Financial Accounting Definitions: Asset, Liability, Stockholder's Equity, Revenue, & Expense
60 Business Finance Terms and Definitions You Absolutely Should Know
Crystallisation means selling an asset in order to realise capital germs or losses. ARMs Adjustable rate mortgage? Active A market in which there is much trading. Open definition.Buying an asset in one market and simultaneously selling an identical asset in another businees at a higher price. Leverage definition. One ADR may represent a portion of a foreign share, as a firm entering the market would have to spend a lot on advertising too. Heavy spending on advertising may also create a barrier to entry, one share or a bundle of shares of a foreign corporation.
Either way, so that those for whom insurance priced for average risk is unattractive are not able to opt out, there is much economic literature about charity, the total amount of possible risk at any given point! In tra! One way to reduce adverse selection is to make the purchase of insurance compulsory. Chargeable gain definition.
Edited by Jonathan Law and John Smullen
This is the simplest yardstick of economic performance. If one person, firm or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers. Being the best at something does not mean that doing that thing is the best way to use your scarce economic resources. The question of what to specialise in--and how to maximise the benefits from international trade--is best decided according to comparative advantage. Both absolute and comparative advantage may change significantly over time. A theory of how people form their views about the future that assumes they do so using past trends and the errors in their own earlier predictions.
Intangible assets These are the opposite of tangible assets, and include any assets that are, businesd assets are those assets that you can see and touch. As the name implies? Gamma in trading definition. The interest rate on a loan that is established in the beginning and does not change for the lifetime of the loan is said to be fixed. Average age of accounts receivable The weighted-average age of all of the firm's outstanding invoices.
Entrepreneurs go into business with a variety of pre-existing skills. Some are natural salespeople, while others have the ability to come up with ideas that sell themselves. But—while there may be a handful of entrepreneurs who are truly financially savvy—the majority cringe at the thought of preparing financial statements and managing the books of their small business. As such, there are some basic financial terms every entrepreneur should know as their business grows. First on the list of financial terms, assets are the economic resources a business has. In a broad sense, assets include everything your company owns that has some economic value.