The gross national product (GNP) measures the value of the total output of goods and services produced by a nation’s citizens, whether they live within the country or elsewhere. GNP was the main measurement of U.S. production and growth until it was replaced by GDP in 1991.
Archive for the ‘Daily Definition’ Category
The Gross National Product (GNP) is…
Monday, August 3rd, 2009Breaking Even is…
Monday, August 3rd, 2009Breaking even is the point where your total revenue equals your total cost – you haven’t made any money yet, but you also haven’t lost any. For example, when you buy a financial instrument there are the costs to purchase the item plus transaction costs – like paying your broker. The investment doesn’t “break even” until the value increases enough to cover ALL costs.
Return is…
Monday, August 3rd, 2009Return is the change in value of an investment over a period of time. For example, if a group of stocks in which you invested were worth $50,000 three months ago and they’re worth $75,000 now, you have a return of $25,000, or 50%, over that three-month period.
An Entrepreneur is…
Monday, August 3rd, 2009An entrepreneur is a person who starts his or her own business or enterprise and assumes responsibility for all the risk involved. Basically, the entrepreneur is the brain behind the operation and the one in charge, but he or she is also the person held accountable for the business venture’s success or failure.
Restricted Funds are…
Monday, August 3rd, 2009Restricted funds are grants given to a recipient (usually a nonprofit organization) on the condition that the money be used in a specific way. For example, restricted funds could be given to a medical research organization only for use in finding a cure for a specific disease.
An Import Tax is…
Monday, August 3rd, 2009An import tax is a charge added to the price of a good when it’s brought from one country into another. Reasons for the tax include: profit for the importing government and protection of its own home companies that produce that same good. For example, the U.S. has a high import tax on sugar in order to protect the U.S. sugar industry from cheaper foreign imports.
A Management Buyout is…
Monday, August 3rd, 2009A management buyout is a buyout of a firm or a piece of a firm by the firm’s own management. For example, Company A owns Company B, and the management of Company B decides to buy their own company from Company A – that’s when you get a management buyout.