Business Terms and Definitions (B)
Bad Debt: Debt that may never be recovered by the issuing party due to the borrowers financial position.
Balanced Fund: A mutual fund that places it's resources in different investment vehicles to insure a balance in risk. Resources are put in preferred stocks and bonds for income and in certain common stocks for growth.
Balance Sheet: A statement that records the profits and losses of a business over a period of time by tracking cash resources and providing an insight to the profitability of a company.
Bankruptcy: A legal action designed to help individuals (and businesses) who have become overburdened with debt and cannot meet their financial responsibilities. Bankruptcy is designed to eliminate part or all of accumulated debt and to give relief to those in serious financial trouble by stopping creditors from taking action for collecting on their debts.
Bear Market: When the stock market hits a low point and the prices of stock drops for a prolonged time.
Beneficiary: A person, group of people, or a charitable or other type of organization, that benefits from a trust, proceeds in a property, or to which an insurance policy or annuity is paid.
Bid Price: The dollar amount offered by an individual, partnership, or other organizations on real estate or other commodities that may be offered for sale or auction. The minimum bid price may already be established by the seller.
Blue Chip Stock: The stock from a company that is looked upon favorably because of a well established tract record.
Bonds: Legal instruments of credit that come in many forms such as municipal, treasury, junk, savings, zero-coupon, corporate, etc., in which a sum is agreed to be paid to the holder at a designated time in which certain conditions are applied. Bonds are bought and held for their value as an investment, garnering interest over a period of time while maintaining their purchase or face value.
Bond Rating: The measurement used to determine how a bond issuer is able to make principal and interest payment obligations.
Bookkeeping: The record keeping aspect of accounting that is applied in the preparation of financial statements for taxation and other data that companies and individuals use to keep track of business and personal expenses and obligations.
Budget Deficit: When more money is spent than money earned. Deficits can be personal, business, or governmental.
Bull Market: When the prices of stock goes on an upward trend for a prolonged period.
Business: An organization that is created to participate in a particular form of activity, usually for profit. Businesses are usually formed by individuals, but may be entered into as partnerships, corporations, co-operatives, and other entities.
Business Cycles: Recurring changes in business or economic prosperity and conditions. Changes may run from times of good economic times to bad times, and them back to good times. Cycles may be seen from year to year, every five year, every ten years, and so on.
Business Finance: Money that is made available by banks and other sources for commercial use through short term and long term loans and equity share capital.
Buying Power: The investment capacity an individual or a company has using the available cash, or borrowed capital, at their disposal.
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