Retention Specialist/Inbound Sales Representative/Sales Operations Support Representative

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Financial Terms and Roles Shannan Cousin FIN 370: Finance for Business April 13, 2013 Amy Grover, MBA In this paper I will outline the fourteen financial terms and roles for the following words finance, efficient market, primary market, secondary market, risk, security, stock, bond, capital, debt, yield, rate of return, return on investment and cash flow and identify their roles in finance in today’s business world. These fourteen terms and roles are very essentials in today’s business world. Running the assets of any business is not just responsible for one or two things. Financial management is extensive then you might think. The lack of success of most business is high. Many businesses would like to think that if they…show more content…
The tenth term is debt. Debt symbolizes an accountability or debt of a business. Debt is commonly governed by mutual established upon agreement as supplied by the individual offering credit. For example, a financial institution loans $6 million to a business to buy supplementary assembly equipment to maintain the growth of a production facility. The financial institution sets up the terms and conditions of the debt agreements including the sum charged for use of the money, payback, and any other essential agreements needed. If the conditions are not met the business can be at risk at being in default. The eleventh term is yield. High yield investments have high "returns" on them and low yield low return. The twelfth term is rate of return. This is articulated as a fraction of the sum amount invested. The thirteen term is return on investment is the measure of a business worth, equal to a m year's revenue divided by common stock and preferred stock equity plus long-term debt. Return on investment calculates how efficiently the business employments its capital to produce profit; the higher the return on investment, the better. The fourteen term is Cash flow. Hypothetical, you can run a business so that the cash current equals gain (or deficit) for the period. Any currency of profit would yield any currency of cash inflow, or any currency deficit would cause any currency of cash flow. Example, suppose

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