers
where are engels published works written as pseudonym friedrich oswald
thirty literary works that were published under engels pseudonym were found in bremen after engels passing and are preserved his pseudonym was not revealed until after his death 2
what is a utopian socialist
contrary to friedrich engels and karl marx who both believed in necessary revolution utopian socialists believed that capitalists could be encouraged to surrender the means of production peacefully to the people through moral persuasion alone 8
friedrich hayek was a famous economist well known for his numerous contributions to the field of economics and political philosophy hayek s approach mostly stems from the austrian school of economics and emphasizes the limited nature of knowledge he is particularly famous for his defense of free market capitalism and i...
investopedia alex dos diazearly life and educationfriedrich hayek was born in vienna austria on may 8 1899 he attended the university of austria where he obtained doctorates in both law and political science in 1921 and 1923 respectively he also completed postgraduate work at new york university in 1924 1hayek founded ...
what did friedrich hayek win the nobel prize for
friedrich hayek won the nobel prize in economic sciences for his work on the theory of money and economic fluctuations he won it in 1974 with gunnar myrdal 1
what did friedrich hayek believe
friedrich hayek had many beliefs in relation to economics he was part of the austrian school of economics and believed in free market capitalism he also believed that free markets allowed for creativity innovation and entrepreneurship which are necessary for societies to bloom and citizens to prosper was friedrich haye...
what are fringe benefits
fringe benefits are additions to compensation that companies give their employees some fringe benefits are provided to all employees while others may be offered to executives only some benefits may include a company car paid time off or gym membership employers use fringe benefits to help them recruit motivate and reta...
are fringe benefits taxable
any fringe benefit an employer provides is taxable and must be included in the recipient s pay unless the law expressly excludes it 4
what is a cafeteria plan
a cafeteria plan refers to a suite of fringe benefits that allow employees to choose among them often these benefits will come out of pre tax dollars and may include insurance plans and retirement benefits the name cafeteria is used because it is akin to a menu of benefits that can be selected or passed over such as at...
is a lifetime achievement award given to an employee taxable
an achievement award may be excluded from taxation as a fringe benefit if it meets specific criteria for example it must be worth less than 1 600 and cannot be cash or cash equivalents such as a gift certificate or gift card it also cannot be stocks bonds or other securities the exclusion doesn t include vacations meal...
what is the front end debt to income dti ratio
the front end debt to income dti ratio is a variation of the dti that calculates how much of a person s gross income is going toward housing costs if a homeowner has a mortgage the front end dti is typically calculated as housing expenses such as mortgage payments mortgage insurance etc divided by gross income back end...
what is a desirable front end dti ratio
to qualify for a mortgage the borrower often must have a front end debt to income ratio of less than an indicated level paying bills on time having a stable income and having a good credit score won t necessarily qualify you for a mortgage loan in the mortgage lending world how far you are from financial ruin is measur...
how lenders use front end dti ratio
lenders use both front end and back end debt to income ratios to determine your ability to repay a home mortgage loan a higher dti can signal to lenders that you might be stretched thin financially while a lower dti suggests that you have more disposable income each month that isn t going to debt repayment 1debt to inc...
what is front end debt to income ratio
front end debt to income ratio is a measure of how much of monthly income goes toward housing costs that includes mortgage payments property taxes homeowners insurance premiums and homeowners association fees if applicable 2
what is a good debt to income ratio to buy a home
generally lenders look for a debt to income ratio of between 28 and 36 when qualifying a borrower for a mortgage 1 qualified mortgage loans however may allow a dti of up to 43 4
how can i improve my debt to income ratio for a mortgage
some of the best ways to improve debt to income ratio include paying down revolving or installment debts reducing housing costs and increasing income a lower dti can increase the amount of home you may be able to afford when qualifying to mortgage a property the bottom lineprospective borrowers should do everything the...
what is a front end load
a front end load is a commission or sales charge applied at the time of the initial purchase of an investment the term most often applies to mutual fund investments but may also apply to insurance policies or annuities the front end load is deducted from the initial deposit or purchase funds and as a result lowers the ...
when mutual fund investments and annuities were first introduced to the market investors were only able to access them through licensed brokers investment advisors or financial planners the front end load concept arose out of an effort to provide compensation for these go betweens and of course to encourage them to put...
nowadays individuals can often purchase products directly from the mutual fund company or insurance company the lion s share of the contemporary front end load goes to the investment company or insurance carrier that sponsors the product the remaining portion is paid to the investment advisor or broker who facilitates ...
what is the front office
the front office represents the customer facing division of a firm customer service sales and industry experts who provide advisory services are considered part of a firm s front office operations the functions of the front office often generate the majority of revenue for a firm understanding the front officefront off...