1.

Monopsony is the market situation whereby there is only one buyer of an item for which there
are no goods substitutes.
2. Declining balance method is a method of computing depreciation in which the annual charge
is a fixed percentage of the depreciated book value at the beginning of the year to which the
deprecation applies.
3. Interest rate the ratio of the interest payment to the principal for a given unit of time and
usually expressed as a percentage of the principal.
4. Discount defined as the future value minus the present value.
5. Book value is the worth of the property as shown in the accounting records.
6. Present worth factor is the mathematical expression also known as the present value of
annuity of one.
7. Double taxation is a disadvantage on a corporation business organization.
8. The simplest form of business organization is sole proprietorship.
9. An example of intangible asset is patents
10. Economic return the profit derived from a project or business enterprise without
consideration of obligations to financial contributors and claim of others based on profit.
11. Depletion refers to lessening of the value of an asset due to the decrease in the quantity
available.
12. Goodwill is the element of value which a business has earned through the favorable
consideration and patronage of its customers arising from its well conducted policies and
operations.
13. Market value the amount of property in which a willing buyer will to pay to a willing seller for
the property when either one is under the compulsion to buy or sell.
14. Bond defined as the certificate of indebtedness of corporation usually for a period not less
than 10 yrs and guaranteed by a mortgage on certain assets of a corporation.
- it is also a document that shows proof of legal ownership of a financial security
15. Capital gain is the increase in the value of the capital asset.
16. Joint Bond a bond issued jointly by two or more corporations
17. Equipment obligation bond the type of bond whose guaranty is lien on railroad equipment,
such as freight and passenger cars, locomotives etc.
18. Coupon is a type of bond to which are attached coupons indicating the interest due and the
date when such interest is to be paid.
19. Mortgage bond is a bond whose security is a mortgage on certain specified assets of the
corporation.
20. Debenture Bond is a bond without any security behind then except a promise to pay by the
issuing corporation.
21. Collateral trust bond is a type of bond where the corporation pledges securities which it owns
such as the stock or bonds of one of its subsidiaries.
22. Registered bond is a type of bond where the corporations owner name is recorded and the
interest is paid periodically to the owners with their asking for it.
23. Common stock represents the ownership of stockholders who have a residual claim on the
assets of the corporation after all claims have been settled.
24. Preferred stock represents ownership and enjoys certain preferences than ordinary stock.
25. Return of investment is the length of time usually in years, for the cumulative net annual
profit to equal the initial investment.
26. Deflation It is a sharp sudden increase in money or credit or both without corresponding
increase in business transactions.
27. Gross margin it is simply a measure of how much a product costs to make.
28. Cartel a formal organization of producers within an industry forming a perfect collusion
purposely formed to increase profit and block new comers from the industry.
29. Bank Note is the paper currency issued by the central bank which forms part of the countrys
money supply.