Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is an Information Memorandum (CIM)?

An information memorandum, also called a confidential information memorandum or CIM, is the formal document prepared by the seller to....

What are Indemnities?

Indemnities are contractual obligations in a purchase and sale agreement that require the seller to compensate the buyer for specific....

What is Intangible Capital (the 4Cs)?

Intangible capital is the collective term for the four non-financial value drivers, human, structural, social, and customer capital, that determine....

What is an Income Replacement Strategy?

An income replacement strategy is the plan for how income, dividends, and financial benefits provided by a business will be....

What are Intercompany Transactions?

Intercompany transactions are financial dealings between two or more entities under common ownership, including management fees, loans, shared services, and....

What is the Interest Coverage Ratio?

The interest coverage ratio measures how many times operating earnings cover interest expense, a key indicator of whether the business....

What are Instalment Penalties?

Instalment penalties are interest charges the CRA imposes when required tax instalments are paid late, short, or not at all,....

What is Income Splitting?

Income splitting is the practice of directing corporate income to family members in lower tax brackets to reduce the household’s....

What is an Income Statement?

The income statement shows revenue, costs, and expenses over a specific period and produces a net profit or loss figure....