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Debt: That which is owed. Debt refers to borrowed funds and is generally secured by collateral or a co-signer.
Debtors: Customers who owe money to the business.
Debt capital: The part of the investment capital that must be borrowed.
Default: The failure to pay a debt or meet an obligation.
Decentralised: A management structure in which many decisions are not taken at the centre of the business but are delegated to lower levels of management.
De-industrialisation: Occurs when there is a decline in the importance of the secondary (or manufacturing) sector of industry in a country.
Deficit: The excess of liabilities over assets; a negative net worth.
Deficit financing: The borrowing of money because expenditures will exceed receipts.
Deficit spending: Government spending financed by borrowing rather than taxation.
Deflation: A reduction in the general level of prices sustained over several months, usually accompanied by declining employment and output.
Delegation: Giving a subordinate the authority to perform particular tasks (NB it is the authority to perform a task which is being delegated – not the final responsibility)
Democratic leadership: Senior employees consult with junior ones in policy-making.
Depreciation: A decrease in value through age, wear or deterioration. Depreciation is a normal expense of doing business that must be taken into account. There are laws and regulations governing the manner and time periods that may be used for depreciation.
Desktop publishing: Commonly used term for computer-generated printed materials such as newsletters and brochures.
Devaluation: A reduction in the official fixed rate at which one currency exchanges for another under a fixed-rate regime, usually to correct a balance of payments deficit.
Development area: A region of a country where businesses will receive financial support to establish themselves (often regions of high employment)
Development capital: Finance for the expansion of an established company.
Differentiated marketing: Selecting and developing a number of offerings to meet the needs of a number of specific market segments.
Direct cost: Ma variable cost directly attributable to production. Items that are classed as direct cost include materials used, labor deployed, and marketing budget, and amounts spent will vary with output.
Direct mail: Marketing goods or services directly to the consumer through the mall. Direct mail is one tool that can be used as part of a marketing strategy. The use of direct mail is often administered by third-party companies that own databases containing not only names and addresses, but also social, economic, and lifestyle information. It is sometimes seen as an invasion of personal privacy, and there is some public resentment of this form of advertising. This is particularly true of e-mailed direct mail, known derogatively as SPAM.
Direct selling: The process whereby the producer sells to the user, ultimate consumer or retailer without intervening middlemen such as wholesalers, retailers, or brokers. Direct selling offers many advantages to the customer, including lower prices and shopping from home. Potential disadvantages include the lack of after-sales service, an inability to inspect products prior to purchase, lack of specialist advice, and difficulties in returning or exchanging goods.
Direct tax: Taxes paid directly from incomes, such as income tax or profit tax.
Dirty price: The price of a debt instrument that includes the amount of accrued interest that has not yet been paid.
Discount: A deduction from the stated or list price of a product or service in relation to the standard price. A discount is a selling technique to encourage customers to buy and is offered for a variety of reasons: for buying in quantity or for repeat buying; as a special offer to move a slow-moving line or for paying by cash, etc.
Diseconomies of scale: The factors that lead to an increase in average costs as a business grows beyond a certain size.
Disposable income: The level of income a taxpayer has after paying income tax.
Distribution channel: All of the individuals and organizations involved in the process of moving products from producer to consumer. The route a product follows as it moves from the original grower, producer or importer to the ultimate consumer.
Distributor: Middleman, wholesaler, agent or company distributing goods to dealers or companies.
Diversification: same as conglomerate integration.
Dividends: Payments made to shareholders from the profits of a company after it has paid corporation tax.
Division of labour: When the production process is split up into different tasks and each worker performs one of these tasks.
Also known as specialisation.
Downsize: Term currently used to indicate employee reassignment, layoffs and restructuring in order to make a business more competitive, efficient, and/or cost-effective.