Finance
What is saving account?
This type of account earns interest and is typically used for storing money you want to keep but not spend right away.
What is the risk assessment?
A process to identify potential hazards and analyze what could happen if a hazard occurs.
In math, this operation is the inverse of multiplication.
division
This ratio measures a stock’s return sensitivity relative to the overall market.
Beta (β)
This metric, often used by investors to evaluate potential stock investments, adjusts a company’s net income by adding back non-cash expenses and subtracting capital expenditures, showing how much cash a company generates for shareholders.
Free Cash Flow
What is assessing risk?
Essential for determining how worthwhile investment is and the best process to mitigate risk.
a store discounts an item from $80 to $60, this percentage represents the discount.
25
ceteris paribus
Law of Demand: As the price of a good increases, the quantity demanded decreases, and vice versa, all else being equal
This financial plan helps you track expenses and income to avoid overspending.
budget
What is Enterprise Risk Management?
A compliance requirement in most jurisdictions and it’s something that all companies must do well in order to be profitable or successful.
This U.S. holiday, celebrated on the fourth Thursday of November, is centered around gratitude and feasts.
Thanksgiving
C + I + G + (X − M)
C = Consumption (household spending)I = Investment (business spending on capital goods)G = Government spendingX = ExportsM = Imports
Aggregate demand
This term describes the price of borrowing money expressed as a percentage of the principal, often used to compare loans or investment returns.
interest rate
What are soft controls?
the competence, attention, and integrity of the people in an organization whose oversight helps to prevent and detect fraud.
There are two ducks in front of a duck, two ducks behind a duck and a duck in the middle. How many ducks are there?
Three. Two ducks are in front of the last duck; the first duck has two ducks behind; one duck is between the other two.
This theory suggests that stock prices fully reflect all available information at any given time.
Efficient Market Hypothesis (EMH)
This term describes the money you pay the bank each month when paying off a home loan.
mortgage payment
What is a business risk?
Such risks include new competitors entering the market, employee theft, data breaches, product recalls, operational, strategic and financial risks, and natural disaster risks.
how to transport a fox, a chicken, and a bag of grain across a river without any of them getting eaten.
Farmer takes the chicken across the river. (Chicken is safe on right bank.)
Farmer returns alone to the left bank.
Farmer takes the fox across the river.
Farmer brings the chicken back to the left bank.
Farmer takes the grain across the river.
Farmer returns alone to the left bank.
Farmer takes the chicken across the river.
What is the Time Value of Money?
This principle states that a dollar today is worth more than a dollar in the future due to its potential earning capacity.