Meaning of Racism

The racism can not be defined as an attempt of description of the various human races – which is the goal of Physical Anthropology and Sociobiology – but as an ideology that seeks to explain human behavior by their racial origin . From a political point of view, racism aims, based on pseudoscientific foundations, to […]

Demographic Theories

Meaning of Demographic Theories

Demographic growth, since more remote times, has always been the subject of debates and reflections, always establishing a discussion between the availability of resources, number of inhabitants and socioeconomic development, see below the main demographic theories . 1. The Malthusian Theory Thomas Robert Malthus was the name of a British pastor and economist, creator of […]

savings book

Meaning of Savings Account

Until a few years ago, the savings account was considered the most popular product for German savers. Some use it to hold an iron reserve, for others it is the exclusive form of savings. The security of the savings account is beyond dispute. Since the savings account is a certificate, dispositions can only be made […]

Meaning of Business Tax

The business tax does not apply to all self-employed. The legislature differentiates between two groups for the self-employed. One group is tradespeople, the second group is freelance. The business tax does not apply to all self-employed. The legislator distinguishes between two groups: traders and freelancers Unlike income tax or VAT, the municipalities set the amount […]

Active-passive Increase

Meaning of Active-passive Increase

The increase in assets and liabilities is part of the balance sheet , which plays an important role alongside the asset swap , the passive swap and the active-passive decrease . What is the active-passive increase? In order to understand what the increase in assets and liabilities really is, it must be clarified how a […]


Meaning of PCC

A few years ago, Brazil witnessed, through communication channels, one of the biggest prisoner rebellions in prisons in the south and southeast of the country. The state that suffered the most was São Paulo, where for a week, the capital seemed to be under siege. Terror and fear spread to the population like an epidemic. […]

Down Payment Invoice 3

Meaning of Down Payment Invoice Part 3

The down payment invoice and the input tax deduction When it comes to down payment and input tax deduction, there are also important things to consider. Your customer, who receives a down payment invoice from you and also pays this down payment, can claim the included input tax from the moment of payment . The […]

Down Payment Invoice 2

Meaning of Down Payment Invoice Part 2

Mandatory information in the down payment invoice From a purely legal point of view, a down payment invoice is considered a normal invoice. Therefore, it must not only contain the invoice number for the down payment invoice , but also all other mandatory information on an invoice . These are described as follows: Name of […]


Meaning of Mixed Funds

Mixed funds best reflect the original mutual fund approach. Mixed funds invest in (almost) everything. Stocks, bonds and money market papers form the basis of the selection universe, some providers even mix real estate into the portfolio. Investors who are looking for broad risk diversification but do not want to have 25 different stocks in […]

Down Payment Invoice 1

Meaning of Down Payment Invoice Part 1

In your business as a self-employed or freelancer, the issue of down payment invoices is also part of your everyday life. How often you are confronted with this depends entirely on the type and needs of your company. There are a number of other types of invoices in addition to the normal invoice, and the […]

Direct Sales 3

Meaning of Direct Sales Part 3

What does direct sales look like in practice? When it comes to direct sales in practice, you have to differentiate between B2B and B2C. A B2C relationship always exists between you and potential customers who are private individuals. One speaks here of the ” business-to-consumer relationship “. If, on the other hand, your potential customers […]

Direct Sales 2

Meaning of Direct Sales Part 2

Danger! As a salesperson, you also have to bill for your work. Such an invoice must contain certain components and mandatory information so that it meets the legal requirements. The most important direct sales companies in Germany According to HOWSMB.COM, in Germany there are some companies that are completely focused on direct sales. The following […]

Direct Sales 1

Meaning of Direct Sales Part 1

For you as a company founder, it is important right from the start how you define your sales strategy and how you implement it. After all, you want your products or services to reach your potential customers. That’s why you have to actively distribute them. One way to reach your customers is through direct sales […]

Inventory 2

Meaning of Inventory

Inventory is an important factor in operational warehousing . It represents the number of units of a product that are physically in stock at a certain point in time, are on the way to the warehouse or can be recorded according to various criteria for accounting purposes. The shortage is increased by shortages, which are […]

Capital Assets

Meaning of Capital Assets

Fixed assets: what is it? The assets side of a balance sheet shows fixed assets, which are all assets that serve the company in the long term. The decision as to whether an item should be booked into fixed assets or current assets is often dependent on the plans of the company’s management. A machine […]

Assets and Liabilities

Meaning of Assets and Liabilities

The terms assets and liabilities refer to the accounting and balance sheet . Assets, i.e. the assets side, shows which assets are available to the company that can ultimately be actively worked with. The liabilities side, i.e. liabilities, on the other hand, shows how the company’s assets were financed – either with equity or with […]


Meaning of Mutual Funds

If you want to invest your money in an investment fund as a saver, you will not think much about whether it is a mutual fund or a special fund. The funds that are issued by the banks to private investors in this country are all public funds. This applies to all investment segments, be […]

Capital Increase 2

Meaning of Capital Increase Part 2

Nominal capital increase at the AG A nominal capital increase is always made from the company’s own funds . This is what is known as internal financing and no external capital flow is required. One possibility for this form is, for example, the use of reserves of the AG. However, you must note that only […]

Capital Increase 1

Meaning of Capital Increase

For you as a company, your company’s equity plays an important role. For this reason, a capital increase can be quite important and also useful. This is primarily a common practice in a stock corporation or a GmbH . But how is capital actually increased and what should be considered? What is a capital increase? […]

Investment Support

Meaning of Investment Support

Investments are very important in every company; they serve to expand, modernize or maintain the company. Start-ups need to invest to build their business. Investments are associated with high expenditures, and the available funds are not always sufficient. In order to make the investments, companies can take out a loan, if various conditions are met, […]

VAT Number

Meaning of VAT Number

If someone wants to register a business, it is first necessary to deal with the tax aspects. After all, the tax office wants to be “involved” in the income. It is therefore possible that a VAT number or an identification number must be applied for together with the business registration. Why is it necessary to […]


Meaning of Receipts

The term documents is an umbrella term and this describes: Bills, Receipts, Receipts and other evidence of business expense or income. A receipt is evidence of a specific event in the company, usually income or expenditure. But there are also inventory lists or removal documents that are also valid as documents. A withdrawal receipt must […]

Tax Number

Meaning of Tax Number

What is a tax number? Within Germany everyone, big or small, receives a tax number. In order to guarantee a clear assignment of a person or a company, it must be entered in every document, for example a tax return. This applies to income tax, sales tax, trade tax and also corporation tax. Without a […]


Meaning of Receipt

The receipt: colloquially also the receipt Colloquially, the sales slip is referred to as a sales receipt, which is a printed out proof of a business transaction at the till. In retail, the place where customers pay for the goods they buy is known as the cash register or checkout area – which is either […]


Meaning of Government Bonds

Government bonds are debt instruments of a state or state institutions with which they can obtain foreign money as a loan. They are part of safe investments, but in times of crisis the bond markets are also extremely volatile. We provide important information on government bonds and explain which alternatives investors have. Government bonds are […]

Delivery Note

Meaning of Delivery Note

A delivery note is a document accompanying a delivery of goods. Companies that manufacture and supply goods exhibit them. The basis for this is an order from a business or private customer. With the help of a delivery note, the customer has a quick overview of the incoming goods and can check the delivered goods. […]

Intra-Community Delivery

Meaning of Intra-Community Delivery

An intra-community delivery occurs when goods move between different countries within the borders of the European Union. Tax-free intra-community deliveries If you have a German company and trade in the internal market, you have to mark this intra-Community tax-free delivery accordingly in the invoice. The mandatory information on the invoice includes a reference to the […]


Meaning of Tax Identification Number

The tax identification number, or tax ID for short, was introduced in 2007 and communicated to every citizen registered in Germany with a place of residence by the end of 2008. It is an eleven-digit number. Since every citizen is theoretically liable to pay taxes at birth, newborns also receive this number. Every citizen registered […]


Meaning of Penalty Interest Rate

With interest, financial institutions offer their customers an attractive incentive to invest money. But when banks and savings banks give negative interest instead of credit interest, investors make losses. They do not generate interest income, but have to pay negative interest on their investments themselves. In this case one speaks of negative nominal interest, also […]


Meaning of Accrued Interest

The term accrued interest appears in connection with the purchase or sale of a fixed-income security between two interest payment dates. Anyone who buys a fixed-income security is entitled to the interest rate set in connection with the paper, as long as the investment is in the possession of the buyer. Accrued interest is the […]