bankrupt

Definition

To reduce someone or something to a state of financial ruin, or the unfortunate individual experiencing this state. It's the economic equivalent of a reset button that nobody wants to press.

Example Usage

The failed business venture would bankrupt the investors if not for their insurance.

Source: Merriam-Webster Legal Dictionary

Related Terms

Intermediate

rateable

Subject to being taxed or assessed for local taxes—basically, the government's way of deciding whether your property owes money. If it's rateable, prepare your wallet.

💰 Finance / Accounting

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Consolidated Financial Statements

Combining financial results from a parent company and all its subsidiaries into one statement—to hide where the actual problems are located.

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debenture

A fancy IOU from a corporation that's basically backed by nothing more than a firm handshake and the company's stellar reputation. Unlike bonds secured by actual assets, debentures rely solely on the issuer's creditworthiness—think of it as lending money to your successful friend who promises they're good for it, except your friend is a Fortune 500 company. If they go belly-up, you're just another creditor in a very long line.

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operating margin

Operating income divided by revenue, showing what percentage of sales remains after covering operating expenses but before interest and taxes. It's the profitability measure that reveals whether your business model works or you're just moving money around creatively.

💰 Finance / Accounting

Intermediate

basis

The foundation or starting point for literally anything, from arguments to tax calculations to why your accounting department insists on doing things 'the old way.' In finance, it's the original cost of an asset used to calculate gains or losses. In business discussions, it's the justification people grasp at when they need to sound like they have a plan.

💰 Finance / Accounting

Advanced

IFRS

International Financial Reporting Standards—GAAP's global cousin that's supposed to harmonize accounting worldwide, with mixed success.

💰 Finance / Accounting

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