Business

What is Brinkmanship? Brinkmanship is a negotiating technique in which one party aggressively pursues specific terms, compelling the other party to either agree or withdraw from the negotiation. Brinkmanship, also known as "brinkpersonship" or less commonly "brinksmanship," gets its name…

What Is a Fixed Cost? A fixed cost is a business expense that often remains constant regardless of changes in the volume of goods or services produced or sold by the business. Fixed costs are commonly associated with recurring expenses…

What is Unit Cost? A unit cost represents the comprehensive expenses a company bears to manufacture, warehouse, and market a single unit of a specific product or service. It is interchangeable with the term "cost of goods sold" (COGS). This…

What is Keiretsu? Keiretsu is a Japanese term that refers to a business network consisting of various interconnected companies, including manufacturers, supply chain partners, distributors, and sometimes financial institutions. These companies collaborate closely, maintain strong relationships, and sometimes take small…

What is Acceptable Quality Level (AQL)? The acceptable quality level (AQL) is a measure applied to products, defined in ISO 2859-1 as the "quality level that is the worst tolerable." The AQL indicates the maximum number of defective components considered…

What is a Nontariff Barrier? A nontariff barrier refers to any method employed to impede trade that differs from imposing a tariff. These barriers encompass various measures such as quotas, embargoes, sanctions, and levies. Some nations frequently employ nontariff barriers…

What is Acceptance Sampling? Acceptance sampling serves as a vital statistical tool in quality control for companies. It involves selecting a specific number of items from a batch for testing, providing insight into the overall quality of the entire lot.…

What is the Plan-Do-Check-Act (PDCA) Cycle? The Plan-Do-Check-Act (PDCA) Cycle, originating from the 1920s work of American physicist Walter A. Shewhart, stands as a cornerstone in iterative problem-solving techniques for refining business processes. Its evolution into a widely adopted approach…

What is Merchandising? Merchandising is the strategic presentation and promotion of goods available for purchase, catering to both wholesale and retail sales. This comprehensive approach involves crafting marketing strategies, designing displays, and implementing competitive pricing, including discount offers. For retailers,…

What is a Merchant Account? A merchant account serves as a specialised business bank account enabling companies to handle electronic payment card transactions. To obtain a merchant account, a business collaborates with a merchant acquiring bank, which manages all electronic…