basic business terms

Checking Account

An account allowing withdrawals at any time but requires a minimum balance and usually pays no interest.

Check Register

Also known as a cash disbursement journal; it records all checks, cash, and cash outlay during an accounting period.

Phishing

A scam method where a scammer sends a fake email to look like it's from a legitimate company to gain personal information.

Mortgage

An agreement giving a lender the right to take property if the borrower fails to repay the borrowed money plus interest.

Lending Investments

Investments where individuals allow borrowers to use their money for a specified fee or rate of interest.

Sarbanes-Oxley Act of 2002

A major federal law concerning information management and accounting records.

Positioning Innovation

Occurs when the purpose of a product is changed.

Paradigm Innovation

A significant change in thinking.

Trade Association

A group of individuals in the same industry or area that forms a society to solve common problems.

Embargo

An official ban on trade with a certain country.

Touchpoint

Any interaction between a business and a customer or potential customer.

Socialist Economies

A type of command economy where the state owns the means of production and provides social benefits.

Payroll Taxes

Taxes paid by both employers and employees, including Medicare and Social Security taxes.

Law of Diminishing Returns

An economic concept stating that increasing one input while others are constant will eventually yield declining increases in output.

Trade Deficit

Occurs when a country imports more goods and services than it exports.

Trade Surplus

Exists when a country exports more goods and services than it imports.

Finance Charges

Interest and/or fees charged on the outstanding balance of a credit account.

Insurance Premium

A fee paid to an insurance company for providing insurance protection.

Credit Card Disadvantage

The accumulation of interest owed if only the minimum payment is made.

Restrictive Endorsement

An endorsement that limits how a check can be processed.

General Endorsement

Allows the endorser to cash or deposit the check without restrictions.

Bonds

Debt securities typically issued to raise funds for specific projects, promising to pay back with interest.

Integrated Software Application Packages

Tools that help businesses manage various activities like inventory control and finance.

Corporation

A business owned by shareholders who share profits.

Limited Decision Making

A decision-making process used for familiar products that require further information.

Robinson-Patman Act

Prevents price discrimination by requiring similar prices for similar products across businesses.

Clayton Act

Prohibits specific actions restricting competition, such as exclusive agreements.

Sherman Antitrust Act

Prevents monopolies and hinders price fixing.

Celler-Kefauver Antimerger Act

Protects competitors from takeovers that could hinder competition.

Endorsement (Check)

The act of signing the back of a check to allow fund transfer.

Payer (Check)

The person completing the front of the check, indicating payment details.

Memo Line (Check)

Used to identify the purpose of a check.

Repossession

When a lender claims collateral due to a borrower's default.

Foreclosure

The process of seizing mortgaged property due to default.

Forbearance

An agreement to delay foreclosure proceedings on a mortgage.

Debt Consolidation

Taking a new loan to pay off multiple existing loans and debts.

Query (Database)

A mechanism used to obtain desired information from a database.

Database Sharing

A mode of collaboration that allows multiple users to access and share a common database.

Annual Percentage Rate (APR)

Interest paid on the unpaid portion of a credit card bill, with an annual fee for card usage.

Overdraft Fee

A fee charged when a check exceeds the available balance in a checking account.

Extension (Sales)

The total cost of products calculated by quantity multiplied by price per unit.

Transferring Risks

Using contractual agreements, like warranties, to transfer financial risks.

Retaining Risk

When businesses do nothing to reduce or eliminate risk.

Employer Match

When employers match employee contributions to retirement accounts.

Surrender Charge

A fee charged by a life insurance company when a policy is surrendered.

Health Insurance Premium

A fee shared between employers and employees for health coverage.

Copayment

A predetermined out-of-pocket expense paid by the insured at service time.

Pay Stub

A financial record showing wages earned during a specific period.

Private Enterprise System

An economic system primarily determined by individual and business decisions with some government control.

Pure Private Enterprise System

An economic system with no government control.

Communist Command System

An economic system where the government imposes production quotas.

Capitalism

An economic system based on honest competition between businesses.

Tactful

Demonstrating courtesy and respect in workplace relationships.

Installment Credit

A credit arrangement with fixed payments, like a car loan.

Open Credit Account

Allows users to make purchases before payment is due within a set period.

Revolving Credit Account

Limits total indebtedness and charges interest on outstanding balances.

Layaway

A purchase method where goods are paid for over time before taking possession.

Increasing Deductible

Raising the deductible amount to reduce monthly premiums, accepting higher out-of-pocket costs later.

Point-of-Sale Software

Applications that perform various business functions beyond sales transactions.

Meta Tags

HTML codes used to provide information about web pages to browsers.

ASCII

A standard code for text used in creating HTML documents.

Hyperlink

A method for moving between web pages or sites.

Fiat Money

Currency that has value backed by government decree, not intrinsic value.