Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is Security and Collateral?

Security is the legal claim a lender takes over specific assets to protect its position if the borrower defaults; collateral....

What is the Small Business Deduction (SBD)?

The Small Business Deduction is a federal tax reduction that lowers the corporate tax rate on active business income for....

What is a Shareholder Loan?

A shareholder loan is money borrowed from or lent to a corporation, and the CRA monitors it closely to ensure....

What is a Section 85 rollover?

A Section 85 rollover is a provision of the Income Tax Act that allows eligible property to be transferred to....

What is Scientific Research and Experimental Development (SR&ED)?

SR&ED is the CRA’s tax incentive program that provides credits and deductions for eligible research and development expenditures, one of....

What is the difference between salary and dividends?

Salary is employment income paid to the owner-employee and is deductible to the corporation; dividends are distributions of after-tax corporate....