transactional model

(noun)

A model of stress management that states that an imbalance between perceived stress and the ability to cope determines the level of stress a person experiences.

Related Terms

Examples of transactional model in the following topics:

  • The Circular Flow Model

    • In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy.
    • In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy.
    • A circular flow model depicts the inner workings of a market system and specific portions of the economy.
    • The basic circular flow model consists of two sectors that determine income, expenditure, and output.
    • The circular flow model shows the flow of payments between households and firms.

  • Valuation of Intangible Assets

    • The valuation of intangible assets are primarily derived from transactions involving intangible assets.
    • Valuation models can be used to value intangible assets such as patents, copyrights, software, trade secrets, and customer relationships.
    • As a result, present value models or estimating of the cost to recreate an intangible asset are often used to is these valuations.
    • The 50,000 value of Company A's goodwill was derived from a transaction.

  • Differences Between Accrual-Basis and Cash-Basis Accounting

    • If goods are sold and remain undelivered, the sales transaction is not complete and revenue on the sale has not been earned.
    • The Financial Accounting Standards Board (FASB), which dictates accounting standards for most companies—especially publicly traded companies—discourages businesses from using the cash model because revenues and expenses are not properly matched.
    • The cash model is acceptable for smaller businesses for which a majority of transactions occur in cash and the use of credit is minimal.
    • For example, a landscape gardener with clients that pay by cash or check could use the cash method to account for her business' transactions .

  • Pro Forma Balance Sheet

    • A pro forma balance sheet summarizes the projected future status of a company after a planned transaction, based on the current financial statements.
    • For example, when a transaction with a material effect on a company's financial condition is contemplated, the Finance Department will prepare, for management and board review, a business plan containing pro forma financial statements demonstrating the expected effect of the proposed transaction on the company's financial viability.
    • In business, pro forma financial statements are prepared in advance of a planned transaction, such as a merger, an acquisition, a new capital investment, or a change in capital structure such as incurrence of new debt or issuance of equity.
    • The pro forma models the anticipated results of the transaction, with particular emphasis on the projected cash flows, net revenues and (for taxable entities) taxes.
    • For example, when a transaction with a material effect on a company's financial condition is contemplated, the Finance Department will prepare, for management and Board review, a business plan containing pro forma financial statements demonstrating the expected effect of the proposed transaction on the company's financial viability.

  • Pro Forma Income Statement

    • A pro forma income statement is planned and prepared in advance to of a transaction to project the future status of the company.
    • Pro forma financial statements are prepared in advance of a planned transaction, such as a merger, an acquisition, a new capital investment, or a change in capital structure like an incurrence of new debt or issuance of equity.
    • The pro forma models the anticipated results of the transaction, with particular emphasis on the projected cash flows, net revenues and (for taxable entities) taxes.
    • For example, when a transaction with a material effect on a company's financial condition is contemplated, the Finance Department will prepare, for management and Board review, a business plan containing pro forma financial statements demonstrating the expected effect of the proposed transaction on the company's financial viability.
    • Pro forma accounting is a statement of the company's financial activities while excluding "unusual and nonrecurring transactions" when stating how much money the company actually made.

  • Selling to Businesses

    • E-markets are simply defined as Web sites where buyers and sellers interact with each other and conduct transactions.
    • The more common B2B examples and best practice models are IBM, Hewlett Packard (HP), Cisco, and Dell.
    • Transaction costs: There are three cost areas that are significantly reduced through the conduct of B2B e-commerce.
    • Second is the reduction in the costs of processing transactions (e.g. invoices, purchase orders and payment schemes), as B2B allows for the automation of transaction processes and, therefore, the quick implementation of the same compared to other channels (such as the telephone and fax).
    • Efficiency in trading processes and transactions is also enhanced through the B2B e-market's ability to process sales through online auctions.

  • Basic Components of Asset Valuation

    • Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability, and in litigation.
    • These kinds of models take two general forms: multi-period models such as discounted cash flow models or single-period models such as the Gordon model.
    • These models rely on mathematics rather than price observation.
    • The most common option pricing models are the Black–Scholes-Merton models and lattice models.
    • Fair value is used in accordance with US GAAP (FAS 157), where fair value is the amount at which the asset could be bought or sold in a current transaction between willing parties, or transferred to an equivalent party, other than in a liquidation sale.

  • Finding an Equilibrium Exchange Rate

    • There are two methods to find the equilibrium exchange rate between currencies; the balance of payment method and the asset market model.
    • The concept of purchasing power parity is important for understanding the two models of equilibrium exchange rates below.
    • The flows from transactions involving financial assets go into the capital account item of the balance of payments, thus balancing the deficit in the current account.
    • The increase in capital flows has given rise to the asset market model.
    • The asset market model views currencies as an important element in finding the equilibrium exchange rate.

  • Transactional Versus Transformational Leaders

    • Transactional leaders are concerned about the status quo, while transformational leaders are more change-oriented.
    • Leadership can be described as transactional or transformational.
    • Transactional leaders focuses on the role of supervision, organization, and group performance.
    • Transactional leaders are task- and outcome-oriented.
    • Differentiate between transactional leaders and transformational leaders in a full-range approach, particularly from a behavioral perspective

  • What is a business model?

    • Business models can be approached from two perspectives.
    • You are already familiar with many kinds of models.
    • "The cost structure resulting of the business model".
    • A business model automated or manually developed, must be operated by human beings, therefore these persons who will actually test and operate the model must have no doubts and be convinced about the model's processes and the benefits of working accordingly to the business model.
    • These improvements can be translated into creating better historical data for a company e.g. real time inventory transactions from a plant warehouse, or complete and accurate recording of a maintenance job performed on a specific item of plant equipment.