Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is Transferable Value?

Transferable value is the portion of enterprise value that would survive if the owner stepped away, the share of what....

What is Transferability?

Transferability is the degree to which a business can operate, perform, and retain its value after ownership changes, independently of....

What is the Three Legs of the Stool?

The Three Legs of the Stool is the Exit Planning Institute’s framework for a successful exit, representing business readiness, financial....

What is Transition Planning?

Transition planning is the operational roadmap for handing over leadership, relationships, and institutional knowledge from the departing owner to whoever....

What is the difference between a Term Loan and Revolving Credit?

A term loan advances a fixed amount repaid on a set schedule; revolving credit provides a limit that can be....

What is Tax Planning?

Tax planning is the proactive structuring of business and personal affairs to minimize tax owed within the law, the difference....

What is Tax on Split Income (TOSI)?

TOSI is a set of rules that applies the highest personal marginal tax rate to certain income received by family....

What is Tax Deferral?

Tax deferral is the strategy of delaying when tax becomes payable, allowing money to remain in a corporation or a....

What is a T2 Corporate Tax Return?

The T2 is the annual corporate income tax return that Canadian corporations must generally file with the CRA, regardless of....

What is Trust Accounting?

Trust accounting is the strict segregation and tracking of client funds held in trust, a legal and regulatory requirement for....