Back-to-back loan: an arrangement in which two companies in different countries borrow offsetting amounts in each other's currency and each repays it at a specified future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.

Back office: the administrative staff of a company who do not have face-to-face contact with the company's customers.

Back pay: pay that is owed to an employee for work carried out before the current payment period and is either overdue or results from a backdated pay increase.

Backup: a period in which bond yields rise and prices fall, or a sudden reversal in a stock market trend.

Bad debts: Money owed to you that cannot be collected.

Balance: The amount of money remaining in an account.

Balanced budget: a budget in which planned expenditure on goods and services and debt income can be met by current income from taxation and other central government receipts.

Balanced investment strategy: a strategy of investing in a variety of types of companies and financial instruments to reduce the risk of loss through poor performance of any one type.

Balance of payments: a list of a country's credit and debit transactions with international financial institutions and foreign countries in a specific period.

Balance of trade: the difference between a country's exports and imports of goods and services.

Balance sheet: An itemized statement that lists the total assets and total liabilities of a given business to portray its net worth at a given moment in time.

Ballpark: an informal term for a rough, estimated figure. The term was derived from the approximate assessment of the number of spectators that might be made on the basis of a glance around at a sporting event.

Bank card: a plastic card issued by a bank and accepted by merchants in payment for transactions. The most common types are credit cards and debit cards, although smart cards have been introduced. Bank cards are governed by an internationally recognized set of rules for the authorization of their use and the clearing and settlement of transactions.

Banker's draft: a bill of exchange payable on demand and drawn by one bank on another. Regarded as being equivalent to cash, the draft cannot be returned unpaid.

Bank guarantee: a commitment made by a bank to a foreign buyer that the bank will pay an exporter for goods shipped if the buyer defaults.

Bank statement: A monthly statement of account which a bank renders to each of its depositors.

Bankruptcy: the condition of being unable to pay debts, with liabilities greater than assets.

Barren money: money that is unproductive because it is not invested.

Batch production: Products are made in batches of a certain quantity, usually as orders come in.

Benchmarking: Rating your company's products, services and practices against those of the front-runners in the industry.

Bill of entry: A statement of the nature and value of goods to be imported or exported, prepared by the shipper and presented to a customhouse.

Bill of lading: A statement of the nature and value of goods being transported, especially by ship, along with the conditions applying to their transportation. Drawn up by the carrier, this document serves as a contract between the owner of the goods and the carrier.

Bill of sale: Formal legal document that conveys title to or interest in specific property from the seller to the buyer.

Black market: an illegal market, usually for goods that are in short supply. Black market trading breaks government regulations or legislation and is particularly prevalent during times of shortage, such as rationing, or in industries that are very highly regulated, such as pharmaceuticals or armaments.

Board of directors: Those individuals selected to sit on an authoritative standing committee or governing body, taking responsibility for the management of an organization. Members of the board of directors are officially chosen by the shareholders, but in practice they are usually selected on the basis of the current board's recommendations. The board usually includes major shareholders as well as directors of the company.

Board of Trustees: a committee or governing body that takes responsibility for managing, and holds in trust, funds, assets, or property belonging to others, for example, charitable or pension funds or assets.

Bonus: An additional amount of payment above normal pay as a reward for good work.

Bookkeeping: The process of recording business transactions into the accounting records. The "books" are the documents in which the records of transactions are kept.

Bottom line: The figure that reflects company profitability on the income statement. The bottom line is the profit after all expenses and taxes have been paid.

Brand: A design, mark, symbol or other device that distinguishes one line or type of goods from those of a competitor.

Brand image: Where a product is given an image or identity to distinguish it from it’s competitor’s brands.

Brand loyalty: When consumers keep buying the same brand again and again instead of choosing a competitor’s brand.

Brand name: A term, symbol, design or combination thereof that identifies and differentiates a seller's products or service.

Break-even charts: Graphs showing how costs and revenues of a business change with sales; they show the level of sales of business must make in order to break even.

Break-even: The point of business activity when total revenue equals total expenses. Above the break-even point, the business is making a profit. Below the break-even point, the business is incurring a loss.

Budget: An estimate of the income and expenditures for a future period of time, usually one year.

Business decisions: These include strategic decisions (very important ones which can affect the overall success of the business), tactical decision (those which are taken more frequently and which are less important), and operational decisions (day-to-day decisions which will be taken by lower-level managers).

Business venture: Taking financial risks in a commercial enterprise.

__________________
Regards,
P.R.

Capital: Money available to invest or the total of accumulated assets available for production.

Capital account: the sum of a company's capital at a particular time.

Capital allowance: the tax advantage that a company is granted for money that it spends on fixed assets.

Capital appreciation: the increase in a company's or individual's wealth.

Capital asset: an asset that is difficult to sell quickly. for example, real estate.

Capital budget: a budget for the use of a company's money.

Capital controls: regulations placed by a government on the amount of capital residents may hold.

Capital equipment: Equipment that you use to manufacture a product,
provide a service or use to sell, store and deliver merchandise. Such equipment will not be sold in the normal course of business, but will be used and worn out or consumed in the course of business.

Capital expenditure: Money spend on fixed assets which will last for more than one year.

Cash flow: The cash inflows and outflows over a period of time.

Capital gains (and losses): The financial gain made upon the disposal of an asset. The gain is the difference between the cost of its acquisition and net proceeds upon its sale.

Capital goods: Stocks of physical or financial assets that are capable of generating income.

Capital inflow: The amount of capital that flows into an economy from services rendered abroad.

Capitalism: An economic and social system in which individuals can maximize profits because they own the means of production.

Capitalist: An investor of capital in a business.

Capitalization: The amount of money invested in a company or the worth of the bonds and stocks of a company.

Cash: Money in hand or readily available.

Cash discount: A deduction that is given for prompt payment of a bill.

Cash flow: The actual movement of cash within a business; the analysis of how much cash is needed and when that money is required by a business within a period of time.

Cash flow cycle: A means of showing the stages between paying out cash for labour, materials, etc. and receiving cash from the sales of goods.

Cash flow forecast: An estimate of future cash inflows and cash outflows of a business, usually on a monthly basis.

Cash inflows: The sum of money received by a business during a period of time.

Cash outflows: The sum of money paid out by a business during a period of time.

Cash receipts: The money received by a business from customers.

Centralization: the gathering together, at a corporate headquarters, of specialist functions such as finance, personnel and information technology. Centralization is usually undertaken in order to effect economies of scale and to standardize operating procedures throughout the organization. Centralized management can become cumbersome and inefficient and may produce communication problems. Some organizations have shifted toward decentralization to try to avoid this.

Certificate: A document representing partial ownership of a company that states the number of shares that the document is worth and the names of the company and the owner of the shares.

Certified Public Accountant: An accountant to whom a state has given a certificate showing that he has met prescribed requirements designed to insure competence on the part of the public practitioner in accounting and that he is permitted to use the designation Certified Public Accountant, commonly abbreviated as CPA.

Chain of command: A structure within an organisation which allows instructions to be passed down from senior management to the lower levels of management.

Chamber of Commerce: An organization of business people designed to advance the interests of its members. There are three levels: national, state and local.

Channel of distribution: The means by which a product is passed from the place of production to the customer or retailer.

Chief Executive: the person with overall responsibility for ensuring that the daily operations of an organization run efficiently and for carrying out strategic plans. The chief executive of an organization normally sits on the board of directors. In a limited company, the chief executive is usually known as a managing director.

Chief Executive Officer: the highest ranking executive officer within a company or corporation, who has responsibility for over-all management of its day-to-day affairs under the supervision of the board of directors. Abbr. CEO

Chief financial officer: the officer of the organization responsible for handling finds, signing checks, the keeping of financial records, and financial planning of the company.

Choice: A decision to purchase that is based on an evaluation of alternatives.

Clicks and brick: A business strategy that involves combining the traditional retail outlets with online commerce.

Close corporation: A public corporation in which all of the voting stock is held by a few shareholders, for example, management or family members. Although it is a public company, shares would not normally be available for trading because of a lack of liquidity.

Close-end credit: A loan, plus any interest and finance charges, that is to be repaid in full by a specified future date. Loans that have real estate or motor vehicles as collateral are usually closed-end.

Closed shop: It is where all employees must be a member of the same trade union.

Closing cash (or bank) balance: The amount of cash held by the business at the end of each month. This becomes next month’s opening cash balance.
Collateral: property or goods used as security against a loan and forfeited to the lender if the borrower defaults.

Collective bargaining: Negotiation between one or more trade unions and one or more employers on pay and conditions of employment.

Co-signers: Joint signers of a loan agreement who pledge to meet the obligations of a business in case of default.

Commercial paper: Uncollateralized loans obtained by companies, usually on a short-term basis.

Commission: A percentage of the principal or of the income that an agent receives as compensation for services.

Common currency: An agreement between countries to use the same currency for all business and other transactions, such as euro in the European Union.

Communication: The transferring of a message from the sender to the receiver, who understands the message.

Communication nets: The ways in which members of a group communicate with each other.

Competitive pricing: A pricing strategy where the product is priced in line with, or just below, competitor’s prices to try to capture more of the market.

Conglomerate integration: A firm merges with or takes over another firm in a completely different industry. Also known as diversification.

Consumer panels: Groups of people who agree to provide information about a specific product or general spending patterns over a period of time.

Contract: An agreement regarding mutual responsibilities between two or more parties.

Contract of employment: A legal agreement between employer and employee listing the rights and responsibilities of workers.

Contribution: The selling price of a product less its variable cost.

Controllable expenses: Those expenses that can be controlled or restrained by the business person.

Corporation: A voluntary organization of persons, either actual individuals or legal entities, legally bound together to form a business enterprise; an artificial legal entity created by government grant and treated by law as an individual entity.

Corporation tax: The tax paid by limited companies on their profits.

Cost-benefit analysis: The valuation by a government agency of all social and private costs and benefits resulting from a decision.

Cost of goods sold: The direct cost to the business owner of those items which will be sold to customers.

Cost-plus pricing: The cost of manufacturing the product plus a profit mark-up.

Craft union: A trade union which represents a particular type of skilled worker.

Credit: Another word for debt. Credit is given to customers when they are allowed to make a purchase with the promise to pay later. A bank gives credit when it lends money.

Credit line: The maximum amount of credit or money a financial institution or trade firm will extend to a customer.

Currency appreciation: Occurs when the value of a currency rises – it buys more of another currency than before.

Currency depreciation: Occurs when the value of a currency falls – it buys less of another currency than before.

Current assets: Valuable resources or property owned by a company that will be turned into cash within one year or used up in the operations of the company within one year. Generally includes cash, accounts receivable, inventory and prepaid expenses.

Current liabilities: Amounts owned that will ordinarily be paid by a company within one year. Generally includes accounts payable, current portion of long-term debt, interest and dividends payable.

__________________
Regards,
P.R.

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.

__________________
Regards,
P.R.

Earnings: A sum of money gained from employment, usually quoted before tax, including extra reward such as fringe benefits, allowances, or incentives. In business, income or profit from a business, quoted gross or net of tax, which may be retained and distributed in part to the shareholders.

e-business: The conduct of business on the Internet, including the electronic purchasing and selling of goods and services, servicing customers, and communications with business partners.

e-commerce: The exchange of goods, information products, or services via an electronic medium such as the Internet.

Economic growth: When a country’s gross domestic product (GDP) – more goods and services are produced than in the previous year.

Economic problem: The fact that there are unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity.

Economies of scale: The factors that lead to a reduction in average costs as a business increases in size.

Employer’s association: A group of employers join together to give benefits to their members. Also called employer federations and trade association.

Enterprise: A venture characterized by innovation, creativity, dynamism, and risk. An enterprise can consist of one project, or may refer to an entire organization.

Entrepreneur: An innovator of business enterprise who recognizes opportunities to introduce a new product, a new process or an improved organization, and who raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.

Equal opportunities: The granting of equal rights. privileges, and status regardless of gender, age, race, religion, disability, or sexual orientation. Equality in employment is regulated by law in most Western countries.

Equipment: Physical property of a more or less permanent nature ordinarily useful in carrying on operations, other than land, buildings or improvements to either of them. Examples are machinery, tools, tracks, cars, ships, furniture and furnishings.

Equity: A financial investment in a business. An equity investment carries with it a share of ownership of the business, a stake in the profits and a say in how it is managed. Equity is calculated by subtracting the liabilities of the business from the assets of the business.

Equity capital: Money furnished by owners of the business.

Ergonomics: The study of workplace design and the physical and psychological impact it has on workers. Ergonomics is about the fit between people, their work activities, equipment, work systems, and environment to ensure that workplaces are safe, comfortable, efficient, and that productivity is not compromised.

Ethical decision: A decision taken by a manager or company because of the moral code observed in that firm.

Euro: The currency of 12 member nations of the European Union. The Euro was introduced in 1999, when the first 11 countries to adopt it joined together in an Economic and Monetary Union and fixed their currencies' exchange rate to the Euro. Notes and coins were brought into general circulation in January 2002, although banks and other financial institutions had before that time carried out transactions in Euros.

Exchange: The process by which two or more parties give something of value to one another to satisfy needs and wants.

Exchange controls: The regulations by which a country's banking system controls its residents' or resident companies' dealings in foreign currencies and gold.

Exchange rate appreciation: When the value of a country’s currency rises compared with other currencies.

Exchange rate depreciation: When the value of a country’s currency falls compared with other currencies.

Exchange rate: The rate at which one country's currency can be exchanged for that of another.

Excise duty: A tax on goods such as alcohol or tobacco produced and sold within a particular country.

Expense account: amount of money that an employee or group of employees can draw on to reclaim personal expenses incurred in carrying out activities for an organization.

Expenses: personal costs incurred by an employee in carrying out activities for an organization that are reimbursed by the employer.

Export agent: an intermediary who acts on behalf of a company to open up or develop a market in a foreign country. Export agents are often paid a commission on all sales and may have exclusive rights in a particular geographic area.

Exporting: the process of selling goods to other countries.

External growth: Occurs when a business takes over or merges with another business. Often called integration as one firm is integrated into another one.

External recruitment: The vacancy is filled by someone who is not an existing employee and will be new to the business.

External sources: Sources of information outside the company used to compile market research as a basis for marketing decisions.

__________________
Regards,
P.R.

Facsimile machine (FAX): Machine capable of transmitting written input via telephone lines.

Factor: A variable investigated in a statistical study.

Factors of production: Resources needed to produce goods or services.

Feasibility study: An investigation into a proposed plan or project to determine whether and how it can be successfully and profitably carried out.

Federal funds: An deposits held in reserve by the Federal Reserve System.

Feedback: The communication of responses and reactions to proposals and changes or to the findings of performance appraisals with the aim of enabling improvements to be made.

FIFO: FIRST IN FIRST OUT, a method of inventory control where the stock of a given product first placed in store is used before more recently produced or acquired goods or materials.

Finance: The money needed by an individual or company to pay for something, for example, a project or stocks.

Final accounts: Accounts produced at the end of the year giving details of the profit or loss made over the year and the worth of the business.

Financial statements: Documents that show your financial situation.

Fiscal: Relating to financial matters, especially in respect to government collection, use. and regulation of money through taxation.

Fixed asset: A long term asset of a business such as a machine or building that will not usually be traded.

Fixed expenses: Those costs which don't vary from one period to the next. Generally, these expenses are not affected by the volume of business.

Fixed costs: Costs which do not vary with the number of items sold or produced in the short term.

Float: The period between the presentation of a check as payment and the actual payment to the payee.

Floating rate: An interest rate that is not fixed and which changes according to fluctuations in the market

Floor: A lower limit on an interest rate, price, or the value of an asset.

Flow chart: A graphic representation of the stages in a process or system or the steps required to solve a problem.

Flow production: Large quantities of a product are produced in a continuous process. Also called mass production because of the large quantity of a standardised product that is produced.

Forecast: A prediction of the value of a variable in a statistical study.

Formal group: A group designated to carry out specific tasks within a business.

Forward pricing: The establishment of the price of a share in a mutual fund based on the next asset valuation.

Forward rate: An estimate of what an interest rate will be at a specified future time.

Franchise: An agreement enabling a third party to sell or provide products or services owned by a manufacturer or supplier. The franchise is regulated by a franchise contract, or franchise agreement, that specifies the terms and conditions of the franchise.

Franchise chain: A number of retail outlets operating the same franchise. A franchise chain may vary in size from a few to many thousands of outlets and in coverage from a small local area to worldwide.

Fraud: The use of dishonesty, deception. or false representation in order to gain a material advantage or to injure the interest of others.

Freebie: A product or service that is given away, often as a business promotion.

Free enterprise: he trade carried on in a free-market economy, where resources are allocated on the basis of supply and demand.

Free market: A market in which supply and demand are unregulated except by the country's competition policy, and rights in physical and intellectual property are upheld.

Freight: A term used to describe bulk goods or products while they are being transported.

Fringe benefits: Non-monetary rewards given to employees.

Fulfillment: The process of responding to customer inquiries, orders, or sales promotion offers.

Future: A contract to deliver a commodity at a future date.

Futures market: A market for buying and selling securities, commodities, or currencies that tend to fluctuate in price over a period of time. The market's aim is to reduce the risk of uncertainty about future prices.

Fundraising: Events staged to raise revenue.

__________________
Regards,
P.R.

Gap analysis: a marketing technique used to identify gaps in market or product coverage. In gap analysis, consumer information or requirements are tabulated and matched to product categories in order to identify product or service opportunities or gaps in product planning.

Gateway: E-Commerce: a point where two or more computer networks meet and can exchange data.

GDP: Gross domestic product, the total flow of services and goods produced by an economy over a quarter or a year, measured by the aggregate value of services and goods at market prices.

General partner: A partner who has unlimited liability for the obligations of the partnership.

General partnership: A partnership in which all partners are general partners.

General union: A trade union which represents workers (often unskilled but also including semi-skilled) from a variety of traders.

Globalization: The process of tailoring products or services to different local markets around the world.

GNP: Gross National Product, GDP plus domestic resident's income from investment abroad less income earned in the domestic market accruing to noncitizens abroad.

Goodwill: Excess of the purchase price over the fair market value of the net assets acquired under purchase accounting.

Gross profit: The difference between the selling price and the cost of an item. Gross profit is calculated by subtracting cost of goods sold from net sales.

Gross profit margin: Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.


Growth capital: Funding that allows a company to accelerate its growth. For new startup companies, growth capital is the second stage of funding after seed money.

Growth phase: A phase of development in which a company experiences rapid earnings growth as it produces new products and expands market share.

Growth rate: The rate of an economy's growth as measured by its technical progress, the growth of its labor, and the increase in its capital stock.

Growth stock: Common stock of a company that has an opportunity to invest money and earn more than the opportunity cost of capital.

Guarantee: A pledge by a third party to repay a loan in the event that the borrower defaults.

Guarantor: A person or organization that guarantees repayment of a loan if the borrower defaults or is unable to pay.

Guerilla marketing: A marketing technique, the aim of which is to damage the market share of competitors.




Hard sell: a heavily persuasive and highly pressured approach used to sell a product or service.

Haulage: The transport of bulk goods or products; usually refers to road transport but can also refer to rail transport.

Hedge fund: a mutual fund that takes considerable risks, including heavy investment in unconventional instruments, in the hope of generating great profits.

High end: Relating to the most expensive, most advanced, or most powerful in a range of things, for example, computers.

High-pressure: a selling technique in which the sales representative attempts to persuade a buyer very forcefully and persistently.

Holding company: A parent organization that owns and controls other companies or A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Home page: The "table of contents" to a Web site, detailing what pages are on a particular site. The first page one sees when accessing a Web site.

Horizontal integration: The merging of functions or organizations that operate on a similar level. Horizontal integration involves the union of companies producing the same kinds of goods or operating at the same stage of the supply chain.

Hyperinflation: Very rapid growth in the rate of inflation so that money loses value and physical goods replace currency as a medium of exchange.

__________________
Regards,
P.R.

IMF: International Monetary Fund, the organization that industrialized nations have established to reduce trade barriers and stabilize currencies, especially those of less industrialized nations.

Impaired capital: a company's capital that is worth less than the par value of its stock.

Import: a product or service brought into another country from its country of origin either for sale or for use in manufacturing.

Incentive program: an award or reward scheme designed to improve sales force or retail performance.

Income redistribution: a government policy that seeks to restrain increases in wages or prices by regulating the permitted level of increase.

Income statement: A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Income tax: a tax levied directly on the income of a person or a company and paid to the local, state, or federal government.

Income statement: A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Indirect channel: the selling and distribution of products to customers through intermediaries such as wholesalers, distributors, agents, dealers, or retailers.

Indirect cost: a fixed or overhead cost that cannot be attributed directly to the production of a particular item and is incurred even when there is no output.

Indirect taxes: Taxes added to the prices of goods. Tax payers pay tax as they produce the goods, e.g. value added tax (VAT).

Induction training: Introduction given to a new employee, explaining the firm’s organisational structures, activites and procedures.

Industrial action: Steps taken by trade unions to decrease or halt production.

Industrial tribunal: A legal meeting which considers worker’s complaints of unfair dismissal or discrimination at work.

Industrial union: A trade union which represents all types of workers in a particular industry.

Industry: The category describing a company's primary business activity. This category is usually determined by the largest portion of revenue.

Inflation: a sustained increase in a country's general level of prices that devalues its currency, often caused by excess demand in the economy.

Informal group: Group of people who form independently of any official groups because they have interests or aims in common.

Informative advertising: Advertising where the emphasis of advertising or sales promotion is to give full information about the product.

Infomercial: a television or cinema commercial that includes helpful information about a product as well as advertising content.

Initial public offering: the first instance of making particular shares available for sale to the public.

Insolvency: the inability to pay debts when they become due. Insolvency will apply even if total assets exceed total liabilities, if those assets cannot be readily converted into cash to meet debts as they mature. Even then, insolvency may not necessarily mean business failure. Bankruptcy may be avoided through debt rescheduling or turnaround management.

Income statement: A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Insurance: an arrangement in which individuals or companies pay another company to guarantee them compensation if they suffer loss resulting from risks such as fire, theft, or accidental damage.

Intellectual property: the ownership of rights to ideas, designs, and inventions, including copyrights, patents, and trademarks. Intellectual property is protected by law in most countries, and the World Intellectual Property Organization is responsible for harmonizing the law across different countries and promoting protection of intellectual property rights.

Integration: It is when a business takes over or merges with another business, i.e. integrates with another one.

Interest: the rate that a lender charges for the use of money that is a loan.

Interest rate: the amount of interest charged for borrowing a particular sum of money over a specified period of time.

Internal communication: Messages between people working in the same organisation.

Internal finance: Finance generated within a firm by retained earnings and depreciation.

Internal growth: Occurs when a business expands its existing operations.

Internal recruitment: The vacancy is filled by someone who is existing employee of the business.

Internal sources: Sources of information within the company, used to compile market research as a basis for marketing decisions.

Income statement: A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Internet: The vast collection in inter-connected networks that provide electronic mail and access to the World Wide Web.

Inventory: A list of assets being held for sale, The stock of finished goods, raw materials, and work in progress held by a company.

Invest: To lay out money for any purpose from which a profit is expected.

Investment: The spending money on stocks, shares, and other securities, or on assets such as plant and machinery.

Invisible exports: the profits, dividends, interest, and royalties received from selling a country's services abroad.

Invoice: a document that a supplier sends to a customer detailing the cost of products or services supplied and requesting payment.

__________________
Regards,
P.R.

Job analysis: The responsibilities and tasks relating to a job are identified and recorded.

Job description: Document which outline the responsibilities and duties expected to be carried out by someone employed to do a specific job.

Job enlargement: Where extra tasks of a similar level of work are added to a worker’s job description.

Job enrichment: Involves looking at jobs and adding tasks that require more skill and/or responsibility.

Job production: A single product is made at a time, usually to the customer’s exact specification.

Job rotation: Involves the workers doing each specific task for only a limited time and then changing round on a regular basis.

Job satisfaction: Enjoyment derived from feeling that you have done a good job.

Job specification: Documents which outlines the requirements, qualifications and expertise required from a person to do a specific job.

Joint account: An account, for example, one held at a bank or by a broker, that two or more people own in common and have access to.

Joint ownership: Ownership by more than one party, each with equal rights in the item owned. Joint ownership is often applied to property or other assets.

Junk bond: A bond with high return and high risk.




Keystone: Setting a retail price at twice the wholesale price.

Kaizen production: Kaizen is a Japanese term meaning continuous improvement, through the elimination of waste.




Labor force: People of working age who are available for paid employment, including the unemployed looking for work, but excluding categories such as full-time students, careers, and the long-term sick and disabled.

Lapse: The termination of an option without trade in the underlying security or commodity.

Law of diminishing returns: A rule stating that as one factor of production is increased while others remain constant, the extra output generated by the additional input will eventually fall. The law of diminishing returns therefore means that extra workers, extra capital, extra machinery, or extra land may not necessarily raise output as much as expected.

Lead time: The margin of time between the date when stock is obtained and the date when it is sold on.

Leadership styles: Approaches to dealing with people when in a position of authority.

Lean production: Techniques used by business to cut down on any waste and therefore increase efficiency, for example, by reducing the time it takes for the product to be developed and made available for sale.

Leasing: Leasing an asset allows the firm to use an asset but it does not have to purchase it.

Lemon: A product, especially a car, that is defective in some way.

Letter of agreement: A document that constitutes a simple form of contract.

Letter of Credit: A letter issued by a bank that can be presented to another bank to authorize the issue of credit or money.

Leverage: A method of corporate funding in which a higher proportion of funds is raised through borrowing than share issue.

Liability: A debt that has no claim on a debtor's assets or less claim than another debt.

Liability insurance: Risk protection for actions for which a business is liable.

License: A contractual arrangement, or a document representing this, in which one organization gives another the rights to produce, sell, or use something in return for payment.

Lifestyle: A pattern of living that comprises an individual's activities, interests and opinions.

Limited liability: Where the owners of a company cannot be held responsible for the debts of the company they own.

Limited partnership: A legal partnership where some owners are allowed to assume responsibility only up to the amount invested.

Line managers: Managers with direct authority over subordinates in their departments; they are able to take decisions in their departmental area.

Line of best fit: A line drawn through a series of points, e.g. sales data, which best shows the trend of that data.

Liquid assets: Financial assets that can be quickly converted to cash.

Liquidity: The ability of a business to meet its financial responsibilities. The degree of readiness with which assets can be converted into cash without loss.

Loan agreement: A document that states what a business can and cannot do as long as it owes money to the lender.

Loan: Money lent with interest.

Long-term liabilities: The liabilities (expenses) that will not mature within the next year.

__________________
Regards,
P.R.

Ma and Pa shop: A small family-run business.

Macro economics: The branch of economics that studies national income and the economic systems of national economies.

Mail order: A form of retailing in which consumers order products from a catalogue for delivery to their home.

Management: The use of professional skills for identifying and achieving organizational objectives through the deployment of appropriate resources. The art conducting and supervising a business.

Marginal costs: Extra costs a business will incur by producing one more unit of output.

Market: A set of potential or real buyers or a place in which there is a demand for products or services. Actual or potential buyers of a product or service.

Marketable: Possessing the potential to be commercially viable.

Market analysis: The study of a market to identify and quantify business opportunities.

Market development: Marketing activities designed to increase the overall size of a market through education and awareness.

Market demand: Total volume purchased in a specific geographic area by a specific customer group in a specified time period under a specified marketing program.

Market forecast: An anticipated demand that results from a planned marketing expenditure.

Marketing: One of the main management disciplines, encompassing all the strategic planning, operations, activities, and processes involved in achieving organizational objectives by delivering value to customers. Marketing management focuses on satisfying customer requirements by identifying needs and wants.

Marketing budget: A financial plan for the marketing of a product or product range for a specific period of time.

Market niche: A well-defined group of customers for which what you have to offer is particularly suitable.

Market-orientated: A description applied to a business in which market research is carried out to find out consumer wants before a product is developed and produced.

Market positioning: Finding a marketing niche that emphasizes the strength of a product or service in relation to the weakness of the competition.

Market research: Finds out consumers wants before a product is developed and produced.

Market segmentation: The market is divided up into groups of consumers who have similar needs.

Market share: A company‎’s percentage share of total sales within a given market.

Market targeting: Choosing a marketing strategy in terms of competitive strengths and marketplace realities.

Marketing mix: The set of product, place, promotion, price and packaging variables, which a marketing manager controls and orchestrates to bring a product or service into the marketplace.

Marketing research: The systematic design, collection, analysis and reporting of data regarding a specific marketing situation.

Markup: The difference between the cost of a product or service and its selling price.

Mass marketing: Selecting and developing a single offering for an entire market.

Maas production: see flow production.

Medium of communication: The method used to send a message.
Merchandise: Goods bought and sold in a business. ‘Merchandise’ or stock is a part of inventory.

Merger: When the owner of two businesses agree to joins there firms together to make one business.

Message: The information or instruction being passed by the sender to the receiver.

Micro business: An owner-operated business with few employees and less than $250,000 in annual sales.

Micro economics: The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.

Micro marketing: Marketing to individuals or very small groups.

Middleman: A person or company that performs functions or renders services involved in the purchase and/or sale of goods in their flow from producer to consumer.

Monopoly: A business which controls all of the market for a product.

Motivation: Why employees want to work effectively for the business.

Multilevel sales: Also known as network marketing. Rather than hiring sales staff, multilevel sales companies sell their products through thousands of independent distributors. Multilevel sales companies offer distributors commissions on both retail sales and the sales of their ‘down-line’ (The network of other distributors they sponsor).

Multinational business: Those with factories, production or service operations in more than one country. There headoffice is in one country only. Also known as transnational business.

__________________
Regards,
P.R.