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BF Unit 1 Vocab

Business Finance

TermDefinition
Money item that serves as a method of payment
Finance activities involved with saving, investing, and using money by individuals, businesses and governments
Inflation rise in general price levels
Security investment instrument issued by corporation or government representing ownership in it
Stock security representing ownership in a corporation or government
Bond debt, money borrowed by company/government
Liquidity speed/ease which investments can be converted to cash
Personal Financial Plan process of managing money to achieve personal economic satisfaction
Financial Plan formal report with summary of current financial situation and plan for future financial activities
Personal Financial Goal desired goals for financial planning
Opportunity Cost what is given up in a financial choice
Deposit Institutions/Depository Institution accept deposits from people/businesses to use in the future
Non-Depository Institutions insurance, investment, consumer finance, and mortgage companies, check-cashing outlets and pawnshops
Source of Funds inflow of cash that can be used for paying various expenses
Use of Funds outflow of money by companies
Tax Revenue government income, tax collection
Income Taxes tax on income of individual
Property Tax tax on value of land/building
Sales Tax a state/local tax on good/products by the seller
Manicipal Bond a bond issued by a state/local government
Created by: 33447
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