Glossary
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| Term | Meaning |
|---|---|
| Accrual | An expense incurred or income earned but not yet paid or received |
| Asset | A resource controlled by an entity from which future benefits are expected |
| Balance of payments | The record of an economy's transactions with the rest of the world |
| Break-even point | The level of sales at which total revenue equals total cost |
| Capital employed | Equity plus non-current liabilities |
| Comparative advantage | The ability to produce a good at a lower opportunity cost |
| Contribution | Selling price per unit less variable cost per unit |
| Depreciation | The systematic allocation of an asset's cost over its useful life |
| Elasticity | The responsiveness of one variable to a change in another |
| Entrepreneur | A person who organizes resources and bears risk to create a business |
| Equity | The owners' residual interest in the assets after deducting liabilities |
| Externality | A cost or benefit that affects third parties |
| Fiscal policy | Government decisions on taxation and spending |
| GDP | The market value of final goods and services produced in an economy in a period |
| Goodwill | The excess of the value of a business over the fair value of its net assets |
| Inflation | A sustained rise in the general price level |
| Liability | A present obligation arising from past events |
| Marketing mix | The set of controllable marketing tools: product, price, place, promotion |
| Monetary policy | Central bank actions to influence money, credit, and interest rates |
| Net present value | The sum of discounted cash flows minus the initial investment |
| Opportunity cost | The value of the next best alternative forgone |
| Regression | A method for modelling the relationship between variables |
| Standard deviation | A measure of the spread of data |
| SWOT | An analysis of strengths, weaknesses, opportunities, and threats |
| WACC | Weighted average cost of capital |
| Working capital | Current assets less current liabilities |
| Z-score | A standardized score: (mark − mean) ÷ standard deviation |