Created by Saharsh Joshi
over 7 years ago
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Question | Answer |
Income | Earnings made by an individual, not a profit until after tax |
Wages | A fixed regular payment earned for work/services, paid by your employer on a weekly/daily basis |
Salary | A fixed payment, made by an employer/organisation to an employee, typically paid on a monthly basis but expressed as an annual sum. Salaries are common with white collar jobs |
White Collar Jobs | Jobs which do not require physical work |
Fee | A source of income paid for by the client, usually per service (piecework) |
Piecework | Income according to the amount produced |
Commision | Percentage of the sale- paid by the buyer of the purchase. E.g. A real-estate agent gets a 3% commission on a house he sells |
Dividend | A sum of money paid regularly to the company’s shareholders, out of the company’s profit or reserves |
Interest | Money paid regularly at a particular rate for the use of the money lent |
Royalites | Money earned from intellectual property. E.g. pop singers income is mostly derived from album sales |
Fixed Expenses | Expenses that will stay the same, regardless of anything (within reason). E.g. Mortgage |
Variable Expenses | Expenses that can change depending on a variety of factors. E.g. Petrol |
ASX | Australian Securities Exchange |
Investing | Putting money into; financial schemes, shares, property or a commercial venture in the hopes of achieving a profit |
Ethical Investing | Investment that is done in alignment with your moral code of values |
Positive Screening | Actively investing in investments that are in line with your moral code |
Negative Screening | Actively avoiding to invest in something that is not in line with your moral code |
Assets | Anything of value that a business owns |
Liabilities | Anything the entity owes to other entities |
Bond | A debt investment in which the investor gives money to a business for a fixed number of years with interest, when the fixed amount of time ends, the business issues the investor with the interest, along with the principal amount |
Capital | refers to the financial value of the assets, along with the tangible resources the company has such as machinery. Capital also refers to facilities such as production plants |
Equity | Value of an asset minus all of the debt and liabilities on it. |
Balance Sheet Equation | Assets=Liabilities+Shareholders Equity |
Shareholder's Equity | represents the net value of a company, or the amount that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid. |
Entrepreneur | a person who sets up a business or businesses, taking on financial risks in the hope of profit. |
Sole Trader | Owned and operated by 1 person, reaps all profits, suffers all losses |
Partnership | Business owned by 2-20 people, called partners |
Private Company | 1-50 private owners called shareholders |
Public Company | Unlimited number of shareholders |
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