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The possibility of loss, damage or injury outside of a business or other organization
Eternal Risk
A network of banks, discount houses, institutional vendors, and money dealers who borrow and lend among themselves for the short term (90 days). Any investment has risk, but a money market account is considered a safe place to invest due to its short term nature
Money Market
The worldwide development of economic, financial, trade and communication integration. This pushes business executives to consider broad views in the global marketplace as countries and their economies become interconnected and interdependent
Financial Globalization
An internal or external reduction in long term costs when production or operation increases in size
economies of scale
The amount spent to acquire or upgrade an asset that will increase the efficiency of the production or operations of a business for the long term
Capital Expenditures
An investment tool such as bonds, debentures, notes, options, and shares
securities
Refers to the amount of income received by a company before any expenses are deducted
Gross Revenue
The status of the assets, liabilities and owners equity of an individual, business or other organization as shown in its financial statements
Financial position
Managing data such as credit card numbers, accounting balances or other monetary facts about an individual, business or other organization that are used when evaluating credit, loans or other financial activities
Financial information management
A system that monitors an individual, business or other organization’s financial standing.This includes recording and verifying financial information to determine a profit or loss for a given time period as well as the value of assets, liabilities and owner’s equity
Accounting
This line on an income statement shows the cost of raw materials and labor to produce a finished product or service that is available to a consumer
Cost of Goods Sold
allows a business to maintain the optimum number of each item. In doing so, a business can operate production of a good or service, sales or customer service at a lower cost
Inventory System
An open and organized marketplace where ownership titles or standard units of commodities are traded by its members
Commodities Exchange
Organizations that are public or private whom act as a channel between savers and borrowers of funds. There are two types of institutions: depository and non-depository. Depository organizations are usually banks or credit unions. Non-depository organizations are often recognized as insurance companies or mutual funds
Financial Information
The possibility of loss, damage or injury within a business or other organization
internal risk
A market for the sale or purchase of stocks, bonds, bills of exchange, commodities, fortunes and options, foreign currency which work as an exchange for capital and credit. In the United States, well recognized markets include the New York Stock Exchange (NYSE), the S&P 500, and the Chicago Mercantile Exchange (CME or Merc)
Financial Markets
money invested in a business to generate income. Capital can also be defined as wealth in the form of an asset which can be an indication of strength of an individual, business or country
Capital
Monetary objectives of an individual, business or other organization that are decided by future needs of those entities
Financial Goal
Verification that a vendor meets the requirements of accepted practices, regulations, legislation, rules, standards and/or the terms of a contract
Compliance
Government agency created in 1934 that is responsible for enforcing securities-related laws and setting standards for financial information about businesses that are traded on a stock exchange. The SEC has five commissions who are appointed by the President and confirmed by the Senate who serve five year terms
Securities and Exchange Commission (SEC)
provide a comparison between financial statement items to determine the strength or weakness of a company. The most common ratios are: net sales to net worth and net income to net sales
Financial Ratios
A market for demand and supply of debt and equity capital. This is a highly decentralized system made up of three major parts: the stock market, bond market and money market
Capital Market
The systematic organization of information that allows easy updating and analysis of data
DataBase
At a minimum, this is a database of customer contacts, purchase history and technical support. Additional elements can include profiles of potential clients, understanding and leveraging the needs of current customers, and enhanced customer service based on data analysis
Customer Relationship Management
The process of managing money for an individual, business or other organization
Finance