Costs which stay the same for a given period of time over a given output.
Functions of money
Medium of exchange, store of value, unit of account, standard of deferred payment.
Goodwill
The value a business can command in addition to the value of its tangible assets.
Hire purchase
Form of purchase in which a good is bought by installments but the ownership remains with the vendor until the full price has been paid.
Historic cost
The valuation of assets at their original cost rather than their current market value.
Indirect costs
Costs which cannot be allocated directly to a named product.
Investment
Commitment of resources to a particular project.
Leasing
A contract in which the owner of an asset (the lessor) agrees to hire that asset for a sum of money to another person or organization (the lessee). The lessor retains ownership but not use of the asset.
Liquid assets
Assets which can be converted into money without loss of value.
Management buy-out
A situation in which the existing management of a subsidiary buy it from the parent company. When the majority of the required capital is provided by external loans it is called a leveraged management buy-out.
