International Business Finance (Vocabulary)

Exchange Rate

the value of a currency in one country compared with the value in another.

Market Segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and might require separate products or marketing programs.

Types of Market Segmentation

demographic Segmentation, Behavioral Segmentation, Geographic Segmentation, and Psychographic Segmentation.

Demographic Segmentation

these qualities include things like age, sex, marital status, family size, occupation, education level, income, race, nationality, and religion.

Behavioral Segmentation

these qualities include things like consumer online shopping habits, actions taken on a website, benefits sought, knowledge, attitudes, uses of a product, loyalty, or responses to a product.

Geographic Segmentation

these qualities include things like the region of a country, state, county, zip code, population size, population density, population climate, or people's financial needs.

Psychographic Segmentation

these qualities include personality traits, interests, beliefs, values, attitudes and lifestyles.

Acquisition

an asset or object bought or obtained, typically by a library or museum. (Similar Words: Purchase, buy, or investment)

Free Cash Flow (FCF)

is the cash left over after a company pays for its operating expenses and capital expenditures (CapEx).

Capital Expenditures (CapEx)

funds used by a company to acquire, upgrade and maintain capital assets such as property, buildings, an industrial plant, technology, or equipment.

Compute

to calculate an amount or number.

Terminal Value

is the present value of all future cash flows of a business or a project with an assumption of a stable growth rate in the future.

Parity

equality, as in amount, status, or value

Deviations

the action of departing from an established course or accepted standard. (Similar Words: Difference, change, or shift)

Net Present Value (NPV)

the value in the presence of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.

Corresponding

similar in character, form, or function.

Conversion

the process of changing or causing something to change from one form to another.

Internal Revenue Service (IRS) or

Inland Revenue

(FASB) means:

Financial Accounting Standards Board

The Purpose for the development of the Financial Accounting Standards Board or (FASB) is to:

promote financial reporting that provides useful information to investors and others who use financial reports.

What is a financial report? (also referred to as financial statement)

is a management tool used to efficiently communicate key financial information. By covering every aspect of financial affairs with the help of specific KPIs (key performance indicators), businesses can ensure constant growth and revenue.

Key performance indicators or (KPIs)

a quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.

What does Quantifiable mean?

ability to be measured or counted

(GAAP) means:

Generally Accepted Accounting Principles

The Purpose for the development of the Generally Accepted Accounting Principles or (GAAP) is to:

ensure that financial reporting is transparent and consistent from one public organization to another, and from one accounting period to another.

(IAS) means:

International Accounting Standard

The Purpose for the development of the International Accounting Standard or (IAS) is to:

make it simpler for businesses around the world to compare financial reporting and data.

What does Insolvent mean?

unable to pay debts owed

(BFC) means:

British Finance Centre

The Purpose for the development of a Finance Centre is to:

conduct huge volumes of international and domestic trading transactions.

What does Concealing mean?

To hide something or keep from sight.

What does Shareholders' mean?

An owner of shares in a company.

What does Equity mean?

fairness

What does Embezzlement mean?

theft or misappropriation of funds placed in one's trust or belonging to one's employer.

What is a Disclosure Report and What does it contain?

Q.1) Public companies prepare disclosure reports for internal and external stakeholders to shine a light on the company's performance and operating activities.Q.2) Disclosure reports contain: 1.) Information about a company's business activities 2.) Financial condition 3.) Management compensation4.) Operating performance5.) Future direction

What does Philosophical mean?

relating or devoted to the study of the fundamental nature of knowledge, reality, and existence.

What does Allegiance mean?

devotion or loyalty

What does Consortium mean?

a group of companies or institutions