Term
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Definition
| The art and science of managing a company's money so that it can meet the goals. |
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| The inflows and outflows of cash for a company. |
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| The opportunity for profit. |
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| The potential for loss or the chance that an investment will not achieve the expected level of return. |
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Term
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| A basic principle in finance that holds that the higher the risk, the greater the return required. |
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Term
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Definition
| Projection's of a company's activities and the funding for those activities over a period that is longer than a year, typically 2 to 10 years. |
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Term
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Definition
| Formal written forecasts of revenues and expenses that set spending limits based on operational forecasts; include cash budgets, capital budgets, and operating budgets. |
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Term
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Definition
| Budgets that forecast a company's cash inflows and outflows and help the company plan for cash surpluses and shortages. |
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Definition
| Budgets that forecast a company's outlays for fixed assets (plant and equipment), typically covering a period of several years. |
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Definition
| Budgets that combine sales forecasts with estimates of production costs and operating expenses to forecast profits. |
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Term
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Definition
| The process of making sure that a company has enough cash on hand to pay bills as they are due and to meet unexpected expenses. |
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Term
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Definition
| Unsecured short term debt - an IOU - issued by a financially strong corporation. |
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Term
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Definition
| Short-term investments that are easily converted into cash. |
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Term
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Definition
| Sales for which a company has not yet been paid. |
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Term
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Definition
| Investments in long-lived assets, such as land, buildings, machinery, and equipment, that are expected to provide benfits extending beyond one year. |
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Term
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Definition
| The process of analyzing long-term projects and selecting those that offer the best returns while maximizing the company's value. |
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Term
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Definition
| Loans for which the borrower does not have to pledge specific assets as security. |
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Term
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Definition
| The extension of credit by the seller to the buyer between the time the buyer receives the goods or services and when it pays for them. |
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Term
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Definition
| A purchase for which a buyer has not yet paid the seller. |
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Term
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Definition
| An agreement between a bank and a business or person that specifies the maximum amount of short-term borrowing the bank will make available to that business or person. |
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Term
| revolving credit agreement (or revolving line of credit) |
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Definition
| A line of credit that allows the borrower to have access to funds again once it has been repaid. |
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Term
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Definition
| Loans for which the borrower is required to pledge specific assets as collateral, or security. |
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Term
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Definition
| A form of short-term financing in which a company sells its accounts receivable outright, at a discount, to a factor. |
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Term
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Definition
| The chances that a company will be unable to make scheduled interest and principle payments on its debt. |
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Term
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Definition
| A business loan with an initial maturity of more than one year; can be unsecured or secured. |
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Term
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Definition
| Long-term debt obligations (liabilities) issued by corporations and governments. |
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Term
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Definition
| A long-term loan made against real estate as collateral. |
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Term
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Definition
| A security that represents an ownership interest in a corporation. |
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Term
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Definition
| Payments to shareholders from a corporation's profits. |
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Term
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Definition
| Payments to shareholders in the form of more shares; can replace or supplement cash dividends. |
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Term
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Definition
| Profits that have been reinvented in a company. |
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Term
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Definition
| Equity securities for which the dividend amount is set at the time the shares are issued. |
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Term
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Definition
| The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures. |
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Term
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Definition
| A hazard or a source of danger. |
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Term
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Definition
| The chance of either loss or gain, without insurance against the possibe loss. |
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Term
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Definition
| The promise of compensation for certain financial losses. |
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Term
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Definition
| A written agreement that defines what the insurance covers and the risks that the insurance company will bear for the insured party. |
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Term
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Definition
| A review process of all insurance applications and the selection of those who meet the standards. |
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Term
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Definition
| An insurance applicant's chance of loss if a particular peril occurs. |
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Term
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Definition
| A risk that an insurance company will cover. It must meet certain criteria. |
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Term
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Definition
| Insurance companies' predictions of the likelihood that a peril will occur; used to calculate permiums. |
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Term
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Definition
| The amounts that the insured must pay before insurance benefits begin. |
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Term
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Definition
| Payment of benefits to laid-off workers while they seek new jobs. |
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Term
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Definition
| Payments to cover the expenses of job related injuries and diseases, including medical costs, rehabilitation, and job retraining if necessary. |
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Term
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Definition
| Insurance that provides retirement, disability, death, and health benefits. |
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Term
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Definition
| Health insurance programs provided by the provinces. |
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Term
| key person life insurance |
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Definition
| A term insurance policy that names the company as benficiary. |
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Term
| business interuption insurance |
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Definition
| Covers costs such as rental of temporary facilities, wage and salary payments to employees, payments for leased equipment, fixed payments, and profits that would have been earned during that period. |
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Term
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Definition
| A broad insurance coverage that protects businesses against losses from an act of stealing. |
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Term
| professional liability insurance |
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Definition
| Insurance designed to protect top corporate management, who have been the target of malpractice lawsuits. |
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Term
| enterprise risk management (ERM) |
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Definition
| A company-wide, strategic approach to identifying, monitoring, and managing all elements of a company's risk. |
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