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What Does ‘Trimmed Mean’ Mean?
What Does ‘Trimmed Mean’ Mean? Trimmed mean is a statistical measure used to calculate the average of a given set of numbers. It is similar to the arithmetic mean, but it calculates the average by discarding a certain percentage of the highest and lowest values in the data set before calculating the average. Trimmed mean…
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What Does ‘TOD’ Mean?
What Does TOD Mean in Business and Finance? TOD stands for “Transfer on Death Designation,” and it’s a contract that allows a person to transfer the ownership of their asset, such as a bank or brokerage account, to someone else (a “beneficiary”) upon their death. This type of contract is similar to a will in…
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What Does ‘Times Interest Earned Ratio’ Mean?
Understanding the Times Interest Earned Ratio The times interest earned ratio (also known as the interest coverage ratio) is an important measure of a company’s financial health and serves as an indicator of a company’s ability to meet its financial obligations. The ratio is calculated by finding the ratio of a company’s earnings before interest…
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What Does ‘Tenants in Common’ Mean?
What Is Tenants in Common? Tenants in common (TIC) is an arrangement that allows two or more individuals to jointly own property. This arrangement differs from a joint tenancy in that it allows for an unequal division of rights among the individuals, such as the right to share in profits or the right to sell…
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What Does ‘Tax Breakers’ Mean?
Understanding Tax Breakers Tax breakers are a variety of strategies and tactics employed for reducing taxation and increasing savings. these can be critical for college students just starting out in business and finance. Understanding how to use some of the main tax breakers can help to ensure that more money is kept in the pocket…
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What Does ‘Sweep Accounts’ Mean?
What Are Sweep Accounts? Sweep accounts are an important tool for business owners to manage cash flow. A sweep account is a type of bank or investment account that automatically transfers funds between two different accounts, such as a savings account and a checking account, on a regular basis to optimize their balance. The purpose…
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What Does ‘Sublease’ Mean?
What Is a Sublease? Sublease is a term used in the real estate and business world to describe an agreement between two parties that allows for one party to transfer rights and obligations of a lease to another party. This arrangement is often used when a tenant wants to get out of their lease agreement…
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What Does ‘Structural Unemployment’ Mean?
Understanding Structural Unemployment As a college student studying business and finance, you may have come across the term “structural unemployment,” but what does it actually mean? Structural unemployment is a type of unemployment that results from a mismatch between the skills that workers can offer and the skills employers need. This mismatch can occur when…
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What Does ‘Stipend’ Mean?
What Is a Stipend? A stipend is an amount of money paid to someone for providing a service. It is usually given to someone in exchange for services such as teaching, research, or other activities, such as internships. For college students learning about business and finance, stipend is a form of remuneration that can be…
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What Does ‘Statutory Employee’ Mean?
What Is a Statutory Employee? A statutory employee is an individual who is classified as an independent contractor for tax purposes, but does not fall into the traditional definition of an independent contractor. Statutory employees are sometimes referred to as “statutory workers,” “special employees,” or “contractual workers.” Under the Internal Revenue Code, an employee must…
