GLOSSARY - ENTREPRENEURIAL BUSINESS DICTIONARY
WHO NEEDS TO WORRY ABOUT BUSINESS FINANCE? Everybody! Whether you're a small startup or a big corporation, managing your business finance is crucial for success. It's not just for the finance department; every decision-maker needs to understand the financial implications of their choices to keep the business healthy and thriving.
If you're just starting out in business, you might encounter some unfamiliar terms and phrases. Our glossary breaks down the meanings of common business terms, making it easier to communicate with your accountant down the line.
1. ACCOUNTING PERIOD: The timeframe for calculating profits, typically months or years.
Example: "Our accounting period
ends on December 31st."
2. ACCOUNTS: Annual financial reports detailing a company's performance.
Example: "We need to review the accounts
before the board meeting."
3. ACCOUNTS PAYABLE: Money owed by a company to external suppliers.
Example: "We need to settle our accounts payable by the
end of the month."
4. ACCOUNTS RECEIVABLE: Money owed to a company by its customers.
Example: "Our accounts receivable have increased this
quarter due to higher sales."
5. ACQUISITION: The purchase of one company or its assets by another.
Example: "The acquisition of that startup
boosted our market presence."
6. ACTUARY: A professional who assesses risk factors for insurance and pension companies.
Example: "The actuary predicted
lower accident rates for the upcoming year."
7. ADMINISTRATION: The management and running of a business.
Example: "The administration of the company is overseen
by the CEO."
8. AFFILIATE MARKETING: A strategy where a company advertises its products or services via third parties for a commission.
Example:
"Our affiliate marketing program has increased our online sales."
9. ANNUAL EQUIVALENT RATE (AER): A quote indicating the interest paid on savings and investments annually.
Example: "The bank offers
an AER of 3% on its savings account."
10. ANNUAL PERCENTAGE RATE (APR): The rate of interest on borrowed money annually.
Example: "The APR on my credit card is 18%.
11. ANNUITY: A financial product where an individual receives regular payments for a fixed period.
Example: "John
purchased an annuity to receive monthly payments during retirement."
12. ARBITRAGE: Exploiting price differences of the same asset in different markets for profit.
Example: "Traders
engage in arbitrage by buying a stock in one market where it's undervalued and
selling it in another where it's overvalued."
13. ASSETS: Resources owned by a company that have value.
Example: "The company's assets include cash, equipment, and
property."
14. AUDIT: Examination of financial records to ensure accuracy and compliance.
Example: "The company underwent an audit
to verify its financial statements."
15. B2B: Business-to-business; transactions between businesses.
Example: "The software company sells its products to
other businesses through B2B contracts."
16. B2C: Business-to-consumer; transactions between businesses and individual customers.
Example: "The online store
specializes in B2C sales of electronics."
17. BALANCE SHEET: Financial statement showing a company's assets, liabilities, and equity at a specific point in time.
Example:
"The balance sheet indicates the company's financial health by detailing
its assets and liabilities."
18. BASE RATE: The benchmark interest rate set by central banks, influencing borrowing costs.
Example: "The central
bank lowered the base rate to stimulate economic growth."
19. BENCHMARKING: Comparing performance metrics with industry standards or competitors.
Example: "The company uses
benchmarking to identify areas for improvement by comparing its sales figures
with industry averages."
20. BID-OFFER SPREAD: The difference between the buying and selling prices of a security.
Example: "The bid-offer spread
reflects the liquidity and trading volume of a stock."
21. BLACK SWAN: Unpredictable events with severe consequences.
Example: "The financial crisis of 2008 was considered
a black swan event."
22. BLUE CHIP: Well-established, financially stable companies with a history of reliable performance.
Example:
"Investors often seek blue-chip stocks for long-term investment due to
their stability."
23. BOND: A debt security where an investor lends money to an entity in exchange for interest payments over time and repayment of the principal at maturity.
Example: "The government issued bonds to
fund infrastructure projects."
24. BOOTSTRAPPING: Building a business without external funding, relying on personal resources or revenue generated by the business.
Example: "The startup was bootstrapped by its founders,
who used their savings to launch the company."
25. BREAK-EVEN POINT: The level of sales at which total revenue equals total costs, resulting in neither profit nor loss.
Example:
"The company's break-even point is 1,000 units sold per month."
26. BRIDGING LOAN: Short-term financing used to bridge a gap between the purchase of a new property and the sale of an existing one.
Example: "She obtained a bridging loan to buy her new house
before selling her current one."
27. BUSINESS ANGEL: Individual investors who provide capital and mentorship to startups in exchange for equity.
Example:
"The business angel invested in the tech startup and provided valuable
guidance to its founders."
28. BUSINESS CYCLE: Fluctuations in economic activity characterized by periods of expansion, peak, contraction, and trough.
Example:
"During the business cycle, consumer spending tends to increase in periods
of economic expansion."
29. CAPITAL: Financial assets or resources used to generate income or investment returns.
Example: "The company raised
capital through a venture capital firm to expand its operations."
30. CAPITAL EXPENDITURE (CAPEX): Spending on acquiring or upgrading physical assets, such as equipment or property, expected to benefit the business in the long term.
Example: "The company allocated funds
for capital expenditure to purchase new machinery."
31. CASH FLOW: The movement of money into or out of a business.
Example: "The company's positive cash flow allowed it to
invest in new projects."
32. COLLATERAL: Assets pledged as security for a loan.
Example: "The bank required the borrower to provide collateral, such
as property or stocks, to secure the loan."
33. COMMODITY: Raw material or primary agricultural product that can be bought and sold.
Example: "Oil and
gold are examples of commodities traded on the global market."
34. COPYRIGHT: Legal protection granted to the creator of original works, preventing others from copying or reproducing the work without permission.
Example: "The author obtained a copyright
for his book to protect it from unauthorized use."
35. CORPORATE SOCIAL RESPONSIBILITY: Business practices aimed at benefiting society and the environment.
Example: "The company's
corporate social responsibility initiatives include charitable donations and
environmental sustainability efforts."
36. CREDITOR: A person or entity to whom money is owed.
Example:
"The company's creditors include suppliers and lenders."
37. CRITICAL SUCCESS FACTOR: Key elements necessary for the success of a business or project.
Example: "Customer satisfaction
is a critical success factor for our new product launch."
38. DEBTOR: A person or entity that owes money to another party.
Example: "The company's debtors include customers who have
purchased goods on credit."
39. DEPRECIATION: The decrease in the value of an asset over time.
Example: "The company recorded depreciation
expenses for its machinery to account for wear and tear."
40. DIVERSIFICATION: Spreading investments across different assets to reduce risk.
Example: "Investors diversify
their portfolios by investing in stocks, bonds, and real estate."
41. DIVIDEND: A portion of a company's profits distributed to its shareholders.
Example: "The company announced a dividend of
$0.50 per share to be paid to its shareholders."
42. ECONOMIC GROWTH: An increase in the production of goods and services in an economy over time.
Example: "The country
experienced strong economic growth of 5% last year."
43. ECONOMIES OF SCALE: Cost advantages that result from increased production and efficiency.
Example: "The company achieved
economies of scale by expanding its operations and reducing per-unit production
costs."
44. ENTERPRISE VALUE: The total value of a company, including its market capitalization and debt.
Example: "The
enterprise value of the company was estimated at $1 billion."
45. EQUITY: Ownership interest in a company, represented by shares or stocks.
Example: "Investors purchased equity in the
startup in exchange for ownership stakes."
46. ETHICAL INVESTMENT: Investment in companies or projects that adhere to ethical and socially responsible principles.
Example:
"The fund focuses on ethical investment, avoiding industries such as
tobacco and weapons manufacturing."
47. ETHICAL TRADE: Trade practices that prioritize fair treatment of workers and sustainable sourcing of materials.
Example:
"The company is committed to ethical trade, ensuring fair wages and safe
working conditions for its employees."
48. EXIT STRATEGY: A plan outlining how an investor intends to sell or dispose of their investment.
Example: "The
venture capitalist had an exit strategy of selling their stake in the company
through an initial public offering (IPO)."
49. EXPORT: Sending goods or services produced in one country to another country for sale.
Example: "The country's
main exports include automobiles and electronics."
50. FAIRTRADE: A certification system that ensures producers in developing countries receive fair prices for their products.
Example: "The coffee beans sold in the café are certified
as fair trade, ensuring fair compensation for farmers."
51. FINANCIAL MANAGEMENT: The process of planning, organizing, directing, and controlling a firm's financial resources.
Example:
"The company's financial management team is responsible for budgeting,
investing, and risk management."
52. FISCAL YEAR: A 12-month period used for financial reporting and planning, not necessarily corresponding to the calendar year.
Example: "The company's fiscal year runs from April 1st to
March 31st."
53. FIXED COST: Expenses that remain constant regardless of the level of production or sales.
Example: "The rent
for the office space is a fixed cost for the company."
54. FTSE 100 INDEX: A stock market index that measures the performance of the 100 largest companies listed on the London Stock Exchange.
Example: "The FTSE 100 Index reached a new high last
week, reflecting strong performance in the British stock market."
55. FUTURES: Financial contracts that obligate the buyer to purchase or the seller to sell an asset at a predetermined price on a specified future date.
Example: "Investors use futures contracts to
hedge against future price movements in commodities like oil or agricultural
products."
56. GOLDEN HELLO: A financial incentive offered to attract a talented individual to a new job or position.
Example:
"The company offered a golden hello of $10,000 to the new executive
director."
57. GOLDEN SHARE: A special class of share with veto power over certain corporate decisions.
Example: "The government
holds a golden share in the company, allowing it to block any attempt of
foreign takeover."
58. GREY KNIGHT: A third party that intervenes in a takeover bid to provide an alternative to the target company.
Example:
"The grey knight's offer provided shareholders with an alternative to the
hostile takeover bid."
59. GROSS: The total amount before deductions or expenses.
Example: "The company's gross revenue for the year was $1
million."
60. GROSS DOMESTIC PRODUCT (GDP): The total value of goods and services produced within a country's borders in a specific time period.
Example:
"The GDP of the country increased by 3% last quarter."
61. GROSS NATIONAL PRODUCT (GNP): The total value of goods and services produced by a country's residents, including income from abroad.
Example:
"The GNP of the country increased by 5% last year."
62. HALF YEAR: A period of six months.
Example:
"The company reported its financial results for the first half year of
2023."
63. HEDGE FUNDS: Investment funds that use various strategies to generate returns, often with higher risk and aimed at sophisticated investors.
Example: "Hedge funds typically pursue
strategies like long-short equity, global macro, or event-driven
investing."
64. HORIZONTAL MERGER: A merger between companies that operate in the same industry and produce similar goods or services.
Example:
"The horizontal merger between two telecommunications companies aimed to
increase market share and reduce competition."
65. HOSTILE TAKEOVER: Acquisition of a company by another against the wishes of its management or board of directors.
Example:
"The hostile takeover bid was rejected by the target company's
board."
66. HYPERINFLATION: Extremely rapid and out-of-control inflation, typically exceeding 50% per month.
Example: "During the
hyperinflation period, prices in the country soared, causing severe economic
instability."
67. IMPORT: Goods or services bought from abroad for use in the home country.
Example: "The company imported machinery from
China to enhance its production capacity."
68. INCOME STATEMENT: A financial statement that summarizes a company's revenues, expenses, and profits over a specified period.
Example: "The income statement showed a net profit of $500,000 for
the quarter."
69. INDUSTRIAL OUTPUT: The total amount of goods produced by industries within a country.
Example: "The industrial output of
the country declined due to a slowdown in manufacturing."
70. INFLATION: The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
Example: "High inflation erodes the value of
savings and reduces consumers' purchasing power."
71. INSIDER TRADING: Buying or selling stocks based on non-public, material information about a company.
Example: "The
executive was charged with insider trading for selling shares before the
negative earnings report was made public."
72. INSOLVENCY: When a person or organization cannot pay off their debts as they become due.
Example: "The
company filed for bankruptcy due to insolvency caused by declining sales."
73. INSTITUTIONAL INVESTOR: Large entities, such as mutual funds or pension funds, that invest significant sums of money in securities.
Example:
"The institutional investor purchased a large stake in the company,
influencing its stock price."
74. INTELLECTUAL PROPERTY: Legal rights that arise from intellectual creations, such as patents, copyrights, and trademarks.
Example:
"The company protected its intellectual property by obtaining patents for
its innovative products."
75. INTERIM PROFIT STATEMENT: A financial statement that shows a company's profits during a specific period, often shorter than a full fiscal year.
Example: "The interim profit statement revealed
higher-than-expected earnings for the first quarter."
76. INVESTMENT TRUST: A type of collective investment fund that pools money from multiple investors to invest in securities.
Example:
"The investment trust diversified its portfolio by investing in various
stocks and bonds."
77. INVOICE FACTORING: A financing arrangement where a company sells its accounts receivable to a third party at a discount.
Example:
"The company improved its cash flow by engaging in invoice factoring to
receive immediate funds."
78. KEY PERFORMANCE INDICATOR (KPI): A measurable value that demonstrates how effectively a company is achieving its key business objectives.
Example: "Customer satisfaction is a key performance
indicator for evaluating the success of our marketing campaigns."
79. LEVERAGED BUYOUT (LBO): Acquisition of a company using a significant amount of borrowed money to meet the cost of acquisition.
Example:
"The private equity firm conducted a leveraged buyout of the struggling
company, restructuring its operations to improve profitability."
80. LIBOR RATE: The London Interbank Offered Rate, which is the benchmark interest rate at which banks lend to each other in the international interbank market.
Example: "The interest rate on the
loan is determined based on the LIBOR rate plus a margin."
81. LIQUID ASSET: An asset that can be quickly converted into cash without significant loss of value.
Example:
"Stocks and government bonds are examples of liquid assets because they
can be easily sold for cash."
82. LIQUIDITY: The ease with which assets can be converted into cash without affecting their market price.
Example:
"The company maintained high liquidity by holding cash reserves and
short-term investments."
83. MACROECONOMICS: The branch of economics that studies the behavior and performance of an economy as a whole.
Example:
"Macroeconomics analyzes factors such as inflation, unemployment, and
economic growth."
84. MANAGED FUND: A type of investment fund where professional fund managers make investment decisions on behalf of investors.
Example:
"The managed fund achieved consistent returns by investing in a
diversified portfolio of stocks and bonds."
85. MARGIN: The difference between the cost of producing a product or service and its selling price.
Example: "The company
increased its profit margin by reducing production costs while maintaining
product quality."
86. MARKET SEGMENTATION: The process of dividing a market into distinct groups of buyers with similar needs, characteristics, or behaviors.
Example: "The company used market segmentation to target
specific customer groups with tailored marketing strategies."
87. MARKET SHARE: The percentage of total sales in a market that is captured by a company or product.
Example: "The
company gained market share by offering competitive prices and superior product
quality."
88. MARKETING MIX: The combination of elements that a company uses to promote and sell its products or services, including product, price, place, and promotion.
Example: "The marketing mix strategy
included launching the product in new markets and increasing advertising
spending."
89. MERGER: The combination of two or more companies into a single entity.
Example: "The merger between the two
telecommunications companies created a stronger competitor in the
industry."
90. MICROECONOMICS: The branch of economics that studies the behavior of individuals, households, and firms in making decisions regarding the allocation of resources.
Example: "Microeconomics
examines factors such as supply and demand, pricing decisions, and consumer
behavior."
91. NATIONAL INSURANCE: A compulsory contribution paid by workers and employers toward state benefits and services, particularly in the UK.
Example: "Employees and employers make National Insurance
contributions to fund healthcare and pension programs."
92. NEGATIVE EQUITY: When the value of an asset falls below the outstanding balance of the loan secured by that asset.
Example:
"During the housing market crash, many homeowners found themselves in
negative equity, owing more on their mortgages than their homes were
worth."
93. NET: The amount remaining after all deductions have been made from a total sum.
Example: "After subtracting
expenses from revenue, the company reported a net profit of $100,000."
94. NET ASSET VALUE: The value of a company's assets minus its liabilities, often used to determine the value of investment funds.
Example:
"The net asset value of the mutual fund is calculated by dividing the
total value of its assets by the number of shares outstanding."
95. NIESR: Abbreviation for the National Institute of
Economic and Social Research, a prominent economic research institute based in
the United Kingdom.
96. Nominal Interest Rate: The interest rate before adjusting for inflation.
Example: "Even though the bank offered a high
nominal interest rate, inflation eroded the real value of the returns."
97. NOMINAL VALUES: Values that are not adjusted for
inflation or other factors.
Example: "The nominal value of the investment was
$1,000, but inflation reduced its purchasing power over time."
98. NON-EXECUTIVE DIRECTOR: A member of a company's board of directors who is not involved in the day-to-day management of the company.
Example:
"The non-executive director provided independent oversight and guidance to
the company's management team."
99. OFFSHORE ACCOUNT: A bank account located outside the depositor's country of residence, often used for tax optimization or asset protection.
Example: "High-net-worth individuals may hold offshore
accounts in jurisdictions with favorable tax laws."
100. OLIGOPOLY: A market structure characterized by a small number of large firms dominating the market.
Example: "The smartphone industry is an oligopoly, with
Apple and Samsung controlling a significant portion of the market."
101.
OPERATING EXPENDITURE (OPEX): The ongoing costs incurred by a business in
its normal operating activities, excluding costs related to goods sold.
Example: "Rent, utilities, and salaries are all
examples of operating expenditure."
102. OPERATING PROFIT/LOSS: The profit or loss generated from a company's normal business operations, calculated by subtracting operating expenses from operating revenue.
Example: "The company reported an operating profit of
$500,000 after deducting all operating expenses."
103. ORDINARY SHARE: Also known as common stock, it represents equity ownership in a corporation and usually carries voting rights.
Example: "Ordinary shareholders are
entitled to receive dividends and vote on company matters at shareholder
meetings."
104. OVERHEADS: The ongoing expenses of operating a business that are not directly attributable to creating a product or service.
Example: "Rent, utilities, and
administrative salaries are considered overhead costs."
105. PATENT: A legal right granted by the government to an inventor, giving them exclusive rights to their invention for a specified period.
Example: "The
pharmaceutical company filed a patent for its new drug to prevent competitors
from producing the same product."
106. PAYE: An acronym for Pay As You Earn, which is a system used by governments to collect income tax from employees' salaries as they are earned.
Example:
"The employer deducts income tax from employees' salaries and pays it
directly to the tax authority through the PAYE system."
107. PHILANTHROPY: The act of donating money, goods, or services to charitable causes or for the public good.
Example: "The billionaire's philanthropy funded the
construction of several schools and hospitals in underprivileged
communities."
108. PRESENT VALUE: The current value of a future sum of money, discounted at a specific rate to reflect its time value.
Example: "A lottery prize of $1,000,000
payable in ten years may have a present value of significantly less when
discounted for inflation and interest rates."
109. PRIVATE LIMITED COMPANY: A type of company where ownership is held by shareholders, but shares cannot be publicly traded.
Example: "Many family businesses
are structured as private limited companies."
110. PRIVATISATION: The process of transferring ownership of a business, enterprise, or service from the public sector (government) to the private sector (individuals or private companies).
Example: "The government initiated the
privatization of the national railway network by selling off its shares to
private investors."
111. PRODUCER PRICE INDEX: A measure of the average change over time in the selling prices received by domestic producers for their output.
Example: "The
Producer Price Index for industrial goods increased by 2% last month."
112. PRODUCT ELASTICITY OF DEMAND (PED): A measure of how sensitive the quantity demanded of a product is to changes in its price.
Example: "If the
price of gasoline increases by 10% and the quantity demanded decreases by 5%,
the PED is -0.5, indicating inelastic demand."
113. PROFIT AND LOSS ACCOUNT: Also known as an income statement, it shows a company's revenues, expenses, and profits or losses over a specific period.
Example:
"The profit and loss account for the quarter showed a net profit of
$100,000 after deducting all expenses."
114. QUANTITATIVE EASING: A monetary policy tool used by central banks to increase the money supply by purchasing government securities or other financial assets.
Example:
"The central bank announced a new round of quantitative easing to
stimulate economic growth."
115. QUOTA: A restriction placed on the quantity of a specific good that can be imported or exported during a certain period.
Example: "The government imposed
a quota on steel imports to protect domestic producers."
116. RATE OF RETURN: The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.
Example: "The rate of
return on the stock investment was 8% over the past year."
117. REAL INTEREST RATE: The nominal interest rate adjusted for inflation, representing the true return on an investment after accounting for the effects of inflation.
Example:
"The real interest rate on the savings account is 2% after adjusting for
inflation."
118. REAL VALUES: Economic values that have been adjusted for inflation to reflect their purchasing power in terms of a base year.
Example: "Real GDP
measures the value of goods and services produced in an economy adjusted for
inflation."
119. RECESSION: A significant decline in economic activity across the economy, usually characterized by falling GDP, employment, and income levels.
Example:
"The country entered a recession after experiencing two consecutive
quarters of negative GDP growth."
120. RETURN ON INVESTMENT (ROI): A measure of the profitability of an investment, calculated as the ratio of net profit to the initial investment cost, often expressed as a percentage.
Example: "The return on investment for the marketing
campaign was 20%, indicating a favorable outcome."
121. REVENUE: The total amount of money generated by a business from its sales of goods or services before expenses are deducted.
Example: "The company's
revenue increased by 15% compared to last year."
122. SHARE INDEX: A statistical measure of the value of a portfolio of stocks representing a portion of the overall market.
Example: "The S&P 500 is a
widely followed share index that tracks the performance of 500 large-cap
stocks."
123. SHARE OPTIONS: Contracts that give the holder the right, but not the obligation, to buy or sell a specific number of shares at a predetermined price within a set timeframe.
Example: "Employees were granted share options as part
of their compensation package."
124. SHAREHOLDER: An individual or institution that owns one or more shares of stock in a company and therefore has an ownership stake in the company.
Example: "The
shareholders voted to approve the merger with another company."
125. SMES: Small and Medium-sized Enterprises, typically defined as businesses with a limited number of employees and relatively low revenue compared to larger corporations.
Example: "SMEs play a crucial role in driving economic growth and
innovation."
126. SOCIAL ENTERPRISE: A business that prioritizes social or environmental objectives while also generating revenue and profits.
Example: "The social
enterprise focuses on providing employment opportunities for disadvantaged
communities."
127. STAKEHOLDERS: Individuals or groups with an interest or concern in the success or activities of a business, including employees, customers, shareholders, and the community.
Example: "The company engaged with stakeholders to address concerns
about its environmental impact."
128. SUPPLY CHAIN: The network of individuals, organizations, resources, activities, and technology involved in the creation and distribution of goods and services from the supplier to the end consumer.
Example: "The company optimized
its supply chain to reduce costs and improve efficiency."
129. SUSTAINABILITY: The practice of meeting the needs of the present without compromising the ability of future generations to meet their own needs, often focusing on environmental, social, and economic considerations.
Example: "The
company implemented sustainability initiatives to reduce its carbon
footprint."
130. TAKEOVER: The acquisition of one company by another, usually through the purchase of a controlling interest in the target company's shares.
Example: "The
takeover bid by the larger competitor was accepted by the board of
directors."
131. TRADE BALANCE: The difference between a country's exports and imports of goods and services over a certain period, typically measured annually or quarterly.
Example:
"The trade balance improved as exports increased and imports
decreased."
132. TRADEMARK: A symbol, word, phrase, or logo that identifies and distinguishes the goods or services of one company from those of others.
Example: "The company
registered its trademark to protect its brand identity."
133. TRIPLE BOTTOM LINE: An accounting framework that considers not only financial performance but also social and environmental factors when evaluating a company's overall success.
Example: "The company's commitment to the triple bottom
line led to sustainable growth and positive social impact."
134. TURNOVER: The total value of goods or services sold by a company during a specific period, typically measured annually.
Example: "The company's
turnover increased by 20% compared to the previous year."
135. UNIT TRUST: A type of investment fund where investors pool their money to invest in a diversified portfolio of assets managed by a professional fund manager.
Example:
"Investors can buy units of the unit trust, which gives them a
proportional share of the fund's holdings."
136. UNQUOTED SHARES: Shares of a company that are not listed or traded on a public stock exchange.
Example: "The company's unquoted shares are held by a
small group of private investors."
137. VENTURE CAPITAL: Financing provided to startup or early-stage companies by investors in exchange for an equity stake in the company.
Example: "The startup
raised $5 million in venture capital to fund its expansion."
138. VERTICAL MERGER: A merger between two companies operating at different stages of the production or distribution process for a particular product or service.
Example:
"The vertical merger between the manufacturer and the distributor aimed to
streamline operations and reduce costs."
139. VOLUME: The total quantity or number of shares traded or transactions conducted within a specific period in a financial market.
Example: "The trading volume
of the stock increased significantly during the earnings announcement."
140. WITHOUT-PROFITS POLICY: An insurance policy that does not distribute any profits or dividends to policyholders but instead retains all earnings to cover claims and expenses.
Example: "The without-profits policy offers policyholders stable
premiums and guaranteed benefits."
141. WORKING CAPITAL: The difference between a company's current assets and current liabilities, representing the funds available for day-to-day operations.
Example:
"The company used its working capital to pay suppliers and cover operating
expenses."
142. WORK-LIFE BALANCE: The equilibrium between personal and professional life, ensuring that individuals have time for work, family, leisure, and personal development.
Example:
"The company promotes work-life balance by offering flexible working hours
and remote work options."
143. YIELD: The return on an investment, usually expressed as a percentage, including dividends, interest, and capital gains.
Example: "The bond's
yield was 5% per annum."
144. ZOMBIE FUNDS: Investment funds or assets that are underperforming or stagnant but are still active or held, often with little hope of recovery.
Example: "The
portfolio manager decided to liquidate the zombie funds to free up capital for
better-performing investments."
Partial credit: Workspace
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