Corporations
A snapshot of an organization's financial situation as referred to be the IFRS.
What is the Statement of Financial Position? (IFRS)
The percentage of a mutual fund or other portfolio holdings that have been replaced in the course of one year. In a business, it is a measurement of the firm’s efficiency.
What is Turnover Ratio?
A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
What is Insurance?
A quantitative method used to assess the difference between planned and actual financial outcomes.
What is the Variance Analysis?
A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. The formula is: (profit - cost)/cost.
What is Return on Investment?
The growing interconnection of nations' economies. It represents the flow of financial products, goods, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of countries around the world fostered through free trade.
What is Globalization?
A GAAP principle that states businesses should match related revenues and expenses in the same period.
What is the Matching Principle?
The process of offering shares of a private corporation to the public through new stock issuance in the primary market. (Good way to raise capital!)
What are Initial Public Offerings? (IPO)
A type of investment fraud that involves paying existing investors a nonexistent enterprise with the funds collected from new investors who are promised big profits at little or no risk.
What is a Ponzi Scheme?
When a parent company splits into two or more new entities that operate independently. The shares of the parent company is traded to new companies.
What are Split-Ups (divestments)?
A basket of securities that trades on an exchange just like a stock does. They can be structured to track anything from the price of a commodity to a large and diverse collection of securities.
What is an Exchange-Traded Fund? (ETF)
A management strategy that aligns raw-material orders from suppliers directly with production schedules, meaning storage is eliminated altogether, increasing efficiency.
What is Just-in-time (JIT operations)?
The output of a credit-strength test that gauges a publicly traded manufacturing company’s likelihood of bankruptcy.
What is Altman Z-Score?
An arrangement allowing shareholders to automatically use the proceeds from dividends to purchase more shares in the company.
What is a Dividend Reinvestment Plan? (DRIP)
A quality-control methodology that businesses use to significantly reduce defects and improve processes, boosting efficiency and profits.
What is the Six Sigma Methodology?