The Ultimate Business Course_ Conventional Business Terminology Part Ten

This is part ten of the conventional business terminology part of this business course. I hope thus far you have improved your financial knowledge substantially, and that you now understand business more clearly and effectively.

Here is the next list of words. Make sure that you understand them and know how to apply them:

1. OVERHEAD:
An expense that cannot be attributed to any one single part of the company's activities.

2. QUICK RATIO:
This is the same ratio as the acid test ratio.

3. RESERVES:
Reserves are the accumulated and retained difference between profits and losses for the year.

4. RESTRICTED FUNDS:
These are the funds used by the organisation that are restricted or earnmarked by a donor for a specific purpose which can be extremely specific or quite broad.

5. RETURN ON CAPITAL EMPLOYED:
A fundamental financial performance measure. A percentage figure representing profit before interest against the money that is invested in the business.

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