Financial Services Flashcards
Ponzi Scheme
similar to a pyramid scheme but new investors’ funds are distributed
Estate allocation
dividing or designating a person’s assets among his or her beneficiaries
Debtor-creditor relationship
When someone owes someone money, e.g. when interest is charged
Tax-deferred investments
financial products that are taxed at time of disbursement, or purchase
Continous-inspection compliance technology
this must have access to transactional information at its source
Graphics
these explain complex information or highlight the most important info
Contract law
law that recognizes contracts as voluntary promises that must be fulfilled
Trade law
law that deals with international trade
Property law
law that deals with real property
Pyramid scheme
an illegal form of multi-level marketing where emphasis is placed on collecting initial fees from as many people as possible
Tax deduction
charitable contributions are not taxed
Collection letter
persuasive message that businesses write to encourage late payments
Downward vs. upward communication
communication down from management vs. communication up to management
Lateral vs. grapevine communication
Communication among employees vs. informal person-to-person communication
Customer Relationship Management (CRM) date
addresses, phone numbers, etc.; perishable data because it may change over time
Economic resources
the inputs of production; they are ALL LIMITED
Price discrimination
charging people different prices for similar products
Income tax
tax on profit
Property tax
tax on material goods
Excise tax
hidden tax on specific items, like gasoline; may not be uniform throughout all states
Purchasing power
a customer’s ability to purchase goods and services
Export quota
limitation on the quantity of goods that can move out of a country