baltei vasile-liviu,eai 1

8/10/2019 Baltei Vasile-Liviu,EAI 1

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FINANCIAL GLOSSARY Blei Vasile-Liviu, 2nd year of study, International Affairs, Group 1

coordinator: prof. Veronica Armau

o. WORD/EXPRESSION DEFINITION CONTEXT SOURCEInvoice finance Is finance offered based on

the strength of a business'accounts receivable. This formof financing is similar tofactoring, except that theinvoices or accountsreceivables remain with thebusiness.

Although Invoice Financeeffectively means that BNZ isbuying your unpaid invoices,your customers dont need toknow.

https://www.bnz.co.nz/businbanking/loans-and-finance/caflow-solutions/invoice-finan

Liability A financial obligation oramount owed.

The automaker confirmedthat the post-bankruptcyGM bears no liability foraccidents before its legal

reinvention.

http://articles.latimes.com/20mar/25/business/la-fi-gm-liability-20140325

Bankruptcy a process where anindividual is legallydeclared bankrupt and theirassets and financial affairsare administered by anappointed trustee

Bankruptcy and productliability experts agree.

http://articles.latimes.com/20mar/25/business/la-fi-gm-liability-20140325

brokerage account Customer's account witha broker or a brokeragehouse.

Consumers with multiplemortgages, checkingaccounts, savings, brokerageaccounts and loans arevalued more.

http://www.forbes.com/fdc/wome_mjx.shtml

Loan a finance agreement wherea business borrows moneyfrom a lender and pays itback in instalments (plusinterest) within a specifiedperiod of time.

The branch offered himprepaid cards, check cashingand short-term loan options

http://www.forbes.com/sites/htouryalai/2012/04/26/how-banks-are-getting-richer-off-poor/

Enterprise A company or business. Abusiness project, often onewhich is sometimesdifficultand/or risky

What you don't know aboutCorporate enterprise riskmanagement (ERM) mayhurt you.

http://www.investopedia.comicles/fundamental-analysis/08/enterprise-risk-management.asp

Disbursements money that is paid out by a

business.

The international lender said

the disbursement brings totallending to date under theIMF's $1.4 billion programwith Cyprus to about $459million.

http://www.reuters.com/artic

014/03/28/us-imf-cyprus-idUSBREA2R1E020140328

Debt any amount that is owedincluding bills, loanrepayments and income tax

Cyprus was badly burntin the euro zone debtcrisis.

http://www.reuters.com/artic014/03/28/us-imf-cyprus-idUSBREA2R1E020140328

Net Worth Is the total assets minus The average British person http://www.dailymail.co.uk/n


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total liabilities. has just one ten-thousandthof the net worth of DavidBeckham, a study revealedtoday.

s/article-2574038/Average-British-person-net-worth-147134-0-01-cent-David-Beckham.html

0 Equity The value of ownershipinterest in the business,

calculated by deductingliabilities from assets.

Using a formula common inprobate cases, legal experts

calculated the value of theaverage Briton's propertyequity..

http://www.dailymail.co.uk/ns/article-2574038/Average-

British-person-net-worth-147134-0-01-cent-David-Beckham.html

Investment an asset purchased for thepurpose of earning moneysuch as shares or property

the value of the averageBriton's property equity,savings, pensions,investments, cars andpossessions.

http://www.dailymail.co.uk/ns/article-2574038/Average-British-person-net-worth-147134-0-01-cent-David-Beckham.html

2 Household All persons living underone roof or occupying aseparate housing unit,having either direct access

to the outside (or to a publicarea) or a separate cookingfacility.Where the members of ahousehold are related byblood or law, theyconstitute a family.

There is, surely, afundamentaldifference between lendingmoney to a household, a

company and a government..

http://www.economist.com/b/buttonwood/2012/02/euro-zone-crisis-1

3 Inflation A sustained, rapid increasein prices, as measured bysome broad index (such asConsumer Price Index)over months or

years, and mirrored in thecorrespondinglydecreasing purchasingpower of the currency. Ithas its worst effect on thefixed-wage earners, and is adisincentive tosave.

The inflation rate in theUnited States was recordedat 2 percent in April of 2014.

http://www.tradingeconomicm/united-states/inflation-cpi

4 Excise duty an indirect tax levied oncertain types of goodsproduced or manufacturedin Australia including

petrol, alcohol, tobacco andcoal.

Excise duty is payable oncertain consumer goods.

http://www.government.nl/is/taxation/vat-and-excise-duty

5 VAT A form of indirect sales taxpaid on productsand services at each stageof production ordistribution, based on thevalue added at that

VAT is a tax onconsumption rather thanincome.

http://www.economist.com/n/14903016


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stage and included in thecost to the ultimatecustomer.

6 Staggering Very shocking andsurprising

The IPO is expected to boostSaverins alreadystaggering net worth.

http://www.forbes.com/sites/yphillipserb/2012/05/11/facek-co-founder-wont-escape-al

s-taxes-by-renouncing-citizenship/

7 Output An amount of somethingproduced by aperson, machine, factory orcountry .

We have seen that projectsspeed, efficiency, and

output quality inevitably

http://hbr.org/2012/05/six-myths-of-product-development/ar/1

8 Overdraft facility a finance arrangementwhere a lender allows abusiness to withdraw morethan the balance of anaccount.

Overdraft fees generate athird of the revenue frompersonal account banking inBritain.

http://uk.reuters.com/article/4/04/10/uk-britain-banking-regulator-idUKKBN0CW09V2014041

9 Profit the total revenue a business

earns minus the totalexpenses.

If your profit margins aren't

rising..

http://www.businessweek.co

ories/2008-08-21/five-ways-increase-profit-margins

0 Guarantee In general, another way ofspelling guaranty.

For new ventures, a personalguarantee business loan maybe your only choice

http://banking.about.com/od/nessbanking/a/personal_guaranteusiness_ln.htm

Financial year a twelve month periodtypically from 1 July to 30June.

This is the reasons whyfinancial year starts

http://www.forbes.com/sites/ndomitrovic/2012/03/13/the-weak-dollar-caused-the-grearecession/

2 Depreciation the process of expensing an

asset over a period of time.An asset is depreciated tospread the cost of the assetover its useful life.

U.S. warns China over

currency depreciation

http://www.reuters.com/artic

014/04/07/us-g20-usa-idUSBREA361RG20140407

3 Bid price The highest price aninvestor is willing to payfor a stock.

All at once, this marks therichest serious bid priceever offered for a sports

franchise.

http://www.forbes.com/sites/tsmoney/2012/03/30/two-reasons-why-the-los-angelesdodgers-bid-price-isnt-such-surprise/

4 Operating costs Expenses associated withadministering abusiness on a day to day

basis.

I believe the operating costsfor a start-up mutualfund is about $150, 000 to

$225,000 a year.

http://www.forbes.com/200905/mutual-fund-startup-intelligent-

investing_0206_mutual_fundml

5 Recession Two consecutive quartersof declining GDP

In our own Great Recession,we had Dodd-Frank.This omnibus bill of summer2010 carpeted thefinancial industry withregulations.



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6 Budget A listing of plannedrevenue and expenditure fora given period.

budget deficits werewithin reason.


7 Bourse A term of French originused to refer to stock

markets.

The contest to be the bestbourse in eastern

Europe is simply too intense.


8 Fixed asset a physical asset used in therunning of a business

Chinas weak economic dataon Friday points to a returnto fixed asset investmentafter a year long decline.

http://www.forbes.com/sites/rapoza/2012/06/02/china-thereturn-of-fixed-asset-investm

9 Across-the-board (of salary increases,taxation cuts, etc) affectingall levels or classes equally

the across-the-boardweakness in the PMIs andaccompanying weak newloan

http://www.forbes.com/sites/rapoza/2012/06/02/china-thereturn-of-fixed-asset-investm

0 Bond debts that pay interest andare repaid at a fixed futuredate

Savings bonds are a majoroffering at banks and creditunions

http://banking.about.com/od/stments/a/SavingsBonds.htm

Holding period Length of time that anindividual holds asecurity.

The average holding periodfor shares traded onthe New York StockExchange has fallen to fourmonths.


2 Refinance when a new loan is takenout to pay off an existingone. Refinancing is oftendone to extend the originalloan over a longer period oftime, reduce fees or interestrates, switch banks, or

move from a fixed tovariable loan.

NCN and his wife have beenconsidering a refinance asrates are significantly lower

http://www.forbes.com/sites/neybuilder/2012/08/14/get-abetter-mortgage-rate-withoutrefinancing/

3 Mortgage A debt instrument, securedby the collateral ofspecified real estateproperty, that the borroweris obliged to pay back witha predetermined set ofpayments.

if they could reduce hisrate without changing theother terms of his mortgage.

http://www.forbes.com/sites/neybuilder/2012/08/14/get-abetter-mortgage-rate-withoutrefinancing/

4 distressed asset An asset that is put on sale,usually at a cheap price,because its owner is forced

to sell it.

often with distressed asset(wherein the rate is adjustedto help

http://www.forbes.com/sites/neybuilder/2012/08/14/get-abetter-mortgage-rate-without

refinancing/5 Fixed interest rate when the interest rate of a

loan remains the same forthe term of the loan or anagreed timeframe

Fixed rates, by and large,stay the same.

http://www.forbes.com/sites/neybuilder/2011/12/06/low-interest-credit-cards-four-questions-to-ask-when-considering-a-variable-rate/

6 Fringe benefits non-monetary benefits suchas company cars and

Companies have offeredsome fringe benefits so

http://www.wisegeek.org/whare-fringe-benefits.htm


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mobile phones, included aspart of a salary package.

consistently

7 Cash flow the measure of actual cashflowing in and out of abusiness

Prepare cash flowprojections for next year,

http://www.entrepreneur.comicle/66008

8 Indenture Agreement between lender

and borrower which detailsspecific terms of the bondissuance.

Historians have claimed the

indenture system to beexploitive.

http://www.cliometrics.org/p

cations/indentured.htm

9 Cartel A group of businesses ornations that act together asa single producer to obtainmarket control and toinfluence prices in theirfavor by limitingproduction of a product.

Western business executivesare familiar withcartels as informal

http://hbr.org/1992/07/capita-in-japan-cartels-and-keiretsu/ar/1

0 Bargain something on sale at alower price than its true

value

in anticipation of evengreater bargains later


Inflation A sustained and continuousincrease in thegeneral price level.

When they spot inflationtheir instinct is to dump thepeso and buy dollars.

http://www.economicswiscoorg/guide/glossary.htm

2 Credit limit a dollar amount that cannotbe exceeded on a creditcard or the maximumlending amount offered fora loan.

Credit limit increases arebeneficial to you in moreways

http://www.wikihow.com/GeCredit-Limit-Increase-on-a-Credit-Card

3 Gross profit (also known as net sales)the difference betweensales and the direct cost of

making the sales

in running your newbusiness is the computationof gross profit.

http://www.entrepreneur.comicle/226158

4 Insolvent a business or company isinsolvent when they cannotpay their debts as and whenthey fall due.

and a hospital insurance trustfund that will becomeinsolvent

http://www.forbes.com/sites/tatlas/2012/12/18/lets-be-honmedicare-is-insolvent-and-doctors-soon-wont-accept-it/

5 Warrant to give formal assurance; toguarantee

A stock warrant is just like astock option because it givesyou the right to purchase

http://www.investopedia.comk/answers/08/stock-option-warrant.asp

6 Sovereigns Entity possessingthe attributes ofsovereignty.

Central Banks andsovereigns

buy them because

http://www.forbes.com/sites/rapoza/2012/04/26/investorsfive-ways-to-lose-money-without-trying/?ss=advisor-

network

7 Branch local office or bureau of abank

At the HSBC branch in thebanks Asia regionalheadquarters

http://www.businessweek.coticles/2012-05-17/why-foreigbanks-are-shunning-americanmillionaires

8 Margin the difference between theselling price of a good orservice and the profit.

that does not mean profitmargins will remainelevated.

http://www.economist.com/n/finance-and-economics/21588901-americ


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Margin is generally workedout as a gross marginpercentage which shows theproportion of profit for eachsales dollar.

corporate-profits-seem-have-defied-gravity-margin-error

9 Investors Neither a speculator (who

takes on high risks for highrewards) nor a gambler(who takes on the risk oftotal loss for out ofproportion rewards) but onewhose primary objectivesare preservation of theoriginal investment (theprincipal), a steady income,and capital appreciation.See also investment.

Investors were relieved of

their optimism and their cashon both

http://www.economist.com/n

/finance-and-economics/21588901-americcorporate-profits-seem-have-defied-gravity-margin-error

0 Productivity A measure of the efficiency

of a person, machine,factory, system, etc., inconverting inputs intouseful outputs.

Although productivity

growth has been sluggish inthe..


/finance-and-economics/21588901-americcorporate-profits-seem-have-defied-gravity-margin-error

Chain of title The series of transactionsfromgrantor to grantee asevidenced in the landrecords.

Intellectual property chain oftitle

http://www.marsdd.com/marlibrary/intellectual-property-chain-of-title/

2 Retire to leave employment, esp.because of age

Truth be told, you might beable to retire with much less.

http://www.investopedia.comicles/retirement/09/1-millionretire.asp

3 Rating The assessment given todebts and borrowersby a ratings agencyaccording to their safetyfrom an investmentstandpoint.

Treasuries deserved aquadruple-A rating.

http://www.economist.com/n/21525936Liquidity

4 Liquidity The liquidity of somethingis how easy it is toconvert it into cash.

Yes, liquidity can be good,but it may also enablean investor to do the wrongthing

http://www.forbes.com/sites/stor/2012/01/12/the-other-sidof-liquidity-2/

5 Earnings earnings generally representthe balance left after

deducting operatingexpenses, interest charges,taxes, and dividends on thepreference shares (preferredstock) but not extraordinaryitems.

The fall in the dollar hasboosted the foreign earnings

of American companieswhile

http://www.economist.com/n/finance-and-

economics/21588901-americcorporate-profits-seem-have-defied-gravity-margin-error

6 Profit and loss statement (also known as an incomestatement) is a financial

Producing regular profit andloss statements (at least

http://www.smallbusiness.wav.au/understanding-profit-los


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statement listing sales andexpenses and is used towork out the gross and netprofit of a business.

quarterly or monthly) willenable you to

statements/

7 Stocktaking a regular process involvinga physical count of

merchandise and suppliesactually held by a business,completed to verify stockrecords and accounts.

From stocktaking tonegotiation

http://www.thebrokeronline.n/Articles/From-stocktaking-

negotiation

8 Stakeholders A person, group ororganization that hasinterest or concern in anorganization.

targets that can count onthe support and commitmentof all different stakeholders.

http://www.thebrokeronline.n/Articles/From-stocktaking-negotiation

9 Repossess the process of a bank orother lender takingownership ofproperty/assets for the

purpose of paying off aloan in default.

but anyone with rights to thevehicle may repossess it byfollowing these steps forhow to repossess a car.

http://www.wikihow.com/Resess-a-Car

0 Rent to buy is a type of financearrangement where a goodis purchased through aninitial deposit and then'leased' while the good ispaid off. Once the good isfully paid the purchaser hasthe option (but noobligation) to buy the goodor continue leasing.

consumers are taking aharder look at rent-to-buyoptions

http://www.forbes.com/200902/renting-mortgage-propertlifestyle-real-estate_rent_to_buy.html

Revenue the amount earned beforeexpenses, tax and otherdeductions are taken out

on Wednesday posted itssmallest quarterly revenueincrease since

http://www.britannica.com/Eecked/topic/240219/governmrevenue

2 To restructure To reorganize a company inorder to attaingreater efficiency and toadapt to new markets.

funds required torestructure or recapitalize thebank

http://www.forbes.com/sites/htouryalai/2012/05/07/a-bettsolution-for-the-euro-crisis-europeanization-of-banking/

3 Tax evasion An illegal strategy todecrease tax burden byunderreporting income,overstating deductions, orusing illegal tax shelters.

Now that these countries aretrying to get theirfinances in order, bringingdown rates of taxevasion is a high priority.


4 Depressed market A market which has moresellers than buyers

and respond to depressedmarkets, for example, havebeen permitted by lawand even supervised by thegovernment.

http://www.cchrint.org/200927/depression-as-a-mass-marketing-campaign/

5 market value The highest price that abuyerwould pay and the lowest

he explanation of "marketvalue" in this article appliesto single family houses only.

http://online.wsj.com/news/aes/SB1000142405297020414576602592079823216


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price a seller would accepton a property.Market valuemay be different from theprice a property couldactually be soldfor at a given time.

6 Overheads the fixed costs associatedwith operating a businesssuch as rent, marketing,utilities and administrativecosts.

Are Employers FrettingOver Overhead.

http://www.forbes.com/sites/eworks/2013/09/08/jobs-repohiring-reflects-owners-overhconcerns/

7 Inventory an itemised list of goods ormaterials a business isholding for sale

Private furniture stores, onaverage, had 142 days ofinventory on hand in2013.

http://www.forbes.com/sites/eworks/2014/03/23/inventorytrends-for-furniture-retailers/

8 Invoice a document provided to acustomer to requestpayment for a good/service

received.

Incessant emails with thesame invoice.

http://www.forbes.com/sites/nnahbreslin/2012/05/24/howget-invoices-paid/

9 flotation an offer of a company'sshares to investors(financial institutions andgeneral public)

Assuming all goes accordingto plan, the flotation will bethe largest yet undertaken


0 Fiscal union This is essentially thetransfer of some of onecountrys tax receipts toanother.

..the Euro can only survive ifthe commoncurrency is complementedby a fiscal union.

http://www.forbes.com/sites/htouryalai/2012/05/07/a-bettsolution-for-the-euro-crisis-europeanization-of-banking/

Intangible assets non-physical assets with nofixed value, such asgoodwill and intellectual

property rights

I discussed intangible assetsas intellectual property (IP)and recommended every

small business have an IPstrategy.

http://www.forbes.com/sites/blasingame/2013/07/22/ip-strategy/

2 Goodwill an intangible asset thatrepresents the value of abusiness' reputation.

The real value of goodwill http://www.forbes.com/compes/goodwill-industries-international/

3 Float is when a private companyoffers shares in thecompany to the public forthe first time.

to own companies thatconsistently grow free cashand use that cash to shrinkthe float

http://www.forbes.com/sites/stor/2012/12/20/buy-float-shrink-and-tech-stocks-whetmarket-cracks-or-not/

4 currency Tokens used as money in acountry. In addition to themetal coins and paper bank

notes, modern currency alsoincludes checks drawn onbank accounts, moneyorders, travelers checks,and will soon includeelectronic money or digitalcash.

And going forward into aworld of little economicgrowth, where money

printing and debasing thecurrency is the standard

http://www.forbes.com/sites/stor/2012/12/20/buy-float-shrink-and-tech-stocks-whet

market-cracks-or-not/

5 directives Unsecured certified loan Debentures and fixed http://www.investopedia.com


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over a long period of timewith a fixedrate, based on the trust thatpayment will be made inthe future.

depositsare two different ways ofinvesting money.

k/answers/09/non-convertibldebentures-fixed-deposits-difference.asp

6 To waive To not demand something

you have a right to,or not cause a rule to beobeyed.

An online bank may waive

overdraft fees entirely,charging only interest on anoverdraft line of credit.

http://www.forbes.com/sites/

neybuilder/2011/12/12/threekey-advantages-to-banking-online/

7 Bear market Any market in which pricesare in a decliningtrend.

When a bull market trendbreaks, a new bearmarket begins.

http://www.forbes.com/sites/stor/2011/08/08/bear-marketstocks-cisco-cree-utx/

8 Risk averse A description of an investorwho, when facedwith two investments with asimilar expectedreturn (but different risks),will prefer the one

with the lower risk.

The bucket strategy mayalso help extremely risk-averse investors

http://www.forbes.com/sites/stor/2012/05/08/a-bucket-strategy-for-retirement-income/2/

9 Discount a reduction applied to a fullpriced good or service

Discounts may be offered onsales of goods to attractbuyers.

http://accounting-simplified.com/accounting-fosales-discount.html

0 Credit history a report detailing anindividual's or business'past credit arrangements. Acredit history is oftensought by a lender whenassessing a loanapplication.

The Importance Of YourCredit History

http://www.investopedia.comicles/00/091800.asp

Junk bond A bond with a credit rating

of BB+ or lower.

Companies sold record

amounts of junk bondsglobally last week.

http://www.ft.com/intl/cms/s

21cfc-502f-11e1-8c9a-00144feabdc0,Authorised=fahtml?_i_location=http%3A%%2Fwww.ft.com%2Fcms%2%2F0%2Fe4221cfc-502f-118c9a-00144feabdc0.html&_i_referhttp%3A%2F%2Frereferynexzz1uZVLife0

2 Debit card An electronic card issuedby a bank whichallows bank clients access

to their account towithdraw cash or pay forgoods and services.

An online checking accountwill come equipped witha debit card, which you can

use to withdraw cash ormake purchases.

http://www.forbes.com/sites/neybuilder/2011/12/12/threekey-advantages-to-banking-

online/

3 spurring To incite or stimulate All these characteristics areimportant for spurringproductivity enhancements.

http://www.forbes.com/sites/rapoza/2014/06/01/with-namin-full-power-market-turns-tindias-central-bank-for-direction/


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4 Top-notch of the highest quality top-notch managementschools, and a strongpropensity for on-the-jobtraining thatcontribute to an overall highcapacity to innovate


5 Pervasive Having the quality ortendency to pervade orpermeate

Political and policyinstability, excessive redtape, pervasive corruption,security concerns, anduncertainty around propertyrights protection..


6 low-cost able to be purchased oracquired at relatively littlecost.

Arun Jaitley, underlined theneed to contain inflation andquicken economic reforms toboost low-cost.


7 Harvesting Harvesting is most often

referring to selling abusiness or product line, aswhen a companysells a product line ordivision or a family sellsa business.

Energy development for

Indians: Harvesting the air


/15819117

8 trade-off An exchange of one thingin return for another,especially relinquishmentof one benefitor advantage for anotherregarded as more desirable.

Deep agreements regulateNTMs in different ways,creating trade-offs.

http://www.business.gov.au/nessTopics/Business-Finances/Pages/Glossary.asp

9 Benchmarking the process of comparingyour business to similarbusinesses in your industry.

As an investment advisor,my performance isbenchmarked to infinity andbeyond.

http://www.forbes.com/sites/demuth/2014/04/03/the-ultimpointlessness-of-benchmarks

0 Spawn A product or an outcome Often, the very success ofthe initiative spawnscompetition, weakening theadvantage

http://www.thebrokeronline.n/Articles/From-stocktaking-negotiation

Break-even point the exact point when abusiness' income equals abusiness' expenses

specifically cost accounting,the break-even point (BEP)is the point at which cost orexpenses and revenue are

equal.

http://www.forbes.com/sites/tspeculations/2012/02/20/amn-kindle-fire-market-share-heating-up-stocks-next-stop-

2 Market leader Brand, product, or firm thathas the largestpercentage of total salesrevenue (the marketshare) of a market.

However, this growth hasnot come at the expenseof market leader Apple

http://www.forbes.com/sites/tspeculations/2012/02/20/amn-kindle-fire-market-share-heating-up-stocks-next-stop-

3 Petty cash cash for the purposes ofsmall miscellaneous

The establishment of a pettycash fund is a good idea for

http://www.wikihow.com/Acnt-For-Petty-Cash


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purchases such as postage any business.

4 Single-entry bookkeeping a bookkeeping method usedwithin a cash accountingsystem and records one sideof each transaction.

with few transactions canpull the information the IRSrequires from a single-entrybookkeeping system.

http://yourbusiness.azcentralm/doubleentry-bookkeeping-singleentry-bookkeeping-6498.html

5 analyst Employee of a brokerage or

fund management housewho studies companies andmakes buy and sellrecommendationson their stocks. Mostspecialize in aspecificindustry

Business Analysis &

Systems Analysis

http://www.modernanalyst.c

Resources/Articles/tabid/115fault.aspx

6 Laissez-faire a doctrine opposinggovernmental interferencein economic affairs beyondthe minimumnecessary for the

maintenance of peace andproperty rights

Away from the spotlight,though, another industry isfacing its own crisis ofconfidence in laissez-faireliberalism.


7 Human capital The unique capabilities andexpertise of individuals.

SumTotal Systems, Inc. isthe global leader instrategic Human CapitalManagement (HCM)solutions that provideorganizations with

http://www.bloomberg.com/le/2012-05-04/aC1ziRLwnQ9c.html

8 Peddle a. To travel about selling(wares): peddling goodsfrom door to door.b. Toengage in the illicit sale of

Setting aside the never-ending nonsense peddled bythe opponents of healthcarereform

http://www.forbes.com/sites/eworks/2014/03/23/inventorytrends-for-furniture-retailers/

9 Feeble a. Lacking strength;weak.b. Indicatingweakness. 2. Lacking vigor,force, or effectiveness;inadequate.

HP is still profitable beforeits enormous assetwritedowns, but with itsstock trading at afeeble price/earningsmultiple of six

http://www.forbes.com/sites/rgeanders/2013/05/22/meg-whitman-jolts-hp-as-its-reluctant-savior/

00 Branch A branch is part of the samelegal entity as theparent corporation.

China boosted rural credit bycutting reserve ratiosfor more branches ofAgricultural Bank of ChinaLtd.

http://www.bloomberg.com/s/2012-03-21/china-cuts-reseratios-for-379-agbank-branchto-boost-loans.html

01 Enfeebled Something or someone that

was made very weak

that will allow enfeebled

rich economiesan escape from deflationarypressure.


/16274363

02 acquisition one company taking overcontrolling interest inanother company. Investorsare always looking out forcompanies that are likely to

was exactly why Apple wasbuying Beats in what is the

companys largest-everacquisition at $3 billion.

http://bgr.com/2014/05/28/apbeats-acquisition-details-confirmed/


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be acquired, because thosewho want to acquire suchcompanies are often willingto pay more than the marketprice for the shares theyneed to complete the

acquisition.03 affiliated retailer independent retailer who

affiliates with otherindependent retailers undera common trade name formerchandising purposes. Agroup of such independentretailers will advertiseunder this common tradename.

This is very similarbecause our teammembers want to beaffiliated retailer with acompany that is growingand one where they arerewarded for theirdedication.

http://www.csdecisions.com/4/05/30/wawa-celebrates-50-years-retail-excellence/

04 Amortisation the process of expensing forintangible assets such as

goodwill and intellectualproperty over a period oftime.

New amendments to twointernational accounting

standards published Mondayclarify acceptable methodsof depreciation andamortisation.

http://www.cgma.org/MagazNews/Pages/201410124.aspx

05 Balance sheet a snapshot of a business asof a particular date. It listsall of a business' assets andliabilities and works out thenet assets.

The latter number is closerto what AmTrust's balancesheet.

http://online.barrons.com/newrticles/SB50001424053111925704579588070459365540d=BOL_hp_popemail

06 Balloon payment a final lump sum paymentdue on a loan agreement.Loans with a larger final

balloon payment havelower regular repaymentsover the term of the loan

the Q was finally able tosatisfy the $900,000 balloonpayment and keep its doors

open.

http://www.news-press.com/story/life/voluntee014/06/02/care-southwest-

floridas-nonprofit-news/9840693/

07 Bootstrapping where a business fundsgrowth purely throughpersonal finances andrevenue from the business.

Why entrepreneurs in Indiaare bootstrapping theirstartups

http://articles.economictimesiatimes.com/2014-05-23/news/50054952_1_venturcapitalists-ispirt-baby-care-products

08 Cash book a daily record of all cash,credit or chequetransactions received orpaid out by a business.

RISH company Cashbookhas been providing globalcash automation solutionssince 1992

http://www.independent.ie/bess/irish/cashbook-grows-bymaking-etransactions-pay-30282140.html

09 Chart of accounts an index of the accounts abusiness will use to classifytransactions. Each accountrepresents a type oftransaction such as Asset,Liability, Owner's equity,Income, and Expense.

This presents a new chart ofaccounts as well as thefollowing.

http://www.kpmg.com/RO/epics/Documents/Chart%20of0Accounts.pdf

0 Commercial bill (also known as a bill of Missouri lawmakers have http://www.ky3.com/news/lo


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exchange) is a form ofcommercial loan that can beoffered on an interest onlybasis, or reducing basis.Commercial bills typicallyrequire some sort of

security and suit short-termfunding needs such asinventory.

given final approval tolegislation requiring parentalconsent for children youngerthan 17 to use commercial

bill

governor-gets-bill-requiring-parental-consent-for-childrenuse-commercial-tanning-beds/21048998_25943340

1 Contingent liability a liability that only needs tobe paid if a particular eventor circumstance occurs.

and it is the potentialstrain on Malaysia's debtposition from thesecontingent liabilities thatraises concern.

http://www.cnbc.com/id/101209

2 Venture Capital capital invested in a start-upbusiness that is thought tohave excellent growthprospects but does not have

access to capital marketsbecause it is a privatecompany.

Enterprise software makerCovacsis Technologies hasreceived funding from theventure capital arms

http://economictimes.indiatimcom/tech/ites/covacsis-gets-funds-from-reliance-industricisco-venture-capital-

arms/articleshow/35915616.

3 Revenue (also known as turnover)the amount earned beforeexpenses, tax and otherdeductions are taken out.

the Chinese mobile-service provider that short-seller Carson Block hasaccused of overstatingrevenue

http://www.businessweek.coews/2014-06-01/nq-mobile-rises-after-increasing-revenuforecast

4 Receipt a document provided to acustomer to confirmpayment and to confirm agood/service has been

received.

The Russian EnergyMinistry has confirmedreceipt of $786.366 millionfrom Naftogaz Ukrainy, a

ministry spokesman toldInterfax.

http://www.kyivpost.com/cot/ukraine/russia-confirms-receipt-of-7864-million-fromukraine-for-february-march-

350274.html

5 Wad of cash A large enough stack ofbanknotes toextinguish a candle bywaving at it.

For most investors a nicewad of cash in companycoffers provides a cushion ofcomfort for bad times .

http://www.forbes.com/fdc/wome_mjx.shtml

6 Nest egg A special sum of moneysaved or invested forone specific future purpose.

If you need the extra boostof willpower to keep yourpaws off your retirementnest egg, an onlinesavings account is a greattool.

http://www.forbes.com/sites/neybuilder/2011/12/12/threekey-advantages-to-banking-online/

7 To surpass To do or be better than As student loan debt hasrecently surpassed creditcard debt, the averagestudent is now carrying over$25k in student loans andgraduating in a job marketwith an unemployment rateover 8%.

http://www.forbes.com/sites/ncialfinesse/2012/05/09/12-financial-tips-for-debt-burdenew-grads/yield


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8 yield The annual income earnedfrom an investment,expressed usually as apercentage ofthe money invested.

if you and up buying 10

years at 120 and get 1,9%yield

http://www.forbes.com/sites/rapoza/2012/04/26/investorsfive-ways-to-lose-money-without-trying/?ss=advisor-network

9 replenish To rebuild

the amount of money that issupposed to be availablefor petty cash funds. Forexample, if $50 was takenfrom the petty cash fund inone month, then in thefollowing month, $50shouldbe put back into petty cash.

Swift Cash to Replenish

Your Business!

http://www.1888articles.com

ine-business-loan-swift-cashreplenish-your-business-0122814.html

20 venture plan A type of written plan thatis written by anentrepreneur as to

how they will manage anddirect their new businessand attain specific businessgoals. This will help thenew businessowner in obtainingfinancialresources for attaining thesegoals

A new venture plan usuallyrefers to a plan for startingand operating a new

business venture

http://planningskills.com/gloy/117.php

21 bolstered To support or prop up withor as if with a long narrowpillow or cushion.

..bolstered by a well-developed financial market(27th) and a large market

more generally..

http://www.diamondintelligecom/magazine/magazine.asp=12830

22 amtrak National Railway PassengerCorporation; federal agencythat runs passenger trainsthroughout the UnitedStates.

Amtrak passengers are nowdescribing the moment anSUV slammed into theirtrain in Madera County

http://abc30.com/news/1-deaafter-amtrak-train-collides-wvehicle-near-madera/88595/

23 bail bond monetary guarantee that anindividual released fromjail will be present in courtat the appointed time. If theindividual is not present incourt at that time (has

jumped bail), the monetaryvalue of the bond isforfeited to the court.

Arvind Kejriwal agrees tosubmit personal bail bond indefamation case

http://indianexpress.com/artindia/politics/arvind-kejriwalagrees-to-submit-personal-babond-in-defamation-case/

24 base period selected period of time thatserves as a basis for acomparison, a standard, or amathematical construct toaid in financial

As of last week, according tothe Journal, multipleindustry executives havesaid the administration isn'tconsidering a base period of

http://grist.org/climate-energy/obamas-proposed-powplant-rules-fall-slightly-shortenvironmentalists-hopes/


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computations. 2005,

25 bilateral contract a contract that incorporatesa promise by both parties todo, or not to do, something.

India has decided to opt for abilateral assistanceprogramme from the ...

http://gulfnews.com/business-gas/turkey-driven-by-greed-kurd-oil-row-iraq-deputy-pm1.1341882

26 board of directors group of persons elected by

a company's stockholders torun the business accordingto the corporate charter.

Scio Diamond

Technology Corporation hasappointed Gerald McGuireand James Korn as newindependent members to thecompany's Board ofDirectors

http://www.diamondintellige

com/magazine/magazine.asp=12830

27 brand loyalty degree to which a consumerwill repeatedly purchase abrand . For advertisers toachieve their ultimate goalof brand loyalty, theconsumer must perceive

that the brand offers theright combination of qualityand price.

some tricks that all brandscan use to make sure thatthey maintain their brandloyalty.

http://www.thedrum.com/opn/2014/05/30/tricks-marketintrade-britains-got-talent-and-brand-loyalty

29 bull market prolonged rise in the pricesof stocks, bonds, orcommodities. Bull marketsusually last at least a fewmonths and arecharacterized by hightrading volume.

Investors who are convincedthat the next bull market hasindeed arrived

http://economictimes.indiatimcom/markets/analysis/increa-need-for-a-bull-market-stratto-reap-benefits/articleshow/3583408ms

30 business plan a comprehensive analysisof all aspects of a business

enterprise relevant to itsviability, including itshistory, management,competitive position,market, activities, products,policies, finances, andprojected finances.

But that is the whole point ofwhy we are here, to learn

how to write an effectivebusiness plan

http://allafrica.com/stories/206010042.html

31 business ethics moral principles concerningacceptable andunacceptable behavior bybusiness people. Executivesare supposed to maintain a

high sense of values andconduct honest and fairpractices with the public.

a client has been orderedto take a course in businessethics.

http://tvnz.co.nz/national-news/real-estate-agent-orderbusiness-ethics-course-59835

32 vertical analysis financial statement itemthat is used as a base value.All other accounts on thefinancial statement arecompared to it.

and computer verticalanalysis tools to better seehow our planet is changing

http://www.cmo.com.au/artic46531/travel_telecom_head_industries_boosting_programic_advertising/


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33 vertical managementstructure

hierarchical structure andfunctioning of anorganization in terms of thelayers of managementdelegation of authority. Avertical management

structure has divisions ofauthority with variouslevels of responsibility.

The vertical managementstructureessentially tubingmanufactured by aBlenhein

http://www.windpowermonthom/article/1296530/windtechinside-enercons-high-tech-tesite

34 vulture fund type of limited partnershipthat invests in depressedproperty, usually realestate, aiming to profitwhen prices rebound.

A vulture fund is a privateequity or hedge fund thatinvests in debt considered

http://www.plenglish.com/inphp?option=com_content&taview&id=2725491&Itemid=

35 limited partnership organization made up of ageneral partner , whomanages a project, andlimited partners, who invest

money but have limitedliability, are not involved inday-to-day management,and usually cannot losemore than their capitalcontribution.

from a 2006 KKR limitedpartnership agreement sothat it could ascertainwhether the investors had

authorized these charges.

http://www.economonitor.colog/2014/05/the-private-equilimited-partnership-agreemenrelease-the-industrys-snowde

moment/

36 Business cycle The tendency of economiesto move throughperiods of boom and bust,with fluctuations ineconomic growth occurringevery five years or so.

These two measures haveshown markedly differentbusiness cycle

http://www.theguardian.cominess/2007/apr/11/businessglry57

37 Panacea Something that will cure allillnesses.

History suggests, however,that none of thesepolicies will be a panacea


38 WTO World Trade Organization World Trade Organizationafter an 18-year effort

http://www.forbes.com/sites/kadomanis/2011/11/10/russifinally-joins-the-wto/

39 GDP Gross Domestic Product The worlds recovery fromrecession is slowing,according to TheEconomists measure ofglobal GDP, based on 52countries

http://www.economist.com/b/graphicdetail/2011/12/focus

40 G7 The group of seven majorindustrializedeconomies, comprising theUS, UK, France,Germany, Italy, Canada andJapan.

taly has called foremergency G7 talks, aslending costs soared andstocks plunged across theEurozone.

http://www.forbes.com/sites/agreene/2011/08/12/the-g7-ayou-on-a-much-more-personlevel/

41 Consumerism the state of an advancedindustrial society in which a

While the new waveof consumerism in China

http://www.investopedia.comck-analysis/2011/dont-forget


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lot of goods are bought andsold

and emerging Asia is "oldnews"

latin-americas-consumer-storrxi-braq-cbd-sab-meli-gfa-hxm1130.aspx

42 Creditworthiness Creditor's judgment ofan entity's current andfuture ability, and

inclinationto honor debt obligations asagreed upon. It is usuallybased on the credit history,credit rating, and characterof the entity.

No information regardingyour major credit, mortgage,or other

accounts that speaks of yourcreditworthiness.

http://www.mortgagefit.comdit-report.html

43 Extortion Offense of illegallyobtaining money orother benefit or compellingsome action throughcoercion or menace, specially by a

public officer acting in hisor her official capacity.

were charged or convictedwith a misdemeanorinvolving investments andrelated to fraud,extortion, bribery, or otherunethical activities.

http://www.investopedia.comofessionals/faqs/series7/0713asp

44 Recruiters individuals, normallyassociated with a humanresource department, whohave the responsibility forlocating and obtaining newemployees.

Recruiters can be a greatway to find jobopportunities.

http://www.business2commu.com/human-resources/gettinresume-recruiter-ready-0898

45 regressive tax tax designed to discouragea certain activity rather thanto produce revenue. Hightariffs and high taxes on

such commodities astobacco and alcohol arerepressive in the sense thatthey discourageconsumption of the taxedproduct by raising its price.

to consider the damage ahike in gas taxes would do towage earners beforeendorsing such a regressive

tax ..

http://www.post-gazette.com/opinion/letters/2/05/14/The-gas-tax-is-regresand-shouldn-t-be-

raised/stories/201405140021

46 NAFTA North American Free TradeAgreement (NAFTA)

NAFTA is to completely endU.S. and Mexican tariffs

http://www.allbusiness.com/saries/north-american-free-tragreement-nafta/4959192-1.h

47 no-growth description of little or noeconomic growth asmeasured by changes in the

Gross Domestic Product(GDP)

1980s was characterizedas no-growth since the grossdomestic product showed

only a negligible increaseduring much of the period.

http://www.allbusiness.com/saries/gross-domestic-producgdp/4942328-1.html

48 Co-founder A person who, inconjunction with one or twoother individuals, isinstrumental in starting abusiness, charity or someother enterprise.

A good company usuallybegins with co-founders:the notion of a lone Edisonwilling a giant companyinto existence is rarelycorrect

http://blogs.hbr.org/2012/05/-things-to-get-right-when/


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49 Aid Foreign officialdevelopment assistance.For the donee country, itrepresents the netinflow of foreign funds. Forthe donor country, it

represents the gross outflowof public funds.

aides say, as well asanother 42 roundtable chatswith small groups.

http://grist.org/climate-energy/obamas-proposed-powplant-rules-fall-slightly-shortenvironmentalists-hopes/

50 Spawn A product or an outcome. Often, the very success ofthe initiative spawnscompetition, weakening theadvantage.

http://www.forbes.com/sites/ndomitrovic/the-weak-dollarcaused-the-great-recession/

51 Net income the total money earned by abusiness after tax and otherdeductions are taken out.

The company also expectsrevenue and net income forthe full year ended 2014

http://www.businesswire.comws/home/20140602005454/eonn%E2%80%99s-Reports-Record-Net-Income

52 Mark down a discount applied to aproduct during a

promotion/sale for thepurposes of attracting salesor for shiftingsurplus/discontinuedproducts.

Paying for freight is lessexpensive than paying for

the markdown ...

http://www.bbc.com/news/buess-27663851

53 Fully drawn advance is a long term loan with theoption to fix the interestrate for a period. Theseloans are usually securedand can be used to fund anew business or equipment.

As a result, the saltymarinade gets fully drawninward over time

http://www.pitchcare.com/mine/busy-times-for-the-amenforum.html

54 Debt consolidation the process of combining

several loans or other debtsinto one for the purposes ofobtaining a lower interestrate or reducing fees.

Debt Consolidation USA

shared in an articlepublished last May 30, 2014how consumer confidence

http://www.busbyway.com/2

/06/01/debt-consolidation-usexplains-how-consumer-confidence-affects-the-econo

55 Cost of goods sold the total direct costs ofproducing a good ordelivering a service

Even a 1% decrease in thecost of goods sold can makea big ...

http://www.fool.com/investineneral/2014/06/01/mr-markeunderestimating-michael-kors.aspx

56 Bank reconciliation a cross-check that ensuresthe amounts recorded in thecashbook match therelevant bank statements.

head of rates trading at a USbank reconciliation iscautious, but .... referencedata

http://www.risk.net/risk-magazine/feature/2347166/oof-office-banks-debate-meritof-shared-processing

57 Accounts payable a record of all short-term(less than 12 months)invoices, bills and otherliabilities yet to be paid.Examples of accountspayable include invoicesfor goods or services, billsfor utilities and tax

Accounts PayableSoftware increases efficacyvia automation.

http://news.thomasnet.com/fory/Accounts-Payable-Softwincreases-efficacy-via-automation-20027550


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payments due.

58 joint account Bank or brokerage accountowned jointly by two ormore people. Joint accountsmay be set up in two ways:(1) either all parties to the

account must sign checksand approve allwithdrawals or brokeragetransactions or (2) any oneparty can take such actionson his or her own.

to be able to take moneyfrom any accountincludingIsas andjoint accounts..

http://www.startribune.com/bness/261299401.html

59 justified price fair market price aninformed buyer will pay foran asset, whether it be astock, a bond, acommodity, or real estate.

customers followed closelyby getting electricity at ajustified price

http://www.sltrib.com/sltrib/ion/57973453-82/customers-power-electricity-mountain.html.csp

60 ATM Automatic Teller Machine online banks often pick up

the charges for your useof other banks ATMs,saving you another commonbank fee.

http://www.startribune.com/b

ness/261299401.html

61 insolvency clause provision of a reinsurancecontract that states that thereinsurance companyremains liable for itspredetermined share of aclaim submitted by aninsured, even though theprimary insurance company

is no longer in business.

... a subsisting contractnotwithstanding thesupervening insolvencyclause..

http://www.mondaq.com/unitates/x/314920/Insolvency+Bruptcy/Municipal+Debtors+Cm+Down+Of+Special+Reve+Debt

62 Impulse spending Spur of the moment,unplanned decision tobuy, made just before apurchase.

That two-day lagdiscourages impulsespending.

http://www.northernlife.ca/nlocalNews/2014/05/21-dave-chilton-wealthy-barber-sudbury.aspx

63 Bullish Someone who believesprices will rise and thatbullish sentiment in themarket will push priceshigher

While mild weather and thepick-up in fuel stockpilingare pressuring prices, Saalsaid he is bullish longer term

because we havent seenany enormous injections yetthat take the fear out of the

market

http://www.bloomberg.com/s/2014-05-30/natural-gas-heafor-third-monthly-drop-of-yeon-supply-gains.html

64 Capped Note A floating rate instrumentwith a cap that places amaximum coupon rate onit.

Speaking at an angelinvestors conference lastweek I took a bold stand andbegged the attendees to sayno to capped convertiblenotes.

http://www.ventureblog.com1/09/just-say-no-to-capped-convertible-notes.html

65 Depletion Depletion is an accounting Depletion of federal http://onlineathens.com/gene


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measure that records on abalance sheet the loss invalue of a naturallyoccurring resource such asoil and gas reserves. Thereduction in value of

tangible assets isdepreciation.

highway funds stalls Georgiaroad projects

assembly/2014-05-24/depletfederal-highway-funds-stallsgeorgia-road-projects

66 Churning Excessive buying andselling of securities by thebroker controlling acustomer's portfolio,thereby allowing the brokerto earn extra commission.

State schools churning out ageneration of amoralchildren

http://online.wsj.com/articleszils-permanent-payroll-tax-crisk-to-budget-economists-sa1401308832

67 Coupon The interest paid on a bondexpressed as a percentageof the face value.

Walgreens will not acceptcoupons that exceed theselling price of an item andno cash back is ever

provided in exchange forany coupons.

http://www.wral.com/walgrechanges-coupon-policy-and-for-the-better/13687894/

68 Payroll Taxes Income tax and otherstatutory deductions madeby the employer from theemployee's gross salary orwages.

announced Tuesdayevening that payroll-taxbreaks in place since 2011and set to

http://online.wsj.com/articleszils-permanent-payroll-tax-crisk-to-budget-economists-sa1401308832

69 Patent-Infringement The commission of aprohibited act with respectto a patented inventionwithout permission fromthe patent holder.

Robertson's patentinfringement lawsuitcontends that

http://www.busbyway.com/2/06/02/robertson-worldwide-secures-complete-victory-in-claim-construction-proceedinin-patent-infringement-lawsu

against-super-x-manufacturinltd/

70 Volatility A variable in option pricingformulas showing theextent to which the returnof the underlying asset willfluctuate between now andthe option's expiration.

A much-used measure ofexpected volatility in the USsharemarket is the ChicagoBoard Option Exchange

http://www.theaustralian.com/business/opinion/what-volatility-share-markets-are-quite-stable/story-e6frg9r6-1226940482649

71 Sunk Cost Money already spent and gone, which will not be recovered no matter whatcourse of action is taken. B

ad decisions are made whenmanagers attempt to recopsunk costs.

In some kind of Finance 101class, you probably heard theterm "sunk cost" thrownaround

http://www.sports-central.org/sports/2014/06/02unterpoint_cavs_deserved_ton_the_draft_lottery.php

72 Spot Market Market for buying andselling commodities orfinancial instruments forimmediatedelivery and payment basedon the settlement

after the Russian groupagreed to use spotmarket

http://www.ft.com/intl/cms/sb79b0e4-e284-11e3-a829-00144feabdc0.html


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conventions of theparticular market.

73 Crackdown When someone starts todeal with bad or illegalbehaviour in a more severeway.

Chinese President XiJinping's ongoingcorruption crackdown hasnow

http://edition.cnn.com/2014/1/world/asia/tiananmen-chin

74 Indifference Curve A set of points thatrepresent different bundlesof goods which provide theconsumer with the samelevel of satisfaction

The prime indifference curveis an accurate way torationalize prime, a short-term rate, with term fixed-rate loan quotes.

http://www.banknews.com/Se-News-Page.51.0.html?&no_cache=x_ttnews%5Bpointer%5D=2x_ttnews%5Btt_news%5D=4&tx_ttnews%5BbackPid%5D90&cHash=690d7bbfa0

75 Dominant strategy A game theoretic outcomewhere the choice of oneplayer is the sameindependent of choicesmade by other players in

the game.

Such an optimal action iscalled Dominant action (ordominant strategy).

http://www.econ.ucla.edu/iob/DominantStrategy201B.pdf

76 Variance the difference betweenwhat was budgeted andwhat is actually spent

a price variance of 5%... http://www.ldoceonline.com/ionary

77 red ink a situation in which acompany is losing a lot ofmoney

Sony last month reported arecord annual loss of $5.7bn(3.7bn), for its fourthstraight year of red ink.

http://www.independent.co.uews/business/news/sony

78 marginal rate ofsubstitution

the rate at which anindividual must give up

good A in order to obtainone more unit of good B,

while keeping their overallutility (satisfaction)constant

The marginal rate ofsubstitution is alwayschanging for a given pointon the indifference curve,

and mathematicallyrepresents the slope of thecurve at that point.

http://www.pitchcare.com/mine/busy-times-for-the-amenforum.html

79 dealer incentive A corporate sales strategyin which the price a dealerhas to pay amanufacturer for aparticular product isreduced, allowing thedealer to make a higherprofit or to reduce theprice at which the product

is sold to consumers

Dealer incentives can be tiedto certain sales quotas,meaning that the dealer willonly receive the incentivewhen a certain number ofunits is sold.

http://economictimes.indiatimcom/markets/analysis/increa-need-for-a-bull-market-stratto-reap-benefits/articleshow/3583408ms

80 onerous contract a type of contract where thecosts involved withfulfilling the terms andconditions of the contractare higher than the amountof economic benefitreceived

Onerous contracts can occurin situations where acompany has a contract tosupply a product that costsmore to produce.

http://www.investopedia.com


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81 salesmanship skill in selling Clever salesmanship canpersuade you to buy thingsyou don't really want.

http://dictionary.cambridge.oopics /

82 Flourish to develop well and besuccessful

Unless we help banks lendsensibly and shape anenvironment where small

businesses can flourish , thedanger is not that recoverywill be slow, but that it willbe non-existent

http://www.guardian.co.uk/cmentisfree/2012/mar/18/georosborne-budget-for-banks

83 Franchising the business of sellingpeople or companies theright to sell the products orservices of your company

They claim that franchisingis one of the most successfulmethods of starting yourown business.


84 Appraisal an assessment made beforea project begins

It is important to have acritical appraisal of theexisting facilities

http://www.ldoceonline.comionary/appraisal

85 offshore fund a mutual fund that is based

in an offshore jurisdiction,which is generallyconsidered to be outside theUnited States. The term isoften used, perhapsincorrectly, to describe afund that is not in a high-tax country.

Offshore funds offer a

number of features thatdistinguish them from thosedomiciled in the U.S.

http://www.businesswire.com

ws/home/20140602005454/eonn%E2%80%99s-Reports-Record-Net-Income

86 Company coffer Financial resources of acorporation

For most investors a nicewad of cash in companycoffers provides a cushion ofcomfort for bad times.

http://www.thedailystar.net/bness/robi-returns-to-profit-26

87 Covariance Covariance measures thedegree to which twovariables move in the samedirection. Positivecovariance means theymove in the same direction,negative covariance meansthat they move inversely

Many elements ofmathematics and statisticsare used in evaluatingstocks. Covariancecalculations can give aninvestor insight into howtwo stocks might movetogether in the future.

http://www.investopedia.comicles/financial-theory/11/calculating-covariance.asp

88 turnaround when a business, plan orsystem suddenly becomessuccessful

The chairman, TonyBramall, was responsible forthe turnaround in thecompany's fortunes


89 Abundance Advanced A physical or economiccondition where thequantity available of aresource exceeds thequantity desired in theabsence of a rationingsystem

Another choice is what Iwould call abundancecapitalism.

http://www.huffingtonpost.cim-garrison/abundance-capitalism_b_2563294.html

90 Barriers to entry The existence of high start- Credit Rating Agencies http://www.dictionaryofecon
http://www.ldoceonline.com/dictionary/appraisalhttp://www.ldoceonline.com/dictionary/appraisalhttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.investopedia.com/articles/financial-theory/11/calculating-covariance.asphttp://www.ldoceonline.com/dictionary/appraisalhttp://www.ldoceonline.com/dictionary/appraisal


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up costs or other obstaclesthat prevent newcompetitors from easilyentering an industry or areaof business. Barriers toentry benefit existing

companies alreadyoperating in an industrybecause they protect anestablished company'srevenues and profits frombeing whittled away by newcompetitors.

(CRAs) have beenmeasuring the credit risk ofdebt for slightly over 100years. The industry ischaracterised by artificialand natural barriers to entry

and an issuer-pays system.

cs.com/sample_article

91 Long Run Production Production activity whereall factors of productionmay vary in quantity. Thefirm has the freedom tosubstitute among these

factors or production inattempts to minimize costs.

The analysis of long-runproduction indicates how abusiness pursues theproduction of output giventhat all inputs under its

control is variable.

http://www.amosweb.com/cgbin/awb_nav.pl?s=wpd&c=dk=long-run+production+ana

92 Conflict of interest A situation where aprofessional, or acorporation, has a vestedinterest which may makethem an unreliable source.The interest could bemoney, status, knowledgeor reputation for example.

In terms of conflicts ofinterest, Mathis et al.(2009) find that reputationcycles may exist where aCRA builds up its reputationby relaying informationaccurately only to takeadvantage of this reputationto later inflate ratings.

http://www.dictionaryofeconcs.com/sample_article

93 Econometrics use of computer analysis

andmodeling techniquesto describe inmathematical terms therelationship between keyeconomic forces such aslabor, capital, interest

rates, andgovernmentpolicies,thentest the effects of changesin economic scenarios.

For instance, an

econometric model mightshow the relationship of

http://www.ventureblog.com

1/09/just-say-no-to-capped-convertible-notes.html

94 Laddering The allocation by anunderwriter of shares in aninitial public offering (IPO)

to selected investors whoagree to buy more at ahigher price once it startstrading.

Your remaining portfoliovalue can decline so muchyou won't be able to afford

more steps on the ladder.

http://money.usnews.com/mo/blogs/on-retirement/2014/05/07/why-

laddering-annuities-may-notwork

95 Conglomerate A company made up ofsubsidiaries that operate inbusiness sectors that areunrelated to each other.

However, the world's largestshipping conglomerate hasrecently

http://www.fool.com/investineneral/2014/05/30/the-largesshipping-conglomerate-weigin-on-the.aspx

96 Convexity Convexity is a measure of this negative convexityis http://seekingalpha.com/artic
http://www.allbusiness.com/glossaries/modeling/4951204-1.html/?utm_source=linksmart&utm_medium=link&utm_campaign=inline%2Blinks&lc=int_mb_1001http://www.allbusiness.com/human-resources/workforce-management-employee/2563-1.html?lc=int_mb_1001http://www.allbusiness.com/human-resources/workforce-management-employee/2563-1.html?lc=int_mb_1001http://www.allbusiness.com/glossaries/modeling/4951204-1.html/?utm_source=linksmart&utm_medium=link&utm_campaign=inline%2Blinks&lc=int_mb_1001


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the way that bond durationand prices change wheninterest rates change asshown in the curve of theprice to yield relationship.The shape of the typical

curve is rounded or convexin shape, hence the name.

a pervasive issue and willlikely lead to principal lossesfor

201393-negative-convexity-avalue

97 Extrapolation An extrapolation is aprediction or expectationbased upon an inferencefrom data, information orcircumstances that arealready known or havealready occurred.

The New York-based designduo behind ExtrapolationFactory hosted

http://homeofthefuture.gizmocom/designing-future-objectfor-the-home-with-extrapola1579708940

98 Bondholder An investor that hasprovided capital to a firm inexchange for a fixed

interest rate - called thecoupon rate - attached tothe principal borrowed

A bondholder holds a sign ashe takes part in a protest

http://www.enetenglish.gr/?iws.en.article&id=1907

99 Probate Probate is the process ofauthenticating, or verifying,your will so that yourexecutor can carry out thewishes you expressed in thedocument for settling yourestate and appointing aguardian for your minorchildren.

... which is the generalstandard for probate courtlevel competence

http://www.forbes.com/sites/ergroves/2014/05/30/the-donand-shelly-sterling-conspiractheory/

00 Carry Trade A trade or strategy wherethe aim is to generateongoing positive cash flow.

But the redeployment ofborrowed U.S. dollars intotraditionally higher growthmarkets, also known as thecarry-trade

http://in.reuters.com/article/2/05/30/emergingmarkets-stocvaluation-idINKBN0EA1WH2014053

01 Journal Entry The recording of financialdata (taken usually from ajournal voucher) pertainingto business transactions in ajournal such that the debitsequal credits.

..then the journal entry is as

followshttp://www.reallifeaccountinm/pubs/Article_Theme_Busi_Organizations.pdf