Financial Terms in Business Quiz

ROI measures the profitability of an investment relative to its cost.

GDP measures the economic output of a nation.

Diversification involves investing in a variety of assets to minimize the impact of any single investment's performance.

Stock is a type of security representing ownership in a company and offering potential dividends and capital gains.

EPS indicates the portion of a company's profit allocated to each outstanding share of common stock.

LTV represents the ratio of a loan to the value of an asset purchased.

IPO is the process of offering shares of a private corporation to the public for the first time.

Principal is the original sum of money borrowed or invested, excluding interest.

Quick Ratio assesses a company's ability to cover short-term liabilities with its liquid assets.

Discount Rate is the rate at which the central bank lends money to commercial banks, influencing overall interest rates.

Dividend Yield indicates the percentage return on a stock investment in the form of dividends.

EBITDA reflects a company's operating performance before accounting for non-operating expenses.

Quick Ratio assesses a company's ability to cover short-term liabilities with its liquid assets.

APR is the annualized rate charged for borrowing money or earned through an investment.

Rate of Return measures the gain or loss on an investment relative to its initial cost.