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Junk Bonds

[juhngk bondz]

What is the definition of Junk Bonds?
Debt securities issued by companies with higher than normal credit risk, classified as 'non-investment grade' bonds. These securities typically offer a higher rate of interest to compensate for the increased risk.
Using Junk Bonds in an Example

A company struggling financially might issue junk bonds to raise capital quickly, offering high interest rates to attract investors despite the high risk of default.

Using Junk Bonds in a sentence

Due to their high yield, junk bonds can be an attractive investment option for those willing to accept greater risk in exchange for potentially higher returns.

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Jeopardy

In the context of tax collection, jeopardy refers to a situation where the IRS believes that the collection of tax is at risk of being uncollected, prompting immediate assessment and collection of such tax without the intermediate procedural steps.
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Job Order

A customer request for a specific quantity of products that are designed and manufactured to unique specifications.
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Joint Return

A tax return filed by married taxpayers or surviving spouses, combining their incomes, exemptions, deductions, and credits on a single form.
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Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants is responsible for profits, losses, and costs associated with the venture.
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Journal

A book or digital record in which all daily financial transactions are initially recorded in chronological order.
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Journal Entry

A record in the general journal that documents a single financial transaction, detailing the accounts affected and the amounts involved.
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Just-In-Time

An inventory management philosophy in which resources, including materials, personnel, and facilities, are utilized only as needed, with the goal of minimizing waste and increasing efficiency.
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