Z-Tranche
A Z-tranche is the lowest ranked portion of a split-investment that is paid off only when all the other senior tranches (aka installments) have been satisfied. A z-tranche comes with pre negotiated payment terms and enables investors to get equity in a company at the lower pre-money valuation when they made their initial investment. It also enables investors to gain more equity in the business because their staggered tranches are not self-diluting.
Zero Balance Account
A zero balance account (ZBA) is an account in which a balance of $0 is maintained. It is intentionally kept at $0 to maintain greater control over the disbursement of funds and to minimize the risk of fraud. When funds are needed, money is transferred from a central account. ZBAs are typically used to cover payroll, petty cash and other similar needs.
Zero Based Budgeting
Zero-based budgeting (ZBB) is a budgeting approach that entails developing a new budget from scratch every period. It ensures that managers think through every dollar they plan to spend, their operating expenses and the areas in which the company is generating revenue. Walgreens, Philip Morris, Unilever, and many others take a zero-based budgeting approach.
Zombie Bank
A zombie bank is a financial institution that continues to operate despite its liabilities exceeding its assets, its inability to service its loans. It continues its operations through governmental support.
Zombie Company
Zombie companies, also known as zombie firms, are organizations that continue operating despite its liabilities exceeding its assets, its inability to service its loans, or its ability to repay the interest on its debts but not the principal. Zombie firms are not common in the US, but they are present—mostly in the manufacturing and retail sectors. They typically rise in periods of economic compression, and fall during periods of economic expansion, and take bailouts in order to continue their operations.
Zombie Debt
Zombie companies, also known as zombie firms, are organizations that continue operating despite its liabilities exceeding its assets, its inability to service its loans, or its ability to repay the interest on its debts but not the principal. Zombie firms are not common in the US, but they are present—mostly in the manufacturing and retail sectors. They typically rise in periods of economic compression, and fall during periods of economic expansion, and take bailouts in order to continue their operations.