What Are Barriers to Entry? Barriers to entry is an economics and business term describing factors that can prevent or impede newcomers into a market or industry sector, and so limit competition. These can include high start-up costs, regulatory hurdles, or other obstacles that prevent new competitors from easily entering a business sector. Barriers to … Continue reading Barriers to Entry →

What is a Bank Statement? A bank statement is a summary of financial transactions that occurred at a certain institution during a specific time period. For example, a typical bank statement may show your deposits and withdrawals for a certain month. Bank statements allow you to check for errors, watch for suspicious activity, and track … Continue reading Bank Statement →

What is a Bank Run? A bank run takes place when consumers simultaneously withdraw their deposits in the fear that the bank is not solvent influencing more consumers to withdraw their funds and most likely causing the bank to default. Definition: A bank run is a series of unexpected cash withdrawals caused by a sudden decline … Continue reading Bank Run →

What is a Bank Reconciliation? A bank reconciliation or bank rec is a report used to check and explain the differences between the cash balance in a company’s accounting ledger and the bank statement balance. A bank reconciliation is also one of the main ways to prevent fraud and embezzlement of company funds. In accounting, … Continue reading Bank Reconciliation →

What is a Banknote? A banknote is a negotiable promissory note which one party can use to pay another party a specific amount of money. A banknote is payable to the bearer on demand, and the amount payable is apparent on the face of the note. Banknotes are considered legal tender; along with coins, they … Continue reading Banknote →

What is a Bank Holiday? A bank holiday is a business day during which financial institutions are closed. Bank holidays are most relevant for physical branch locations because many online banking services continue to operate. A bank holiday is an official holiday when banks and most businesses are closed for a day. The dates are … Continue reading Bank Holiday →

What is a Bank Draft? A bank draft, also called a bank check, is a method of payment that involves a document issued by a bank guaranteeing that the amount stated on the certificate will be paid to the recipient of the document. A bank draft is used as a type of check which is … Continue reading Bank Draft →