According to the Keynesian Multiplier, a growth in variables is proportional of private consumption expenditure, investment expenditure, or net government spending raises the total Gross Domestic Product (GDP) by an amount greater than the increase in private consumption expenditure, investment expenditure, or net government spending. Consequently, if private consumption spending grows by 10 units, the overall gross domestic product (GDP) would increase by a factor of greater than 10.Key Points SummaryWhen the government spends more money, according to Keynesian philosophy, the economy will grow faster and more efficiently.As per the Keynesian multiplier theory, the net impact is higher than amount ... Read More

A key employee is a member of staff who has a significant amount of proprietorship or authority in the company. They are often very well paid, whether in terms of money, perks, or a combination of the two. As an additional incentive to both join the business and remain with the organization, key workers are lured by additional performance compensation and benefits as well.Identifying and Understanding Key EmployeesThe Internal Revenue Service (IRS) also referred to prominent employees by this designation. This word is used by the Internal Revenue Service to refer to company-sponsored defined contribution retirement plans.It is an employee ... Read More

Known professionally as Kenneth I. Chenault, he is a corporate leader in the financial services sector who is famous for his role as the Chief Executive Officer at American Express. Ranked among the most famous African Americans, he quickly rose to power and became the most powerful person as Chairman American-Express. Besides Airbnb and Berkshire Hathaway, he also serves on the boards of directors for a number of other businesses.Key Points SummaryAmerican Express chairman and CEO Kenneth I. Chenault is a corporate leader best recognized for his position as the company's chairman and CEO.Between 1981 and 2018, Chenault worked for American ... Read More

Kenneth Arrow was an economist who was awarded the Nobel Memorial Prize in Economic Sciences in 1972 for his contributions to the field. Known for his contributions to equilibrium analysis and welfare economics, he passed away in 2013. Also of interest to him were the economics of social choice theory, the economics of endogenous growth, the economics of collective decision-making, the economics of information, and the economics of race discrimination.SummaryKnown as the General Impossibility Theorem, it was discovered and articulated by economist Kenneth Arrow. The theory centered on the voting system and how election outcomes cannot be identified with accuracy ... Read More

In Japan, the term "keiretsu" refers to a linked network of businesses that are characterized by powerful partnerships and cross-shareholding. The network developed in Japan and dominated the country's economy throughout the second half of the twentieth century, especially following World War II. They still exist even in the twentyfirst century, but they have undergone significant modifications since their inception.Keiretsu Model illustration. Image − sourceKey Points BrieflyKeiretsu is a Japanese word that broadly means corporate network that is comprised of a variety of businesses, including producers, supply chain associates, wholesalers, and, on occasion, financial establishments.Its basic idea is to function ... Read More

Keepwell agreement is the contract between the main business and its subsidiary that requires the parent company and its subsidiary firm to maintain solvency and to provide financial support throughout the duration of the agreement. Keepwell agreements are sometimes referred to as comfort letters in certain circles.Keepwell agreements are generally signed for a particular period of time between the parent business and its subsidiary, especially when the subsidy branch or company are facing cash flow problems and problems in raising new funds to continue its daily operations.Key Points BrieflyWhen the keepwell agreement is signed the parent company agrees to providing ... Read More

The Katie Couric Clause is a term coined by the media named after a contentious decision that the Securities and Exchange Commission (SEC) contemplated adopting in 2006. The ruling was first proposed in 2006 and was ultimately rejected. The verdict became known as The Executive Compensation and Related Party Disclosure clause.Key Points BrieflyIt was referred to as the "Katie Couric Clause" when referring to a proposed Securities and Exchange Commission regulation addressing the disclosure of executive pay and the compensation of other select workers.The rule was proposed in 2006 that businesses be obliged to publicly disclose the salaries and benefits ... Read More

It was created in 1988 by American quantitative finance theorist Perry J. Kaufman and is known as Kaufman's Adaptive Moving Average (KAMA). Even though the method was developed as early as 1972, it was not until the popular book titled "Trading Systems and Methods" that it was made widely available to the public. Unlike other conventional moving averages systems, the Kaufman's Adaptive Moving Average, considers market volatility apart from price fluctuations.KAMAi=KAMAi-1+SC☓(price-KAMAi-1)What are the advantages of Kaufman's Adaptive Moving Average?There is a co-relation between market volatility and the Kaufman Adaptive Moving Average (KAMA). As the market remains less volatile the KAMA ... Read More

The Comorian Franc (KMF) is the main currency in circulation in the island country of the Union of Comoros, which is situated in the Indian Ocean between Madagascar and Mozambique and has a population of around 400, 000 people. The KMF is divided into 100 cents. Originally linked to the French franc, the Comorian franc will be fixed to the euro as of 2020, replacing the French franc.Key Points BrieflyKnown as the Comorian franc, this currency is often used to refer to the African island country of Comoros.It enjoys a good exchange rate and is linked with the Euro. It ... Read More

A trust account is an account that is managed by a trustee who acts on behalf of a third party. The trustees are selected by the investors and they have to act their best for the best results to the beneficiary. Parents often open trust accounts for their children. The parents act as fiduciary in such cases.Types of Trust AccountsThere are various types of Trust Accounts −Living Trusts − These trusts are revocable when the trust owner is alive. For example, the parents in the example above have full control while they are alive.Testamentary Trust − These trusts are enforceable ... Read More