Summary from RJES

• Deflation


  Reduction in the level of national income and output usually accompanied by the fall in the general price level
• Monopsony


  Market whereby there is only one buyer of an item for which there are no good substitute
• Monopoly


  Market situation where there is only one seller with many buyer
• Oligopoly


  Condition where only few individuals produce a certain product and that any action of one will lead to almost the same action of the others
• Oligopsony


  Market which there are few buyers but many sellers
• Bilateral Oligopoly


  Market situation where there are few sellers and few buyers
• Bilateral Monopoly


  Market situation where there is one seller and one buyer
• Duopoly


  Situation in which two suppliers dominate the market for a commodity service
• Duopsony


  Market situation where there are only two buyers and many sellers
• Perfect Competition


  Occurs in a situation where a commodity or service is supplied by a number of vendors entering the market
• Prime Cost


  Direct labor cost incurred in the factory and direct material cost; the sum of these two direct cost
• Depreciation


  Artificial expense that spread the purchase price of an asset or another property over a number of year; decrease in the value of a physical property due to passage of time
• Salvage Value


  Estimated value at the end of useful life; also called scrap value
• Market Value


  Amount which a willing buyer will pay to a willing seller for a property where each has equal advantage
• Book Value


  Worth of the property equals to the original cost less depreciation
• Authorized Capital


  Grand total of the assets and operational capability of corporation
• Current Assets


  Liquid assets such as cash and other assets that can be converted quickly into cash
• Depreciation Recovery


  Present worth of all depreciation over the economic life of the item
• Gross Margin


  Gross profit, sales less cost of goods sold, as a percentage of a sale
• Profit Margin


  Amount by which revenue from sales exceeds costs in a business
• Working Capital


  Those funds that are required to make the enterprise or project going
• Discount


  Future value less the present value
• Economic Return


  The profit derived from a project or business enterprise without consideration of obligations to financial contributions
• Rate of Return


  Interest rate at which the present worth of the cash on the project is zero of the interest earned by an investment
• Going Value


  Intangible value which is actually operating concern due to its operation
• Fair Value


  Value which has a disinterested third party, different from the buyer and seller, that determines the price acceptable to both parties
• Amortization


  As applied to capitalized asset, the distribution of the initial cost by periodic changes to operation as in depreciation or reduction of debt
• Declining Balance Method


  Method of computing depreciation in which the annual charge is a fixed percentage of the depreciation book value at the beginning of the year
• Straight Line Method


  Method of depreciation whereby the amount to recover is spread uniformly over the estimated life of the asset in terms of the periods or units of output
• Sinking Fund Method


  Method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an amount equal to the total depreciation of an asset at the end of the asset's estimated life
• Depletion


  The lessening of the value of an asset due to the decrease in the quantity available (referring to the natural resource like coal, oil, etc.)
• Sole Proprietorship


  Simplest form of a business organization
• Partnership


  An association of two or more persons for a purpose of engaging in a profitable business
• Corporation


  Distinct legal entity which can practically transact any business transaction a real person could do
• Private


  Type of ownership in business where individual exercise and enjoy the right in their own interest
• Effective Interest


  True value of interest rate computed by equations for compound interest for 1-year period
• Interest Rate


  Interest payment divided by principal amount
• Preferred Stock


  Represents ownership and enjoys certain preferences than ordinary stock
• Common Stock


  Represents ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled
• Bond


  A certificate of indebtedness of a corporation usually for period not less than 10 years and guaranteed by mortgage on certain assets of the corporation