Exam from RJES

• Salvage Value


  Present value at the end of useful life; also known as scrap value.
• Demented Person


  Parties whose consent or signature in a contract is not considered intelligent
• Interest Rate


  The ratio of the interest payment to be principal for a given unit of time and usually expressed as a percentage of the principal.
• Effective Interest


  The true value of interest rate computed by equations for compound interest for 1-year period.
• Private


  Type of ownership in business where individuals exercise and enjoy the right in their own interest.
• Franchise Value


  The intangible item of value from the exclusive right of a company in a stated region of the country.
• Depreciation


  Decrease in the value of physical property due to the passage of time.
• Partnership


  An association of two or more individuals for the purpose of operation business as co-owners.
• Utility


  Defined to be the capacity of a commodity to satisfy human want.
• Book Value


  The recorded current value of an asset; worth of the property equals to the original cost less depreciation; worth of the property as shown in accounting records of an enterprise.
• Current Assets


  Liquid assets such as cash and other assets that can be converted quickly into cash, such as accounts receivable and merchandise.
• Economic Life


  The length of time which property may be operated at a profit
• Authorized Capital


  Grand total of the assets and operational capability of corporation
• Oligopoly


  A condition where only few individuals produce a certain product and that any action of one will lead to almost the same actions of the others.
• Luxuries


  These are products or services that are desired by human and will be purchased if money is available after the required necessities have been obtained.
• Perfect Competition


  This occurs in a situation where a commodity or service is supplied by a number of vendors entering the market.
• Necessities


  These are products or services that are required to support human life and activities.
• Interest


  Money paid for the use of borrowed capital.
• Market Value


  It is the amount which a willing buyer will pay to a willing seller for a property where each has equal advantage and is under no compulsion to buy or sell.
• Escalatory clause


  The provision in the contract that indicates the possible adjustment of material cost and labor cost.
• Time value of money


  Cumulative effect of elapsed time on the money value of an event.
• Depreciation Recovery


  The present worth of all depreciation over the economic life of the item.
• Discount


  Defined as future value minus the present value.
• Bilateral Oligopoly


  A situation where there are few sellers and few buyers.
• Monopoly


  A market situation where there is only one seller with many buyer.
• Gross Margin


  Gross profit, sales less cost of goods sold, as a percentage of a sales.
• Rate of return


  The interest rate at which the present work of the cash on a project is zero of the interest by an investment.
• Working Capital


  Funds that are required to make the enterprise or project a going concern.
• Arithmetic


  The branch of mathematics dealing with integers, and more generally, numerical computation.
• The volume of the cube is equal to the cube of the measure of its edge.
• Number that be exactly divided by two is an even number.
• If each of two lines are perpendicular to the same line, then the lines are parallel.
• Effective Rate


  Interest rate which specifies the actual rate of interest on the principal for one year.
• Depreciation


  Decrease in the value of physical property due to the passage of time.
• Similar


  An angle of one triangle is congruent to an angle of the other and if two sides of one triangle are proportional to the two sides of the other
• Vacuum


  A space that is devoid of matter and in which the pressure is zero
• Vertical angle


  Two angles having the same vertex and the side of the one is the prolongation of the side of the other.
• Bank note


  The paper currency issued by the central bank which forms part of the country's money supply.
• Current ratio


  An index of short-term paying ability
• Bid bulletin


  Additional information of prospective bidders on contract documents issued prior to bidding date.