Underinvestment Problem
• The underinvestment problem occurs when a highly leveraged firm rejects positive net present value (NPV) projects because the gains would largely accrue to…
Underinsured Motorist Coverage Uim
Important – Underinsured motorist coverage (UIM) protects you when an at-fault driver’s liability insurance limit is too low to cover your injuries and/or property…
Underinsured Motorist Coverage Limits Trigger
Key takeaways – The “limits trigger” for underinsured motorist (UIM) coverage is one of two common ways a UIM endorsement can be triggered. It…
Underinsurance
Underinsurance means you have an insurance policy that does not pay enough to cover the financial loss when a claim happens. That can be…
Underground Economy
Key takeaways – The underground economy (also called the shadow economy, black market, or informal economy) consists of legal or illegal economic activity that…
Underfunded Pension Plan
An underfunded pension plan (typically a defined-benefit plan) is a company-sponsored retirement plan whose liabilities — the present value of promised pension payments to…
Underemployment Equilibrium
Key takeaways – Underemployment equilibrium (also called below‑full‑employment equilibrium) is a macroeconomic steady state where aggregate demand and aggregate supply balance at a level…
Underconsumption
A concise economic theory that links weak consumer demand to recession, underconsumption argues that when households buy less than the economy can produce, excess…
Undercast
• Undercast is a forecasting bias in which actual results systematically exceed estimates (forecasts or budgets are too low). – It can stem from…
Undercapitalization
Undercapitalization occurs when a business does not have enough capital—cash or readily available financing—to operate normally, meet its obligations, and support growth. It shows…