Deca Finance Cluster Vocab
Terms in this set (320)
Primary source of law that is based on previous court decisions
The supreme law of the land and is based upon the US constitution
These laws address issues such astrade and commerce. These laws provide legal consistency among the states that adopt them
The US Congress enacts these laws
Product trade-name franchise
An independent sales relationship between a supplier and a dealer to stock and sell a specific or exclusive line of products
Reasoning which involves considering the timing of a financial transaction or process.
A type of persuasive message that many businesses write to customers who are delinquent in making payments on their accounts (Purpose: persuade customers to send payment or to contact the business to make some type of arrangement)
Unity of Command
An organizational principle that states that no employee should answer to more than one manager at a time
A principle that states authority should flow in a clear, unbroken line from the top to the bottom
A pooled investment fund that uses many types of aggressive investment strategies to maximize returns
A risk-response strategy that involves moving the impact of a risk to someone or something else
The process of searching computer databases to look for patterns of information and correlations among information (use info obtained from data mining to make business decisions)
Structured Query Language
Used for building queries and performing database administration tasks. Made up of clauses with each clause beginning with a keyword that is typically written in all caps
Ratios that measure the business's ability to generate profit
The process of deciding how scarce resources will be used or which goods and services will be purchased or provided so that the most satisfaction can be obtained
The management function that monitors the work effort
The management function of setting up the way the business's work will be done
The management function of providing guidance to workers and work projects
Occurs when there are limited resources, goods, and services --> those who are willing and have the ability to pay are able to purchase them
Used to identify financial system transactions that are very similar to each other but not exactly alike
Used to consider each financial transaction's circumstances and how it compares to historical patterns in the system
The mechanism used to obtain the desired information from the financial databases
The provisions of corporate policies
The strategy focused upon reducing exposure to risk of loss resulting from fluctuations in exchange rates, commodity prices, interest rates, etc.
A special type of investment fund with fewer restrictions on the types of investments it can make (more exclusive, fewer people can invest)
In securities, is a transaction that reduces the risk of an investment
All costs and expenses are calculated, and then the desired profit is added to arrive at a price
A cooperative association formed by labor unions or groups of employees for the benefit of its members
The personal assets of the owners cannot be taken if the company does not meet its financial obligations
Charge accounts where the retailer determines the credit limit and payment terms
Trade-offs that occur when you choose one alternative over another; they are impossible to avoid
These markets facilitate the buying and selling of low-risk, short-selling of land and buildings
A measure of how data points differ from the mean
A meeting in which the purpose is to gather information about a specific topic
Break Even Formula
Owned by the people who have purchased shares of stock in the business
The joining of two or more companies to form a new company
Making wise financial decisions and obtaining financial products that will help the client achieve his/her financial goals.
A financial professional who has been given legal authority to make financial transactions on behalf of an individual or business
The difference between the purchase price and the sales price of an asset
Tax on something of value given to another person
Reasoning that is used to compare financial transactions and processes across multiple financial systems and determine inconsistencies and errors
Involves selecting various characteristics of a market that the business wants to explore-->selects the data that meets the criteria and clusters the data into appropriate categories
Law of Demand
An economic principle that states that the quantity of a good or service that people will buy varies inversely with the price of the good or service
An unfavorable balance of trade in which a nation's imports are greater than its imports
Expansion (Boom) phase
From prosperity to recession
Contraction of economy
From depression to prosperity
The chances of loss caused by human weakness and unpredictability
This tactic reduces human risks by providing reimbursement for employee theft
The reduction in value of goods or assets occurring over a period of time
Used to determine the costs associated with a variety of business functions and activities
Accrual Accounting System
Records a business's financial transactions at the time they occur, even if the money is not exchanged at the time
Manual Accounting System
System which processes financial information by hand
Consists of businesses or individuals who are not involved in the day to day operations of the business
When stock prices decrease over time, it may indicate a downturn in the market
When stock prices increase over time
Pay for work completed (includes commission)
A person employed to deal with customers' transactions in a bank (most basic banking job)
A business letter whose purpose is to accompany other written material (sent along with other documents/reports)
An approach in which the data received through data mining is categorized into meaningful groups based on a set of established criteria
Income earned on stock investment
Asset Utilization Ratios
These ratios help businesses determine if they are using their assets in the most effective ways
Ratios used to determine a business's ability to pay its short term debts
This indicates the total cost of each quantity of products purchased by the price per unit
Repeals part of the Glass-Stegall Act by allowing financial institutions to form mergers or consolidate
Securities Exchange Act of 1934
Law which requires the disclosure of certain financial information, regulates the issuance of securities, and and outlaws insider-trading practices
Law which regulates corporations and public accounting firm activities
Involves adding interest and satisfaction to a task
A detailed study of a job
Involves adding more tasks to a worker's present job
Line of Credit
A type of Loan
Used to manage current income and expenses
Resources that are often used to create other goods
A customized keystroke or shortcut that commands the database program to perform certain tasks automatically
A specific series of steps taken to accomplish a specified goal.
Any technology, machine, or device linked to a control system such as computers to control machinery and processes; it may reduce human resources requirements to perform the same process.
The perception that comes to mind when people think of an individual, business, program, and organization.
An analysis that reveals the break-even sales, or point where the total revenue (TR) received equals the total costs (TC) associated with the sale of services or products (TR = TC). It is typically conducted to determine if it would be profitable to sell a proposed product or to provide insight into profit planning.
A formal document containing background information about the intended business and key business members as well as detailing business goals, supporting beliefs concerning attaining goals, and describing plans for achieving these goals.
Analysis that identifies an organization's competitors and evaluates their strengths and weaknesses relative to those of the organization's own ser
An organizational structure with few or no levels of intervening management between staff and managers; also called a "horizontal organization."
A measure of employment status; a FTE of 1.0 means the employee is equivalent to a full-time worker, while a FTE of 0.5 means the worker is half-time (50%).
A bar chart that illustrates a project schedule. It illustrates the start and finish dates of goals for a project.
An organizational structure where every entity in the organization, with few exceptions, is subordinate to at least one other entity. Most large companies have hierarchical organizations.
The process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.
The extent to which a product is adopted/bought by consumers in a particular market.
An organizational structure in which employees with diverse skills are pooled for work assignments.
A diagram that illustrates formal lines of authority as well as relationships between positions within the organization.
Presentation of data based on hypothetical situations or conditions.
The extent to which an investor will accept risk in the pursuit of a reward. The greater an investor's tolerance, the more risk he or she will accept to reach the goal, and the more willing he or she will be to invest in higher-risk assets with correspondingly higher returns.
A type of analysis that examines how different values of an independent variable may affect a dependent variable based on changes in the assumptions upon which projections are determined.
A listing of abilities, qualifications, and competencies usually created through an evaluative process.
start up costs
The costs or expenses involved in setting up a business.
supply chain management
Management of the interrelated businesses involved in the production of a product or service.
An independent, not-for-profit organization that accredits and certifies more than 15,000 health care organizations and programs in the United States. Its mission is to continuously improve the safety and quality of care provided to the public through the provision of health care accreditation and related services that support performance improvement in health care organizations.
An organization that outsources its major functions to decrease its costs and increase its flexibility, often operating via electronic means such as through the Internet.
Assets that can be applied to the daily operations of a business; current assets minus current liabilities.
Performance measures that are most effective for comparing organizations and focusing improvement because of the high likelihood that a good score on these measures is highly correlated with improved outcomes.
Accountable care organization (ACO)
A type of payment and delivery reform model that seeks to tie provider reimbursements to quality metrics and reductions in the total cost of care for an assigned population of patients. A group of coordinated health care providers form an ACO, which then provides care to a group of patients.
(1) The process of measuring another organization's product or service according to specified standards to compare it with and improve one's own product or service; (2) the practice of comparing and analyzing company financial performance or position with established standards or the performance of other similar companies.
Centers for Medicare & Medicaid Services (CMS)
A federal agency within the U.S. Department of Health and Human Services (DHHS) that administers the Medicare program and works in partnership with state governments to administer Medicaid, the State Children's Health Insurance Program (SCHIP), and Health Insurance Portability and Accountability Act (HIPAA) standards.
A tool used to record data in a way that facilitates analysis. Each criterion or step is itemized, and a check or hatch mark is placed on each line (or in a Yes/No/NA column) as applicable.
A type of run chart consisting of a line graph displaying observed performance data in a time sequence. It is used to determine whether a process is in a state of statistical control, and visually displays upper and lower control limits.
A cause-and-effect diagram visually displaying in a fishbone shape the many potential causes for a specific problem or effect; also called an "Ishikawa diagram."
An organized process of documenting the difference (gap) between best practices and current processes, along with an action plan for closing each identified gap to ensure compliance or optimal performance.
Healthcare Effectiveness Data and Information Set (HEDIS)
A tool available from the National Quality Measures Clearinghouse to measure performance in aspects of health care and service; used by the vast majority of health plans in the United States.
A business or group that performs well across all the domains of quality, safety, and customer/employee satisfaction, and engages all team members and stakeholders in the process of continuous improvement
Graphical display of tabulated frequencies within categories that are shown as bars.
Medication use evaluation (MUE)
A performance improvement method that focuses on evaluating and improving medication use processes with the goal of optimal patient outcomes.
National Quality Measures Clearinghouse
A database and website for information on specific evidence-based health care quality measures and measure sets. Its mission is to provide an accessible mechanism for obtaining detailed information on quality measures, and it promotes widespread access to these quality measures.
A bar chart in which the values being plotted are arranged in descending order and a line graph shows the cumulative totals of each category. It is developed to clearly illustrate the top 80%.
Plan-do-study-act (PDSA) cycle
A continuous quality improvement model that provides a framework for improving a process or system. It can be used to guide the entire improvement project, or to develop specific projects once target improvement areas have been identified. It consists of four major parts: (1) plan-identify an opportunity for improvement and plan a change; (2) do-implement the change on a small scale; (3) study-collect data on the change and compare to the baseline; study the effect of these changes on the pilot and show the effects of multiple changes on a process over time; and (4) act-if the change was successful, implement it on a wider scale and continuously assess results; if the change does not work or meet goal, begin the cycle again.
Processes implemented to ensure products or services are designed that meet or exceed requirements.
A reporting tool that visually displays key quality indicators (process and/or outcome measures) and tracks performance over time.
Rapid cycle improvement
Use of the plan-do-study-act (PDSA) cycle in a streamlined approach, where changes are piloted on a small scale and incremental adjustments are made quickly based on collecting just enough data to assess the impact of the change and guide the next step.
A systematic evaluation and problem-solving method with the goal of identifying the root causes (or initiating causes) of problems. By directing corrective action against the root causes, it is anticipated that the probability of problem recurrence will be reduced.
A line graph that displays observed performance data in a time sequence.
A graph of plotted points that shows the relationship between two sets of data.
An unexpected occurrence involving death or serious physical or psychological injury, or the risk of death or serious injury; it is considered "sentinel" because even a single occurrence signals the need for immediate investigation and response.
A defense that is raised after admitting the allegations in the complaint are true. Notwithstanding the truth of the allegations, the defendant may raise as a defense new information that would absolve it of liability.
Americans with Disabilities Act Amendments Act
An amendment to the Americans with Disabilities Act of 1990 that provides greater protections to people with disabilities.
An employment relationship in which either party in the relationship may terminate it without liability. The employer is free to terminate the individual's employment "for good cause or no cause at all"; however, it may not terminate an employee if doing so violates public policy or law. Similarly, the employee may terminate the relationship without liability and without notice.
As distinguished from enactments of legislatures, common law evolves through decisions of courts, applying statutory and other principles of law.
Paid time off from a job that is offered in lieu of cash for overtime.
Something of value offered in exchange for an action or commitment of another person or party.
The level of care that an employer takes to ensure a prospective employee meets the minimum qualifications, including that the employee possesses the appropriate level of character and professionalism to perform the job.
A concept of fairness, which usually requires providing notice of a proposed action and giving an employee an opportunity to be heard before taking such action, in accordance with procedures outlined in an employee manual or expressly provided for by statute, the U.S. Constitution, regulation, or rule.
The tasks and responsibilities that are fundamental to doing a particular job.
Employees who, because of the type of duties performed, level of decision-making authority, or method of compensation, are not required to be paid overtime pay.
Fair Labor Standards Act
U.S. law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments.
Hostile work environment
Discriminatory conduct or behavior in a workplace that is unwelcome and offensive to an employee or group of employees based on a protected class status, including race, religion, sex, national origin, age, disability, veteran status, and, in some jurisdictions, sexual orientation, gender identity, political affiliation, marital status, or other protected class.
Legally acceptable or sufficient reason upon which to take employment action, such as dismissal, suspension without pay, or other disciplinary action based on an employee's conduct.
A specific amount of money or form of recovery that is set forth in an agreement, which will apply in the event of a breach of the agreement. These damages are determined in advance when the amount of actual damages would be uncertain at the time of the agreement and difficult to quantify.
A written term in an employment agreement that requires a former employee to do or to refrain from doing certain things (e.g., opening up a competing business after termination of employment with the present employer for a specific period of time within a specific geographic area). Such clauses are more typical in industries with limited clientele or specialized knowledge, where competition is fierce and customer goodwill can be usurped. Also known as a "restrictive covenant."
Employees who, because of the type of duties performed, level of decision-making authority, or method of compensation, are subject to all Fair Labor Standards Act provisions that require overtime pay when required to work more than 40 hours during a workweek.
The recipient of an offer.
The maker of an offer.
A party who initiates a lawsuit in court alleging that he, she, or it has been aggrieved by the actions of another (the defendant).
Quid pro quo sexual harassment
A situation in which "submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual." According to the Equal Employment Opportunity Commission, this occurs when a job benefit is directly tied to an employee submitting to unwanted sexual advances-when submission to the conduct is made either explicitly or implicitly a term of an individual's employment. Such harassment can occur only when the individual seeking the sexual favor is in a position of authority over the other individual. See 29 CFR § 1604.11(a)(2).
A written term in an employment agreement that requires a former employee to do or to refrain from doing certain things (e.g., opening up a competing business after termination of employment with the present employer for a specific period of time within a specific geographic area). Such clauses are more typical in industries with limited clientele or specialized knowledge, where competition is fierce and customer goodwill can be usurped. Also known as a "noncompete agreement."
A form of employment discrimination that violates Title VII of the Civil Rights Act of 1964. The Equal Employment Opportunity Commission describes it as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment. Such harassment may take the form of either "quid pro quo" or hostile environment harassment.
Statute of frauds
A statutory provision stating that certain types of contracts must be evidenced by a writing to be valid (e.g., a contract that cannot be completed within one year, a contract for the transfer of land, contracts for the sale of goods over a certain dollar amount, contracts in which an individual acts as a guarantor of the debts of another). These statutes differ from one state to another.
A civil wrong, other than a breach of contract, which requires a duty, a breach of that duty, and damages resulting from the breach, for which a court may provide a remedy in the form of damages.
Base pay program
Regular and expected wages and salary provided to an employee.
A statement that describes the principles that drive compensation allocation decisions.
Compressed work week
A schedule that allows employees to shorten their workweek by one or more days by working longer days for a shorter period of time-for example, 40 hours in 4 days (4/40) or 80 hours in 9 days (9/80).
Cost of living allowance
An increase in salary or wages that is typically tied to changes in the consumer price index.
An employee's willingness to do more work than is required.
The extent to which an employee feels a psychological commitment to a job, manager, workgroup, or organization.
The extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment.
Employee turnover rate
The percentage of employees who leave an organization each year divided by the total number of employees.
Objective feedback related to one's leadership style and communication provided by an individual outside the organization.
A personal conception of oneself as male or female.
Intent to stay
The degree to which an employee plans to remain with an organization.
A situation in which two people share one job, typically working different days or hours of the week.
Professional guidance offered by a more senior person to a less experienced individual; considered a leading method though which adults acquire new knowledge and/or skills.
Additions to pay based on performance.
An agreement that allows an employee to gradually reduce his or her percentage of effort, thereby transitioning into retirement.
The extent to which an employee believes that staying with an organization is in his or her best interest.
A one-time incentive such as cash, a car, or travel designed to encourage an employee to remain with an employer.
The productive potential resulting from strong relationships (including networking), goodwill, trust, and cooperation.
Challenging assignments that provide opportunities to learn new things.
A work arrangement in which an employee works from home and stays connected to colleagues through various forms of technology.
Variable pay programs
Compensation tied to the accomplishment of goals or organizational performance that is not added to base pay.
A practice by which one or more candidates is flown in and interviewed at or near an airport to expedite the interview process. Candidates often fly in and out on the same day. This approach reduces the need to pay for hotel stays and to manage other logistics of longer visits.
Behavioral interview questions
Questions that ask candidates to describe how they behaved in a past situation, on the assumption that past behavior is the best predictor of future performance.
Case study question
An interview question designed to understand how a candidate solves problems or makes decisions.
A knowledge, skill, or attitude that enables a person to effectively perform the activities of a given occupation or function to the standards expected in employment.
Criminal background check
A preemployment screening approach in which a job candidate grants permission to the hiring organization to verify the accuracy of information provided on a résumé and/or job application. Information that may be a part of this screening includes state and federal records, criminal records, education, Social Security number validity, driver's license history, civil court records, past employment, references, professional license/registration in all states, and credit reports.
A process by which participants are chosen from across the organizational and at various levels to evaluate candidates for employment.
The skills and knowledge that have to be acquired to operate equipment, technology, and processes for an organization.
A third-party recruiter who often is retained when normal recruitment efforts have not proved successful.
Advertising designed to highlight the employer as a great place to work in hopes that candidates will be predisposed to apply for openings at that employer in the future.
Informational interview questions
Fact-based questions used to gather or clarify pertinent information necessary to evaluate candidates for employment.
A document that lists a position's duties, responsibilities, and requirements.
Hiring of an employee with a criminal, violent, or marred history who harms someone, with it subsequently being found that the injury to others could have been prevented if the organization had uncovered the negative information in an appropriate reference and background check
A program that helps a newly hired employee become familiar with the new position and the organization.
Fringe benefits such as health insurance, vacation time, relocation packages, professional education dollars, 401(k) plans, bonus plans, and other factors that entice employees to join and stay with an organization; also known as "perks."
Detailed information about a particular position opening and the organization in which it exists.
Categories that are defined by federal, state, or local law, including gender, race, ethnicity, religion, national origin, disability, marital or veteran status, sexual orientation, political affiliation, and genetic predisposition. It is illegal to discriminate against individuals based on their membership in these classes.
A modification of a job to allow an otherwise qualified person to perform the job.
The active process that seeks to cultivate applicants from the universe of possibly qualified applicants, whether or not they are actively on the market for an opportunity at a particular point in time.
Situational interview questions
Questions that ask the candidate how he or she might respond to a hypothetical scenario.
Practical skills or knowledge that relate to competencies associated with a position.
The identification and uncovering of potential candidates through proactive or reactive advertising and recruiting techniques.
A ratio that details the relative success of a particular sourcing activity as compared to other activities. It contains a number of components, including the cost to advertise to or recruit applicants, the number of applicants generated by the source, and a comparison of the percentage of interviews and job offers accepted by source.
Amounts owed for inventory, goods, or services acquired in the normal course of business.
Amounts due from customers for credit sales
Securities Exchange Commission
An agency created in 1934 that monitors the stock market and enforces laws regulating the sale of stocks and bonds
A business or person to whom money is owed
A person who owes money
Events that occur within an organization (morale, management changes)
Events that take place outside of the organization and are harder to predict and control (economy changes, competition, government)
A partnership in which two or more companies (often from different countries) join to undertake a major project.
(Generally Accepted Accounting Principles) Common set of standards that the accounting profession has developed and generally accepted and universally practiced.
International Financial Reporting Standards. International accounting standards promulgated by the International Accounting Standards Board.
Reveals how many units of a good or service a business needs to sell before it begins earning a profit
A legal principle of fair dealing, which may provide preventive measures and legal remedies that are unavailable under existing common law and statutory law.
Anything of value that is owned
A tax paid on expensive goods and services considered by the government to be nonessential.
A business in which two or more persons combine their assets and skills
A business owned by stockholders who share in its profits but are not personally responsible for its debts
Bank worker who handles bank deposits and withdrawals, interacts with customers, sell traveler's checks and foreign currency, accept loan payments, prepare certified checks or money orders, and may handle other duties
Annual Tax Return
Yearly tax returns that is sent in at the end of the year and return on January
Availability of resources to meet short-term cash requirements.
Contains an itemized list of the materials sent or the services provided to the customer, along with the cost of the items plus discounts, taxes, shipping and other charges if applicable
Consumer Price Index
An index of the cost of all goods and services to a typical consumer
Comparative Balance Sheet
Side-by-side reporting of consecutive fiscal period balance sheets
Product's ability to satisfy functional needs and psychological wants
Brief letter written in business form to thank the interviewer for the interview.
Comparative Reasoning Process
Type of reasoning that pulls together two examples and assumes that what is true in the first case must be true in the second case
A person who links buyers and sellers of stock
Fiscal services professional who compares what is happening presently or previously (variance analyses) with what was anticipated and what is still anticipated to happen (the budget)
Accounting information and analyses prepared for people outside the organization.
Trading in raw materials and agricultural products used to produce other goods
The total amount earned by all employees for a pay period
An agent of an insurance company who solicits or initiates contracts for insurance coverage and services, and is the policyholder for the insurer is called
A professional who provides financial planning and advice on financial matters.
Electronic Data Interchange
The mutual exchange of data between provider and payer
CARD Act of 2009
You have to be notified 45 days in advance about rate changes, limited credit to young adults.
The application of knowledge, skills, tools, and techniques to project activities to meet project requirements
A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.
Corporation's basic ownership share; also generically called capital stock.
A certificate of deposit stating money has been deposited for a specific time
Short-term government securities issued at a discount from face value and returning the face amount at maturity
Buildings, machines, technology, and tools needed to produce goods and services.
The dollar amount of the wage paid
Paid to workers measured in terms of purchasing power; for any given period is calculated by dividing nominal wage by CPI for that period
Addition of regular and overtime wages and Employee Meal Benefit.
Movement of the money you receive and the money you spend.
Any borrowed or loaned capital invested in the business that must be repaid to creditors
A bond that a corporation issues to raise money to expand its business
An arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.
A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.
An arrangement to receive cash, goods, or services now and pay for them in the future.
The government's removal or loosening of restrictions on something (typically a political or an economic system)
Newly industrialized countries plus those with the potential to become newly industrialized
Discount Brokerage Firm
A brokerage firm that executes your desired transactions but does not offer investment advice
Full-Service Brokerage Firm
A firm that offers a complete range of services from research data to investment advice
A report prepared by corporate management that presents financial information including financial statements, notes, a management discussion and analysis section, and an independent auditor's report.
The abbreviated term that is used to identify a stock for trading purposes
A system in which revenue and expenses are counted as they are actually received.
Interest, rents, dividends on stock paid in cash, 10% of any amounts received as mineral or annuity royalty. Expenses: ordinary expenses in production of income charged against income (repairs/taxes/interest). Trustee can adjust b/w income and corpus and evade corpus to comply with duty of impartiality
A plan for making and spending money
When using depreciation tables for real property it is important to stay in the month column corresponding with the month the property was originally placed in service. Thus, to calculate depreciation for a piece of real property placed in service in May (the fifth month), businesses will ALWAYS (for each year of depreciation) find the current year rate factor in the fifth column for that asset. This is true even if the asset is sold in a subsequent year in July.
A method of extracting previously unknown relationships among individual data points in a database.
An analysis model that provides a graphical alternative to decision tables by illustrating conditions and actions in sequence.
identifies patterns from if./ then statements. Statistical significance tests are used on the data
A mathematical method of handling imprecise or subjective information
Data mining used to predict values and make classifications, such as good or bad.
Reviewing and testing to be certain that proper accounting policies and practices have been followed.
The process of preparing a batch report of credit card sales from a point-of-sale terminal
An amount owed by a business
A business owned by one person
A tax on the estate, or total value of the money and property, of a person who has died
a relatively high tax designed to raise revenue and reduce consumption of a socially undesirable product such as liquor or tobacco
Payment for use of certain public services. Example: toll road.
A tax on the production or sale of a good.
A tax levied on the value of physical assets - either real or personal properties.
Tax on gifts above $11,000 to any one person given in any one year
This is a tax one would pay on their parents or grandparents' money after they die
Capital Gains Tax
A tax levied on the returns that people earn from capital investments, like the profits from the sale of stocks or a home
A tax on people's earnings
Combined to improve efficiency
A loan to purchase a home or other real estate, , A conditional transfer or pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien.
Are the markets for loans, mortgages, and bonds
The coming together of two or more distinct entities or phenomena
A financial statement showing the revenue and expenses for a fiscal period.
Actions or processes that involve the entire world and result in making something worldwide in scope
A financial statement showing the revenue and expenses for a fiscal period.
A bank account from which payments can be ordered by a depositor
A safe, low-return investment available from banks. There is generally no minimum deposit for this type of account, making it perfect for kids and teens just starting out.
Money Market Account
A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
A federal law that someone who leaves employment may be eligible to keep insurance coverage at his/her own expense up to six months.
Financial Information Management
Computerized Accounting System; A financial management system is the methodology and software that an organization uses to oversee and govern its income, expenses, and assets with the objectives of maximizing profits and ensuring sustainability.
Procedure that determines the costs of each service
Analysis of financial statements that compares account values reported on these statements over two or more years to identify changes and trends
A type of accounting that focuses on recording, defining, and reporting costs associated with specific operating functions
A network designed for the exclusive use of computer users within an organization that cannot be accessed by users outside the organization
A form describing the goods or services sold, the quantity, and the price
Certified Financial Planner
Professional who has attained a high degree of technical competency in financial planning and has passed a series of professional examinations.
Chartered Financial Consultant
An individual who has attained a high degree of technical competency in the fields of financial planning, investments, and life and health insurance and has passed eight professional examinations administered by The American College.
Accepting that some risks simply arise in the course of one's life and consciously retaining that risk
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.
Process of determining a time specific financial plan for an individual, business, or other organization to achieve a monetary goal
Money invested in a business to generate income. Wealth in the form of an asset which can be an indication of strength of an individual, business, or country
Amount spent to acquire/upgrade an asset that will increase the efficiency of the production/operations of a business for the long term
A market for demand and supply of debt and equity capital. Decentralized and made up of three parts:
Any activity provided by a vendor on behalf of a client.
customer service, financial management, information technology, social media support, database management etc.
-agreed on by both parties, written in contract
Open and organized marketplace where ownership titles, or standard units of commodities are traded by its members.
Verification that a vendor meets the requirements of accepted practices, regulations, legislation, rules, standards, and or the terms of a contract.
Cost of Goods Sold
-Line in income statement
-shows cost of raw materials/labor to produce finished product/service available to consumer.
Process used to determine cost of production/operation of a business by assigning expenses to various stages of production or operations of a firm.
Customer Relationship Management
Database of customer contacts, purchase history and technical support .
profiles of potential clients, understanding/leveraging customer's needs, enhanced customer service based on data.
Information in an unorganized form that have a relationship with current ideas/conditions/knowledge
Systematic organization of info that allows easy updating and analysis of data
Economies of Scale
internal/external reduction in long term costs when production/operation increases in size.
Possibility of loss/damage/injury outside of a business or other organization.
process of managing money for individual, business, or organization.
worldwide development of economic, financial, trade and communication integration. This pushes business executives to consider broad views in the global market place as countries and their economies become interconnected and interdependent.
monetary objectives of an individual, business, or other organization that are decided by future needs of those entities.
Financial Information Management
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
Organizations that are public or private whom act as a channel between savers and borrowers of funds.
1) Depository: banks or credit unions
2) Non-depository: insurance companies or mutual funds.
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.
Ex: S&P 500, NYSE, and CME (Chicago Mercantile Exchange)
Status of assets, liabilities, and owners equity of an individual business or other organization as shown in its financial statements.
Ratios that provide comparison between financial statement items to determine strength/weakness of company.
-net sales:net worth
-net income:net sales
Financial documentation of an individual, business, or other organization.
Cash Flow Statement
Income received before expences
Possibility of loss, damage, injury within business or other organization.
Used to maintain optimum number of items. With this, business can operate production of a good/ service at a lower cost.
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 this one is considered safe because of its short term nature
bonds, debentures, notes, options, and shares
Securities and Exchange Commision
-Government agency created in 1934
-Sets standards for financial information about businesses that are traded on a stock exchange
-has 5 commissions
-appointed by president, confirmed by senate
-5 year term
Information provided regarding an investment instrument issued by a corporation, government, other organization.
Tax: fee charged by gov. on product
Internal Revenue Code: series of laws revised multiple times.
Each State has their own department as well as local municipalities.
An agreement or contract that occurs between two or more parties and establishes a legal obligation. Exchange of goods/services between buyer and seller.
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