Author Archives: admin

backward integration

Type of vertical integration in which a consumer of raw materials acquires its suppliers, or sets up its own facilities to ensure a more reliable or cost-effective supply of inputs. Read more:

backward from perfect

Scenario-building that begins with an imagined perfect future (where all the objectives have been achieved) and works backward to today, indicating what would be required to be done at every stage. See also future backward and future forward. Read more:

backward compatibility

Feature of a new hardware or software that enables it to work with the older or less powerful versions of the same and, often, other hardware or software. Also called downward compatibility. See also upward compatibility. Read more:

backward chaining

Method for creating a process flowchart by starting with the aimed-for result, and then moving backward through the process to identify critical sub-processes required to generate the desired output at that level or point. Read more:

backup withholding

Funds required to be withheld from investment income to cover the tax liability associated with the transaction when the investor does not have a valid social security number on the account and on file with the IRS. Read more:

investment income

Capital gains, dividends, interest, and rent generated by investment, and not by trading activities. Also called unearned income, investment income is generally taxable. Read more:

investment incentives

Government schemes aimed at stimulating private sector interest in specified types of capital expenditure, or investment in areas of high unemployment or backwardness. These incentives may take the form of direct subsidies (investment grants) or corporate income tax credits (investment credit) that compensates the investors for their capital costs. Read more:

investment grade fund

Mutual fund that invests in investment-grade securities, and sacrifices the higher earnings possible from lower grade but higher yield securities in favor of safety of investment. See also loan participation fund. Read more:

investment grade bond

  Bond awarded ‘AAA‘ or ‘BBB’ (or equivalent) ratings by bond rating agencies. These are secure but generally low-yield bonds, and the only type of bonds in which financial institutions or parties with fiduciary responsibilities are allowed by law to invest. Read more: