REGINA F.

AGADIER
HRDM-III

List down 50 business words. Define each and use them in a sentence.

WORDS MEANING SENTENCE

1. Annual Bonus The sum paid to with-profits
policyholders at the end of
each year from surpluses in
the with-profits fund.
2. Allocation Rate The percentage of the money
you pay into a pension
scheme or life insurance
policy that is actually
invested.
3. Accounts Receivable the balance of money due to
a firm for goods or services
delivered or used but not yet
paid for by customers.
4. Bankruptcy a legal proceeding carried
out to allow individuals or
businesses freedom from
their debts, while
simultaneously providing
creditors an opportunity for
repayment.
5. Bond a fixed income instrument
that represents a loan made
by an investor to a borrower
(typically corporate or
governmental). A bond could
be thought of as an I.O.U.
between the lender and
borrower that includes the
details of the loan and its
payments. Bonds are used by
companies, municipalities,
states, and sovereign
governments to finance
projects and operations.
Owners of bonds are
When a life insurer declares
annual bonuses, they
become an instant liability on
its books.
The authors found no
evidence of direct gender
discrimination in the
allocation of training by
employers.
My company's accounts
receivable used to be large
and burdensome.
Hermes is a licensed trustee
in bankruptcy and is engaged
in a number of files as
trustee and court appointed
receiver.
Everyone forgets that they
offer a valuable function for
clients, providing access to
capital to the stock and bond
market.
 debtholders, or creditors, of
the issuer.
6. Broker an independent party, whose
services are used extensively
in some industries.
7. Budget a document that
management makes to
estimate the revenues and
expenses for an upcoming
period based on their goals
for the business.
8. Buy-out the acquisition of a
controlling interest in a
company and is used
synonymously with the term
acquisition.
Buyouts occur when a buyer
acquires more than 50% of
the company, leading to a
change of control.
9. Commodity a basic good used in
commerce that is
interchangeable with other
commodities of the same
type.
10. Cash Flow refers to the amount of
operating cash that “flows”
through the business and
affects the business’s
liquidity.
11. Credit Limit refers to the maximum
amount of credit a financial
institution extends to a
client.
12. Collateral an asset that a lender accepts
as security for extending a
loan. If the borrower defaults
on her loan payments, the
lender may seize the
collateral and sell it to recoup
some or all of his losses.
As broker and owner he
always brought in a box of
fresh rolls and bagels and
cranked up the coffee pot for
the meeting.
Cultural services, foreign
affairs, and transportation
receive only one to three per
cent of the total budget.
A Cebu -based private equity
group is putting the money
up and is backing the
management buyout.
Water was transformed from
a human right into a
commodity to be traded on
the open market.
The company has
consistently said that funding
the continuing trading losses
is the biggest drain on its
cash flow.
I do my best to never exceed
my credit limit, though there
are months when it's been a
close call.
The three C's that credit
creditors look at when
determining their
qualification are capacity,
character, and collateral.
13. Day Trader a trader who executes a large
volume of short and long
trades to capitalize on
intraday market price action.
14. Deflation a general decline in prices for
goods and services, typically
associated with a contraction
in the supply of money and
credit in the economy.
During deflation, the
purchasing power of
currency rises over time.
15. Dividend the distribution of reward
from a portion of the
company's earnings and is
paid to a class of its
shareholders.
16. Depreciation The value of any asset can be
said to depreciate when it
loses some of that value in
increments over time.
Depreciation occurs due to
wear and tear.
17. Equity 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.
18. Ethical Investments refers to the practice of using
one's ethical principles as the
primary filter for the
selection of securities
investing
19. Externalities An externality is an economic
term referring to a cost or
A pattern day trader is
generally defined as a
customer who day trades
four or more times in five
business days.
You might think that
deflation is a good thing,
since each year your money
will be more valuable.
The Cooperative bank’s
ability to lift dividend
payouts is usually an
indication of strong cash flow
and solid earnings.
If you plan on selling the
vehicle sometime down the
road, you'll shoulder the
burden of resale
depreciation.
A reverse mortgage allows
senior citizens to earn tax-
free income by tapping the
equity in their homes.
Ethical investment funds are
committed to the principle
that investors must accept
some responsibility for the
actions of the companies
from which they profit.
Governments can set water
prices but this will only
achieve efficient prices if the
 benefit incurred or received
by a third party.
20. Fiscal Policy refers to the use of
government spending and
tax policies to influence
economic conditions,
including demand for goods
and services, employment,
inflation, and economic
growth.
21. Fixed rate mortgage is a fully amortizing mortgage
loan where the interest rate
on the note remains the
same through the term of the
loan, as opposed to loans
where the interest rate may
adjust or "float". As a result,
payment amounts and the
duration of the loan are fixed
and the person who is
responsible for paying back
the loan benefits from a
consistent, single payment
and the ability to plan a
budget based on this fixed
cost.
22. Fixed asset is a long-term tangible piece
of property or equipment
that a firm owns and uses in
its operations to generate
income.
23. Guarantor a person who guarantees to
pay a borrower's debt in the
event the borrower defaults
on a loan obligation.
24. Gross Profit the profit a company makes
after deducting the costs of
making and selling its
products, or the costs of
providing its services.
environmental externalities
can be measured accurately.
If the government simply
adds to the deficit, inflation
could be triggered by this
further loosening of fiscal
policy.
First-time buyers are more
likely to opt for a fixed-rate
mortgage, he said, because
at the start many want some
level of assurance about their
repayments.
Growth depends far too
much on fixed asset
investment, notably in
infrastructure and real estate
construction.
There are also no payouts
from either the firm or its
guarantor to shareholders
and bondholders before the
maturity date of the discount
debt.
After subtracting the general
operating costs and the
depreciation from the gross
profit, we arrive at the
operating income.
25. Greenback A colloquial name for the US
dollar
26. Hedge Funds a limited partnership of
investors that uses high risk
methods, such as investing
with borrowed money, in
hopes of realizing large
capital gains.
27. Hyperinflation a term to describe rapid,
excessive, and out-of-control
price increases in an
economy.
See:inflation
28. Interest The charge for the privilege
of borrowing money.
29. Inflation a quantitative measure of the When inflation was taken
rate at which the average
price level of a basket of
selected goods and services
in an economy increases over
a period of time. It is the
constant rise in the general
level of prices where a unit of
currency buys less than it did
in prior periods.
30. Inheritance tax a tax imposed by certain
states on those who inherit
assets from the estate of a
deceased person.
31. Joint account a bank or brokerage account If you split up with your
that is shared between two
or more individuals.
32. Liquid Asset an asset that can easily be
converted into cash within a own shares in self-storage or
short amount of time.
33. Liability an obligation to, or
something that you owe
The Australian dollar rose
against the greenback for the
13th straight week.
In its purest form, a hedge
fund is simply an ordinary
investment fund that tries to
exploit price inefficiencies in
the market.
The states' economies began
to experience hyperinflation
as state governments printed
paper money to meet war
expenditures.
Due to huge market interest
and demand for chrome and
mag wheels, your fitment
options are virtually
unlimited.
into account, he said, the net
effect would be less council
services for customers.
You need to make a Will,
plan ahead for inheritance
tax and put some money
aside for funeral expenses.
partner, you should contact
your bank regarding the joint
account as soon as possible.
Presumably it's great if your
industrial units, or you have
property as a liquid asset.
They gave her simple interest
on it and they absolved her
 somebody else. Liabilities are
defined as a company's legal
financial debts or obligations
that arise during the course
of business operations.
34. Loan-to-Value a ratio of the fair-market
value of an asset compared
to the amount of the loan
that will fund it.
35. Micro Loan a small sum of money lent at
low interest to a new
business.
36. Minimum Wage the lowest wage permitted
by law or by a special
agreement (such as one with
a labor union).
37. Mutual Fund a type of financial vehicle
made up of a pool of money
collected from many
investors to invest in
securities like stocks, bonds,
money market instruments,
and other assets.
38. Net worth the measure of wealth of an
entity, person, or
corporation, as well as
sectors and countries.
39. Negative equity potential indebtedness
arising when the market
value of a property falls
below the outstanding
amount of a mortgage
secured on it.
40. Offshore account Refers to an account located
outside of one's national
boundaries, whether or not
that location is land- or
water-based. The term may
be used to describe foreign
of her liability for the
occupation rent.
Developers team up with
mortgage agencies to provide
a mortgage insurance
programme with maximin
loan-to-value ratio of 95 per
cent to lure homebuyers.
Alice starts a weaving
business with a microloan
and uses the profits to pay
for nursing school.
Workers on the lower end
can struggle on less than
minimum wage with no
overtime or benefits.
One way to invest cautiously
is to buy a good stock mutual
fund that has lots of cash on
hand.
World Boxing Champion
Many Pacquiao’s net worth
increased from Php 2000 to
Php 9.5 Billion.
An indemnity bond is a type
of insurance that protects
the lender from negative
equity.
The funds have been
transferred to my offshore
account, and I am prepared
to leave at a moment's
notice.
 banks, corporations,
investments, and deposits.
41. Ordinary Share a share entitling its holder to
dividends that vary in
amount and may even be
missed, depending on the
fortunes of the company;
common stock.
42. Overdraft a deficit in a bank account
caused by drawing more
money than the account
holds.
43. Personal Loan a loan that establishes
consumer credit that is
granted for personal use;
usually unsecured and based
on the borrower's integrity
and ability to pay.
44. Privatization the transfer of a business,
industry, or service from
public to private ownership
and control.
45. Profits a financial gain, especially the Some chefs sell merchandise
difference between the
amount earned and the
amount spent in buying,
operating, or producing
something.
46. Premium bonds a bond trading above its face You can cash in your
value or in other words; it
costs more than the face
amount on the bond.
47. Quota a fixed share of something
that a person or group is
entitled to receive or is
bound to contribute.
a limited quantity of a
particular product which
under official controls can be
Where Juan holds ordinary
share certificates or stocks,
the only security he may
grant is a legal mortgage or
an equitable mortgage or
charge.
Two weeks later Jaime got a
letter from his bank saying he
was past his overdraft limit
and a payment to his HSBC
credit card had been
bounced.
Paul applied for a personal
loan to avail a Ducati bike.
Privatization of government
owned business such as oil
and water will be a great
thrust on the consumers’
welfare.
or match wines with their
tasting menus to boost
profits.
Premium Bonds at any time,
by completing a repayment
form.
These repatriates could only
return to the United States as
one of the annual quota of
50 immigrants.
 produced, exported, or
imported.

48. Recession a period of temporary Despite 11 cuts in interest

economic decline during rates last year, the American
which trade and industrial economy is poised on the
activity are reduced, edge of a double-dip
generally identified by a fall recession.
in GDP in two successive
quarters.
49. Savings account a bank account that earns The study found that only 36
interest. percent of teens know how
to open a savings account,
and even less know how to
balance a checkbook.
50. Value added Tax a tax on the amount by which The introduction of Value
the value of an article has Added Tax in July 1999
been increased at each stage enabled the government to
of its production or remove tariffs and import
distribution. duties.