Economies of Scope Examples and Formula

Meaning of economies of scope Economies of scope is a term that refers to the fall in the cost of production when two or more companies produce a range of products together rather than separately. It also implies that producing one good brings about a reduction in the cost of producing another …

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Types of Merger in Business with Examples

The merger has to be voluntary, that is, the two companies have to agree in order to arrive at a fusion into one. When two companies merge, they become a single legal entity. The companies that agree to merge tend to have roughly equal sizes, customers, and scale of operations. It is …

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Recession vs Depression: differences and similarities

A comparison of the difference between recession and depression in economics; also, the similarities of recession vs depression would be listed. A recession is usually defined as an economic condition where, for some time period, the country experiences negative GDP growth. Depression refers to a long and general economic decline, where the …

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What is Recession? Meaning, Examples, Causes and Effects

A recession is an economic downturn where the economy experiences negative growth over two consecutive quarters. There are many effects of a recession in an economy; the meaning, causes, and some examples of economic recessions would be discussed. Recession Meaning A recession in economics refers to a downward trend in an economy’s …

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LLC advantages, disadvantages, examples & types

An LLC stands for Limited Liability Company; it is a type of business that combines the tax benefits of a partnership with the limited legal liability of a corporation. We will discuss LLC advantages, disadvantages, and types. Each of the 3 types of LLC with their examples would be outlined. As one …

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Insurable Interest Meaning and Examples

Insurable interest meaning The meaning of insurable interest in general insurance explains that the subject matter of insurance must have the ability to provide some financial gains to the insured, that is, it must possess financial value. If there is a loss of the subject matter due to theft, fire, damage, etc., …

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Indemnity in Insurance; Meaning and Principle

Indemnity in insurance meaning Indemnity refers to the security or protection against financial liability which usually occurs in the form of a legal agreement that takes place between parties whereby one party agrees to pay the other party in an event of loss or damage suffered. The definition of indemnity in insurance …

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