Glossary:Non-financial corporations sector (2024)

FAQs

What is the non-financial corporate sector? ›

The non-financial corporations sector consists of institutional units which are independent legal entities and market producers, and whose principal activity is the production of goods and non-financial services.

This sector includes retailers, manufacturers, utilities, business service providers (such as accountancy and law firms), caterers, haulage companies, airlines, construction companies and farms, among others.

Non-financial corporations are incorporated legal entities that largely produce goods and services for the market. The “non-financial” label means that they principally engage in the production of non-financial goods and services, as opposed to financial services.

The financial account is the account of Financial Assets (such as loans, shares, or pension funds). The non-financial account deals with all the transactions that are not in financial assets, such as Output, Tax, Consumer Spending and Investment in Fixed Assets.

Examples of active non-financial entities are manufacturing companies, law firms, mining companies, estate agents, architect firms and farms.

Examples of for-profit corporations include airlines, construction firms, freight haulers, manufacturers, publishing companies, restaurants, retail stores, and shipping corporations.

Assets of financial institutions are typically financial assets such as loans and securities. On the contrary, non-financial companies hold tangible assets. For that reason, financial assets face direct exposure to risks such as credit risks, liquidity risks, market-rate risks, and interest rate risks.

not relating to money or how money is managed: Non-financial incentives have proven much less effective than financial ones. Couples also consider non-financial factors when deciding on when to retire.

non-economic. non-fiscal. non-monetary. non-market-based.

Non-financial services include information, education, networking/access to markets and recognition. They should complement the financial offerings of a bank.

What are two examples of non-financial information? ›

Factors like organizational culture or the company's environmental impact are both examples of non-financial data. Non-financial reporting, put simply, is a form of transparency reporting where businesses formally disclose certain information not related to their finances, including information on human rights.

Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops.

Sectoral classification that refers collectively to non-financial corporations and households, ie the non-financial sector excluding general government.

After all, goodwill denotes the value of certain non-monetary, non-physical resources, and that sounds like exactly what an intangible asset is. However, many factors separate goodwill from other intangible assets, and the two terms represent separate line items on a balance sheet.

There are two main types of financial institutions: banking and non-banking. Banking institutions include commercial banks, savings and loan associations, and credit unions. Non-banking financial institutions include insurance companies, pension funds, and hedge funds.

Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops. These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors or groups.