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Question 1

stock Exchange

Answer 1

Stock exchange facilities, stock brokers to trade companies, stocks, and other securities

Question 2

Equity financing

Answer 2

Equity financing is the process of raising capital through the sale of shares

Question 3

Debt financing

Answer 3

The act of raising capital by borrowing money from the lender or a bank to be repaid at the future date

Question 4

portfolio

Answer 4

All investments owned by an individual or organisation

Question 5

Interest

Answer 5

The price paid for borrowing money paid to the lenders

Question 6

commodity market

Answer 6

Trade in a row or primary products rather than manufactured products

Question 7

principle

Answer 7

Business principal are the core values that guide companies decision and behaviour

Question 8

tax deductible

Answer 8

Means expenses or contributions that can lower the amount of taxes you all

Question 9

dividend

Answer 9

Payments by companies to their shareholders

Question 10

Bull market

Answer 10

when the investments prices are rising

Question 11

Beer market

Answer 11

when the investments prices are falling

Question 12

coupon

Answer 12

The amount of interest that bonds pay is

Question 13

Break even point

Answer 13

That point when the total cost and total revenue are equal

Question 14

going bankrupt

Answer 14

Unable to pay ones debts

Question 15

underwriting the issue

Answer 15

The process through which an individual or institution takes on financial risks for a fee

Question 16

Listed companies

Answer 16

listed companies means a company who has its equity share capital officially listed on a particular stock exchange

Question 17

maturity, date of a bond

Answer 17

The date on which the principal amount of the note, draft acceptance, bond, or other debt instrument becomes due

Question 18

Bond

Answer 18

Certificates of debt issued by governments or companies to raise money

Question 19

stock and shares

Answer 19

Certificates representing part ownership of a company

Question 20

Yield

Answer 20

The rate of income, an investor receives from security

Question 21

to plunge

Answer 21

To fall very quickly, and suddenly

Question 22

Market leader

Answer 22

A company with the largest market share in the industry they are the one who has the highest revenue, every other company tried to copy the strategy, etc

Question 23

Market Challenger

Answer 23

The company already hoarding, the majority share in the market and competing with the current market leader

Question 24

Market followers

Answer 24

strategy used by an organisation who imitate what the market leader does

Question 25

USP

Answer 25

Unique, selling proportion means informing customers about how our own brand or product is better than its competitors

Question 26

market segment

Answer 26

Dividing a market into distinct groups of buyers who have different requirements or buying habits

Question 27

niche

Answer 27

a focused to differentiate themselves from the competition

Question 28

equities

Answer 28

part ownership of a company in the form of stocks or shares

Question 29

horizontal integration

Answer 29

Is when a company gets bigger by acquiring competitors in the same field of activity

Question 30

Vertical integration

Answer 30

Is acquiring companies involved in other parts of the supply chain usually to make cost savings

Question 31

backward integration

Answer 31

Is acquiring suppliers of raw materials or components

Question 32

forward integration

Answer 32

Is buying distributors or retail outlets

Question 33

raid

Answer 33

A company can buy as many shares as possible on the stock market to gain majority

Question 34

takeover bid

Answer 34

A company can offer to buy all shareholder’s shares at the certain price at during a limited period of time

Question 35

friendly takeover bid

Answer 35

If a company’s board of directors agree to take over

Question 36

friendly takeover

Answer 36

If the shareholders agreed to sell, it becomes friendly takeover

Question 37

hostile takeover bid

Answer 37

If the company doesn’t want to be taken over

Question 38

hostile takeover

Answer 38

When the taken over progress is successful

Question 39

Joint venture

Answer 39

Two or more companies decide to work together for a specific project or product

Question 40

controlling interest

Answer 40

when he or she owns more than 50% of the company is voting shares, giving him or her the deciding voice in shareholders meetings and control over companies direction

Question 41

Diversify

Answer 41

when companies can also buy businesses in completely different fields to reduce the risk involved in operating in only one industr

Question 42

conglomerate

Answer 42

Group of companies operating in different fields which have joined together

Question 43

subsdiary

Answer 43

Economically it belongs to the founding company. The parent company can support it with money, take financial resource from it.

Question 44

market capitalisation

Answer 44

The total value of the companies share of stocks

Question 45

Pension fund

Answer 45

create an opportunity for its members to save for their retirement years during the active years, using the income of the active years in save an efficient way

Question 46

What are the two main ways established companies can raise money?

Answer 46

They can issue bonds and shares

Question 47

What are the two main ways governments can raise money?

Answer 47

They can raise taxes and issue bonds

Question 48

how do companies regular the finance their activities?

Answer 48

with issuing bonds by way of internally generated, cash flows. If they need more money, they can either sell shares or borrow, usually by using bonds

Question 49

what companies do when they want to expand?

Answer 49

Increase advertising, use social media, follows trends making products or services partner with other businesses franchising

Question 50

what’s the difference between bonds and shares in terms of income and repayment?

Answer 50

Bonds offer fixed interest payments, while shares provide income through dividends and capital gains

Question 51

Explain the meaning of public in the name of public limited company

Answer 51

public it’s legally allowed to every person to buy shares in a company

Question 52

describe market, structure, and composition

Answer 52

Market structure is when companies are able to differentiated and categorised based on the type of goods they sell, and how external factors and elements influence their operation Market competition is in a business environment for different firms located both within and out of the country had to compete with one another solelz on the merits of the goods and services

Question 53

what is the difference between horizontal and vertical integration?

Answer 53

Horizontal when a company, gets a bigger about acquiring competitors in the same field Vertical is acquiring companies involved in other parts of a the supply chain

Question 54

what is the difference between backward and forward integration?

Answer 54

in short backward integration involves buying part of the supply chain that occurs priority, companies manufacturing process while forward integration involves buying part of the process that occurs after the companies manufacturing process

Question 55

what is the difference between a raid and takeover bid?

Answer 55

raid is when a company can buy as many shares as possible on the stock market, but a takeover bid is when a company can offer to buy shareholders during a limited period of time

Question 56

What’s the difference between a friendly and a hostile takeover bid

Answer 56

Friendly takeover bid if the shareholders agrees to sell Hostile takeover bid: hostile takeover merely requires the shareholders agreement