Business Strategy
Style of leadership where leaders give workers a high degree of autonomy and the ability to manage work themselves.
Laissez-Faire Style
A financial institution that provides products and services to individuals consumers.
Retail Bank
A general accountant who completes a variety of tasks for multiple clients. These tasks are likely to include preparing individual clients' tax returns, conducting audits, and assisting with financial planning.
CPA
A civil wrong.
Tort
Working Capital equation
CURRENT ASSETS — CURRENT LIABILITIES
A destructive form of competition where the gains to one company are offset and attributable to the losses of another.
Zero-Sum Competition
A type of business where all partners have unlimited liability for the business.
General Partnership
Work in the insurance industry and are responsible for assessing risks using statistical analysis, and they design policies to minimize the cost of that risk.
Regulates corporations' and public accounting firms' activities. Established after accounting scandals at the time: Enron, Worldcom etc.
Sarbanes-Oxley Act of 2002
Shows the relationship between total liabilities and shareholders equity and indicates how much debt a company is using to finance its assets.
Debt to Equity Ratio
A quality management method (in manufacturing) used to improve current processes, products, or services, by discovering and eliminating errors/defects.
Six Sigma
A type of business that operates as a single entity, but is owned by a select group of people, such as the founders and private investors.
Private Corporation
Provide “one-stop shopping” for investors. They provide a wide variety of financial products and services. Are often desirable for people who require ongoing, comprehensive financial guidance and do not have the time to research investment options in detail. (Hint: be specific)
Full-service brokers
Written defamatory statement.
Libel
Demonstrates the amount of each dollar of sales that is kept in earnings.
Profit Margin
A relatively extreme strategy of defense in a hostile takeover where a company that is being taken over launches a counter takeover of the company seeking to acquire it, having harnessed enough capital to do so.
Pac-Man Strategy
A type of financial institution that operates in the capital markets to help clients raise capital through underwriting and issuance of securities. Also facilitates mergers and acquisitions.
Investment Bank
These individuals are often self-employed and work flexible schedules to accommodate their clients' schedules. They have covered all the requirements for the Certified Financial Planner designation and received advanced education in retirement and estate planning.
Certified Financial Consultant (CsFC)
A law which caused investment banks to become separate entities from commercial banks.
Glass-Steagall Act
Debt Ratio equation
TOTAL LIABILITIES/TOTAL ASSETS
A decision making method which entails making an educated guess; making a series of reasonable estimates and assumptions in order to find an unknown value.
Fermi Method
Similar to a bank, but it is owned by its depositors and operates to create profit for its shareholder members.
Mutual Savings Bank
Have the primary responsibility of ensuring financial firms don't assume risks that aren't proportional to expected market returns. They develop intricate mathematical models to accurately profitable decisions about investment, pricing, and risk management.
Quantitative Analysts
An act that requires institutions to inform customers about the security of private information (report and maintain minimum standards for security, ensuring customers are safe and aware of the circumstances around them).
Gramm-Leach-Bliley Act
REVENUE/ASSETS
Asset Turnover Ratio