Financial PositionThe status of the assets, liabilities and owners' equity of an individual, business or other organization as shown in its financial statements.Money MarketA 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 is considered a safe place to invest due to its short term nature.External RiskThe possibility of loss, damage or injury outside of a business or other organization.ConsolidationCombining assets, equity, liabilities and operating accounts of a business and its subsidiaries into one financial statement OR combining two or more businesses through the purchase, merger or ownership transfer to create a new business.Voluntary ComplianceThe assumption that taxpayers will stay in compliance with tax laws and accurately report their income amounts and tax deductions fairly and honestly.CreditorThe entity that provides available capital resources to debtors, in exchange for compensation.Risk ManagementThe process of controlling an individual, business or other organizations opportunity for damage, loss or injury to ensure the safety of the community, environment and legal responsibilities.Inventory SystemA system that 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.ComplianceVerification that a vendor meets the requirements of accepted practices, regulations, legislation, rules, standards and/or the terms of a contract.Sales TaxCharged to customers as a percentage of the price of the item being purchased.Financial InstitutionsOrganizations that are public or private whom act as a channel between savers and borrowers of funds.Financial RecordsThe financial documentation for an individual, business or other organization. The most common records are a Cash Flow Statement, Income Statement, Balance Sheet and Tax Returns.Income TaxCalculated as a percentage of the taxable income workers earn while on the job.DataInformation in an unorganized form (alphabets, numbers or symbols) that have a relationship with current conditions, ideas or knowledge.Customer Relationship Management (CRM)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.BudgetingThe process of determining a time specific financial plan for an individual, business or other organization to achieve a monetary goal.Securities and Exchange Commission (SEC)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.Internal RiskThe possibility of loss, damage or injury within a business or other organization.CustomerAn individual, business or other organization that receives products or services for their own use.PriceThe value, in terms of money, placed on a good or service.InvestAny activity where money is put at risk in the short term for the purpose of creating a profit in the long term.Economies of ScaleAn internal or external reduction in long term costs when production or operation increases in size.Client ServicesAny activity provided by a vendor on behalf of a client. Depending on the business this can include customer service, financial management, information technology, social media support, database management, etc.Financial ResourcesFunds available to a business or person for spending in the form of cash, credit or securities.Financial MarketsA 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.Commodities ExchangeAn open and organized marketplace where ownership titles or standard units of commodities are traded by its members.Capital MarketA 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 ExpendituresThe 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.Gross RevenueAmount of money that the purchasers of a company's products or services actually pay for those items.Financial GoalMonetary objectives of an individual, business or other organization that are decided by future needs of those entities.TaxPayment made to the government for services they provide.Social Security (FICA)A tax paid by workers so that they may receive benefits upon retirement.Bank StatementA document showing activity on your account over the previous month, including a beginning and ending balance and all inflows and outflows during that time.CreditA way to receive cash or goods, while paying later.Periodic Inventory SystemAn inventory method in which items are counted only occasionally, by visual inspection - and can be completed manually, or through the use of technology, such as barcode scanners.DatabaseThe systematic organization of information that allows easy updating and analysis of data.Financial RatioProvide 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.Cost of Goods SoldThis 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.ClientA customer of a professional service provider or the primary contractor.TransactionAn agreement or contract that occurs between two or more parties and establishes a legal obligation. This can also be defined as an exchange of goods or services between a buyer and seller.Compliance ProgramThe systematic process of a business or other organization to ensure that regulations imposed by a government agency are being met.CapitalThe most common definition is money invested in a business to generate income. 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.Inventory ManagementThe process of buying and storing materials and products while controlling costs.Exchange RateThe value of one currency in terms of another, established on the foreign exchange market.ConvergenceThe joining of two or more unique factors or phenomena, such as technologies.Just-In-Time InventoryAn inventory management method that coordinates the demand and supply for goods, delivering them just before they are needed.SecuritiesAn investment tool such as bonds, debentures, notes, options, and shares.Risk RetentionA strategy in which an entity sets aside a sum as a protection against a probable loss, instead of transferring the risk by purchasing an insurance policy.Data MiningReviewing very large amounts of data for useful information. Often uses advanced statistical tools to determine trends, patterns and relationships. Can also be referred to as data surfing.Business LawLaws that govern businesses and transactions between businesses.FinanceThe process of managing money for an individual, business or other organization.Differential CostThe difference in cost between two or more business decisions.Securities InformationInformation provided regarding an investment instrument issued by a corporation, government or other organization that demonstrates whether it is debt or equity.Internal AuditAn examination of an organization's financial statements that is conducted by an employee of the organization.Accounting SystemThe (often) computerized system of collecting, processing, analyzing and presenting accurate financial data to support management decisions.Customer RelationsThe way a business interacts with its customers in order to obtain new customers while maintaining the current customer base.Compliance OfficerAn employee of a business or other organization whose task is to ensure that regulations imposed by a government agency are being met as well as internal policies and procedures.Financial AnalysisEvaluating an organization's financial statements to determine the profitability of the organization, a division within the organization or a specific event or project.Sunk CostA cost that a business has incurred, but cannot recover.Indirect CostsThose costs which cannot be directly linked to a good, service or project.RegressionA data-mining technique that takes a numerical dataset and develops a mathematical formula that fits the data.Sustainability ReportingReporting by an entity that outlines it's economic, environmental and social performance.Insurance MarketComposed of the companies involved in buying and selling insurance.Time Value of MoneyThe increase of an amount of money due to interest earned over time or dividends paid.Managerial AccountingAccounting that focuses on revenues and expenses of a business, reporting variances to management.EquityIncludes earnings that a company has retained and the amount of funds invested in that company by its owners.Property TaxThe main source of money for many local governments. Based on the value of property such as land and buildings.External AuditAn examination of an organization's financial statements by an independent accountant, not affiliated with the organization.SolvencyRefers to the ability of an organization to meet its financial obligations.Risk TransferA strategy in which an insurance risk is shifted to another party (the insurer) by means of an insurance policy.Activity Based CostingA method used by businesses to accurately allocate overhead costs to specific products.Cost AllocationRefers to the method in which indirect costs are assigned to a product.Direct CostThose costs which can be directly tied to a good, service or product.Information ManagementThe process of collecting and analyzing data that is used in the strategic decision making process for a business.ReportingUsed in finance to disclose an organization's financial standing.Marginal AnalysisA decision making tool that compares the cost of an activity versus the benefits of the activity.Professional DevelopmentProcess of improving capabilities of staff through access to education and training opportunities in the workplace, through outside organizations, or observing others perform the job.Professional RelationshipContacts made through business connections and interactions.Variance AnalysisRefers to the difference between a planned and actual budget.Corporate GovernanceRefers to the rules and practices that direct and control an organization.Six SigmaThe strategy involves creating groups of people within the business or organization who have expert status in various methods, and then each project is carried out according to a set of steps in an effort to reach specific financial milestones.Board of DirectorsA group of individuals elected by stakeholders of an organization to govern the organization.TransparencyFully and accurately disclosing of financial information to the public.ClassificationA data-mining technique that uses a decision tree that requires a series of decisions.Management FunctionsInclude planning, organizing, leading and controlling.InflationRefers to rising prices and is an indicator of the stability of an economy.InsuranceA contract between a business and the insurer that covers a specific business risk.Risk AvoidanceUsed when a business anticipates risk and refrains from certain business activities in order to avoid the risk.CurrencyMoney.
