Finance
The name of the rate of return required to justify an investment
Discount Rate / Cost of Capital
What is the balance sheet?
A financial snapshot that shows a company’s assets, liabilities, and owners' equity at a specific point in time.
Celebrated across Mexico and Latin America on November 1st and 2nd, this holiday honors departed loved ones with colorful altars (ofrendas), marigold flowers, and sugar skulls
Dia de Los Muertos
What is GDP?
Gross Domestic Product - the total value of goods produced and services provided in a country during one year.
This term refers to any paid form of non-personal communication used by companies to promote products through media like TV, social media, or billboards.
Advertising
The mix of debt and equity a company uses
Capital Structure
What is depreciation?
The reduction in value of assets over time; it helps allocate the cost of assets across their useful life.
Known as El Libertador, this Venezuelan military and political leader played a key role in helping Venezuela, Colombia, Ecuador, Peru, and Bolivia gain independence from Spanish rule.
Simón Bolívar
This term refers to the value of the next best alternative given up when making a financial or economic decision.
Opportunity Cost
A brand’s consistent promise or personality
Brand Identity
Financial metric measuring an asset's non-systematic risk relative to the market, calculated as the covariance of asset and market returns divided by market variance
Beta
Connect the three main financial statements
Net income from the income statement is added to beginning retained earnings within the statement of stockholders' equity
The ending total stockholders' equity appears on the balance sheet
The ending cash balance from the cash flow statement appears on the balance sheet as cash under assets
This ancient stone citadel, built high in the Andes mountains of Peru by the Inca Empire in the 15th century, is one of the New Seven Wonders of the World.
Machu Picchu
Adam Smith, in The Wealth of Nations, wrote this metaphorical concept that describes how unobservable market forces direct individual self-interest to benefit society as a whole.
The Invisible Hand
Often used to measure customer loyalty and satisfaction, this metric asks customers on a 0–10 scale how likely they are to recommend a company's product to a friend or colleague.
Net Promoter Score (NPS)
What financial model is used to estimate a company’s value based on future cash flows?
Discounted Cash Flow
A credit entry always increases these three main categories on the financial statements.
Liabilities, Equity, Revenue
On New Year's Eve, a popular tradition in many Spanish-speaking households involves eating this exact number of grapes at midnight for good luck in the coming year.
12
An economic dilemma that describes a situation where individuals acting independently according to their own self-interest deplete or spoil a shared, finite resource.
Trajedy of the Commons
This strategic marketing concept represents the total monetary or perceptual value a brand name adds to a product beyond its functional features and benefits.
Brand equity
The line showing portfolios with optimal risk-return tradeoffs
Efficient Frontier
If a company’s inventory turnover ratio is low, what might that indicate?
That the company is holding too much inventory or selling products slowly, which could tie up capital.
Popular during the Christmas season, this nine-day tradition from December 16 to 24 re-enacts Mary and Joseph's search for shelter in Bethlehem.
Las Posadas
Which economic curve shifts to the right when a government reduces business taxes or introduces a cost-saving technological advancement?
The supply curve
In pricing strategy, this psychological technique presents a middle, less attractive option alongside a premium option to make the higher-priced product appear much more valuable by comparison.
Decoy Effect