Category: Finance Dictionary

Separation process using the different boiling points of various compounds of volatile components in a mixture. As the compound boils into vapor, components are split from the remaining brew. As the vapor

Marine insurance position other that a ship sinking or stranding requiring a claim be a certain minimum amount or percentage of loss.

Measures bank’s ability to use free capital without having to liquidate its fixed assets to absorb bad debts. Formula: Free capital divided by bad debts.

Consumer incentive from offering an additional amount of a good.

Duty-free area in an airport, seaport, or other designated area. After paying the required duties, allows for goods stored, displayed, assembled, or processed for re-export or general market entry in the importing

Typically free-to-consumer reply-mail that a company pays for as an incentive to the consumer to reply. Postage plus a fee for each piece of mail received is the obligation of the company

Transportation carrier cost to transport goods. Different rates apply for type of goods, distance, weight, size, methods, and directions.

Measurable time out-of-work, like a contractor who is between contracts. Also, the time for an employee laid off and seeking other work. Temporary unemployment due to time lags job hunting if already

A ratio among several used by lenders to determine an applicant’s financial ability to pay back a loan. Contrast to the back end ratio as only applied-for loan installments are considered. The

Legal termination of a contract. Forgives non-performance. Except where contract terms override this implied legal provision, it automatically discharges the contract. It is not acceptable as an reason against foreseeable circumstances. It

A shipping container, under the risk and account of the shipper or consignee, being a standard twenty or forty foot, completely loaded and unloaded. Attracts lower freight rates in contrast with loose,

Total-service provider firm or person, Executing orders, and giving investment advice are typical services. Basing research on specific items can be an additional fee. Contrast discount brokers.

Valuation of useful life expenditure of an asset equals the over-time time-bound spread-of-cost of that asset. Worth only as salvage.

Business accessibility to money for its operations.

Human interaction theory. Uses primary dimensions of inclusion, control and affection. Scored on a scale of 09, a person is measured on expectations from others and communication to others. Each employee likely

An agreement within a mortgage allowing a borrower to get more money and increase a mortgage principal without redoing all existing paperwork on the existing mortgage. P