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is gemini better than coinbase | gemini and coinbase are both cryptocurrency exchanges but they offer different services which is better depends on how each serves your needs in which country is gemini gemini is headquartered in new york united states but is available to users globally the bottom linethe gemini exchange is one of a handful of cryptocurrency exchanges available to u s crypto users similar to all exchanges in the u s it is subject to several issues that stem from regulatory concerns business relationships and other general cryptocurrency issues it is one of the most popular exchanges and is owned by cameron and tyler winklevoss | |
what is gemology | gemology is the science of studying cutting and valuing precious stones but the essence of gemology is in identifying the gemstones one who works in the field of gemology is called a gemologist and jewelers and goldsmiths also may be gemologists some collectors and investors may be interested only in gems monetary value but to distinguish one gemstone from another they will need to seek out a gemologist gemologists examine gemstones both discovered raw and synthesized in the laboratory using microscopes computerized tools and other grading instruments understanding gemologyat its heart gemology is about identifying gems gemologists identify a gemstone by its specific characteristics and properties such as cut color quality and clarity some rubies and garnets for example are impossible to distinguish by their appearance but their underlying physical properties differ considerably many people are familiar with a group of criteria that is used in gemology to identify diamonds the 4cs of color clarity cut and carat gemology and its professionalsin addition to gemologists the field of gemology contains numerous other professionals including appraisers jewelers lapidaries metalworkers and scientists gemologists may become certified as professional appraisers whose expertise is useful in many other industries including jewelry sales and investing jewelers need to understand gemology to answer their customers questions and identify any gems brought to them goldsmiths and other metalworkers need specific knowledge about the physical characteristics of gems to create appropriate settings for example a setting that would be ideal for a diamond could damage an opal and the amount of pressure used to set the prongs on a garnet could break a stone of tanzanite lapidaries or gem cutters also need special knowledge as appropriate cutting and polishing techniques vary from gem to gem what would work well for one gemstone would be a waste of time or even disastrous for another gem scientists with degrees in geology chemistry and even physics make up the smallest group of gemologists although they are very influential scientists add to gemology s knowledge base by developing new testing techniques and researching new gemstones the international gem society offers an online professional gemologist certification course while the gemological institute of america offers a graduate gemologist program gemstones as investments | |
when returns in the stock market decline aggressive investors often seek out alternatives that may hold more promise of increasing returns on invested capital roic than traditional investment types or some investors might want to consider tangible assets simply as a way to diversify their holdings even during good market conditions investing in gemstones in particular those that are rare or of exceptional quality likely would at least retain and probably increase in value | however unlike other types of investments gemstones may not be as easily liquidated if you have an urgent need for cash this drawback is especially founded for rare precious stones and jewelry that would appeal to elite buyers only gemstone investing can seem exciting to those who want to make quick returns but it is highly speculative and should only be undertaken by experienced professionals investing in the precious metals sector however is different because there are standards as well as specific investment vehicles for them in the financial markets the term investment grade is often tossed around by those who want to sell gems or try to convince other people to invest in them however this practice is frowned upon in financial services because there are no formal standards for what constitutes investment grade gemstones as there are for investment grade bonds for example careers in gemologywith advances in gemstone synthesis gemology has become an important field of study a credential in gemology can offer numerous career paths | |
how to become a gemologist | in the field of gemology there are many career opportunities some of the most common include appraisers retail associates lab gemologists and jewelry designers however it can be tough to break into these fields most require at least some formal training in general here are the steps you should follow if you want to break into a career in the field of gemology as a professional gemologist there are a number of different careers you can pursue before you can figure out the right educational path you must first decide what area of gemology you want to pursue you might consider reading about different career paths or speaking to people that already work in these professions any profession should utilize or enhance your current skills the most general job requirements for a gemologist are being detail oriented and having good interpersonal skills hand eye coordination and finger dexterity in addition being a good salesperson may make you particularly successful in a retail outlet or as a gemstone wholesaler if you are creative or have a special interest in fashion pursuing a career as a gemstone designer might be a good fit finally if you are very meticulous or pay close attention to detail working as an appraiser or as someone who repairs jewelry might be a good fit for you it s important to keep in mind the salary educational requirements and job availability of the different professional opportunities within the field of gemology before you decide on any particular career ask yourself these questions what are my salary requirements am i willing to relocate for a job will i be happy working retail hours or would i prefer a more traditional 9 to 5 job your next step is matching your desired career path with a gemology school while some jobs in gemology will require you to obtain a diploma there are some areas of gemology that will only require you to obtain a certification it is important to do the proper research to make sure you know what type of education your desired profession requires gemology schools usually offer a wide range of courses however it is important that you make sure the school you are looking at offers the program you are interested in especially if it requires specialized courses most professions in gemology require you to receive your diploma from an accredited gemology school similar to enrolling in a traditional college you ll need to make sure you complete all the necessary paperwork a diploma from an accredited gemology school will give you the credential you need to work in jewelry stores jewelry manufacturing and gemological laboratories you ll learn about the analysis grading buying selling and pricing of gems and precious metals some jobs will only require you to have a certification these programs focus more on practical training and less on academic coursework whether you decide to enroll in a diploma program or a certificate program you ll need to make sure that you take the specific courses that are appropriate for your program for a diploma program you will be required to take a comprehensive final exam this is not required for certificate programs because most employers want their gemology employees to have at least a year of on the job training before hiring them in full time positions an apprenticeship is a good next step after completing a diploma or a certificate program as an apprentice you will get the crucial hands on experience necessary for finding a job your school may even have a formalized apprenticeship program once you ve completed your apprenticeship it s likely they may offer you a full time position it s advisable to speak with your manager at your apprenticeship before you finish the position to discuss any possible opportunities however in order to be considered for full time employment you must have shown that you are reliable trustworthy and hard working throughout your apprenticeship your school will typically hold career fairs throughout the year for those looking for jobs in the field these events are free for anyone to attend not just students these fairs are a great opportunity to network so make sure you bring multiple copies of your resume networking with people in your industry is a great way to get a job because they often have heard of open positions or are willing to refer you to their friends and co workers about job opportunities aside from networking in person using social media sites like linkedin and facebook is a good way to connect with people in your field there are also professional gemologist organizations such as the american gem society that you can join in order to meet other gemologists | |
what is a general account | the general account is where an insurer deposits premiums from policies it underwrites and from which it funds day to day operations of the business the general account does not dedicate collateral to a specific policy and instead treats all funds in aggregate understanding general accounts | |
when an insurance company underwrites a new policy it is paid a premium by the policyholder these premiums are deposited into the insurer s general account the insurer will use these funds in a variety of ways it will set aside a portion as a loss reserve which is used to cover the estimated losses it expects may occur over the course of the year it will also use these funds to pay for operations personnel and other business expenses in order to increase profitability however it will also invest some of these premiums in assets of various risk profiles and liquidities | insurers are less likely to invest in equities and options than they are to invest in fixed income or real estate assets held in the general account are owned by the general account and are not attributed to a specific policy but rather to all policies in aggregate the insurer may choose however to create separate accounts to set aside assets for specific policies or liabilities assets in the separate accounts are designed to cover the policy risks associated with the separate account though if the separate account s assets are ultimately determined to be insufficient the insurer may use general account funds to fill any gaps general account investing strategyassets found in the general account may be managed internally or the management may be provided by a third party increased global competition and changing products with aggressive pricing and guarantees have forced many insurance company executives to reevaluate their traditional investing strategy for general account funds the risk appetite for insurance companies tends to be relatively low because they have to guarantee that funds are available to cover liabilities the general account investment portfolio typically contains investment grade bonds and mortgages due to volatility common stock is less widely included in general account portfolios and by year end 2020 comprised 13 2 of overall investment portfolios for insurance carriers 1 | |
what is the general agreement on tariffs and trade gatt | the general agreement on tariffs and trade gatt signed in 1947 by 23 countries is a treaty minimizing barriers to international trade by eliminating or reducing quotas tariffs and subsidies it was intended to boost economic recovery after world war ii 1gatt was expanded and refined over the years leading to the creation in 1995 of the world trade organization wto which absorbed the organization created to implement gatt by then 125 nations were signatories to its agreements which covered about 90 of global trade 12the council for trade in goods known as the goods council is now responsible for gatt and consists of representatives from all wto member countries the chairperson of the goods council is ambassador clare kelly of new zealand the council has 10 committees that address subjects including market access agriculture subsidies and anti dumping measures 34investopedia michela buttignolunderstanding the general agreement on tariffs and trade gatt gatt was created to form rules to end or restrict the most costly and undesirable features of the prewar protectionist period namely quantitative trade barriers such as trade controls and quotas the agreement also provided a system by which to arbitrate commercial disputes among nations the framework enabled a number of multilateral negotiations for the reduction of tariff barriers gatt was regarded as a significant success in the postwar years one of the key achievements of gatt was that of trade without discrimination every signatory member of gatt was to be treated as equal to any other this is known as the most favored nation principle and it was carried through into the wto a practical outcome of this was that once a country had negotiated a tariff cut with some other countries usually its most important trading partners this same cut would automatically apply to all gatt signatories escape clauses did exist whereby countries could negotiate exceptions if their domestic producers would be particularly harmed by tariff cuts 16most nations adopted the most favored nation principle in setting tariffs which largely replaced quotas tariffs preferable to quotas but still a trade barrier were in turn cut steadily in successive rounds of negotiations the most favored nation principle concerning tariffs started with gatt and continues to this day history of the gattgatt held eight rounds of meetings the first beginning in april 1947 the last ending in december 1993 each of the conferences had significant achievements and outcomes this series of meetings and tariff reductions would continue resulting in new gatt provisions in the process in 1964 gatt began to work toward curbing predatory pricing policies known as dumping then in the 1970s an arrangement regarding international trade in textiles known as the multifibre arrangement mfa came into force the next big event was the uruguay round which lasted from 1986 to 1993 with the agreements signed in 1994 and which created the wto 5the average tariff rate fell from around 22 when the general agreement was first signed in geneva in 1947 to around 5 by the end of the uruguay round as the years passed the member countries continued to take on global issues including addressing agriculture disputes and working to protect intellectual property 9the latest round of negotiations among wto members known as the doha development round began in 2001 and is ongoing its aim is to improve the trading prospects of developing countries by introducing lower trade barriers and revised trade rules 10 | |
what is the purpose of the general agreement on tariffs and trade gatt | the general agreement on tariffs and trade was set up to eliminate protectionism get countries trading freely among themselves and help restore economic prosperity following the devastation of world war ii | |
is gatt a free trade agreement | that was essentially its goal gatt sought to push the world toward a reality where goods and services are exchanged among countries without tariffs quotas favoritism or discrimination | |
why was gatt replaced by the world trade organization wto | gatt though largely successful in reaching its goal was said to lack a coherent institutional structure in short it was a legal agreement acting as an international organization the world trade organization incorporates the principles of gatt and is better positioned to carry them out because among other things it is better versed in issues like intellectual property has a faster dispute settlement system and wields more power 1112the bottom linethe world would be a very different place without gatt its free trade ethos put an end to a dark period of protectionism and economic hardship that led to world war ii paving the way for decades of economic growth and increased globalization | |
what was general agreements to borrow gab | the term general agreements to borrow gab refers to a terminated lending medium for members of the group of ten g 10 the program was established in 1962 allowing the international monetary fund imf to borrow funds from the central banks of these advanced countries the capital was advanced as temporary loans to countries experiencing economic distress so they could avoid crisis situations the gab was phased out at the end of 2018 after member countries agreed its usefulness was diminished and limited 1understanding the general agreements to borrow gab the general agreements to borrow is a program that was established by the international monetary fund in 1962 it relied on the cooperation of the g 10 which is composed of 11 of the world s strongest economies including belgium canada france germany italy japan the netherlands sweden the united kingdom and the united states and switzerland which plays a minor role 1the gab was a standing agreement that allowed the imf to borrow money from these countries in order to assist other nations in economic distress countries that faced financial difficulties that threatened to stall economic growth or harm the international monetary system were able to turn to the imf for supplemental liquidity the imf in turn relied on funds offered through the gab to help those in need of capital 2as of mid 2018 the gab permitted the imf to provide supplemental loans of up to 24 billion this figure remained as such as of december 2017 to members in need 1 under the imf s arrangements plenty more was made available to help stave off events posing a threat to the stability of the financial system the need for programs like gab arose from the balance of payments bop issues that arose in the u k and the u s in the 1960s and more recently from hurdles faced by emerging market economies notably those in latin america and asia 34the gab was only activated ten times since it was first established its size didn t change since 1983 although it was routinely renewed its participants noted that the gab s importance declined while the imf s executive board indicated the program s usefulness diminished over the years given all of this the executive board decided not to renew the gab in 2017 allowing it to phase out on dec 25 2018 567only the 11 countries that formed the g 10 could take part in the gab until 1983 when it was expanded to nonparticipating countries 8advantages and disadvantages of the gabproponents argued that all a small country needs from time to time is a shot of added liquidity to implement the right policies to jump start its local economy back into expansion through the gab the imf helped member countries restore exports after natural catastrophes and investor confidence when necessary it also enabled the imf to restrict problems related to instability that might spread to other countries if left unchecked not everyone agrees that imf loans have a positive impact though some argue the organization empowers poor policy decisions and serves as a backstop for incompetent governmental leadership another criticism is that the loans wind up flowing to financial institutions in industrialized countries reimbursing bankers for their poor risky bets in emerging markets the conditions attached to the loans have also been questioned the imf as it did with its three bailouts for greece demands austerity measures that at best do not help citizens in struggling countries directly some argue that these terms prolong economic suffering exacerbate poverty and reproduce the structures of colonialism gives smaller countries a boost of liquidityallows participating nations to jump start their economiesrestricts instability preventing it from spreading to other countriesempowers poor policy decisions while enabling incompetent governmental leadershiprewards bankers in developed nations for poor risky betsaccompanies terms and conditions that may prolong economic sufferinggab vs nabthe new arrangements to borrow nab became the primary fundraising facility for imf loans when it was introduced in the late 1990s it was first proposed in 1995 following the mexican financial crisis there were growing concerns during this period that significantly more resources would be needed in the future to adequately respond to economic downturns as a result the imf got in contact with the g 10 and other financially strong countries about developing a new financing arrangement that would double the amount available under the gab the nab was officially launched in 1998 the same year that the gab was last activated from that point forward the gab could only be activated if access to the better funded nab was refused like the gab the nab is a set of credit arrangements between the imf and certain countries what mainly sets them apart is the membership numbers the gab had a limited number of participants while the nab has 38 that take part the total amount of the nab was set at 521 billion between 2021 and 2025 910 | |
what are general and administrative g a expenses | general and administrative g a expenses are incurred in the day to day operations of a business and may not be directly tied to a specific function or department within the company general expenses pertain to operational overhead expenses that impact the entire business administrative expenses are those that can t be directly tied to a specific function within the company such as manufacturing production or sales g a expenses include rent utilities insurance legal fees and certain salaries they re a subset of the company s operating expenses excluding selling costs understanding general and administrative g a expensesgeneral and administrative g a expenses are listed below the cost of goods sold cogs on a company s income statement the top section of an income statement always displays the company s revenues for the given accounting period cogs is deducted from the net revenue figure to determine the gross margin the g a expenses are then deducted from the gross margin to arrive at net income not all general and administrative expenses are grouped as one line item fees and interest may be classified as their own line item when deducting expenses to arrive at net income 1a portion of g a expenses will still be incurred even in the absence of any production or sales many g a expenses are therefore fixed dollar amounts that aren t easily affected through cost reduction strategies other g a expenses are semi variable some minimum level of electricity will always be used by a business just to keep the lights on and necessary machines running measures can be taken to reduce unnecessary spending on electricity beyond that point g a expenses can be eliminated without a direct impact on the production or sale of goods and services so management has a strong incentive to minimize these types of expenses companies with centralized management typically experience higher g a expenses compared to companies with decentralized management structures the sales to administrative expense ratio compares a company s sales revenue to the amount of expenses incurred in supporting operations most g a expenses incurred can be deducted on the entity s tax return provided the expenses are reasonable ordinary and necessary these expenses typically must be deducted in the year they were incurred and they must have been used during the usual course of business 2g a expenses are those that are related to the day to day costs of running a business they can vary depending on the industry or the individual company examples of general and administrative g a expensesexamples of general and administrative g a expenses include building rent consultant fees depreciation on office furniture and equipment insurance supplies subscriptions and utilities salary and benefits that are attributable to certain employees such as corporate management as well as the legal accounting and information technology it departments are also classified as g a expenses 3a company may allocate its g a expenses to each business unit based on a percentage of revenue expense square footage or another measure to view the full costs associated with running certain units reviewing this information with internal management allows for more informed decisions about expanding or reducing individual business units xyz company can allocate the electricity costs to individual departments based on square footage if the total electricity bill is 4 000 per month and the business records the electricity bill under general and administrative expenses assume the production facility is 2 000 square feet manufacturing is 1 500 square feet accounting is 500 square feet and sales is 500 square feet the total square footage is 4 500 so the electric bill could be allocated out to each department like this production 1 777 78 2 000 4 500 4 000 manufacturing 1 333 33 1 500 4 500 4 000 and accounting and sales both receive 444 44 500 4 500 4 000 | |
what qualifies as an overhead expense | rent and utility costs for your place of business are primary overhead expenses because it s difficult to dodge them property taxes are an overhead expense if you own your property rather than lease space advertising supplies insurance and the salaries and wages you pay your employees are also overhead expenses 4 | |
how do i calculate cost of goods sold cogs | cost of goods sold cogs is the total you spent to produce a good or service that you ve sold you can calculate it by adding your beginning inventory and any purchases you made toward that goal and then subtracting your ending inventory balance cost of goods sold beginning inventory purchases ending inventoryinclude only the figures from the current reporting period 5 | |
what is a decentralized management structure | a decentralized management structure provides mid and low level management personnel with the authority to make key decisions regarding their employees and projects directives don t necessarily have to come down from top management this type of structure isn t generally appropriate for industries that tend to be highly regulated such as finance 6the bottom linegeneral expenses are those that are connected to a business s overhead and the fundamental costs of running it administrative expenses are somewhat independent in that they re not directly linked to a specific function within the company they create the g a expense category when they re pooled together they appear on the business s income statement below the cost of goods sold cogs most g a expenses are tax deductible as long as they re considered to be reasonable ordinary and necessary | |
what is the general business credit | the general business credit gbc is the aggregate value of individual tax credits a business claims during a tax year it consists of carryforward credits from previous years plus the current year s total business credits because it s a tax credit and not a tax deduction the amount comes directly off your tax bill if you claim multiple business tax credits on your tax return you must attach form 3800 general business credit along with the irs forms for the individual credits 1understanding the general business creditthe general business tax credit is unique in that it is not a single separate credit instead it s a collection of specific tax credits that promote various business activities including research oil recovery reforestation and starting a pension plan if you claim multiple business tax credits fill out the appropriate irs form for each tax credit and then carry over the total to form 3800 general business credit before filling out form 3800 you must first claim the individual tax credits on their relevant tax forms each calculated under its own set of rules next carry over the resulting combined credit to the general business credit form 3800 to determine the overall allowable credit while there are dozens of business tax credits some of the more common credits businesses claim include 2some tax credits have expiration dates be sure to check the instructions for each credit to make sure it s available for the applicable tax year 2the general business tax credit is a nonrefundable credit that directly reduces your tax bill however as a nonrefundable credit it can only reduce your tax liability to zero any credit amount that remains beyond that is automatically forfeited if you can t use part or all of the general business credit because of the tax liability limit you generally carry the unused credit back one year different rules apply for some credits including oil and gas production credits if you have an unused credit after carrying it back carry it forward to each of the 20 tax years after the year of the credit 5general business credits are treated on a first in first out fifo basis therefore the order you use credits in any tax year is 5general business credit limitationslike other tax credits the general business credit has limitations to calculate the limit that applies to you if one spouse has no current or unused credit the other spouse may use the entire 25 000 in determining their credit for the tax year 7 | |
how do i file the general business credit | to claim the general business credit start by completing the specific tax forms for each individual credit you are taking next carry over the total of all these credits to form 3800 general business credit | |
which tax credits are included in the general business credit | dozens of tax credits can be used on the general business credit including the investment credit work opportunity credit low income housing credit empowerment zone employment credit credit for small employer pension plan startup costs credit for employer provided childcare facilities and services energy efficient home credit alternative motor vehicle credit credit for small employer health insurance premiums and the employer credit for paid family and medical leave keep in mind that some credits have expiration dates a complete list is available on the irs website 5 | |
which businesses are eligible for the general business credit | according to the irs an eligible small business is any of the following additionally the entity s average annual gross receipts during the prior three tax years can t exceed 50 million if the business is less than three years old base the average annual gross receipts on the period the business has existed 5 | |
what are general collateral financing trades | general collateral financing gcf trades are a type of repurchase agreement repo that is executed without the designation of specific securities as collateral until the end of the trading day gcf trades utilize several inter dealer brokers who act as intermediaries for the gcf trades gcf trades allow both borrowers and lenders in the repo market to reduce their costs and decrease the complexity of handling securities and fund transfers for repo agreements understanding general collateral financing trades gcf repurchase agreements or repo trades are essentially short term loans usually made between banks or between banks and other corporations that hold a large amount of corporate bonds government bonds cash or both the idea behind these trades is quite simple though the execution of them can be complex in essence a bank or other lending institution has a large amount of cash and would like to lend it out at whatever rates it can get because banks are able to lend on reserves they can turn a minimal interest rate into something substantially better if they can make short term loans on high quality assets corporations or banks who hold a substantial amount of high quality bonds may be in a position to make a substantial profit if only they can raise short term cash repurchase agreements allow both of these parties to benefit the bondholders use the bonds as collateral to get cash through a repurchase agreement it acts like a loan because the agreement stipulates that the bondholders will pay more to repurchase the assets than they sold them for the counterparty usually a bank is guaranteed a profit so long as the transaction is not defaulted the gcf trade is a version of this that streamlines the process special considerationssince gcf trades are often between banks or banking institutions the initiating party can assume the counterparty has a significant amount of high quality assets on hand and can enter into the transaction with little worry for the details of the assets being used for collateral this is especially useful if the transaction is open and closed before the end of the day general collateral gc comprises high quality liquid assets that are close substitutes to one another hence they are lumped together as general collateral u s treasury bills notes and bonds are accepted as gc as are u s treasury inflation protected securities tips mortgage backed securities and other securities issued by government sponsored enterprises because these forms of collateral are virtually cash there is greater market liquidity and repo transactions are facilitated without the need to negotiate individual collateral agreements between lending and borrowing dealers moreover participants benefit from lower costs as gcf trades are based on rates close to money market benchmark rates such as libor and euribor the delay granted in specifying the exact collateral for the repo is advantageous for borrowers who are then able to utilize the securities they have on hand to clear other unrelated trades as necessary throughout the day this avoids the time consuming process of swapping collateral if it becomes needed by the borrower gcf trades are also advantageous in that the use of the inter dealer broker allows borrowers and lenders to net out all of their gcf repo obligations at the end of each trading day greatly decreasing the number of costly securities and fund transfers that must take place | |
what is the general data protection regulation gdpr | the general data protection regulation gdpr is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live in and outside of the european union eu approved in 2016 and put into effect in 2018 the gdpr is the toughest security and privacy law in the world it aims to give consumers control over their own personal data by holding companies responsible for the way they handle and treat this information 1the regulation applies regardless of where websites are based which means it must be heeded by all sites that attract european visitors even if they don t specifically market goods or services to eu residents understanding the general data protection regulation gdpr the general data protection regulation gdpr is a law that was approved by the european union in april 2016 and went into effect on may 25 2018 2it replaced an earlier law the data protection directive and was set up to regulate the way companies process and use the personal data they collect from consumers online it also has rules in the way that information is moved whether that s partly or entirely through automated means the law makes it difficult for companies to mislead consumers with confusing or vague language when they visit their websites it also ensures these requirements may be more stringent than those required in the jurisdiction in which the site is located information on how to contact the dpo and other relevant staffers must be accessible so that visitors may exercise their eu data rights which also includes the ability to have their presence on the site erased among other measures the site must also add staff and other resources to be capable of carrying out such requests 6the requirement of an agree button largely explains the ubiquitous presence of disclosures that sites collect cookies which are small files that hold personal information such as site settings and preferences special considerationsas further protection for consumers the gdpr also calls for any personally identifiable information pii that sites collect to be either anonymized rendered anonymous or pseudonymized with the consumer s identity replaced with a pseudonym 7this allows firms to do more extensive data analysis such as assessing the average debt ratios of their customers in a particular region a calculation that might otherwise be beyond the original purposes of data collected for assessing creditworthiness for a loan the regulation applies to all 27 members of the eu and the european economic area eea regardless of where websites and residents are based as such it must be heeded by all sites that attract european visitors even if they don t specifically market goods or services to eu residents so the regulation applies to the data of an eu citizen even if it is housed in the u s similarly a u s citizen who resides in the eu is covered whenever they visit sites based in the union the gdpr affects data beyond that collected from customers most notably perhaps the regulation applies to the human resources records of employees 2criticism of the gdprthe gdpr has attracted criticism in some quarters some say that the requirement to appoint dpos or simply to assess the need for them imposes an undue administrative burden on certain companies some complain that the guidelines are too vague on how best to deal with employee data in addition data cannot be transferred to another country outside the eu unless the receiving company guarantees the same degree of protection as the eu requires this has led to complaints about costly disruption to business practices there s a further concern that the costs associated with gdpr will increase over time in part because of the escalating need to educate customers and employees alike about data protection threats and solutions there s also skepticism over how feasibly data protection agencies across the eu and beyond can align their enforcement and interpretation of the regulations and so assure a level playing field as the gdpr goes into fuller effect | |
how do companies become compliant under the general data protection regulation | there are several ways for companies to become gdpr compliant some of the key steps include auditing personal data and keeping a record of all the data they collect and process companies should also be sure to update privacy notices to all website visitors and fix any errors they find in their databases who is covered under the general data protection regulation in theory any individual who visits sites that are based in the european union is protected this includes anyone within the union itself and beyond its borders the regulation also applies to a citizen of the eu whose data exists outside the union and if you re a citizen of another country who lives in the eu your data is also protected under the law | |
when did the gdpr come into effect | the gdpr was approved in april 2016 however it took two years for the framework to be established as such the regulation went into full effect on may 25 2018 2the bottom linebusinesses collect personal data and they have often sold that information sometimes without the consent of their consumers but laws have been put into place in parts of the world to help protect individuals rules under the general data protection regulation went into effect in the european union in 2018 under the law companies must protect consumer data and inform them how their information is used it has a broad reach extending beyond the borders of the eu | |
what is general equilibrium theory | general equilibrium theory or walrasian general equilibrium attempts to explain the functioning of the macroeconomy as a whole rather than as collections of individual market phenomena 1the theory was first developed by the french economist leon walras in the late 19th century 2 it stands in contrast with partial equilibrium theory or marshallian partial equilibrium which only analyzes specific markets or sectors 3understanding general equilibrium theorywalras developed the general equilibrium theory to solve a much debated problem in economics up to that point most economic analyses only demonstrated partial equilibrium that is the price at which supply equals demand and markets clear in individual markets it was not yet shown that equilibrium could exist for all markets at the same time in aggregate general equilibrium theory tried to show how and why all free markets tend toward equilibrium in the long run the important fact was that markets didn t necessarily reach equilibrium only that they tended toward it as walras wrote in 1889 the market is like a lake agitated by the wind where the water is incessantly seeking its level without ever reaching it general equilibrium theory builds on the coordinating processes of a free market price system first widely popularized by adam smith s the wealth of nations 1776 this system says traders in a bidding process with other traders create transactions by buying and selling goods those transaction prices act as signals to other producers and consumers to realign their resources and activities along more profitable lines 1walras a talented mathematician believed he proved that any individual market was necessarily in equilibrium if all other markets were also in equilibrium this became known as walras s law the general equilibrium theory considers the economy as a network of interdependent markets and seeks to prove that all free markets eventually move towards general equilibrium special considerationsthere are many assumptions realistic and unrealistic inside the general equilibrium framework each economy has a finite number of goods in a finite number of agents each agent has a continuous and strictly concave utility function along with possession of a single pre existing good the production good to increase his utility each agent must trade his production good for other goods to be consumed there is a specified and limited set of market prices for the goods in this theoretical economy each agent relies on these prices to maximize his utility thereby creating supply and demand for various goods like most equilibrium models markets lack uncertainty imperfect knowledge or innovation alternatives to general equilibrium theoryaustrian economist ludwig von mises developed an alternative to long run general equilibrium with his so called evenly rotating economy ere this was another imaginary construct and shared some simplifying assumptions with general equilibrium economics no uncertainty no monetary institutions and no disrupting changes in resources or technology the ere illustrates the necessity of entrepreneurship by showing a system where none existed 4another austrian economist ludwig lachmann argued the economy is an ongoing non stable process replete with subjective knowledge and subjective expectations he argued that equilibrium could never be mathematically proven in a general or non partial market 5 those influenced by lachmann imagine the economy as an open ended evolutionary process of spontaneous order | |
what is the general depreciation system | the general depreciation system is the most commonly used modified accelerated cost recovery system macrs for calculating depreciation a general depreciation system uses the declining balance method to depreciate personal property understanding the general depreciation system gds the declining balance method requires applying the depreciation rate against the non depreciated balance for example if an asset that costs 1 000 is depreciated at 25 each year the deduction is 250 in the first year and 187 50 in the second year and so on the modified accelerated cost recovery system or macrs is the primary method of depreciation for federal income tax purposes allowed in the united states to determine depreciation deductions the macrs system of depreciation allows for larger depreciation deductions in the early years and lower deductions in the later years of ownership under macrs the deduction for depreciation is calculated by one of the following methods the declining balance method and the straight line method under macrs a taxpayer must compute tax deductions for depreciation of tangible property using specified asset lives and methods assets are divided into classes by type of asset or by the business in which the asset is used there are two sub systems of macrs the general depreciation system gds and alternate depreciation system ads gds is the most relevant and is used for most assets each depreciation system differs in terms of the number of years over which an asset can be depreciated typically the gds uses shorter recovery periods than the ads the ads sets depreciation as an equal amount each year except for the first and last year which might not be a full 12 months this method lowers the annual depreciation cost because there are more years over which to depreciate the asset however certain assets have the same recovery period under either system for example cars some trucks and computers are depreciated over five years regardless of the system employed you must use the ads system for all assets in a specific class if this system is selected for an asset the gds cannot be used at a later date irs asset classes under the gds and ads systems will assign class lives based on varying estimates of asset life for example office furniture fixtures and equipment use a class life of 10 years under the ads method and seven years under the gds method a natural gas production plant has an ads class life of 14 years and a gds class life of seven years accelerated depreciation methodologies and the selection of gds or ads systems can have a material impact on reported financial results | |
what is a general ledger | a general ledger represents the record keeping system for a company s financial data with debit and credit account records validated by a trial balance it provides a record of each financial transaction that takes place during the life of an operating company and holds account information that is needed to prepare the company s financial statements transaction data is segregated by type into accounts for assets liabilities owners equity revenues and expenses | |
what is a general manager gm | a general manager gm is responsible for all or part of a department s operations or the company s operations including generating revenue and controlling costs in small companies the general manager may be one of the top executives in hierarchical organizations gms rank above most employees but below corporate level executives the responsibility and importance associated with the position may vary among companies and often depend on the organization s structure understanding the role of a general manager gm the gm supervises lower level managers these lower level managers may be in charge of several smaller divisions but report directly to the gm the gm gives specific directions to each department head as part of this supervision a general manager oversees lower level managers hiring training and coaching in addition the gm may lay out incentives for workers and assess the departments efficiency while offering strategic business plans based on company goals the general manager is responsible for all aspects of a business including daily operations administrative functions and finances because of the enormity of the role a big part of the job is effective delegation to achieve goals gms collaborate with higher level managers and executives and with the employees that they supervise this person is responsible for budgeting resources for marketing supplies equipment and hiring because of their high level of responsibility complex duties and the need for extensive relevant experience gms earn more than entry level employees requirements for a general managera gm typically gains experience in a lower level management position before being hired or promoted to gm gms can advance by moving into top executive positions or to larger and more prestigious companies they must thoroughly understand their departments or company s operations be skilled at managing and leading employees and make sound decisions for the company they must also possess general manager responsibilitiesgeneral managers are usually responsible for overseeing the day to day operations of the overall workforce other responsibilities can include types of general managersa gm may hold various titles but overall their role is the same to oversee general operations and manage high level functions such as finances marketing and staffing in the c suite the chief executive officer ceo is considered the gm overseeing the entire company at the departmental level the gm might oversee a specific process in a company or be in charge of a particular unit or segment the gm sits just below the ceo in the executive suite in terms of rank a gm runs a line of business whereas the ceo is the gm of all lines of business in a company for example the gm is sometimes referred to as the product manager at technology companies the gm of a bank at a specific location is called the branch manager in a services company providing consulting or similar services a gm might use the title of managing partner or managing director consumer focused companies selling products tend to call their gms brand managers operations managers have a similar job to gms like gms operations managers create strategies that increase efficiency and profit for a company they also work with several departments to maintain the overall effectiveness of the business salaries and job outlookpay for general managers varies by industry and company but the bureau of labor statistics has published data for average general manager pay for industries with the highest gm employment levels the wage estimates for general and operations managers by percentile are general managers are found in many industries so the outlook is fair overall general manager employment is expected to increase by 4 2 through 2032 but significant changes are anticipated in several industries here are a few fossil fuels apparel traditional printing physical stores and other traditional general manager employers are expected to reduce their number of gms this is likely due to the trends in technology a switch to green energy a focus on health and corporate social responsibility and the large switch in consumer behavior to online shopping there is still plenty of employment opportunity as a general manager however wind and solar power generation electric component manufacturing passenger transportation and many others are expected to grow from a few percent to more than 30 topping general manager employment expectations by 2032 is geothermal electric power generation general managers with an anticipated 65 3 increase in employment in addition general managers in arts and entertainment performing arts sports event promoters artists writers and amusement parks are expected to grow between 8 and 12 by 2032 general manager vs ceogeneral managers are people who manage several different departments within a company one of their largest responsibilities is overseeing their departments sections or work site they coordinate duties and ensure their departments are on track to accomplish the goals set by the executives a chief executive officer is the top leadership position in a company ceos are responsible for strategic planning long term decision making operational oversight and fiscal oversight general manager vs operations managerwhile a gm is responsible for all aspects of a business an operations manager is only responsible for operations and production a gm s responsibilities are broader in scope and include hr marketing and strategy an operations manager s role tends to be more specific with experience in a particular niche industry | |
what does a general manager do | a general manager oversees a workforce budgets for the work that needs to be done ensures the company is staffed and many other higher level business functions | |
is general manager a high position | general managers usually have several lower level managers reporting to them so it can be a high position they are not executive level but usually they report to the executives | |
what is a general manager vs a manager | the level each manager is at varies by business structure and industry for instance in a company with divisions and departments managers supervise employees at the division level whereas a general manager would manage at the department level the bottom linegeneral managers oversee daily operations and budgets and ensure company goals are met most gms require progressive management experience and a college level degree in business or their field the job outlook for gms is high in certain industries and low in others but these highly skilled professionals will be in demand and remain very well paid for their work in the foreseeable future | |
what is a general obligation bond | a general obligation bond go bond is a municipal bond backed solely by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project general obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects no assets are used as collateral a go bond may be contrasted with a revenue bond in the context of munis understanding general obligation bondsa general obligation go bond is secured by an issuing government s pledge to use all available resources even tax revenues to repay holders of the bond at the local government level pledges may include a pledge to levy property taxes to meet the local government s obligation on the bondholders for example since property owners avoid losing their stake on their respective properties because of unpaid property tax bills credit rating agencies rate general obligation pledges with strong credit qualities and assign them high investment grade ratings if the property owners are not able to pay their property taxes on or before the designated due date the government is legally allowed to increase the property tax rate to make up for any delinquencies on the designated due date the general obligation pledge requires the local government to cover the debt with its available resources general obligation bonds also serve as a way for local governments to raise funds for projects that create streams of income for things such as roads parks equipment and bridges general obligation bonds are usually used to fund government projects that will serve the public community types of general obligation pledgesstate law sets the grounds on which local governments can provide and issue general obligation bonds a general obligation bond may either be a limited tax general obligation pledge or an unlimited tax general obligation pledge a limited tax general obligation pledge asks the issuing local government to raise property taxes if necessary to meet existing debt service obligations however this increase is bound by a statutory limit with limited tax general obligation pledges governments can still use a part of already levied property taxes use another stream of income or raise property taxes to an amount equating to existing debt service payments to answer its debt obligations an unlimited tax general obligation pledge is similar to the limited tax pledge the only difference is that the local government is asked to increase property tax rates to necessary levels up to a maximum of 100 to cover delinquencies from taxpayers residents must first agree to increase property taxes to the necessary amounts required for the bonds | |
what is a general order go | a general order go is a status given to imported goods that are missing the proper documentation or cannot be quickly cleared through customs for other reasons merchandise may be held under general order if the proper duties fees or interest are not paid if the owner fails to complete the required customs paperwork or if it is not correctly or legally invoiced goods will be held under general order if they remain uncleared for more than 15 days 1understanding general orders gos after 15 days any general order merchandise will be moved to a class 11 bonded warehouse under the authority set forth in title 19 united states code u s c section 1555 the risk of transportation and storage of the goods remains with the owner of the merchandise 3if the goods remain under general order for more than six months the merchandise will be confiscated by the government or put up for an auction run by the u s customs and border protection cbp agency live auctions take place each month online nationwide or at public venues like a hotel located close to ports auctions are open to anyone except cbp employees and their immediate family members bidders must place down a 5 000 deposit to participate purchases are nonrefundable and the buyers are responsible for picking up the merchandise 4the port of entry or company that first receives the goods into the united states is responsible for letting u s customs know within 20 days of arrival that unclaimed or incorrectly documented items are being held subject to a fine of up to 1 000 2real world example of a general orderon february 16 17 2017 the cbp held a nationwide online auction for general order merchandise abandoned at ports and moved to bonded warehouses after six months the merchandise became eligible for auction the list of items included the following | |
what is general partner | a general partner is one of two or more investors who jointly own a business that is structured as a partnership and who assumes a day to day role in managing it understanding general partnera general partner has the authority to act on behalf of the business without the knowledge or permission of the other partners unlike a limited or silent partner the general partner may have unlimited liability for the debts of the business general partners typically bring specialized knowledge and skills to the partnership and contribute to its pool of contacts and clients since they share management responsibilities each has more time to devote to their respective professional duties the main benefit of a partnership is that it isn t taxed separately in other words the irs internal revenue service doesn t require partnerships to pay corporate taxes on profits instead each partner receives their share of the profits as income and file and pay their own taxes on the flip side a general partner may be held personally responsible for the liabilities of the partnership for example a patient might sue a doctor for medical malpractice in some cases courts have allowed the client to proceed against all of the general partners in the medical practice if the court enters a judgment in favor of the client all the general partners would be financially responsible in fact the general partner with the most money invested in the business could bear a larger proportion of the penalty than the general partner whose alleged malpractice caused the suit if a general partner is ever required to meet the partnership s financial obligations their personal assets may be subject to liquidation the general partner shares the expenses and responsibilities of operating the business and shares in the profits if it is successful partnership vs limited partnershipa partnership is any business entity that is formed by at least two people who agree to create a company and share in its expenses and profits this type of arrangement is particularly appealing to legal medical and creative professionals who prefer to be their own bosses but want to expand their business reach a partnership also offers a pool of investment for building and maintaining a business on a scale that might be beyond the resources of a single individual in such cases each professional becomes a general partner under the terms of the partnership agreement they share the expenses and responsibilities of operating the business and share in the profits if it is successful in the case of a limited partnership only one of the partners will become the general partner while the others will have limited liability that is their responsibility for debts is restricted to the amount they invested in the business a limited partner is primarily an investor in the business who does not take an active role in its operations | |
what is a general partnership | a general partnership is a business arrangement by which two or more individuals agree to share responsibilities assets profits and financial and legal liabilities of a jointly owned business in a general partnership partners agree to be personally responsible for potentially unlimited liability liabilities are not capped as they would be in say a partnership formed as a limited liability partnership or a limited liability company llc partners are responsible for the debts and the seizure of an owner s assets is a possibility furthermore any partner may be sued for the business s debts since a general partnership is a pass through entity where income flows straight to the owners each partner reports their share of partnership profits or losses on their personal tax returns the partnership itself is not taxed understanding general partnershipsgeneral partnerships are unincorporated businesses those who form a general partnership don t need to register their business with a state to function legally general partnerships offer the flexibility to structure businesses however partners see fit this gives those partners the ability to control operations more closely in turn this allows for more swift and decisive management action compared to corporations which must often deal with multiple levels of bureaucracy and red tape complicating and slowing down the implementation of new ideas a general partnership must satisfy the following conditions 1aspects of a general partnershipthe partnership should have a formal written partnership agreement though oral agreements are valid the partnership agreement details such things as the business s governing structure the partners rights and responsibilities and how profits should be allocated it can also state what should happen when a partner leaves dies or otherwise becomes unable to function as a partner for example the agreement may stipulate that a deceased partner s interest is transferred to the surviving partners or a successor ideally the partnership will have created its own agreement that addresses among other things the topic of management and control however if the partnership has no agreement that sets forth how the partnership should be managed and who should manage it it can follow the directives in the revised uniform partnership act rupa which most states have adopted the act provides a standard of governance for partnerships it defines 2in a general partnership each partner has the agency to unilaterally enter into binding agreements and business deals and all other partners are bound by the terms 3not surprisingly such activities may lead to disagreements as a result many successful general partnerships build conflict resolution mechanisms into their partnership agreements in some cases the partners agree only to proceed with major decisions if there s either a complete consensus or a majority vote in other cases the partners designate non partner appointees to manage the partnerships similar to a company s board of directors in any case broad agreement is essential because when all partners have unlimited liability even innocent players can be fiscally on the hook for inappropriate or illegal actions rather than a salary partners receive distributions from the partnership s profits these distributions should be in accord with the allocation of profits detailed in the partnership agreement if the partnership has no agreement profits should be equally distributed according to rupa mentioned above money that the partnership does not distribute to partners can be used for other purposes e g reinvested in the business partners in a general partnership have shared liability for the debts and obligations of the business every partner agrees to unlimited personal liability for their actions the actions of all other partners and those of any and all employees therefore partners have shared responsibility also known as joint liability for damages awarded in a legal action taken against the partnership 13joint and severe liability where someone can sue any partner for actions taken by others is also a possibility in certain states partners must then decide how much each owes partners have a fiduciary duty to act in the best interest of their partnership in fact specific fiduciary duties are key to protecting partners and the business itself a partner who breaches a fiduciary duty may be personally liable for any harm that breach causes the partnership while the partnership in its agreement can assert additional fiduciary duties the main ones are 45duty of good faith and fair dealingpartners must act honestly and fairly in all dealings that pertain to the partnership duty of loyaltypartners must not pursue personal activities that can harm the partnership they must place the partnership s best interests above personal interests and they must forego all conflicts of interest that may exist with the partnership due to those personal interests duty of carepartners must act prudently and competently when managing the affairs of the partnership importantly if a partner acts with reasonable care and in good faith they cannot be deemed liable should their activities cause unfavorable results duty of disclosurepartners must disclose to other partners any facts and other information they have about risks and consequences that concern or may concern the well being of the business if any conflict of interest arises they must disclose that too as mentioned previously general partnerships do not pay business income taxes as pass through entities they pass income and losses directly to individual partners the partners must then report their shares of profits or losses on their personal tax returns and pay any taxes owed 6partners also have to pay taxes on income earned by the partnership that is not distributed otherwise known as retained earnings a general partnership must complete and provide irs form schedule k 1 to each partner by march 15 7 a k 1 details each partner s share of business income losses credits and deductions each partner uses the information within the k 1 to complete their personal tax return the k 1 does not need to be sent with the tax return to the irs 8however because partnership earnings are considered self employment income partners will need to include a schedule se with their tax return 6 it is the form used to determine the tax due on net earnings from self employment information on schedule se is also used by the social security administration ssa to figure your social security and medicare benefits 9the general partnership itself must file form 1065 with the irs no later than april 15 form 1065 is an informational return and involves no payments 10example of a general partnershipgeneral partnerships have been the business entity of choice for individuals seeking to work together as well as various types of service providers that s often due to their straightforward structure low cost and ease of set up for example law firms medical practices and architectural firms often organize themselves as general partnerships spouses and other members of families who want to run a business together also set up general partnerships advantages and disadvantages of a general partnership | |
is a general partnership the same as an llp | not exactly a general partnership and a limited liability partnership are both partnerships and pass through entities however a general partnership involves the potential for the unlimited personal liability of partners for financial and legal obligations a limited liability partnership like a limited liability company limits liability to just what the partner has invested in the business their personal assets are protected from seizure 1 | |
what are the advantages of a general partnership | general partnerships can be simple to set up people can get together declare that they re a partnership and start working immediately in most cases a general partnership isn t required to register with the state it does business in incorporation isn t required either it can be dissolved automatically when one partner leaves and it doesn t pay taxes though the partners do 6who owns a general partnership the partners own the partnership ideally the partnership will create a partnership agreement that among other things states who the partners owners are as well as the profit allocation percentage for each 3the bottom linea general partnership is a business with at least two owners or partners who agree to share the responsibilities involved in running the business a partner has unlimited personal liability for any and all debts and obligations of the company each partner reports their share of business profits and losses on their individual tax return and pays any taxes due the partnership itself isn t subject to taxation a general partnership is a common type of business due to the fact that it s easy to set up and dissolve however a general partnership may need to restructure at some point as it grows and encounters greater business risk so as to limit the exposure to personal financial liability that partners have | |
what is a general partnership | a general partnership is a business arrangement by which two or more individuals agree to share responsibilities assets profits and financial and legal liabilities of a jointly owned business in a general partnership partners agree to be personally responsible for potentially unlimited liability liabilities are not capped as they would be in say a partnership formed as a limited liability partnership or a limited liability company llc partners are responsible for the debts and the seizure of an owner s assets is a possibility furthermore any partner may be sued for the business s debts since a general partnership is a pass through entity where income flows straight to the owners each partner reports their share of partnership profits or losses on their personal tax returns the partnership itself is not taxed understanding general partnershipsgeneral partnerships are unincorporated businesses those who form a general partnership don t need to register their business with a state to function legally general partnerships offer the flexibility to structure businesses however partners see fit this gives those partners the ability to control operations more closely in turn this allows for more swift and decisive management action compared to corporations which must often deal with multiple levels of bureaucracy and red tape complicating and slowing down the implementation of new ideas a general partnership must satisfy the following conditions 1aspects of a general partnershipthe partnership should have a formal written partnership agreement though oral agreements are valid the partnership agreement details such things as the business s governing structure the partners rights and responsibilities and how profits should be allocated it can also state what should happen when a partner leaves dies or otherwise becomes unable to function as a partner for example the agreement may stipulate that a deceased partner s interest is transferred to the surviving partners or a successor ideally the partnership will have created its own agreement that addresses among other things the topic of management and control however if the partnership has no agreement that sets forth how the partnership should be managed and who should manage it it can follow the directives in the revised uniform partnership act rupa which most states have adopted the act provides a standard of governance for partnerships it defines 2in a general partnership each partner has the agency to unilaterally enter into binding agreements and business deals and all other partners are bound by the terms 3not surprisingly such activities may lead to disagreements as a result many successful general partnerships build conflict resolution mechanisms into their partnership agreements in some cases the partners agree only to proceed with major decisions if there s either a complete consensus or a majority vote in other cases the partners designate non partner appointees to manage the partnerships similar to a company s board of directors in any case broad agreement is essential because when all partners have unlimited liability even innocent players can be fiscally on the hook for inappropriate or illegal actions rather than a salary partners receive distributions from the partnership s profits these distributions should be in accord with the allocation of profits detailed in the partnership agreement if the partnership has no agreement profits should be equally distributed according to rupa mentioned above money that the partnership does not distribute to partners can be used for other purposes e g reinvested in the business partners in a general partnership have shared liability for the debts and obligations of the business every partner agrees to unlimited personal liability for their actions the actions of all other partners and those of any and all employees therefore partners have shared responsibility also known as joint liability for damages awarded in a legal action taken against the partnership 13joint and severe liability where someone can sue any partner for actions taken by others is also a possibility in certain states partners must then decide how much each owes partners have a fiduciary duty to act in the best interest of their partnership in fact specific fiduciary duties are key to protecting partners and the business itself a partner who breaches a fiduciary duty may be personally liable for any harm that breach causes the partnership while the partnership in its agreement can assert additional fiduciary duties the main ones are 45duty of good faith and fair dealingpartners must act honestly and fairly in all dealings that pertain to the partnership duty of loyaltypartners must not pursue personal activities that can harm the partnership they must place the partnership s best interests above personal interests and they must forego all conflicts of interest that may exist with the partnership due to those personal interests duty of carepartners must act prudently and competently when managing the affairs of the partnership importantly if a partner acts with reasonable care and in good faith they cannot be deemed liable should their activities cause unfavorable results duty of disclosurepartners must disclose to other partners any facts and other information they have about risks and consequences that concern or may concern the well being of the business if any conflict of interest arises they must disclose that too as mentioned previously general partnerships do not pay business income taxes as pass through entities they pass income and losses directly to individual partners the partners must then report their shares of profits or losses on their personal tax returns and pay any taxes owed 6partners also have to pay taxes on income earned by the partnership that is not distributed otherwise known as retained earnings a general partnership must complete and provide irs form schedule k 1 to each partner by march 15 7 a k 1 details each partner s share of business income losses credits and deductions each partner uses the information within the k 1 to complete their personal tax return the k 1 does not need to be sent with the tax return to the irs 8however because partnership earnings are considered self employment income partners will need to include a schedule se with their tax return 6 it is the form used to determine the tax due on net earnings from self employment information on schedule se is also used by the social security administration ssa to figure your social security and medicare benefits 9the general partnership itself must file form 1065 with the irs no later than april 15 form 1065 is an informational return and involves no payments 10example of a general partnershipgeneral partnerships have been the business entity of choice for individuals seeking to work together as well as various types of service providers that s often due to their straightforward structure low cost and ease of set up for example law firms medical practices and architectural firms often organize themselves as general partnerships spouses and other members of families who want to run a business together also set up general partnerships advantages and disadvantages of a general partnership | |
is a general partnership the same as an llp | not exactly a general partnership and a limited liability partnership are both partnerships and pass through entities however a general partnership involves the potential for the unlimited personal liability of partners for financial and legal obligations a limited liability partnership like a limited liability company limits liability to just what the partner has invested in the business their personal assets are protected from seizure 1 | |
what are the advantages of a general partnership | general partnerships can be simple to set up people can get together declare that they re a partnership and start working immediately in most cases a general partnership isn t required to register with the state it does business in incorporation isn t required either it can be dissolved automatically when one partner leaves and it doesn t pay taxes though the partners do 6who owns a general partnership the partners own the partnership ideally the partnership will create a partnership agreement that among other things states who the partners owners are as well as the profit allocation percentage for each 3the bottom linea general partnership is a business with at least two owners or partners who agree to share the responsibilities involved in running the business a partner has unlimited personal liability for any and all debts and obligations of the company each partner reports their share of business profits and losses on their individual tax return and pays any taxes due the partnership itself isn t subject to taxation a general partnership is a common type of business due to the fact that it s easy to set up and dissolve however a general partnership may need to restructure at some point as it grows and encounters greater business risk so as to limit the exposure to personal financial liability that partners have | |
what is a general public distribution | in finance the term general public distribution refers to the process by which a private company becomes a publicly traded company by selling its shares to the public at large this is in contrast to a conventional public distribution in which the shares are sold largely to institutional investors | |
how general public distributions work | the transaction whereby a private company s shares are sold to the public for the first time is known as its initial public offering ipo if the ipo involves directly selling to a large pool of investors regardless of whether they are small retail investors or large funds then that ipo would be referred to as a general public distribution if on the other hand the ipo catered primarily to large and sophisticated investors such as investment banks hedge funds and pension funds then that would be considered a conventional public distribution | |
when investors buy shares through an ipo they are participating in what is known as the primary market in the primary market the securities you purchase come directly from the company issuing them by comparison the secondary market is one where you purchase securities from other owners of that security who either previously purchased them from the issuer or else purchased them from another owner entirely the vast majority of transactions that take place are done in the secondary market making ipos relatively rare and closely watched events | from the perspective of the company there are many potential reasons to undertake an ipo to begin they may wish to raise funds for expansion such as by building new facilities hiring new employees funding increased research and development r d initiatives or even acquiring a competitor in this case the ipo would represent a form of equity financing in other cases a company may wish to ipo in order to increase the liquidity available to its early investors some of whom may wish to cash out their investment additional advantages may also exist such as the increased prestige credibility and creditworthiness that is often associated with publicly traded companies real world example of a general public distributionxyz corporation is a prominent technology company that is contemplating how best to fund its expansion plans its managers feel that by opening new offices abroad and hiring new employees they can effectively expand their customer base outside of the united states moreover they see opportunities to acquire several small competitors they feel could add intellectual property and human resources to their portfolio in considering their options for fundraising xyz decides to opt for equity financing through an ipo to finalize their decision they must decide between a general public distribution or a conventional public distribution in the former a greater percentage of their issued shares are likely to be held by retail investors whereas the latter will generally tend toward more institutional ownership in practice however the two different types of ipos will likely lead to similar medium and long term results this is because once the shares are sold in the primary market investors will then trade them among themselves in the secondary market for example suppose the shares are issued to institutional investors but there is unmet market demand from retail investors in that scenario there would be nothing stopping those retail investors from making offers to purchase those shares from the institutional investors in the secondary market likewise if the shares are sold mostly to retail investors but demand for the shares then rises among institutional investors retail investors will be free to sell their shares in this manner the secondary market should ensure that xyz s stock is ultimately held by those owners who value it most highly regardless of who receives the shares in the ipo | |
what are the generally accepted accounting principles gaap | the generally accepted accounting principles gaap are a set of accounting rules standards and procedures issued and frequently revised by the financial accounting standards board fasb and the governmental accounting standards board gasb these principles ensure consistency accuracy and transparency in financial reporting across various industries in the united states public companies must follow gaap when preparing their financial statements which is also widely used in governmental accounting 1theresa chiechi investopediaunderstanding gaapgaap combines authoritative standards set by policy boards and widely accepted methods for recording and reporting accounting information it covers revenue recognition balance sheet classification and materiality the main objective of gaap is to ensure that a company s financial statements are complete consistent and comparable allowing investors to analyze and extract useful information from financial statements it also facilitates the comparison of financial information across different companies 2unlike pro forma accounting a non gaap method gaap provides a standardized framework internationally the equivalent standard is the international financial reporting standards ifrs used in 168 jurisdictions worldwide gaap is also utilized by government entities all 50 states follow gaap and many local entities such as counties cities towns and school districts must adhere to these principles 3compliance with gaapif a corporation s stock is publicly traded its financial statements must follow rules set by the u s securities and exchange commission sec the sec mandates that publicly traded companies in the u s file gaap compliant financial statements regularly to maintain their public listing on stock exchanges 4 gaap compliance is verified through an appropriate auditor s opinion resulting from an external audit by a certified public accounting cpa firm while non publicly traded companies aren t required to follow gaap it is still highly regarded by lenders and creditors most financial institutions require annual gaap compliant financial statements as a part of their debt covenants when issuing business loans leading many u s companies to adopt gaap investors should be cautious if a financial statement isn t prepared using gaap comparing financial statements across different companies even within the same industry becomes challenging without gaap some companies may use gaap and non gaap measures to report their financial results gaap regulations require that non gaap measures be identified in financial statements and other public disclosures such as press releases 5even with gaap s transparency rules financial statements can still contain errors or misleading information always scrutinize financial statements as there s potential for manipulation within gaap s framework gaap vs ifrsthe international financial reporting standards ifrs set by the international accounting standards board iasb is an alternative to gaap that is widely used worldwide 6one key difference between gaap and ifrs is the treatment of inventory ifrs rules ban using last in first out lifo inventory accounting methods whereas gaap permits lifo both systems accept the first in first out fifo and weighted average cost methods 7since 2002 the iasb and the fasb have worked to align ifrs and gaap 8 a significant milestone was reached in 2007 when the sec allowed non u s companies registered in the u s to use ifrs without reconciling to gaap 9 this was a big achievement because it eliminated the need for non u s companies on u s exchanges to provide gaap compliant financial statements as global operations and markets expand international standards like ifrs are gaining traction even in the u s nearly all s p 500 companies report at least one non gaap measure in their financial statements 10 this trend is evident in the widespread use of several non gaap metrics with 77 of s p 500 companies reporting adjusted earnings 77 using adjusted eps earnings per share and 29 reporting ebitda or adjusted ebitda 11since much of the world uses the ifrs standard a convergence to ifrs could benefit international corporations and investors alike | |
where are generally accepted accounting principles gaap used | gaap is used primarily in the united states while the international financial reporting standards ifrs are in wider use internationally | |
why is gaap important | gaap is crucial for maintaining trust in the financial markets without gaap investors might be more reluctant to trust the information presented to them by public companies without that trust fewer transactions and higher transaction costs could result ultimately weakening the economy gaap also helps investors analyze companies by making it easier to perform apples to apples comparisons between one company and another allowing for more accurate and consistent analysis | |
what are non gaap measures | companies can present certain figures without following gaap guidelines as long as they identify them as non gaap companies sometimes do that when they believe the gaap rules don t fully capture specific operational nuances in such cases they may provide specially designed non gaap metrics alongside the required gaap disclosures however investors should be cautious with non gaap measures as they can sometimes be used to present a misleading view of a company s performance 12the bottom linegaap is meant to ensure consistency accuracy and transparency in financial reporting and aims to provide a reliable foundation for investors to make informed decisions while the rules established under gaap generally improve the transparency in financial statements they don t guarantee that a company s financial statements are free from errors or omissions meant to mislead investors always scrutinize financial statements as there can still be room for manipulation within the framework of gaap | |
what are generally accepted auditing standards gaas | generally accepted auditing standards gaas are a set of systematic guidelines used by auditors when conducting audits of companies financial records gaas helps to ensure the accuracy consistency and verifiability of auditors actions and reports the auditing standards board asb of the american institute of certified public accountants aicpa created gaas its members agree to adhere to the standards 1investopedia paige mclaughlinunderstanding generally accepted auditing standards gaas gaas are the auditing standards that help measure and ensure the quality of audits auditors review and report on the financial records of companies according to the generally accepted auditing standards auditors are tasked with determining whether the financial statements of public companies follow generally accepted accounting principles gaap gaap is a set of accounting standards that public companies must follow when reporting their true and accurate financial results 1auditors review a company s financial records and accounting practices to ensure that they re consistent and comply with gaap the securities and exchange commission sec requires that the financial statements of public companies be examined by external independent auditors 2while gaap outlines the accounting standards that accountants must follow gaas provides the auditing standards that auditors must follow requirements for gaasgenerally accepted auditing standards gaas comprise 10 standards divided into the following three sections 3gaas vs gaapwhile gaas refers to the auditing standards that auditors follow to produce a reliable and transparent audit report gaap relates to accounting standards that companies follow when recording and reporting financial activities events auditors use gaas when reviewing the financial records of companies that most likely use gaap and producing audit reports gaas auditing standards were issued by the american institute of certified public accountants aicpa 1the accounting principles enumerated by gaap were issued by the financial accounting standards board fasb 4gaap is intended to ensure consistency among financial records financial transparency and protection from fraud or misleading company reports use of gaap provides investors and creditors with the assurance of a reliable standard of accounting it simplifies the examining of financials of individual companies as well as comparisons with others | |
what are the 3 types of gaas | the three sections of generally accepted auditing standards are general standards standards of field work and standards of reporting 3 | |
what is gaap in auditing | gaap refers to generally accepted accounting principles these are the accounting standards and rules by which companies record and report their financial activities these financials are examined subsequently by auditors who can then attest to their veracity or report inadequacies | |
does an auditor have to follow gaas | if an auditor is a member of the american institute of certified public accountants whose accounting standard board issues gaas the auditor is required to follow gaas | |
what happens if an auditor doesn t follow gaas | if an auditor fails to adhere to gaas they could be held liable for negligence regarding losses suffered by a company the bottom linegenerally accepted auditing standards are a set of guidelines that auditors follow when they examine and report on companies financial records these guidelines are important because they underscore appropriate actions and activities of auditors generally accepted accounting principles gaap relate to accounting rules they are different from gaas however auditors review corporate financial records for adherence to gaap | |
definition of generally accepted principles and practices gapp | the generally accepted principles and practices gapp which are also known as the santiago principles are standardized business procedures related to the operation of sovereign wealth funds swfs which have agreed to pursue financial rather than political agendas and maintain a stable global financial system understanding generally accepted principles and practices gapp the generally accepted principles and practices gapp were agreed upon by the international working group of the sovereign wealth funds iwg 23 countries with swfs in october 2008 in response to the concern of investors and regulators about the inadequate transparency independence and governance of the industry the iwg resolved that swfs demonstrate that their arrangements are properly set up and investments are made on an economic and financial basis instead of pursuing political agendas gapp is underpinned by the following guiding objectives for swfs defined as special purpose investment funds or arrangements owned by the general government 1the 24 voluntary santiago principles simply provide a framework for these guiding principles in three key areas legal institutional and investment and risk 2 the principles are maintained and promoted by the international forum of sovereign wealth funds ifswf whose members voluntarily endorse the principles and seek to implement them in their governance and investment practices as of 2021 the forum represented more than 30 sovereign wealth funds from all corners of the globe | |
what is a generation gap | a generation gap refers to the chasm that separates the beliefs and behaviors belonging to members of different generations this gap often manifests in varying thoughts actions and preferences between younger and older generations differences may exist in politics values pop culture and other areas while generation gaps have been prevalent throughout history they became more pronounced in the 20th and 21st centuries due to rapid technological and social changes demographic change is one of the most significant yet least understood challenges organizations face today understanding generation gapsgeneration gaps play big roles in businesses companies must find ways to balance the needs and views of individuals from different groups to sell to them businesses must also be aware of the changing demographics and genders of their client base which can affect their business cycles and bottom lines the term generation gap was first used in the 1960s when baby boomers born 1946 1964 began diverging from their parents beliefs and opinions sociologists use specific terminology to refer to different generational segments for example generation z born between 1997 and 2012 is known as digital natives because they have grown up with digital technology in contrast older generations are termed digital immigrants as they re generally less comfortable with personal technology use consequently technology companies tailor their marketing strategies differently for each age group generational segments go by other handles the greatest generation is also known as radio babies the silent generation has also been called traditionalists and baby boomers are also known as the me generation | |
how generations are distinguished | the current living generations have been divided into the following six major groups each generation has its own characteristics regarding vernacular technological influences workplace attitudes general consciousness and ways of life as survirors of the great depression and world war ii the greatest generation played a crucial role in shaping the united states into an economic and military powerhouse born between 1901 and 1927 this group is characterized by patriotism strong teamwork and unwavering drive born 1928 to 1945 the silent generation includes individuals who experienced significant historical events and cultural shifts older members fought in korea while younger ones danced to elvis presley and early rock n roll and formed the leadership of the civil rights movement often more traditional and rule following than the baby boomers they re sometimes called the traditionalist generation however this label might not fully capture this group s diverse experiences and contributions baby boomers born between 1946 and 1964 witnessed increasing social and economic equality and came of age during a time of significant division over politics war and social justice during the 1960s and 70s boomers participated in some of the greatest social changes in the country s history including the civil rights and women s liberation movements of the 1960s and 70s their activism and advocacy during these decades brought about profound changes that continue to influence society today there s speculation that baby boomers will significantly change the retirement landscape many believe these changes are linked to the countercultural movements of the 1960s and 70s that this generation led studies suggest that baby boomers who strongly identified with these movements may see retirement as an active phase involving continued work personal development and new ventures born 1965 to 1980 gen xers grew up with emerging technologies and political and institutional challenges they witnessed significant events such as watergate the three mile island incident and the iranian hostage crisis but generation also experienced major technological advancements for example fax machines were replaced by email heavy adding machines gave way to handheld calculators computers became smaller and faster dvds replaced vhs tapes mobile phones began to appear and the internet started to transform communication and information access born between 1981 to 1996 millennials have always known cable tv pagers answering machines laptop computers and video games the rapid advancements in real time media and communication have shaped their expectation for immediacy they are the generation that bridges the gap between growing up in a world before and after the internet they have also seen untold tragedy in their youth with events like the columbine high school shootings of 1999 and the terrorist attacks of september 11 2001 additionally millennials were deeply impacted by the 2008 great recession hurting the long term outlook of their finances those born on the edge of gen x and millennials are sometimes referred to as x ennials generation z is the generation after the millennials born 1997 to 2012 this generation consists of individuals in young adulthood teenagers and children this is the first generation who grew up with the internet as a fact of life not knowing a world without email immediate access to information or mobile phones the cohorts of gen z are more likely to be the children of immigrants than millennials are 22 vs 14 respectively generation z was expected to do well financially coming of age in a strong economy however the economic crisis of 2020 disrupted gen z s expected financial stability leaving their future uncertain as a result many in this generation are experiencing high levels of stress and depression according to a study by the american psychological association gen z adults report the highest stress levels compared to other generations this generation is racially and ethnically diverse and shares many social and policy beliefs with millennials both generations are progressive advocating for social equality and emphasizing the importance of addressing climate change special considerationsunderstanding different generations is critical for businesses to effectively market their products or services the first step is identifying your target audience based on your business s offerings from there learning how to market to them without relying on stereotypes is key to success staying true to your company s identity is also essential if your brand isn t perceived as hip or young using trendy language to appeal to generation z can appear inauthentic and may backfire millennials and baby boomers are the largest generations baby boomers are also the wealthiest while millennials are reaching middle age and will have more wealth to spend understanding these types of characteristics of a generation helps tailor your marketing strategies for example baby boomers are nearing or enjoying retirement so highlighting retirement benefits in your product may resonate with them millennials might be more interested in buying a house their first car or starting a family in addition a business needs to know where to market baby boomers grew up without smartphones or the internet though many are tech savvy many also still read physical newspapers and watch cable tv if you re marketing to baby boomers that might be an area to consider on the other hand generation z grew up with smartphones and tablets so digital marketing is the best approach to engage this tech savvy audience | |
what is a generation gap | a generation gap is the thoughts beliefs and ideologies that separate one generation from the next these can encompass beliefs on politics business race and pop culture | |
what causes generation gaps | generation gaps are simply caused by age and the situation of the world at the time when one generation has grown up for example the beliefs and perceptions of those who grew up during world war ii may be different from those who grew up in the 1960s though to be sure similarities will remain | |
what are the generation gaps called | some of the different generation gaps are the traditionalists the baby boomers generation x millennials and generation z | |
is the generation gap no longer a gap | there are many studies conducted on this topic there will always be different generations simply because people are born at different times similarly the world and society are always changing which will inadvertently change the perception of individuals depending on the period they grew up in studies also show that the differences in generation gaps are minimal individual differences also play a role as do socioeconomic factors | |
how can we bridge the generation gap | there are ways to bridge the generation gap in certain workplace situations encouraging multigenerational teamwork is one tactic creating clear cultural values such as highlighting the importance of the quality of the work rather than where the work is done office vs remotely is another incorporating many communication channels that work for all individuals organizing mentorship programs and emphasizing respect above all else are also useful tools the bottom linea generation gap consists of the differing beliefs on politics religion society and pop culture that exist between different generations these beliefs are shaped by the state of the world in which the individuals belonging to each generation grew up businesses often try to understand the different generations so that they can create and market products successfully businesses also try and understand these differences to close the generation gap among employees hopefully building cohesive and efficient workplaces | |
what is the generation skipping transfer tax gstt | the generation skipping transfer tax is a federal tax on a gift or inheritance that prevents the donor from avoiding estate taxes by skipping children in favor of grandchildren with the generation skipping transfer tax grandchildren receive the same amount as if the inheritance were coming from their parents before the generation skipping transfer tax was introduced in 1976 wealthy individuals were legally able to gift money and bequeath property to their grandchildren without paying federal estate taxes the legislation effectively closed the loophole where inheritances could skip a generation to avoid double estate taxation 1understanding the generation skipping transfer taxthe generation skipping transfer tax gstt is an additional tax on a transfer of property that skips a generation known as a generation skipping transfer gst for short the gstt was implemented to prevent families from avoiding the estate tax for one or more generations by making gifts or bequests directly to grandchildren or great grandchildren the parent s generation is skipped to avoid an inheritance being subject to estate taxes twice the gstt ensures that grandchildren end up with the same value of assets that they would have had if the inheritance was transferred to them directly from their parents rather than their grandparents the person giving the gift is referred to as the transferor and the recipient is known as the skip person many people use a grandchild as a skip person but a skip person does not have to be a family member any individual is eligible to receive a generation skipping transfer as long as they are at least 37 years younger than the transferor 4the generation skipping transfer tax is imposed only if the transfer avoids incurring a gift or estate tax at each generation level to make up for the taxes that may be avoided by skipping one generation the internal revenue service irs imposes a second layer of tax on gifts and bequests above the estate and lifetime gift exclusion it means that the gstt is only due when a beneficiary receives amounts in excess of the gst estate tax credit 5direct vs indirect skips with the gsttthe taxation of a gst depends on whether the transfer is a direct or an indirect skip a direct skip is a property transfer that s subject to an estate or gift tax an example of a direct skip would be a grandmother gifting property to a grandchild the transferor or their estate is responsible for paying the gst tax for direct skips 6an indirect skip involves a transfer that has intermediate steps before reaching a skip person there are two types of indirect skips the taxable termination and the taxable distribution a taxable termination involves a skip person and a non skip person a non skip person is the primary beneficiary who will receive property before it is transferred to the skip person the transfer to the skip person occurs upon the death of a non skip person typically the child of the transferor 7as an example of a taxable termination consider a transferor who establishes an income producing trust for his son upon the son s death the remaining property would be passed on to the transferor s grandchild at which time those assets would be subject to the gst tax a taxable distribution refers to any distribution of income or property from a trust to a skip person that is not otherwise subject to estate or gift tax if a grandmother established a trust that made payments to her grandson those payments would be subject to gst taxes which the recipient is responsible for paying 8 | |
how much is the generation skipping transfer tax | in the past the gstt has been hefty ranging from 35 to 77 9 the current rate which has been in effect since 2014 is 40 however the tax cuts and jobs act dramatically lessened the estates that might be affected by it for 2022 the federal estate gift and gstt exemption is 12 06 million for each individual 12 92 million in 2023 and 24 12 million for married couples 25 84 million in 2023 more than doubling the pre tcja limit of 5 49 million for individuals 23some states also collect generation skipping transfer taxes generally the ones that impose their own estate taxes 10only the value of a person s estate that is in excess of the applicable exemption is subject to an estate tax at death or the gstt at that flat rate of 40 so only aggregate gifts and bequests to a skip person in excess of 12 06 million in 2022 12 92 million in 2023 would be subject to the 40 flat generation skipping transfer tax 3the gstt is assessed when the gift or property transfer is made gsts can occur before or after the death of the transferor while still alive the transferor can give the gift directly to the skip person but upon death the transferor s will may either stipulate that property is bequeathed to a skip person or it may call for the establishment of a trust from which distributions will be made form 709 is used to report both gst taxes and transfers whereby federal gift taxes are due 11gstt strategiesmost beneficiaries will avoid the gst tax because the estates they inherit will be worth less than the government provided estate tax credit the gstt exemption is very high as noted above however in cases where the tax could apply transferors can create dynasty trusts which are designed to avoid or minimize estate taxes with each generational transfer by parking assets in the trust and making specified distributions to each generation the corpus of the trust isn t subject to estate taxes with the transfer | |
what triggers the generation skipping transfer tax | the generation skipping transfer tax is triggered when a person gifts another person an asset but skips a generation in doing so for example when a person gifts a home to their grandchild and skips their child who pays the generation skipping transfer tax the generation skipping transfer tax is paid by either the grantor or the skipped beneficiary the grantor pays the direct generation skipping tax while an indirect generation skipping tax is paid by the skipped beneficiary the former is the most common scenario | |
how much can a parent gift a child tax free in 2022 | a parent can gift a child tax free 16 000 in 2022 in 2023 the amount is 17 000 this is per parent and per recipient 12 | |
what is a generation skipping trust gst | a generation skipping trust gst is a type of legally binding trust agreement in which the contributed assets are passed down to the grantor s grandchildren thus skipping the next generation the grantor s children by passing over the grantor s children the assets avoid the estate taxes taxes on an individual s property upon his or her death that would apply if the children directly inherited them generation skipping trusts are effective wealth preservation tools for individuals with significant assets and savings understanding a generation skipping trust gst because a generation skipping trust effectively transfers assets from the grantor s estate to grandchildren the grantor s children never take title to the assets this is what allows the grantor to avoid the estate taxes that would apply if the assets came into the possession of the next generation first though grandchildren are the most common beneficiaries the recipient of a generation skipping transfer doesn t necessarily have to be a family member the beneficiary can be anybody who is at least 37 years younger than the grantor and not a spouse or ex spouse generation skipping trusts can still provide some financial benefits to the next generation because the grantor can give children access to any income the trust s assets generate while still leaving the assets themselves in trust for grandchildren taxing the generation skipping transfer trust gst due to the generation skipping trust s viability as a loophole to avoid federal estate taxes changes were made to the tax code in 1986 that created a generation skipping transfer tax generation skipping transfer tax rates have risen and fallen over the years with a recent high of 55 in 2001 and a low of 0 in 2010 due to an exemption awarded by the 2010 tax relief act intended to ensure that people transferring modest sums of wealth to younger generations don t have to bear the brunt of the tax burden these exemptions were secured by the american taxpayer relief act of 2012 this legislation established a permanent 5 million tax exemption on generation skipping transfers which meant the federal tax on a generation skipping transfer of wealth would apply only if the amount exceeded 5 million however the gstt truly applies to the very wealthy because the transferred amount is astronomical most people will never encounter the gstt because of the high threshold the tax only applies when the transferred amount exceeds 11 4 million per individual for 2019 and in 2021 is 11 7 million the generation skipping tax exemption amount for 2021 2 1 increasing the generation skipping trust tax exemptioneven with the installment of taxes on generation skipping transfers gsts still serve as tools for high net worth individuals to transfer wealth at a lower tax rate and they became even sharper tools on dec 22 2017 when president donald trump signed into effect the tax cuts and jobs act which doubled the generation skipping tax exemption starting on jan 1 2018 the tax cuts and jobs act tcja doubled the estate tax exemption to 11 2 million for singles and 22 4 million for married couples but only for 2018 through 2025 the exemption level is indexed for inflation the 40 top tax rate remains in place this act expires on jan 1 2026 pushing the exemptions back to their pre act amounts unless congress extends them | |
what is generation x gen x | generation x sometimes shortened to gen x is the name given to the generation of people born between the mid 1960s and the early 1980s the exact years that comprise gen x vary some researchers demographers william strauss and neil howe for example place the exact birth years from 1961 to 1981 whereas gallup places the birth years between 1965 and 1979 but all agree that gen x follows the baby boomer generation and precedes generation y also known as the millennial generation 12understanding generation xthe name generation x comes from a novel by douglas coupland generation x tales for an accelerated culture published in 1991 though it s more useful for marketing than sociology generational theory the assumption that people born within the same time frame can be considered a group with similar views values tastes and habits and the idea of a generation gap have gained broad acceptance in the u s 34the generations covered in the theory are gen x numbers around 65 million while the baby boomers have around 69 million members and millennials number around 72 million as of the latest data from 2022 gen x is also sometimes referred to as the latchkey generation as they were often left unsupervised at home after school until their parents came home from work 57like the silent generation generation x has been defined as an in between generation the group s earning power and savings were compromised first by the dotcom bust and then by the financial crisis of 2008 and the great recession in terms of social and political power generation x is sandwiched between the baby boomers who came of age during the vietnam and reagan eras and the millennials of the obama era gen x overlaps with another group called the sandwich generation each modern generation has gotten its time in this slot which is used to characterize middle aged individuals who due to longer life spans and having children later in life find themselves supporting both aging parents and growing children simultaneously gen x vs baby boomers and millennialsthe 23rd annual transamerica retirement survey of workers published in 2023 compares gen x baby boomers and millennials 8 among its findings gen x s financial situationover the next two decades there will be a major transfer of wealth collectively around 84 trillion from baby boomers to younger generations including their gen x children and they re going to need it 9gen x accounts for just 25 6 of the nation s wealth while baby boomers hold just over half 51 6 according to the latest data from the federal reserve 10notable members of generation x include jeff bezos tiger woods and the late kurt cobain retirement savingsthirty one percent of gen x members have at least 250 000 in household retirement savings while 26 have between 50 000 and 250 000 by comparison 51 of baby boomers have 250 000 or more saved for retirement nine percent of gen x members have no money saved for retirement at all 8just 17 of gen x workers feel very confident that they will be able to fully retire with a comfortable lifestyle and 80 are concerned social security will not be there for them at retirement age forty percent plan to retire at age 70 or above or do not expect to retire at all 8effects of market timing on gen xon average gen x households began working saving and investing during a period of lower investment returns than the baby boomers many gen x households began building their savings in periods of high market valuations such as the technology bubble and dotcom bubble of the late 1990s and in the run up to the global financial crisis of 2008 the effects of the ensuing bear markets still weigh heavily on their portfolios additionally gen x ers have experienced an especially low interest rate environment which has had an adverse impact on their ability to increase the value of their financial assets meanwhile the early experiences of gen x investors with major market declines seem to have made them more risk averse other challenges faced by gen xgen x ers relatively lower levels of wealth and the rising costs of education healthcare and property will make it difficult for them to maintain their parents consumption patterns and then there s the sandwich syndrome the fact that this generation has reached the age when they are supporting and educating children while also providing care for aging parents gen x ers now have the highest average debt of any generation according to research by experian average total debt reached 157 556 in the third quarter of 2023 mortgage debt heloc loans student loans car loans personal loans and credit card debt all factored into average gen x debt 11reinventing retirement for gen xthe retirement landscape is different for gen x than for their parents once common pension plans in the private sector are rare and have been replaced by defined contribution plans such as a 401 k and gen xers aren t counting on social security to fund their retirement either baby boomers 40 are much more likely to expect social security to be their primary source of retirement income compared with just 25 of gen x according to the transamerica survey in fact 39 of gen x strongly agree that social security might not be around when they retire while 23 of baby boomers feel the same 12financial planning for gen xthe potential for financial duress can be substantial but steps can be taken to reduce stress balance budgets and mitigate the effects of unplanned life events here are some recommendations for gen x to get their financial lives in order and deal with all layers of that generational sandwich children parents and themselves this is vitally important if you have dependent children and do not yet have a will or other necessary documents you do not want the fate of your dependents or your belongings to be decided by a judge in probate court so now is the time to make an appointment with an estate planning attorney to get your will living will medical and durable powers of attorney and perhaps a living trust created to ensure the smooth and quick transference of all of your dependents possessions and responsibilities to your heirs and because estate settlement can be an emotionally delicate process doing this now can allow you and your family to think through how this should be done from a calm logical perspective | |
when you were in your 20s managing your finances was a fairly simple matter of getting into good financial habits such as saving and budgeting now you are at the point where your finances are probably a bit more complicated and one financial variable such as the amount that you contribute to your company s 401 k plan can affect several other areas in ways that are becoming difficult to compute or predict with any accuracy | this variable impact probably means that it is time to enlist a professional financial planner or financial advisor who can plug your cash flow balance sheet risk tolerance investment objectives time horizon and tax bracket into a sophisticated financial planning program this can give you at least some idea of where you really are financially and what you need to do going forward to get where you want to be by retirement age just be prepared to see some unpleasant numbers at the end numbers that may indicate that you will not be able to retire as soon as you hoped if your debt load has become unmanageable find a legitimate debt management firm to help you get it under control although most experts warn parents about diverting retirement savings into their kids college funds this is the time to open a coverdell education savings account or a 529 plan fund if none exists your kids can contribute to these funds as well as you the money you inherit from deceased parents or other relatives can also be college funding sources opening an individual retirement account for them can be another good choice as long as you re confident that they will not withdraw the contributions for other purposes granted conversations about money between parents and their children can be awkward but if you have not spoken with your parents about the state of their health and finances then it s probably time to get the ball rolling in this area if your parents health is failing and they have no estate plan in place then it may be wise to fork over the cash yourself to pay to have this done if they consent consult an elder law attorney for advice if you need help dealing with managed care issues and choose a designated sibling to be the point person for dealing with these matters a common mistake the children of aging parents make is the overestimation of medicare medigap and medicaid coverage having an understanding of what needs to be paid for out of pocket can determine if purchasing long term care insurance if that s still feasible and supplemental insurance policies may be beneficial the pressure of caring for aging parents can be multiplied by the expense of supporting grown children requiring offspring who return home after college to help with household expenses including paying rent buying groceries or assisting with the elders care can relieve some of the pressure associated with supporting multiple generations it can also provide children with some life lessons in financial and fiscal responsibility | |
why is gen x sometimes called the lost generation | also known as the lost generation forgotten generation or invisible generation gen x has received these monikers because of the shifting societal values that occurred during their rise gen x grew up amid a rise in divorces single parent households and loneliness today gen x is again considered lost because it is stuck between the baby boomers and the millennials 7 | |
is gen z or x older | gen x is older than gen z by a few decades in between gen x and gen z is the millennial generation | |
what does the x stand for in generation x | the letter x refers to an unknown variable as in mathematics or to the generation s desire not to be defined 13the bottom linenumbering about 65 million generation x includes individuals born between the mid 1960s and the early 1980s known as the latchkey or the lost generation gen x ers grew up at a time when societal values shifted with many children home alone after school and an increase in divorce rates their early years in the workforce included many economic hurdles such as the dotcom bubble and the great recession today gen x members are in their prime earning years but many still feel unprepared for retirement | |
what is a generic brand | the term generic brand refers to a type of consumer product on the market that lacks a widely recognized name or logo because it typically isn t advertised generic brands are usually less expensive than their brand name counterparts due to their lack of promotion which can inflate the cost of a good or service these brands which are designed as substitutes for more expensive brand name goods are especially common in the food and pharmaceutical industry and tend to be more popular during a recession understanding generic brandsthese brands are known for their trimmed down packaging and plain labels rather than being known by a brand name generic products are distinguished by their characteristics alone all of this helps keep the product s price down significantly | |
when comparing generic and brand name products consumers tend to pay close attention to and compare their lists of individual ingredients most consumers believe that generics are of a lesser quality compared to brand names the quality of generic brands though is generally comparable to name brand products despite the difference in cost between name and generic brands there is little taste or nutritional difference between them some consumers may prefer generics as they re often called over name brands even if its price isn t a considering factor | as noted above generic brands can be found in the food and beverage industry as well as in pharmaceuticals for example a supermarket may offer its own generic product say a dairy product like sour cream next to a name brand product to appeal to a cost conscious customer or a pharmacy may offer consumers a generic alternative to advil s ibuprofen generic brands may be manufactured in the same production facilities as name brand products special considerationsa generic drug or pharmaceutical may be created when a name brand drug s patent expires in the u s which is responsible for most drug patents the patent term length is 20 years there is also an exclusivity period the length of which depends on the drug type and its use once a patent ends and exclusivity is satisfied a single manufacturer is permitted to produce a generic chemically identical version of the brand name drug at the end of the generic s period of exclusivity any other manufacturer that can prove that it can achieve the same drug efficacy may make a generic version of that drug some manufacturers may even create a generic version of their brand name drug either by manufacturing it themselves or contracting it out to another manufacturer this strategy makes sense because insurance company policy often dictates that a generic when available must be prescribed generics are sold at a discount from brand name drugs often about 80 to 85 less because of competition margins on generic drugs can be very thin in 2020 it was estimated that generic drugs had saved the health care system about 2 2 trillion over the previous decade a variation of a generic brand is a private brand label also called a store brand own brand or private brand in which an item carries the brand of a store some stores offer both value and premium versions of the same private label product types of generic brandsgrocery and dollar stores are well known for their generic brands those commonly found on these retailers shelves include generic brands in pharmacies include but aren t limited to generic brands vs brand name genericssome well known name brands have become genericized this can happen when a company loses trademark protection or if a name becomes part of everyday jargon here are a few common examples | |
what is a genesis block | a genesis block is the first block in a cryptocurrency blockchain a blockchain consists of a series of blocks that store information related to transactions that occur on a blockchain network each block contains a unique header and is individually identified by its block header hash these blocks are chained together by their encrypted headers with the genesis block being the foundation and they grow in number a block s number is referred to as its height on the blockchain so the genesis block has a height of zero the following block has a height of one and so on the chained information in each block is one of the things that makes a blockchain so secure bitcoin s genesis block was the first instance of a proof of work blockchain system and is the template for all other blocks in its blockchain in 2009 bitcoin s anonymous developer satoshi nakamoto created the genesis block by transferring 50 btc and mining the first block understanding the genesis blockblocks are effectively digital containers where data pertaining to the transactions on a network are permanently recorded a block records as many of the most recent bitcoin transactions it can hold that have not yet entered any prior blocks thus a block is like a ledger or a record book page each time a block is completed it gives way to the next block in the blockchain a closed block is thus a permanent store of records that once confirmed cannot be altered or removed the genesis block also known as block 0 is the very first block upon which additional blocks in a blockchain are added it is effectively the ancestor that every other block can trace its lineage back to since every block references the one preceding it this began the process of validating bitcoin transactions and introducing new bitcoins into existence the next block block 1 wasn t mined until five days after the genesis block this is considered odd as the average timestamp gap between blocks is intended to be 10 minutes 12there are a few theories regarding the delay of five days between the first two blocks some have theorized that nakamoto spent five days mining the original block to test out the bitcoin system to make sure it was stable then backdated the timestamp while more cultish followers believe satoshi intended to recreate the story of god s rest after creating the world in six days even though the recorded difference is only five days bitcoin basicsbitcoin is a cryptocurrency developed by satoshi nakamoto bitcoin with a capital b refers to the blockchain and network and bitcoin with a small b refers to the virtual token that is used there are no actual coins hence the bit or binary digit the most basic unit of data in computing before coin in the world of virtual currency blocks are files where data about the bitcoin network and its transactions are permanently recorded each time a block is completed that is when a miner guesses the solution the block is closed giving way to the next block in the blockchain the only way to release new cryptocurrency into circulation is to mine it receive it as a reward for doing work for the blockchain so to mine bitcoin is to mint currency like gold bitcoin cannot be created arbitrarily gold must be mined out of the ground and bitcoin btc must be mined digitally moreover bitcoin s founder stipulated that like gold the supply of bitcoin should be limited and finite only 21 million btc can be mined in total when miners have unlocked all bitcoin the supply will be tapped out unless someone changes bitcoin s protocol to allow for a larger supply 3mysteries of the genesis blockbeginning with the fact that the name satoshi nakamoto itself is a pseudonym the genesis block and the founding of bitcoin remain riddled with mystery shortly after bitcoin s launch the person calling themselves satoshi nakamoto vanished from the face of the earth leaving barely a trace the genesis block s beginnings were shrouded in the debate about a fine point of its creation was the code that rendered the genesis block effectively untradeable an intention or a mistake on the part of nakamoto although the genesis block points to a web address written into the genesis block s code that link displayed an error message when activated the system could not find the first transaction of 50 btc in its database and the spending transaction was rejected so the genesis block s transaction is not considered a real transaction by the original bitcoin client but why did nakamoto mean for the first bitcoin to be non tradeable or was it a mistake this became the subject of much debate among bitcoin fans and insiders because of the precision of this developer however most believe it was hardly an error nakamoto likely wrote the code for the genesis block exactly the way he wanted it we will never know why as the quirk was not discovered until after nakamoto disappeared current versions of the bitcoin system handle the block transaction databases differently from the original system so the genesis block s transaction is now just a weird special case in the code another puzzling aspect of the genesis block is the message that nakamoto instilled within the block s raw data the times 03 jan 2009 chancellor on brink of second bailout for banks although nakamoto never commented on the meaning of this text some believe that it serves as a mission statement for bitcoin itself the text is a headline for an article in the jan 3 2009 edition of the london times about the british government s failure to stimulate the economy following the 2007 08 financial crisis nakamoto spoke out against the idea of financial institutions that were too big to fail and wanted bitcoin to be different most people think that nakamoto s reference to the article in the genesis block s code was a hint as to how bitcoin is different from the big investment banks that needed government bailouts in 2008 the true legacy of the genesis blockbitcoin cannot be bailed out because its process eliminates the intermediary no third party or corporate entity exists between btc and the consumer the bitcoin network checks and double checks itself continuously using encryption validation and automated general consensus another failsafe is that because all transactions cannot be altered the actions of miners can always be traced back to their wallet addresses which makes it impossible to hide any evidence of wrongdoing however unless the owner of the wallet address makes their identity known there is no way to know who it is in november 2013 early protegees of nakamoto formed the satoshi nakamoto institute sni to educate the public about the history and vision of bitcoin s creation among other interesting details the sni houses one of the biggest remnants of nakamoto s online existence an extensive list of forum posts broken into subject categories that the bitcoin creator penned while still working on the project some bitcoin fans hold the genesis block in a kind of cult like reverence as they do its anonymous creator fans are drawn to bitcoin s arcane construct and idiosyncratic vocabulary with the fervor of one obsessed with a sophisticated arcade game bitcoin devotees have been donating small amounts of btc to the genesis block as a tribute to satoshi nakamoto this is seen as a kind of sacrifice because once a coin is moved into the genesis block it can never be used again sort of like throwing a quarter into a bottomless fountain | |
is genesis block 0 or 1 | it is the first block on the bitcoin blockchain however it has a block height of zero who owns the bitcoin genesis block the genesis block is believed to be owned by whoever satoshi nakamoto is | |
what is a genesis block | a genesis block is the first block on a blockchain the genesis block is the first block on the bitcoin blockchain the bottom linethe genesis block is the first block on the bitcoin blockchain but it is also a term that can be used to refer to the first block on any blockchain it is special to cryptocurrency fans because it signifies an attempt to transition away from the current financial system which is full of third parties chipping away at people s finances and causing widespread problems through corrupt practices the comments opinions and analyses expressed on investopedia are for informational purposes online read our warranty and liability disclaimer for more info | |
genetically modified foods gmf are produced from organisms that have had their genes altered to introduce traits not created through natural selection genetically modified foods mostly fruits and vegetables have been commercially available since the 1994 1 modifying the genetic code of a fruit vegetable or animal involves introducing a gene from another organism | in the united states the u s food and drug administration environmental protection agency and u s department of agriculture regulate genetically modified foods to ensure they are safe for human consumption 2 breaking down genetically modified food gmf proponents of genetically modified fruits and vegetables point to the benefits such as higher crop yields scientists genetically engineer fruits and vegetables to introduce resistance to diseases or pests other changes allow fruits and vegetables to withstand pesticides or herbicides the green revolution of the 20th century owed much of its success to the introduction of plants that could produce higher yields in adverse conditions such as climates that receive less rainfall norman borlaug won a nobel peace prize in 1970 for his work in developing a robust strain of wheat that drastically improved wheat yields in mexico india and pakistan in the 1950s and 1960s 3 gmf controversy and criticscritics argue that genetically modified foods should be labeled differently from conventionally produced food they argue there is uncertainty regarding the long term health impacts on consumers as well as the impact on the environment for example genetically modified organisms may squeeze out conventional fruits and vegetables from the environment this in turn could impact animals insects and other organisms that depend on those plants to survive critics also worry that genes from genetically modified organisms may move to conventional crops cross fertilization or may be transferred from food to the consumer several countries have passed or proposed legislation regulating the development and use of genetically modified organisms in the food supply others have taken steps to ban them outright more than half the 28 countries in the european union including germany and france have banned farmers from growing genetically modified crops though imports of gmf animal feed is still allowed several regions such as northern ireland scotland and wales have also joined the anti gmf movement but the united kingdom itself has no formal gmf ban 4 only one gm crop has been approved and grown in europe a type of maize that is resistant to a weevil called the european corn borer the only farmers to grow the maize are primarily in spain where weevils are a problem the map below shows which countries around the world have full partial or no restrictions on gmf 4 | |
what is a gentlemen s agreement | a gentlemen s agreement is an informal often unwritten agreement or transaction backed only by the integrity of the counterparty to actually abide by its terms an agreement such as this is generally informal made orally and is not legally binding despite their more casual nature a violation of a gentlemen s agreement could have a negative effect on business relationships if one party decides to renege on their promise a gentlemen s agreement also spelled gentleman s agreement may or may not be consummated by a handshake understanding gentlemen s agreementsa gentleman s agreement being more of a point of honor and etiquette relies on the forbearance of two or more parties for the fulfillment of spoken or unspoken obligations unlike a binding contract or legal agreement there is no court administered redress if a gentlemen s agreement is broken still social pressures and norms help keep gentlemen s agreements in force indeed the damage to one s reputation can be more harmful in the long run than any monetary gain that may result from going against such an agreement trust can quickly be eroded in such a case and few people will want to enter into business with somebody with a reputation for reneging | |
how a gentlemen s agreement works | gentlemen s agreements have been commonly made in international trade and relations as well as in most industries gentlemen s agreements were especially prevalent at the birth of the industrial age and well into the first half of the 1900s as regulation often lagged new business practices such agreements were found to be in use to control prices and limit competition in the steel iron water and tobacco industries among others a gentlemen s agreement is often but not always sealed with a handshake or similar gesture that is socially recognized by both parties to the agreement as well as to any witnesses or outsiders limitations of a gentlemen s agreementat its worst a gentlemen s agreement may be made to engage in anti competitive practices such as price fixing or trade quotas since a gentlemen s agreement is tacit not committed to paper as a legal binding contract it may be used to create and impose rules that are illegal the end result in many cases may be higher costs or lower quality products for consumers worse yet a gentlemen s agreement may be used as a means to promote discriminatory practices such as in an old boy s network gentlemen s agreements because they are informal and often not written down do not have the same legal and regulatory protections in place that a formal contract has and thus are more difficult to enforce the u s government placed a prohibition on gentlemen s agreements in trade and commercial relations between nations in 1890 history and examples of gentlemen s agreementsgentlemen s agreements between industry and the u s government were common in the 1800s and early 1900s 12 this however led some regulators to believe that there was rampant collusion and unfair business dealings the bureau of corporations a predecessor to the federal trade commission ftc was thus formed in 1903 to investigate monopolistic practices 3 | |
what resulted in some cases were new gentlemen s agreements in which wall street financiers such as j p morgan and his house of morgan would meet with the bureau itself to receive prior clearance on mergers and takeovers one such example was the gentlemen s agreement that had regulators and the president overlook the sherman antitrust act to allow united states steel corp to become the world s first billion dollar company 4 | in 1907 a stock market panic that hit several big investment banks led to a financial crisis the panic led to president theodore roosevelt working closely with j p morgan to consolidate banks under the argument that doing so would stave off a larger crisis 5similarly in 1907 morgan again worked informally with roosevelt to create a gentlemen s agreement that would allow u s steel to acquire its largest competitor tennessee coal and iron in an unwritten and unstated rule that violated the sherman act gentlemen s agreements may also be found in trade treaties and international relations one example is the gentlemen s agreement of 1907 that saw the united states and the empire of japan address immigration from japan and the poor treatment of japanese immigrants already in america 2 the agreement never ratified by congress saw japan agree to no longer issue passports to individuals seeking to immigrate to america for work the united states in turn would no longer allow discrimination and segregation of japanese citizens residing in america | |
what is the purpose of a gentlemen s agreement | a gentlemen s agreement may be proposed to consummate a deal between two or more parties without the need for regulatory oversight or a trusted third party enforcer such as a court or judge this can reduce transaction costs and also make the reconciliation of the deal more flexible | |
what was the gentlemen s agreement of 1907 | in 1907 u s negotiators settled on a gentlemen s agreement that restricted immigration to america by japanese nationals in return president roosevelt agreed to cancel a san francisco statute whereby japanese children were segregated from white students 2 | |
what are other words to describe a gentlemen s agreement | other words to describe a gentlemen s gentleman s agreement are an informal agreement unspoken agreement handshake agreement verbal agreement tacit agreement or unwritten agreement pactum latin for pact is another way to describe it | |
does a gentlemen s agreement stand up in court | a gentleman s agreement can be enforceable when it meets the criteria of an oral contract although some types of contracts such as for a real estate transaction must always be in writing | |
what is gentrification | gentrification is the transformation of a neighborhood from low value to high value it is viewed as a process of urban development in which a neighborhood or portion of a city develops rapidly in a short period of time often as a result of urban renewal programs including real estate investment this process is often marked by inflated home prices that bring in higher income residents and displace a neighborhood s previous residents understanding gentrificationgentrification is derived from the word gentry which historically referred to people of an elevated social status in the united kingdom the term landed gentry originally described landowners who could live off of the rental income from their properties in its current context gentrification was first popularized by the british sociologist ruth glass in 1964 when she used the term to describe the influx of middle class people into london s working class neighborhoods displacing the former residents of those localities 1numerous cities around the world experience the phenomenon of gentrification which can have a direct impact on housing market dynamics in most major cities some neighborhoods that were previously less than desirable have morphed into vibrant districts with plush condominiums and offices new coffee shops and restaurants expensive retail storefronts and various entertainment choices gentrification poses complex issuesgentrification is a complex social issue with both benefits and drawbacks young families welcome the opportunity to buy reasonably priced homes in a safe community with sound infrastructure and a wide choice of amenities and services local municipalities and governments also benefit from collecting higher taxes on rising property values and increased economic activity however the neighborhood s original inhabitants also families as well as singles of various ages are often displaced by rising rents and a higher cost of living from the very community that they helped build | |
why gentrification is controversial | gentrification has become controversial because historically it has come with a significant component of discrimination against racial minorities women and children the poor and older adults even as it may bring about a reversal in the decline of a city displacement caused by gentrification can force prior residents into poorer and relatively unsafe areas with limited access to affordable housing healthy food choices and social networks in turn this can trigger increased stress levels and decreased mental health according to the centers for disease control and prevention cdc vulnerable segments of the population are at increased risk for negative health effects of gentrification such as shorter life expectancies and increased rates of cancer diabetes and cardiovascular disease 2displacement often leads to the exclusion of the original residents particularly people of color and a lack of government support for low income housing assistance for example as well as weakened social and community ties 2a 2019 study by the national community reinvestment coalition found that between 2000 and 2013 seven of the biggest u s cities new york city los angeles washington d c philadelphia baltimore san diego and chicago accounted for nearly half of the country s gentrification 3the causes of gentrificationan oft cited study by the brookings institution center on urban and metropolitan policy highlights some of the factors that contribute to gentrification 4one way to combat pricing people out of affordable housing a form of housing discrimination is a community land trust clt these are private non profit organizations that own land on behalf of a community promoting housing affordability and sustainable development and mitigating historical inequities in homeownership and wealth building challenging long held viewssome research challenges certain long held views about the negative effects of gentrification in a july 2019 paper researchers at the federal reserve bank of philadelphia and the u s census bureau found that gentrification can create some important benefits for original residents and few observable harms 5 | |
why is gentrification a problem | gentrification can be seen as a problem because it negatively impacts a community s history residents culture and social capital it is a housing economic and health issue that displaces a group of people through urban renewal programs typically benefiting higher income people as they move into affordable neighborhoods and alter that neighborhood s dynamics 2 | |
what are the disadvantages of gentrification | the disadvantages of gentrification include the loss of small businesses the displacement of long term residents the loss of affordable housing increases in the cost of living cultural erasure and the loss of diversity who is to blame for gentrification the blame for gentrification can be attributed to private investment public policy and public investment without controlling these factors for the benefit of all gentrification can take place the bottom linein the 21st century gentrification has rapidly spread across many cities in the world for both good and bad while there are positive outcomes to gentrification such as a reduction in crime and the rehabilitation of spaces it can adversely impact local populations pricing them out of their homes as housing costs increase gentrification needs to be managed with care by local governments to ensure individuals across the entire income spectrum can reap the benefits | |
what is genuine progress indicator gpi | a genuine progress indicator gpi is a metric used to measure the economic growth of a country it is often considered an alternative metric to the more well known gross domestic product gdp economic indicator the gpi indicator takes everything the gdp uses into account but adds other figures that represent the cost of the negative effects related to economic activity such as the cost of crime ozone depletion and the cost of resource depletion among others 1the gpi nets the positive and negative results of economic growth to examine whether or not it has benefited people overall | |
how the genuine progress indicator works | the genuine progress indicator is an attempt to measure whether the environmental impact and social costs of economic production and consumption in a country are negative or positive factors in overall health and well being 2the gpi metric was developed out of the theories of green economics which sees the economic market as a piece within an ecosystem proponents of the gpi see it as a better measure of the sustainability of an economy when compared to the gdp measure history of genuine progress indicatorin the 1930s the roosevelt administration sought ways to measure the united states s economic output after instituting policies to address a failing economy using questionable data the department of commerce enlisted national bureau of economic research economist simon kuznets to establish more suitable economic metrics than what was previously used in response he presented to congress his report national income 1929 1935 which gave birth to the concept of gross domestic product gdp 3however kuznets warned that the gdp would not be able to measure the welfare of a nation so some 30 years later in 1995 u s based organization redefining progress built upon this notion creating a pathway for clifford cobb ted halstead and jonathan rowe to create the genuine progress indicator gpi which consists of 26 indicators 4 this new metric was designed to define a nation s welfare not only by its economic measures but also by the state of its social environmental and human conditions because gpi is loosely defined practitioners developed their own parameters for which to measure economic welfare the inconsistencies made it difficult to compare one economy to another and therefore rendered some minimally useful two gpi summits were held to address these inconsistencies and as a result researchers and practitioners modified gpi gpi 2 0 to streamline the accounting processes and replace antiquated methodologies that did not provide an accurate and complete picture of an economy a pilot testing period occurred from 2012 to 2014 in the u s and canada to test the efficacy of gpi 2 0 56prior to the 1930s there was no way to measure national income and output 7calculating gpithe formula to calculate gpi is below along with a brief explanation of what each component means gpi cadj g w d s e nit s important to note that assigning monetary values to non market goods and services and assessing the impact of social and environmental factors involves a degree of subjectivity it s entirely possible for one analyst or economist to have a gpi calculation that differs from another because the two just may not have the same perspective on a less quantitative item from above assigning monetary values in gpi calculationsdetermining the monetary values for non market goods and services in gpi can be tough the calculations can be a bit of a puzzle and economists use several methods to crack it one way is through market price estimation where economists look at the prices of similar market goods as stand ins for non market ones in cases where there s a direct substitute or similar good this is typically the most ideal case economists could also go straight to the source asking people directly about their preferences or observing consumer behavior in surveys and revealed preference methods surveys can often reveal consumer sentiment about the value additions and deductions from any given good another approach to assigning monetary value involves shadow pricing shadow pricing happens when we estimate the economic value of non market goods by looking at the costs or benefits associated with their use or depletion for instance think about the cost of environmental degradation or the loss of biodiversity even though there may not be a direct economic cost there that contributes to a good there is still value lost that can be at least tracked if not measured one way or another last economists may choose to layer on assumptions when looking at market transactions they may choose to analyze a price from the lens of what that good s price or cost could be due to non market factors or how a price is derived from a hedonic pricing angle for instance the price of a home may be based on the size of the home age of the home or neighborhood understanding these factors may attribute value to other comparables and this strategy can be used across different types of goods gpi vs gdpgdp increases twice when pollution is created once upon creation as a side effect of some valuable process and again when the pollution is cleaned up by contrast gpi counts the initial pollution as a loss rather than a gain generally equal to the amount it will cost to clean up later plus the cost of any negative impact the pollution will have in the meantime quantifying the costs and benefits of these environmental and social externalities is a difficult task by accounting for the costs borne by society as a whole to repair or control pollution and poverty gpi balances gdp spending against external costs gpi advocates claim that it can more reliably measure economic progress as it distinguishes between the overall shift in the value basis of a product adding its ecological impacts into the equation the relationship between gdp and gpi mimics the relationship between the gross profit and net profit of a company the net profit is the gross profit minus the costs incurred while the gpi is the gdp value of all goods and services produced minus the environmental and social costs accordingly the gpi will be zero if the financial costs of poverty and pollution equal the financial gains from the production of goods and services all other factors being constant advantages and disadvantages of gpigenuine progress indicator gpi measures the economy holistically by considering economic indicators that the gdp doesn t for example it accounts for negative externalities such as pollution and crime and other social breakdowns that compromise the economy and the welfare of the people it serves these events create large societal costs from the resulting damages benefits to society such as volunteerism housework and higher education are significant contributions to society but were largely ignored because they were difficult to quantify 8 and as no consideration is given in exchange for these types of services they are not included in the gdp however to account for their impact on the economy the gpi prescribes values to each accounting for these activities and events that ordinarily have no assigned values can be problematic including them requires values to be assigned and these values can differ based on who is ascribing them this level of subjectivity can make it difficult to compare gpis also the broad definition of gpi allows for different interpretations and calculations these inconsistencies can make it difficult to get an accurate accounting of factors and compare gpis they also make it difficult for gpi to be adopted as the economic standard of measurement includes environmental and social factors not considered in the gdpassigns values to societal contributions such as volunteeringquantifies an overall impact in a single simple number that may be easier to compare over timemakes it difficult to compare gpis due to subjectivityallows for different interpretations and calculations due to broad definitionmay result in assumptions at least for the non monetary variables example of gpilet s look at a real world example of gpi the maryland quality of life initiative a collaborative effort involving businesses non profits academics and the state uses the maryland genuine progress indicator as a resource to gauge quality of life 9the initiative aims to build a quality of life dashboard for the state highlighting areas where the state can do better the gpi methodology has changed and it s current form gpi 2 0 has 12 categories with 50 indicators the state of maryland can then use these indicators to prove out successes or failures 9for example from 2012 to 2019 the gpi for maryland decreased 14 41 billion there was a substantial decrease in overall household budget expenditures as well as an increase in defensive expenses note that the gpi also factored in some non monetary considerations such as marylanders gaining 6 5 more leisure time and a 12 increase in unpaid labor 9 | |
how is gpi different from gdp | genuine progress indicator gpi factors in all the components of the gross domestic product gdp and includes environmental and social elements that impact the economy such as pollution volunteerism crime and climate change some economists suggest that gpi is a better metric than gdp as it gives a holistic view of the wellbeing of a nation s economy | |
what are the component indicators of the gpi | the gpi consists of 26 indicators grouped into three categories social economic and environmental 2 each measures a different condition of the economy within the social category you will find crime family structure academics and more in the environmental category you will find pollution climate change and other factors that positively or negatively affect the environment who created the genuine progress indicator taking on simon kuznets s disclaimer that gdp could not adequately tell how a nation is faring overall clifford cobb developed the genuine progress indicator gpi along with ted halstead and jonathan rowe in 1995 3the bottom linegenuine progress indicator gpi is an economic tool used to measure the health of a nation s economy it incorporates environmental and social factors such as family structure benefits from higher education crime and pollution not considered in the gdp gpi determines whether these other factors negatively or positively the economy and can provide a holistic view into how they affect the lives and welfare of society | |
what is geographical diversification | diversification generally speaking is the practice of allocating money to a wide variety of investments so as to minimize risk it s the financial equivalent of not putting all your eggs in one basket geographical diversification means holding securities from different regions you don t want all of your money in a single country or region for the same reason you don t want it all in a single stock the failure of that stock would be a huge blow to your portfolio the term also refers to the practice by large companies of locating operations in different regions or countries in order to reduce business and operational risks understanding geographical diversificationlike diversification in general geographical diversification is based on the premise that financial markets in different parts of the world may not be highly correlated with one another for example if the u s and european stock markets are declining because their economies are in a recession an investor may allocate part of a portfolio to emerging economies with higher growth rates such as china and india most large multinational corporations also have a high degree of geographic diversification this enables them to reduce expenses by locating plants in low cost regions and lowers the effect of currency volatility on their financial statements in addition geographic diversification may have a positive impact on a corporation s revenues as high growth regions offset the effects of lower growth regions pros and cons of geographical diversificationdiversifying a portfolio across different geographic regions can help investors compensate for the volatility of a single economic region in the long reducing risk relative to less diversified portfolios exchange traded funds and mutual funds have made investing globally easier than ever before diversifying away from developed economies also offers benefits in advanced markets many businesses offer similar products and services making for stiff competition developing markets however can be less competitive and thus offer greater growth potential a business may sell more wearable devices for example in an asian country than in the entire u s market the counter argument is that everything in the global economy is already interconnected so that spreading your money over different regions doesn t provide the diversification benefit it once did additionally many of the large companies you would be buying in say a u s registered mutual fund already operate as multinationals faster growing economies may also involve elevated political risk currency risk and general market risk compared with developed economies exchange rates for example are always in flux and could move against you an investment in japan for instance could fall in dollar terms if the yen weakens meaning it takes more yen to buy a dollar however investing in multiple currencies another way of diversifying can provide additional risk reduction | |
what is geographical labor mobility | geographical labor mobility is a measure of the relative ease with which workers can relocate within a nation or region to find jobs that require their skills greater labor mobility in an economy is associated with higher productivity in an economy overall understanding geographical labor mobilitygeographic labor mobility indicates the relative ease or difficulty that workers confront if they want or need to relocate to find better jobs several factors determine geographic labor mobility including the ease of movement and migration and the economic incentives to relocate physical geographic and political barriers to movement are key factors that can make moving more difficult a region s size and its job opportunities in part determine geographic labor mobility at the personal level however factors such as family situation housing availability local infrastructure and educational resources affect geographic labor mobility an economy s level of trade is also a direct factor in the geographic labor mobility of its workforce for example increasing domestic and international trade requires that corporate offices and other support structures be opened in a number of locations increasing job opportunities in these locations occupational labor mobility indicates the degree of ease with which workers can change jobs or professions regardless of their geographical location other elements that affect geographic mobilityother key factors can make geographic labor mobility more or less viable as an option first the aggregate level of education influences the mobility of the labor force higher education levels are generally associated with a greater ability to move to find employment personal and cultural attitudes also drive labor mobility a person with a strong attachment to a place needs considerable motivation to relocate another key determinant is industrialization highly industrialized economies provide more blue collar job opportunities which increases the labor mobility of the economy as a whole more specifically an industrialized economy helps workers move from rural locations to larger cities where there are more job opportunities government policies heavily influence geographic labor mobility in global economic terms the european union actively tries to increase the geographic labor mobility of individuals by helping qualified workers find employment in european countries where their skills are in demand 1if a government wants to increase geographic labor mobility there are several actions it can take the country can support transportation options help raise the standard of living and advance government policies that help with mobility within an economy the use of non compete clauses by businesses can stymie senior employees who want to create new businesses after leaving a company in april 2024 the federal trade commission issued a rule broadly banning non compete clauses in employment contracts it is set to take effect in september 2024 though it also faces legal challenges 2pros and cons of geographic labor mobilitygeographic labor mobility provides several benefits to a nation s economy chief among them is better allocation of the supply of labor and productivity an economic study published in the yale law journal points out that geographic labor mobility makes managing macroeconomic stability easier and that local barriers to mobility can make macroeconomic policy less effective 3mobility also has its downside labor mobility is associated with the dissolution of local communities and even the extinction of indigenous cultures as members migrate to seek economic opportunities and resettle in areas in which they are culturally alien 45this tends to erode social capital in both the locations that workers leave and in new areas they move into geographic labor mobility is also the direct cause of brain drain or human capital flight from developing regions and nations 6geographic labor mobility in the u s the history of the united states presents an interesting case study of geographic labor mobility during and after the development of economic systems | |
when the country was expanding westward and new industries were being developed geographic labor mobility was at its peak new migrants and american born workers moved to places with economic promise | however the rate of moving has declined consistently since the 1980s 7 according to u s census data the rate of movement between states has fallen by nearly half since 1989 while the rate of mobility between counties has declined by almost a third indeed even during the coronavirus pandemic labor mobility continued downwards in the u s with just 8 4 of people living in a different residence in 2021 down from 9 3 in 2020 8 | |
what is occupational labor mobility | occupational labor mobility is an assessment of the ease at which workers are able to switch jobs often involving a new occupation or career path unlike geographical labor mobility occupational mobility does not necessarily involve relocating | |
why is labor mobility important | increased labor mobility is generally thought to be a positive for the economy more freedom to move tends to result in higher productivity more satisfied employees lower unemployment and rising gross domestic product gdp | |
why is cross broder labor mobility controversial | encouraging geographic mobility across national borders is often a point of controversy opponents argue that migrant workers are usually hired because they will accept lower wages effectively taking jobs from citizens in extreme cases it can lead to the overpopulation of certain areas straining public services and pushing up the local cost of living this can also fuel hostility and spur social unrest others argue that migrant workers take low paying low skilled work that few others want to perform a growing population usually corresponds with economic growth and prosperity 9the bottom linegeographic labor mobility is one factor among many that economists use to reveal and track the relative strength of a nation s workforce in general a population of workers who are free to relocate to take on new opportunities is more productive businesses that can recruit workers nationwide rather than locally are more likely to succeed | |
what is geographical pricing | geographical pricing is the practice of adjusting an item s sale price based on the location of the buyer sometimes the difference in the sale price is based on the cost to ship the item to that location but the difference may also be based on what amount the people in that location are willing to pay companies will try to maximize revenue in the markets in which they operate and geographical pricing contributes to that goal understanding geographical pricingmost typically geographical pricing is practiced by companies in order to reflect the different shipping costs accrued when transporting goods to different markets if a market is closer to where the goods originate the pricing may be lower than in a faraway market where the expense to transport the goods is higher prices may be lower if the goods compete in a crowded market where consumers have a number of other quality options charging higher prices to account for higher shipping charges to faraway locations can make a seller more competitive as their products will be available to a larger number of customers but higher shipping costs may make local customers avoid buying the product that is shipped from far away in favor of cheaper local products prices are also impacted by whether the manufacturer is a price taker instead of a price maker a price taker is a company or individual that has to settle for whatever price the market has determined for the product as they lack the market share or influence to determine the price a price maker has the market share to set the price geographical pricing strategyit is always up to the seller of the goods to determine how they will price their product and based on that decision the outcome will vary for example the seller may decide to sell their product in a location far away and absorb the cost of shipping thereby pricing the product competitively in a foreign market this may result in lower profit margins or no profits at all but may increase brand awareness in the new location for some benefit down the line conversely the seller may pass the cost of shipping onto the consumer via high prices for the product which may have many different effects the product may sell poorly as it sold at a higher price compared to competitors or the seller could run a marketing campaign positioning the product as a higher quality luxury item thereby justifying the higher price in this case it might only be bought by a small part of the population but that might be profitable enough special considerationstaxes can also be a consideration even if shipping costs are not a factor a product made in massachusetts and sold in washington may be priced differently than that same good in oregon while the shipping costs would be roughly equivalent the fact that oregon has no sales tax could lead the company to price the product higher in that state than in washington which has one of the highest sales tax rates in the country also where there may be a supply and demand imbalance in a market even if a temporary phenomenon a company may respond by pricing its product or service at a premium or discount in the market versus another geographical spot real world examplea type of geographical pricing called zone pricing is common in the gasoline industry this practice entails oil companies charging gas station owners different prices for the same gasoline depending on where their stations are located aside from excise taxes the wholesale price and thus the retail price is based on factors such as competition from other gas stations in the area the amount of traffic the gas station receives and average household incomes in the area not on the cost of delivering gas to the area | |
what is geolocation | geolocation is the ability to track a device s whereabouts using gps cell phone towers wifi access points or a combination of these since devices are used by individuals geolocation uses positioning systems to track an individual s whereabouts down to latitude and longitude coordinates or more practically a physical address both mobile and desktop devices can use geolocation understanding geolocationgeolocation has a broad variety of uses and methods ip addresses may be used to determine country region state city or postal code geolocation can be used to determine time zone and exact positioning coordinates such as for tracking wildlife or cargo shipments if you have ever shopped online and wanted to find an item in a nearby store ordered food online after searching for a local restaurant or sought out the closest atm you have used geolocation services examples geolocation in financial servicesgeolocation is especially useful when applied to financial services for example payments financial institutions with mobile apps whose users have enabled location tracking can match the location of a customer s phone with the location where the customer s payment card is being used to detect possible payment card theft if the two locations do not match the fraud can be detected immediately and the card shut down if the two locations do match the customer can avoid experiencing any service disruption that might normally happen when the payment card provider detects unusual card activity insurance claims processing an insurance claims adjusting app can use geolocation technology to substantiate a policyholder s location and minimize the number of fraudulent or exaggerated claims the insurer receives a visual claims platform allows policyholders to work with their insurance agents using a web based real time communications platform to evaluate the extent of loss and determine a fair amount for the claim customers use their phone cameras to engage in a live video call with their insurance agents to assess damage the agent can take screen shots zoom in or use the phone s flashlight to get additional details and create records of the damage for the customer s file this technology creates an environment where more customers are satisfied with the claims payments they receive and prevents them from filing complaints with regulators resulting in better outcomes for both insurance companies and their customers banking bluetooth beacons the same type of geolocation technology that is placed throughout stores to offer users who have downloaded the store s app to receive targeted discounts while giving the store data about the consumer s shopping behavior are providing new forms of convenience to bank customers geolocation is allowing bank customers to access branch atms with their mobile phones instead of with their atm cards after business hours offering convenience beacon technology also improves service inside smart bank branches by notifying bank employees when a customer has been waiting in a teller line too long so the customer can be directed to another bank employee at a desk who can help them geolocation and privacy issueswith the upsides of geolocation come the downsides of safety and privacy issues when using a device or app that allows for geolocation it s important for consumers to understand how that data is being used and with whom it s being shared so they can protect their privacy and safety and companies that use geolocation data must make sure that such information is protected so that employees cannot access the information inappropriately customers also don t want geolocation data that they have shared for one purpose such as banking convenience to be reused for another purpose such as advertising without their knowledge and permission financial services companies that want to maintain their customers trust need to make them aware of exactly how their geolocation data is being used for example an app can inform a user of how their geolocation data will be used when they open it for the first time after they install it then allow them to opt out of sharing their location or using the app altogether if they aren t happy with the company s policy users should also be informed about whether an app will allow them to delete their geolocation history after the fact if they change their mind about what they ve shared without this trust further efforts to implement geolocation technology could stall | |
what is the geometric mean | the geometric mean is the average of a set of products analysts portfolio managers and others commonly use the calculation of the geometric mean to determine the performance results of an investment or portfolio technically a geometric mean is defined as the nth root product of n numbers the geometric mean must be used when working with percentages which are derived from values while the standard arithmetic mean works with the values themselves investopedia michela buttignolunderstanding the geometric meanthe geometric mean sometimes referred to as compounded annual growth rate or time weighted rate of return is the average rate of return of a set of values calculated using the products of the terms what does that mean the geometric mean multiplies several values and sets them to the 1 nth power for various reasons the geometric mean is an important tool for calculating portfolio performance one of the most significant of those reasons is that it takes into account the effects of compounding for example the geometric mean calculation can be easily understood with simple numbers such as 2 and 8 if you multiply 2 and 8 then take the square root the power since there are only two numbers the answer is 4 however when there are many numbers it is more difficult to calculate unless a calculator or computer program is used the main benefit of using the geometric mean is that the actual amounts invested do not need to be known the calculation focuses entirely on the return figures themselves and presents an apples to apples comparison when comparing two investment options over more than one time period geometric mean will always be slightly smaller than the arithmetic mean which is a simple average 1formula and calculation with example | |
george soros is a legendary hedge fund manager who is widely considered one of the most successful investors of all time soros managed the quantum fund a fund that achieved an average annual return of 30 from 1970 to 2000 he remains the chair of soros fund management llc 1 | the hungarian born soros is also known for his vast philanthropic activities he has donated billions of dollars to various causes through the open society foundations he is a longtime champion of liberal and progressive causes making him a target of a variety of conservative conspiracy theories soros is believed to be worth 6 7 billion as of december 2023 and has donated more than 32 billion to charitable causes 23 much of that money has gone to fund education and health programs human rights efforts and the furtherance of democracy in recent years he has donated lavishly to the democratic party in the u s investopedia lara antalearly life and educationsoros who is of jewish descent was born in budapest in august 1930 and survived the nazi occupation of hungary emigrating to england in 1947 he earned a doctorate from the london school of economics before embarking on a career in banking 4 he founded his first hedge fund then called double eagle in 1969 notable accomplishmentsgeorge soros is most famous for a single day gain of 1 billion on sept 16 1992 which he made by short selling the british pound 5 at the time england was part of the european exchange rate mechanism erm a fixed exchange rate agreement among a number of european countries the other countries were pressuring england to devalue its currency or leave the system after resisting the devaluation for some time england floated its currency and the value of the pound dropped soros is quoted for saying the worse a situation becomes the less it takes to turn it around and the bigger the upside using leverage soros was able to take a 10 billion short position on the pound earning him 1 billion 5 the trade is considered one of the greatest of all time and soros was declared the man who broke the bank of england more recently soros has been vocal about the precarious future of the european union in the wake of britain s 2016 vote to leave the union and the continuing refugee crisis that has brought millions of middle eastern refugees to europe 6soros warned of an existential crisis facing europe 7 he has set forth a plan to rescue europe from a pending crisis by tackling three major issues the refugee crisis territorial breakups like brexit and the austerity crisis that has plagued countries like italy and spain in particular he has advocated that the european union issue perpetual bonds a method of financing that britain used to finance the napoleonic wars 8soros was the man who broke the bank of england before he became the man who broke the bank of thailand soros s investment stylegeorge soros is unique among highly successful investors in admitting that instinct plays a large role in his investment decisions nonetheless he is famously well informed about economic trends on a regional and global level and is known to use this knowledge to exploit market inefficiencies with large highly leveraged bets soros has both the capital and the risk tolerance to ride out these bets for longer than most hedge fund managers can in fact soros has cowed a number of national governments on currency issues with his perseverance and deep pockets during the asian financial crisis soros added to his growing list of nicknames and became the man who broke the bank of thailand when he bet almost 1 billion against the thai currency the baht despite soros deep knowledge of global markets and excellent sources of information the decision to close out a bet is reportedly more a gut call than a response to a market signal one popular theory is that soros has internalized so much of the market and its workings that he instinctively knows when the time has come to close out for a profit long before he can rationalize the decision ultimately george soros investment strategy has made him a fortune that few investors in the world can match |
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