I wanted to (finally) give you a money dictionary that doesn’t require a dictionary to understand the word’s definition. That doesn’t exist . . . so I made my own. You know how you explain a term to a friend who doesn’t “get” it? That’s the way it’s written here. Let this glossary be your go-to guide for definitions with a practical perspective whenever you need a little cheat-sheet. Some stuff changes over the years, but these basics never go out of style.
Key (wo)man insurance -
A life insurance policy taken out by a company on the life of the founder or CEO or other person without whom the company could
no longer function. The policy is meant to pay off the company’s debts and provide severance to employees in the event that, God forbid, something happens to that essential or “key” person.
Key Rate -
Key Rate: It’s the rate that determines what banks charge on loans. You like low key rates when you’re borrowing money for investing in starting your own business or paying down your credit card. Conversely, you actually prefer high key rates when you’re being more responsible with your spending and putting your money in a savings account because that means you’ll get more interest on the money you put into the bank.
The most relevant and descriptive words to describe your business that will help steer search engine users to your website or advertisement.
Knowledge Capital -
Knowledge Capital: This is a way companies describe the value each individual employee brings to the table. For example, your own personal knowledge capital is made up of your experience, professional skills, knowledge of a particular industry, your ability to work with a team, your amazing ideas, etc. Obviously as a business you want the most knowledge capital as possible, so you hire the most skilled employees that you can find—and afford.