Part 4 - Test 1267 Flashcards
Security (financial term)
Tradable asset
Legally binding contract
Legally enforceable agreement which is: 1) both parties agree; 2) include some value of exchange
Investment scam
Unethical behavior in the stock market to gain profit while causing loss of companies of unstabilize the market
Pump and dump
Buy in shares of stock then mislead investors to invest in this stock, causing a dramatic rise in price. Then, the scammer dumps all shares of stock they owned, causing rest of the shares to be value-less
Ponzi scheme
Luring new investors by high-return and low-risk investments
Hype
= Pump up, increase, boost
Pyramid scheme
Illegal form of multi-level marketing, collect initial fees from large scale of people
Phishing
Online identity theft scam, imitate as a legitimate website and mislead users to enter sensitive info
Framing
Tendency to respond to situations based on how those situations are posed or viewed
Taxation
A portion of money taken by the government from financial activities (trades and transactions)
Types of taxation (7)
Capital gains, sales, excise, gift, luxury, property, estate
Letter of laws
The exact words and sentences in the laws, such as limits or written down forbidden activities
Spirit of laws
The intent of setting the laws
Memorandum
Simply written report distributed to employees, on topics of: progress of various projects and/or updated changes in policies or procedures
Proposal
Complex written report with formal language and details, not only for employees
Handbooks and newsletters
Not reports but are to be documents inside a business
Competence
Ability, knowledge, know-how of tools to complete the task
Financial-information management
1) Responsibilities increased in recent years due to increase compliance requirements; 2) Support operations management to make decisions; 3a) Technology is not everything, it is only a part; 3b) Involves people, processes, equipments/technology; 4) Data collect by ~ need to be updated and current
Business productivity
Amount of goods/services produced by a business from a set amount of resources
Disposable income
Amount of income left after taxes are paid
Quality of work life
General conditions of envir that can impact employees’ productivity
Gross domestic product (country-based)
Final total value of all goods and services produced within a country’s boundaries during a year’s time
Ticker symbol (stocks)
The company’s abbr. on stock market
Trademark
Symbol, design or word used by producer to identify a good or service, registered with gov (unique for each company)
Intermediaries
= middleman, help to stipulate buy and sell
Legislative groups
Develop and pass through laws
Embezzlement (crime)
Thefts on company’s valuables practiced by a person given access
Espionage (crime)
Revealing confidential info without permission, to another competitor usually; spying
Securities fraud (crime)
Use misleading info and sales tactics to persuade investors in purchasing security
Inside trading (crime)
Leaking info to others, info not known by public
Business cycle
KNOW IT BY HEART
Emerging market
Growing market when a country changes from closed econ. to opened econ.
*Describing financial info
Useful financial information is typically transparent, timely (up to date), understandable (simply noted down), comparable (can be brought together w/ another data), and reliable (true, complete and faithfully represented).
Error prone
Tending to cause errors
Affinity fraud
Investment fraud, making people believe that they are the same
Tax structure
The ratio between earnings and amount of taxes paid
Types of tax structure
Progressive, regressive, proportional
Integrated financial market
Different markets are connected, easier flow of capital with no barriers
Recession-proof economy
Economically resistant to recessions
Industrial-based market
All the entities that acquire goods and services, become raw materials for businesses that produce consumer products
Financial analysis (check other one)
Analyze financial information, techniques used by accountants
Variance analysis
Difference between the planned amount and actual amount; how well an accountant has budgeted
Marginal analysis (incremental); ~ costs with ~ revenues
Additional benefits of an activity compared to the additional costs spent by that activity
Cost-benefit analysis
Cost and benefits of practicing an action (decision)
SWOT analysis
YOU SHOULD KNOW THIS
Fishbone analysis
YOU SHOULD KNOW THIS
Trade-off analysis
Conducted after a company has identified a range of options for addressing operations issues
Benchmarking
Compares a business’s financial performance with other companies in its industry or with industry standards
Financial ratios
Comparisons of different numbers from a business’s financial statement; strengths and weaknesses
DuPont modeling
Comparisons of different numbers from a business’s financial statement; strengths and weaknesses
Forecasting
Predictions, budgets, and what-if scenarios
Sunk costs
Irretrievable cost spent on activities (failed activities)
Monetize
To generate revenue from an asset or resource
Escalate
= to increase
Yield
Earnings on an investment over a period of time
Scope
Busy-ness, frequency of tasks (periodical)
Management information system (MIS)
Hardware or software, assist information management
Digita microfim scanner
Digitize archived documents, keep business’s docs
Electronic data interchange (EDI)
Already def.ed below
Direct-response software
Record results from direct responses (campaigns aiming to get immediate reactions from customers)
Web-development programs
As what it means literally
Financial information management system
Collect, organize, analyze information reflecting the comp’s finances
Solicite
Persuade
Constituent policies
Refers to the governmental document of laws
