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The razor and blades business model [1] is a business model in which one item is sold at a low price (or given away) in order to increase sales of a complementary good, such as consumable supplies. It is different from loss leader marketing and product sample marketing , which do not depend on complementary products or services.
The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". In layman's terms, after all costs are paid for there is neither profit nor loss.
A business plan is a formal written document containing the goals of a ... Cost and revenue estimates are central to any business plan for deciding the viability of ...
Economic impact analyses usually employ one of two methods for determining impacts. The first is an input-output model (I/O model) for analyzing the regional economy. . These models rely on inter-industry data to determine how effects in one industry will impact other s
The Cost-loss model considers one forecast prior to an event, while the Extended cost-loss model considers two forecasts at different times prior to the event. The Extended cost-loss model is an example of a dynamic decision model, and links the cost-loss model to the Bellman equation and Dynamic programming.
Return on investment (ROI) or return on costs (ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favorably to its cost.
A valuation multiple [1] is simply an expression of market value of an asset relative to a key statistic that is assumed to relate to that value. To be useful, that statistic – whether earnings, cash flow or some other measure – must bear a logical relationship to the market value observed; to be seen, in fact, as the driver of that market value.
An increased limit factor (ILF) at limit L relative to basic limit B can be defined as = + + + + + + ()where ALAE is the allocated loss adjustment expense provision, ULAE is the unallocated loss adjustment expense provision, and RL is the risk load provision.
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