GMAT
Adjustable-Rate Mortgage (ARM) - ANSWER A loan with an interest rate that changes
periodically in keeping with a current index, such as one-year treasury bills.
Agreement of Sale - ANSWER A contract where a seller agrees to sell and a buyer
agrees to buy, under specific terms and conditions spelled out in writing and signed by
both parties.
Amortization - ANSWER Paying off debt with installments, where the installments can
be either a series of equal payments or, more commonly, a calculated schedule of
payments that includes accumulation of interest. This calculation process is also often
used to determine usage and depreciation on assets.
Annual Percentage Rate (A.P.R.) - ANSWER The interest percentage of a loan,
including all finance charges and other payments and credits, averaged over the course
of a year.
Appraisal - ANSWER A process of evaluating, estimating or determining the value of
property or assets. This term is often used when discussing property values and asset
evaluation. In addition, a "performance appraisal" is a common term for regular
overviews of an employee's work in a company, which frequently impact salary and
bonuses.
Blanket Mortgage - ANSWER A mortgage or trust deed that covers more than one lot or
parcel of real property, and often an entire subdivision. As individual lots are sold, a
partial re-conveyance or release from the blanket mortgage is usually obtained.
Certificate of Title - ANSWER A document issued by a title company, registrar, or
attorney stating that the ownership of a piece of property is vested as stated on the
document.
Closing - ANSWER The process of executing legally binding documents, such as deeds
and mortgages commonly associated with the purchase of real estate and borrowing
money to assist in the purchase. Also known as "escrow" or "settlement."
Deed - ANSWER A formal written agreement by which title to real property is
transferred from one owner to another.
Easement Rights - ANSWER A right-of-way granted to a person, organization, or
government authorizing access to or over the owner's land.
Equity - ANSWER Ownership in a corporation in the form of common or preferred stock.
It also refers to total assets minus total liabilities, in which case it is referred to as
shareholder's equity, net worth or book value.
Escrow - ANSWER Funds paid by one party to another to hold until the occurrence of
an event, after which the funds are released to a designated individual.
,GMAT
Federal Housing Administration (FHA) Guarantee - ANSWER An insurance contract in
which FHA insures that the named lender will recover a specific percentage of the loan
amount from the insurer in the event that the loan goes bad.
Fee Simple - ANSWER Unrestricted ownership of property, in which the owner has
complete control, though the property is still subject to taxes.
Fixed-Rate Mortgage - ANSWER A loan that carries an unchangeable interest rate over
its entire term, typically a period of 15-30 years.
Foreclosure - ANSWER A proceeding to take away all rights, title, and interest of the
owner of property in order to sell the property to satisfy a lien against it.
Full Disclosure - ANSWER In real estate, disclosing all the known facts that may affect
the decision of a buyer or tenant.
Homeowner's Insurance - ANSWER Real estate insurance protecting against loss
caused by fire, some natural causes, vandalism, etc., depending on the terms of the
policy.
HUD - ANSWER U.S. Department of Housing and Urban Development. This federal
department is responsible for the major housing programs in the United States, such as
FHA.
Lease - ANSWER An agreement by which an owner of real property gives the right of
possession to another for a specified period of time and payment.
Market Value - ANSWER The price that a home will get on the market, based on
comparisons to similar homes that have sold recently in the area.
Mortgage - ANSWER A lien on real property that is given by the buyer to the lender as a
security for money borrowed.
Mortgage Broker - ANSWER A person or company who negotiates mortgages for
another person or company in order to receive a commission.
Mortgage Insurance - ANSWER Insurance written by an independent mortgage
insurance company that protects the mortgage lender against loss experienced by a
mortgage default.
Negative Amortization - ANSWER A circumstance that occurs when a loan payment is
less than the principal and interest due on a loan.
Private Mortgage Insurance/P.M.I. - ANSWER Insurance that is part of a mortgage
contract to protect the lender.
,GMAT
Real Estate - ANSWER Also called "real property," it is land and anything permanently
attached to the land, such as buildings, fences and items that are attached to the
buildings.
Real Estate Broker - ANSWER A middleman or agent who purchase and puts up for
sale real estate for a company, firm or individual in order to receive a commission.
Realtor - ANSWER The term for a professional real estate broker who is a member of a
national association of realtors and who follows its rules and regulations.
Tax Sale - ANSWER The auctioning and sale of real estate for which the owner has not
paid property taxes.
Account Manager - ANSWER The person in charge of particular customers,
departments, or employees.
Affiliate - ANSWER In online retail, a website that will steer traffic to an alternative site
for a percentage of sales.
Affinity Marketing - ANSWER Marketing targeted at a specific audience that shares
common interests connected to a product. Also, a campaign sponsored through
cooperation between different companies.
Attribute - ANSWER A feature of a product that makes it distinct or attractive.
Banner - ANSWER An ad on an internet Web page that is usually connected to the
advertiser's web site.
B2B - ANSWER "Business-to-business". This refers to an exchange between
businesses, where one business is the "customer". Frequently used in association with
e-commerce and advertising, when targeting businesses as opposed to consumers.
Brand - ANSWER A name, term, sign or symbol utilized for discovery and classification
purposes of products or services. A brand can be both a physical and emotional trigger
that causes a relationship to be formed between consumers and the product or service.
Brand Attributes - ANSWER Practical or emotional connections that are associated with
a brand by its customers and potential customers.
Brand Equity - ANSWER The amount of worth in both tangible assets and intangible
assets that a brand adds to a product or service.
Brand Extension - ANSWER Utilizing an already established brand to sell or promote
new products or services.
, GMAT
Brand Loyalty - ANSWER The commitment of a customer to one particular brand, such
that they will purchase it even if the price is higher or other options exist.
Brand Management - ANSWER The handling of a company's brand to maximize the
equity in the brand and the increase in value of the associated assets.
Brand Positioning - ANSWER The effort put into making sure a specific brand is easily
identified by customers, and also the presence that brand has in the marketplace.
Brand Repositioning - ANSWER The attempt to try to change a consumer's viewpoint of
a specific brand.
Broadcasting - ANSWER Advertising services or products to a large audience through
television, radio, or the internet.
Business-to-Consumer (B2C) - ANSWER Sales made directly to the end user, rather
than through another business entity.
Buzz - ANSWER What "word-of-mouth" marketing is called, where customers
communicate about the product to other potential customers.
Call Center - ANSWER An inbound telephone office in a company that handles
inquiries, technical support calls, product orders, or other communications with
customers.
Call to Action - ANSWER The point in a promotion or advertisement where a customer
is encouraged to do something, such as purchase a product, sign up for a service, or fill
out a form.
Click-Through - ANSWER When a viewer clicks on an ad on a website to go to the
advertiser's linked site. The click-through rate is a way of measuring the frequency of
viewer response and action.
Customer Service - ANSWER Making sure the customers have a pleasant and positive
experience when purchasing a product.
Data-mining - ANSWER The process of using technology to identify patterns and
prospects from large amounts of information.
Demographics - ANSWER Data that portrays specific characteristics of a group of
people (e.g., sex, race, age, geographic location). Used as a noun, it means a set of
people who are grouped because of their similarity in one or more aspects.
Direct Marketing - ANSWER All the different ways in which a company can advertise
products or services, or broadcast information in general, directly to the consumer.
Adjustable-Rate Mortgage (ARM) - ANSWER A loan with an interest rate that changes
periodically in keeping with a current index, such as one-year treasury bills.
Agreement of Sale - ANSWER A contract where a seller agrees to sell and a buyer
agrees to buy, under specific terms and conditions spelled out in writing and signed by
both parties.
Amortization - ANSWER Paying off debt with installments, where the installments can
be either a series of equal payments or, more commonly, a calculated schedule of
payments that includes accumulation of interest. This calculation process is also often
used to determine usage and depreciation on assets.
Annual Percentage Rate (A.P.R.) - ANSWER The interest percentage of a loan,
including all finance charges and other payments and credits, averaged over the course
of a year.
Appraisal - ANSWER A process of evaluating, estimating or determining the value of
property or assets. This term is often used when discussing property values and asset
evaluation. In addition, a "performance appraisal" is a common term for regular
overviews of an employee's work in a company, which frequently impact salary and
bonuses.
Blanket Mortgage - ANSWER A mortgage or trust deed that covers more than one lot or
parcel of real property, and often an entire subdivision. As individual lots are sold, a
partial re-conveyance or release from the blanket mortgage is usually obtained.
Certificate of Title - ANSWER A document issued by a title company, registrar, or
attorney stating that the ownership of a piece of property is vested as stated on the
document.
Closing - ANSWER The process of executing legally binding documents, such as deeds
and mortgages commonly associated with the purchase of real estate and borrowing
money to assist in the purchase. Also known as "escrow" or "settlement."
Deed - ANSWER A formal written agreement by which title to real property is
transferred from one owner to another.
Easement Rights - ANSWER A right-of-way granted to a person, organization, or
government authorizing access to or over the owner's land.
Equity - ANSWER Ownership in a corporation in the form of common or preferred stock.
It also refers to total assets minus total liabilities, in which case it is referred to as
shareholder's equity, net worth or book value.
Escrow - ANSWER Funds paid by one party to another to hold until the occurrence of
an event, after which the funds are released to a designated individual.
,GMAT
Federal Housing Administration (FHA) Guarantee - ANSWER An insurance contract in
which FHA insures that the named lender will recover a specific percentage of the loan
amount from the insurer in the event that the loan goes bad.
Fee Simple - ANSWER Unrestricted ownership of property, in which the owner has
complete control, though the property is still subject to taxes.
Fixed-Rate Mortgage - ANSWER A loan that carries an unchangeable interest rate over
its entire term, typically a period of 15-30 years.
Foreclosure - ANSWER A proceeding to take away all rights, title, and interest of the
owner of property in order to sell the property to satisfy a lien against it.
Full Disclosure - ANSWER In real estate, disclosing all the known facts that may affect
the decision of a buyer or tenant.
Homeowner's Insurance - ANSWER Real estate insurance protecting against loss
caused by fire, some natural causes, vandalism, etc., depending on the terms of the
policy.
HUD - ANSWER U.S. Department of Housing and Urban Development. This federal
department is responsible for the major housing programs in the United States, such as
FHA.
Lease - ANSWER An agreement by which an owner of real property gives the right of
possession to another for a specified period of time and payment.
Market Value - ANSWER The price that a home will get on the market, based on
comparisons to similar homes that have sold recently in the area.
Mortgage - ANSWER A lien on real property that is given by the buyer to the lender as a
security for money borrowed.
Mortgage Broker - ANSWER A person or company who negotiates mortgages for
another person or company in order to receive a commission.
Mortgage Insurance - ANSWER Insurance written by an independent mortgage
insurance company that protects the mortgage lender against loss experienced by a
mortgage default.
Negative Amortization - ANSWER A circumstance that occurs when a loan payment is
less than the principal and interest due on a loan.
Private Mortgage Insurance/P.M.I. - ANSWER Insurance that is part of a mortgage
contract to protect the lender.
,GMAT
Real Estate - ANSWER Also called "real property," it is land and anything permanently
attached to the land, such as buildings, fences and items that are attached to the
buildings.
Real Estate Broker - ANSWER A middleman or agent who purchase and puts up for
sale real estate for a company, firm or individual in order to receive a commission.
Realtor - ANSWER The term for a professional real estate broker who is a member of a
national association of realtors and who follows its rules and regulations.
Tax Sale - ANSWER The auctioning and sale of real estate for which the owner has not
paid property taxes.
Account Manager - ANSWER The person in charge of particular customers,
departments, or employees.
Affiliate - ANSWER In online retail, a website that will steer traffic to an alternative site
for a percentage of sales.
Affinity Marketing - ANSWER Marketing targeted at a specific audience that shares
common interests connected to a product. Also, a campaign sponsored through
cooperation between different companies.
Attribute - ANSWER A feature of a product that makes it distinct or attractive.
Banner - ANSWER An ad on an internet Web page that is usually connected to the
advertiser's web site.
B2B - ANSWER "Business-to-business". This refers to an exchange between
businesses, where one business is the "customer". Frequently used in association with
e-commerce and advertising, when targeting businesses as opposed to consumers.
Brand - ANSWER A name, term, sign or symbol utilized for discovery and classification
purposes of products or services. A brand can be both a physical and emotional trigger
that causes a relationship to be formed between consumers and the product or service.
Brand Attributes - ANSWER Practical or emotional connections that are associated with
a brand by its customers and potential customers.
Brand Equity - ANSWER The amount of worth in both tangible assets and intangible
assets that a brand adds to a product or service.
Brand Extension - ANSWER Utilizing an already established brand to sell or promote
new products or services.
, GMAT
Brand Loyalty - ANSWER The commitment of a customer to one particular brand, such
that they will purchase it even if the price is higher or other options exist.
Brand Management - ANSWER The handling of a company's brand to maximize the
equity in the brand and the increase in value of the associated assets.
Brand Positioning - ANSWER The effort put into making sure a specific brand is easily
identified by customers, and also the presence that brand has in the marketplace.
Brand Repositioning - ANSWER The attempt to try to change a consumer's viewpoint of
a specific brand.
Broadcasting - ANSWER Advertising services or products to a large audience through
television, radio, or the internet.
Business-to-Consumer (B2C) - ANSWER Sales made directly to the end user, rather
than through another business entity.
Buzz - ANSWER What "word-of-mouth" marketing is called, where customers
communicate about the product to other potential customers.
Call Center - ANSWER An inbound telephone office in a company that handles
inquiries, technical support calls, product orders, or other communications with
customers.
Call to Action - ANSWER The point in a promotion or advertisement where a customer
is encouraged to do something, such as purchase a product, sign up for a service, or fill
out a form.
Click-Through - ANSWER When a viewer clicks on an ad on a website to go to the
advertiser's linked site. The click-through rate is a way of measuring the frequency of
viewer response and action.
Customer Service - ANSWER Making sure the customers have a pleasant and positive
experience when purchasing a product.
Data-mining - ANSWER The process of using technology to identify patterns and
prospects from large amounts of information.
Demographics - ANSWER Data that portrays specific characteristics of a group of
people (e.g., sex, race, age, geographic location). Used as a noun, it means a set of
people who are grouped because of their similarity in one or more aspects.
Direct Marketing - ANSWER All the different ways in which a company can advertise
products or services, or broadcast information in general, directly to the consumer.
