corporate finance vocab

Question 1

take on

Answer 1

to undertake;
begin (work): 
[~ + on + object]
took on extra work to pay the bills.
[~ + object + on]
How can he take so much volunteer work on?

Question 2

long term investment

Answer 2

Long-term investments are assets that a company intends to hold for more than a year.
The long-term investment account differs largely from the short-term investment account in that short-term investments will most likely be sold, whereas the long-term investments will not be sold for years and, in some cases, may never be sold.

Question 3

treasurer

Answer 3

The treasurer’s office is responsible for managing the firm’s cash and credit, its financial planning, and its capital expenditures.

Question 4

controller

Answer 4

A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting, managerial accounting, and finance activities, within a company. A financial controller typically reports to a firm’s chief financial officer (CFO), although these two positions may be combined in smaller businesses

Question 5

equity

Answer 5

Equity is typically referred to as shareholder equity (also known as shareholders’ equity) which represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debt was paid off.

Question 6

clawbacks

Answer 6

to recover (a sum of money), esp by taxation or a penalty

Question 7

forfeit

Answer 7

a fine;

penalty.

Question 8

proxies

Answer 8

[uncountable]

the power given a person to act as the substitute for another or in place of another.

Question 9

financial markets

Answer 9

Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others.

Question 10

securities

Answer 10

The term “security” is a fungible, negotiable financial instrument that holds some type of monetary value.

Question 11

debt security

Answer 11

Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of deposit (CD), municipal bond, or preferred stock, that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate, and maturity and renewal date

Question 12

financial institution

Answer 12

A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers

Question 13

return

Answer 13

to yield back (a profit, etc.):
[~ + object]
Those stocks will return a handsome profit.

Question 14

claim

Answer 14

[~ + object]
to demand by or as if by a right:
to claim an estate by inheritance.

Question 15

human capital

Answer 15

Human capital is an intangible asset or quality not listed on a company’s balance sheet. It can be classified as the economic value of a worker’s experience and skills. This includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality

Question 16

face value

Answer 16

Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, which is customarily $1,000.

Question 17

COGS

Answer 17

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs

Question 18

net fix asset

Answer 18

calculated by subtracting the accumulated depreciation from the historical cost of the assets. You can think of it as the purchasing price of all fixed assets such as equipment, buildings, vehicles, machinery, and leasehold improvements, less the accumulated depreciation.