Interest rate: the percentage of the principal paid by the borrower to the lender for the use of the lender's money.

Rate of return: the amount of interest or dividends stated as a percentage of the principal of an investment.

Savings account: an account maintained by a customer with a depository institution for the purpose of accumulating funds over a period of time.

Time deposit: money placed with a bank in a deposit account earning interest and needing at least 30 days’ notice of withdrawal.

Taxation

Ability-to-pay principle of taxation: a form of taxation in which taxes are levied on the basis of the taxpayer’s ability to pay

Benefits-received principle of taxation: a form of taxation in which taxpayers pay according to the amount of benefits that they receive from government programs.

Consumption tax: a tax on certain goods, especially goods that people buy for pleasure or enjoyment rather than those people buy regularly in order to live

Excise tax (duty): a tax charged on certain goods and services produced and sold within the country, such as alcoholic drinks and tobacco products.

Income tax: a tax on the income earned by individuals and corporations.

Progressive tax: a tax that takes more money from people with higher incomes than from people with lower incomes.

Property tax: a tax based on the value of property owned by the taxpayer.

Proportional tax: a tax in which the amount of tax paid is proportional to the size of the taxable income.

Regressive tax: a tax that has less effect on the rich than on the poor.

Sales tax: a regressive tax added to the price of goods and services at the time they are sold.

Tariff: a tax imposed on goods on which country’s government requires special payment on being imported into that country.

Tax: money compulsory levied by government on individuals, property, businesses.

Taxation: compulsory impositions on individuals and organizations made by government to raise revenue to finance its expenses.

Tax incidence (incidence of the tax): an impact of a tax on those who bear the burden, rather than those who pay it.

Value-added tax is a tax levied on the value added to goods at every stage of production.

Bussiness organization

Board of directors: elected representatives of corporate stock-holders.

Corporation: a business organization created under a government charter.

Dividends: payments made from the earnings of a corporation to its stockholders.

Liability: any claim on, or debt of, a business or individual.

Limited liability: an advantage of a corporation allowing a stockholder no legal responsibility for the debts beyond the sum he or she has invested in the corporation.

Partnership: an unincorporated business organization owned by two or more persons.

Sole proprietorship: a business that is owned by one person.

Stock: a share in the ownership in a corporation.

Stockholder: an owner of stock in a corporation

Unlimited liability: a require-ment that the owner or owners assume full responsibility for all losses or debts of a business.