Gap analysis models help businesses identify the difference between their current performance and maximum potential. Different templates include usage, market potential, and product gaps. These models can help businesses determine why gaps exist and how to correct them, such as by expanding into new markets or changing product positioning. Gap analysis models help a business […]
A funding gap occurs when a company underestimates the amount of capital needed to sustain production until viable cash flow has been established. Bank loans, angel investors, or stock sales can help bridge the gap. Angel investors invest an average of $37,000 and increase the capital available for a new business by an average of […]
A negative gap occurs when there is a mismatch between a financial institution’s interest-sensitive assets and liabilities. Changes in the average interest rate can cause the gap to widen, creating a positive or negative gap. Decreases in the average interest rate can help narrow the negative gap, while increases can increase it. Financial institutions monitor […]
A gap analysis report identifies the gap between a company’s current state and its goals, helping to outline a plan for achieving goals. It examines the impact of each element in the organization and identifies hindrances to achieving goals. A team produces the report, gathering information through interviews, surveys, and record reviews. The report includes […]
A liquidity gap measures the difference between an individual’s or organization’s liquid assets and liabilities, indicating financial risk. Banks use it to assign interest rates to loans, and measuring it over time helps lenders make investment decisions. A liquidity gap is a measure of the difference between a person’s or organization’s total liquid assets versus […]
Gapping is when a verb is removed from one sentence but understood due to its presence in another. It is important to ensure only one verb is used to maintain clarity. The gap occurs in SVO languages at the end of a sentence and in SOV languages in the first clause. The gap reveals how […]
Output gap is the difference between actual output and the output that could be achieved if operating at full capacity. It applies to national economies and businesses, with a negative gap indicating trouble and actions needed to prevent further economic crisis. An output gap is the difference between a firm’s actual output level and the […]
A recessionary gap occurs when an economy operates below the potential equilibrium level of full employment, leading to lower GDP and prices. It is often caused by a high exchange rate and results in reduced consumer investment and high unemployment. The gap can be closed through expansionary fiscal policy. A recessionary gap occurs when an […]
An inflationary gap occurs when a nation’s real GDP exceeds its potential GDP, leading to rising prices and inflation. This can be caused by increased demand or rising production costs. Governments can control demand by raising taxes or interest rates, while supply-side advocates suggest reducing regulations and taxes. Higher taxes can also lead to decreased […]
A performance gap analysis helps businesses identify the difference between standard and actual performance, and find ways to close the gap. It can be caused by internal or external factors, and solutions may include training, equipment upgrades, or adjusting standards. A performance gap analysis is performed by a business that wants to determine why there […]
The poverty gap can refer to income differences between social groups, poverty differences between genders and races, or the average amount of money missing for those below the poverty line compared to those above it. The US uses both poverty guidelines and the poverty line to measure poverty levels. The international poverty line is set […]
Gap risk is the risk that the price of an investment security may change significantly without any market trading taking place, causing a detrimental effect on a portfolio. Investors can manage this risk by hedging against a price drop or selling the stock. Gap risk commonly occurs with company stocks due to after-hours news announcements […]
Security gap analysis assesses an organization’s security culture against standards it wants to meet, identifying gaps and recommending solutions. Third-party auditors can provide unbiased assessments, and the process can save money and reduce liability risk. Security gap analysis is a critical assessment to find gaps between an organization’s current security culture and the standards it […]
Yield gap is the difference between a mutual fund’s actual return and what it would have earned by holding recently traded stocks. A study found that funds with a large positive yield gap are more likely to have a favorable return in the future. Yield gap information must be disclosed to the public twice a […]
Gap insurance protects leased vehicles in the event of theft or damage before the lease is fulfilled. It covers the difference between the outstanding balance of the lease and the current value of the vehicle. The policy may be provided by the lessor or a third party, but the lessee must keep payments current and […]
The gender pay gap is a well-documented trend where women earn less than men in the same industry, with the glass ceiling being a factor. The gap varies by sector and age group, and is present in both the US and Europe. Despite claims that the gap is closing, studies show that it remains persistent […]
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