![]() Money invested into a company or project by its owners. Governments are tasked with smoothing the peaks and troughs and limiting the effect of these cycles on consumers and businesses. The tendency for economies to experience peaks and troughs that follows a cyclical pattern – known colloquially as ‘boom and bust’. An individual who provides capital for a business start-up in return for a stake in the company. Business angelĪlso known as an angel investor. This loan is taken out by people who need access to finance while their property is being sold. The point in time when you will have paid back all your debts, or when revenues exactly match expenses. (2) Making a forecast beyond a certain period by using the forecasted data for that period. ![]() (1) Building a start-up company with very little money, often relying on personal savings and pushing for the lowest possible operating costs, while implementing cost-saving systems such as fast inventory turnaround. Bonds are rated from the safest (AAA) to the riskiest (D), also known as 'junk bonds'. BondĪn agreement made when money is borrowed from an investor at a set rate of interest. Therefore, a blue-chip company is one that is large and considered to be safe or prestigious. This term originates from poker as blue chips are traditionally the highest-valued. ![]() It is called this because before people ventured to Australia, swans were assumed to only be white. Black swanįinancial events that are difficult to predict. The ‘spread’ is the difference between those two prices. The buying (offer) and selling (bid) price of shares, bonds or currency. BenchmarkingĬhecking your company’s standards by comparing them with certain criteria, e.g. This influences financial products and services when they set their own cost of borrowing. Set each month by the Bank of England, this is the country’s base rate of interest. B2BĪ ‘snapshot’ of a company’s assets, liabilities and capital at a particular point in time. AuditĪn official inspection of a company’s, or individual’s, accounts. Property that has value owned by a company. The process by which a person or business takes advantage of the difference in price of a share or a currency. Upon retirement a lump sum is paid into it and the insurance company then provide a regular income. The higher the amount, the more you will pay. This is the rate of interest you agree to pay on money borrowed. It is calculated by adding each interest payment to the original deposit, then working out the next interest payment, compounding the interest. Annual equivalent rate (AER)Ī quote of what interest paid on savings and investments would be. Affiliate marketingĪ retailer or service provider advertising its goods or services via a third party in return for a commission on any sales. (2) A business going into administration, meaning that a business has gone bankrupt and its creditors can get in touch to try and claim any money they are owed. (1) The organisation and running of a business. There are two meanings relating to this word in business. Their role is to calculate accident rates, life expectancy and the relevant payouts. ActuaryĪn actuary is a person employed by pension providers and insurance companies. ![]() The purchase of one company or resources by another. Accounts payableĪmounts of money owed by your company to external suppliers. ![]() If they are listed on the stock exchange, they must also show half-year profits (information regarding profits six months into the financial year). Accountsīusinesses are obligated to produce an annual set of accounts. The time for which profits are being calculated, normally months, quarters or years. Our glossary will explain some of the meanings of the most commonly used business phrases – so talking to your accountant should be a bit easier in the future. If you’re new to business, you may hear a lot of words and phrases that are unfamiliar to you. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |