The network economy uses technology and social networking to establish the value of goods and services, causing a shift in commercial transactions. Intellectual property rights and value networks have been revolutionized, but basic economic laws remain unchanged. The network economy is the economic order in the framework of the technological information society. Unlike industrial revolution-inspired […]
Net investment income is the profit earned from investment sources after losses have been subtracted. It can come from stocks, bonds, mutual funds or loans and is taxable. Companies also calculate net investment income, often per share, and can pass on profits to investors as dividends. Net investment income is the total amount of profit […]
Net worth is the total value of assets minus liabilities. It is important for individuals and businesses to have positive net worth. To calculate net worth, determine the value of assets and subtract liabilities. Improving net worth involves paying off debt and increasing asset value. Also known as net worth, net worth is the total […]
A computer network technician creates and maintains computer networks for companies, including LANs, WANs, and internet connections. They also handle support and security issues and help employees understand how to interact with the network. A computer network technician typically performs a number of different tasks and duties related to implementing and maintaining various computer networks […]
Gross profit is revenue minus cost of goods sold, while net profit is gross profit minus overhead costs. Net income is a more accurate assessment of a company’s earnings. Profitability is evaluated by reducing costs and increasing profits through cost of goods sold and overhead. A company’s earnings determine its value, especially for shareholders. An […]
A net mortgage branch is a smaller outpost of a lending institution where loan originators work under the supervision of the parent entity, allowing them to run their business while avoiding administrative hurdles. Net branches can originate loans in multiple jurisdictions, pay a flat fee for each loan file submitted, and have access to lenders […]
Net return is the total return on an investment minus costs, including commission costs. Investors seek the highest net return, which is measured as a percentage of the investment. Different investors have different goals, but all want the highest possible return. An example shows a net return of $16 USD with a 40% return rate. […]
A network systems engineer builds and maintains computer networks, with job responsibilities varying based on company size. They typically have a degree in a computer-related field and can advance into management positions within larger companies. A network systems engineer deals with the hardware part of a computer network. Depending on the engineer’s exact position and […]
Net payoff is the profit or loss of a transaction after expenses. It’s important to understand before closing a sale to establish a floor price and determine if it’s worth pursuing. Lenders use it to inform borrowers of total loan repayment amounts. Investors use it to determine if holdings are worth selling. Net payoff is […]
Net operating losses occur when a business’s expenses exceed income for multiple years. Most countries have special tax rules to accommodate the cyclical nature of businesses. Losses can be applied to future and past income statements, and there are specific rules and conditions to be eligible for this tax break. Consult an accountant or review […]
Net accounts receivable is the total of a company’s accounts receivable minus bad debts, indicating the amount of current accounts receivable that a business expects to collect. A high percentage indicates good financial health, while a low percentage requires identifying outstanding debt and taking steps to pay it off. Companies aim for a low bad […]
Continuous Net Settlement (CNS) is an automated accounting system that centralizes settlement processes, updates information in real-time, generates reports, and manages various types of assets with minimal registration errors. CNS ensures faster availability of funds and is useful for businesses and investors alike. Also known as a CNS, a Continuous Net Settlement is an accounting […]
Net working capital measures a company’s financial health by subtracting current liabilities from current assets. A positive ratio indicates the ability to pay creditors and make business improvements, while a negative ratio indicates financial difficulties. It can also indicate a company’s efficiency and trends over time. Net working capital measures a company’s liquidity, efficiency, and […]
Net interest measures the difference between interest generated by investments and interest paid to depositors. A positive margin indicates profit, while a negative margin may require reevaluation of investment strategies. It is a useful indicator of financial stability and can guide changes to improve overall health. A great deal of net interest is a measure […]
Net purchases are total sales minus purchase discounts, returns, and allowances. This figure is reported at the top of the income statement to provide insight into sales revenue and whether a company is falsely increasing sales. Low net purchases can indicate significant discounts, and sales allowances should be infrequent. Companies track net purchases to ensure […]
Tangible net heritage is the sum of tangible assets minus liabilities and intangible assets. It is important for individuals and businesses when applying for loans or credits, but the value can fluctuate over time. Lenders may require personal assets as collateral if a business does not have significant tangible assets. Tangible net heritage is a […]
Network marketing, also known as multi-level marketing, relies on independent distributors to sell products and recruit additional distributors. Becoming a distributor involves paying a fee and receiving training materials. Distributors earn a percentage of sales made by their sales organization and enjoy benefits of self-employment but are responsible for their own taxes and benefits. A […]
Economic networks consist of individuals, groups, organizations, communities, or entire nations who work together to increase production capacity and economic growth. Networks can have fixed, rotating, or changing memberships and focus on recruiting, sharing knowledge and resources, and scouting markets. Information is central to economic networks, and they have become increasingly important in response to […]
