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Not immediately paying for a purchase, but promising to do it later.
Define credit
Tangible property (other than land or buildings) used in the operations of a business
Equipment
In accounting, this account is the income or increase in net assets that an entity has from its normal activities.
Revenue
The yen, peso, and euro are types of
Currency
Money paid regularly at a particular rate
Interest
An investment scam that lures in new investors by promising high rates of return with little or no risk
Ponzi scheme
Rise in prices
Inflation
A letter requesting a solution to a problem
Claim
The ratio found by dividing total liabilities by total assets
What is a debt ratio
The ratio found by dividing current assets by current liabilities
What is a current ratio
Those prices that are either too high for the good or service provided, or too low in comparison to other competitors
Unfair prices
An alternative course of action stating specific guidelines that a business uses when responding to undesirable circumstances
Contingency plan
An online identity-theft scam that fools its victims into believing they are submitting sensitive, personal information to a legitimate website
Define phishing
An economic principle stating that after a certain point, hiring additional employees will result in a decrease in the overall level of productivity
The law of diminishing returns
a primary business activity that involves creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders
marketing
The business activity that involves the planning, controlling, preventing, and procedures involved in limiting business losses
Risk management
The cash available for the business to use in its day-to-day operations
Working Capital
Situation where a company employee buys or sells company stock based on information that is not disclosed to the public
Insider trading
An illegal form of multi-level marketing in which emphasis is placed on collecting initial fees from as many people as possible
Pyramid scheme
Property or other assets that a borrower offers as a way for a lender to secure the loan; becomes subject to seizure on default
Collateral
One of several stock indices, showing how 30 publicly owned companies based in the United States have traded during a standard trading session in the stock market
Dow Jones Industrial Average
Type of financial statement analysis whereby an individual calculates each individual item on a financial statement as a percentage of the total (creating common-size financial documents); may include comparison of performance across several years for a company or across several companies
Vertical analysis
A traditional retirement account allowing individuals to direct pretax income towards retirement investments that can grow tax-deferred; no gains are taxed until it is withdrawn
Define Individual Retirement Account (IRA)
A type of insurance company that is owned by its members—its policyholders; retains and controls its liability rather than transferring its risks to another entity; retains the profits that it generates and is typically formed by similar businesses and industries that pay lower licensing fees than traditional insurance companies
Risk retention group
A person responsible for caring for another person's assets and makes the decisions regarding an
individual's assets
Fiduciary