Business Glossary

A budgeting method where all expenses are justified from scratch each period, regardless of previous allocations

A graphical representation of the relationship between bond maturities and their corresponding yields. 

A standard for tagging financial statements electronically, allowing for easier analysis and comparison.

Celebrating and valuing differences in employees' backgrounds, experiences, and perspectives. 

A clear and concise statement of the benefits a product or service offers to its target audience

Training employees to develop new skills and knowledge to adapt to changing needs and technology.

Physical assets with a physical presence, like property, equipment, or inventory

The process of planning, organizing, and controlling the flow of goods and materials from suppliers to customers

Return On Investment, is a measure of the return from an investment. It is calculated as (Income - Cost) / Cost = ROI.

A monetary policy tool where a central bank increases the money supply by purchasing government bonds and other securities

The introduction of a new product or service to the market

The price at which a company seeks to sell its shares in an initial public offering (IPO). 

The present value of future cash flows generated by an investment, considering the time value of money and a discount rate

The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares outstanding. 

The ease with which an asset can be converted into cash without significant loss in value. 

Early warning signals of potential problems or threats to an organization's goals. 

A partnership between two or more companies to undertake a specific business project

The cost of borrowing money, often expressed as an annual percentage rate (APR). 

An investment pool using complex strategies to maximize returns and minimize risks, often with high fees and restrictions for investors.

A company focused on rapid revenue and earnings growth, even if it means reinvesting profits rather than paying dividends

A mathematical comparison of two or more financial statement items to assess a company's financial health. 

A measure of a company's economic profit by subtracting the cost of capital from operating profit

A bank account where funds can be withdrawn anytime without notice

The profit realized from selling an asset for more than its purchase price

When the main business user/client is a physical person.

When the main business user/client is another business/legal entity.

The process of dividing investment capital among different asset classes (e.g., stocks, bonds, cash) to achieve investment goals and manage risk