A

Accelerator - A business supplying office space and services in exchange for payment to assist new companies get started.

Actuary – Someone hired by insurance and pensions companies  to use complex mathematical formulas to calculate factors such as life expectancy, accident rates and likely payouts.

Actuals – These are the real or actual costs and sales incurred by a company  as opposed to estimates.

Administration - When a company is unable to pay its debts it goes into administration.

Ad valorem – This means value added and is usually used to refer to a tax such as VAT.

Advertorial - An advert used in magazines and newspapers that is presented like an article instead of a traditional advert.

Affidavit – This is a sworn signed statement of fact that is used as evidence in court.

Amortize – The process of gradually reducing and writing off the cost of an asset in a company's accounts over a period of time.

Annuity - A type of insurance policy that provides a regular income on retirement based on how long they think you will live.

Avatar - An identity people can take on to represent themselves online in, for example, a website forum (often a cartoon image).

Average earnings – The total earnings divided by the number in employment. They are often expressed as an index called the average earnings index.

Average earnings growth – This is an economic indicator of future inflation. Increases in earnings cause price to rise if not matched by productivity increases.

B

Bait-and-Switch – This occurs in retail sales when adverts for low priced products draw in customers who then find the product isn’t available but a more costly alternative is.

Balance Sheet – An individual, company or organisation’s financial statement showing assets and liabilities.

Balloon - A long term loan with a large final payment when the loan expires.

Black Economy – Any money earned through private cash dealings, which can’t be traced and is untaxable.

Black Knight - A company making a takeover bid for another company that doesn’t want to be bought.

Bonded Warehouse - Where imported goods are stored, under bond, until import taxes are paid.

Book Depreciation - A decrease in value of a company's assets, as recorded in the company's finances.

Bookkeeping – This is the recording of all of a business's financial transactions including sales, purchases and income.

Bootstrapping – The starting of a business from nothing and building it up with minimal outside investment.

Bridging/Bridging loan/Bridge - A short term loan with a high rate of interest that 'bridges' a time between funds needed and funds available.

British Standards Institution (BSI) - An organisation setting out formal guidelines to help businesses. Operating in over 25 countries, it represents UK interests in other organisations.

Bubble Economy – This is an unstable boom in which the economy sees unusually rapid growth combined with rising share prices and increased employment.

Budget – This might be the management of finances, allocation of funds or estimating the outgoings of, say, a particular area of business.

Business Plan - A document setting out a business's plans and objectives and how it plans to achieve them.

Button Ad - A small advertisement on a website.

C

Cap And Collar - The upper and lower limits of interest rates on a loan, which are generally fixed for a set time period.

Capital - The net worth of a business including the assets and cash which exceeds its liabilities (debts). Also, the money invested in a business to generate income.

Capital Allowance - Money spent on fixed assets, for example buildings, which is deducted from its profits before calculation of tax.

Capital Gains Tax – The tax payable on profits made on the sale of certain types of assets.

Cash Flow - Any movement of money into and out of a business.

Cash Flow Forecast - An estimation of the financial outgoings and incomings of a company.

C E Mark (Conformite Europeenne) - The symbol on many products sold in the European Union indicating that they have met health, safety and/or environmental requirements.

Chamber Of Commerce - Business owners in a region who form a network to help promote local business.

Clicks And Mortar (or Clicks and Bricks) - Businesses trading on the Internet as well as traditional retail outlets.

Clickstream - An Internet user’s history including every website visited and e-mails sent and received.

Click-Through - Clicking on an advert on a web page that links them through to the advertiser’s website.

Companies House - The government agency responsible for collecting and storing information about limited companies.

Consumer Price Index (CPI) – A measure of inflation that involves monitoring the change in price for everyday goods and services.

Consumer Protection – The laws created to protect consumers from, for example, unsafe products and fraudulent businesses.

Consumer Watchdog - An independent organisation protecting customers’ rights and monitoring companies.

Consumption Tax -  A tax paid that is based on the price of services or goods.

Controlling Interest – Owning over 50% of the voting shares in a company allows the owner of these shares to make decisions and so on.

Corporate Social Responsibility (CSR) – Whereby a company must follow legal guidelines to meet the needs of employees, shareholders and customers, as well as being aware of social and environmental issues.

Corporation - A large company or a group of companies legally authorised to act as a single entity, separate from its owners, with its liabilities for damages and debts limited to its assets so that its shareholders and owners are

protected from personal claims.

Corporation Tax - The tax paid by limited companies and organisations such as clubs and associations on their profits after adjustments for allowances.

Cottage Industry - A small business whereby the production of goods or services is based in the home rather than in a factory or in business premises.

Credit Rating – The information, based on financial history, that determines the ability to repay loans.

Critical Mass - The minimum number of customers or resources needed to maintain or start a business. Also the point at which a business can continue and make a profit without any outside help.

Cybersquatting - The illegal activity of buying and registering a domain name of a well-known brand or person with the intention of selling it to make a profit.

D

Daughter Company - Any company controlled in some part by a holding or parent company.

Dawn Raid – This occurs when there is a purchase of a large number of a company's shares at the start of the day on the stock exchange.

Debenture – An unsecured certified loan over a long period that has a fixed rate, based on the trust that payment will be made in the future.

Debt – When money is owed, whether to a business or person, and needs to be paid back, usually with interest.

Debt-Equity Swap - When a lender reduces a debt in exchange for newly issued shares from the borrower.

Debt Exposure - Money that a lender risks losing if the borrower doesn’t pay it back.

Decision Tree – Shown as a diagram with the initial decision with possible strategies and actions depicted by branches leading to the conclusion.

Deed Of Partnership - A (non compulsory) legal document setting out how a partnership is to be run, together with the rights of the partners.

Deep Web – This holds around 500 times more information than is commonly accessible on the Web and includes data held by secure organizations such as the military and government.

Defence Document – Explains to a company's shareholders why an offer to buy the company should be rejected.

Deficit Financing – This is seen when governments borrow money to make up for a shortfall of funds from taxes and can lead to higher interest rates.

Deflation – This is economic decline typified by falling costs of goods and services, falling levels of employment, limited money supply or credit, reduced imports and lower wage increases.

Deleveraging – When a company attempts to reduce its debts. This might by selling off assets or laying off staff.

Demerit Goods – Any products or services – like alcohol and drugs – thought to be unhealthy or undesirable. They are frequently subject to extra taxes to encourage reduced consumption.

Deregulate – When government regulations are reduced or removed.

Derived Demand – When a service or product is in demand due to the demand for another service or product.

Direct Marketing - Marketing carried out directly to individuals by, for example, leaflets, e-mail, telephone or calling door-to-door.

Director - The person who runs a company (along with other directors).

Directives – Can be orders issued by a regulatory body or, less formally, instructions issued within a company such as by a manager.

Direct Overhead - The portion of a business’s overheads that is directly related to the production of goods and services.

Disability Discrimination Act – The 1995 Act of Parliament promoting the civil rights of disabled people and protecting them from discrimination.

Discount Loan - A loan whereby any finance charges and interest are paid before the borrower is given the money.

Discretionary Income - Income left after taxes and living essentials have been paid.

Discretionary Order - Enables a broker to purchase or sell shares for an investor in order to get the best price.

Discriminating Duty - A variable tax levied on goods depending which country they were imported from.

Distributable Profit - The profits to be shared among shareholders at the end of an accounting period.

Distributer - An individual or company who buys products, usually from manufacturers, and resells them to retail outlets or direct to customers.

Diversification – Developing a business by growing or broadening it products and services.

Dividend - A portion of profits paid by a company to its shareholders.

Double-dip recession – When there is a brief period of economic growth during a recession, which is followed by a slide back into recession.

Double-dipping - The practice of receiving two incomes or benefits from the same source.

Double-Entry Bookkeeping –In order to achieve balanced ledgers this accounting method is used. For example, for every transaction a credit is recorded in one account and a debit is recorded in another.

Double Indemnity - In a life insurance policy whereby the insurance company pays double the face value of the policy in the event of accidental death.

Drayage - Transporting goods by lorry or truck (or the fee for doing so)

Duopoly – When two companies control a particular industry.

E

Easy Monetary Policy – Allowing the public to easily borrow money, at low interest rates, to invest in business which in turn helps to expand the economy.

E-Business – Stands for Electronic Business and is when the Internet is used for business or to enable businesses to link together.

E-Commerce – Stands for Electronic Commerce and is the buying and selling of products and services over the Internet.

Economic Growth - An growth in the production of goods and services.

Economic Life - The length of time during that an asset is expected to be usable before needing to be replaced.

Economies Of Scale - The more units that are made the cheaper each unit costs to produce.

Economy - The overall management of a nation’s money, currency and trade.

E-Currency – Stands for Electronic Currency and is used on the Internet for making and receiving payments (such as PayPal).

E-Enabled – The act of being able to communicate or carry out business using the Internet.

E-Lance – This is freelance working that uses the Internet to sell services or goods.

Elasticity Of Demand - Measures whether a price change leads to people wanting more or less of a product or service.

Electronic Cottage - A home with the electronic equipment required to run a business.

Electronic Data Exchange - A means of exchanging documents between businesses using electronic equipment such as computers.

Electronic Purse - A microchipped smartcard that allows payments to be made, such as on the Internet, without cash by storing small amounts of money.

Embezzlement – Taking goods or money from an employer dishonestly for personal gain.

Emolument – The total wages, benefits or compensation paid for the job a person does.

Emoticon – The symbols used in e-mails, Internet chat rooms and text messages to represent facial expressions.

Employee Buyout - When employees gain control of a company by purchasing all or most of a company's shares.

Employee Stock Option - When employees are given the right to purchase shares in the company at a fixed price.

Employer - The person or business paying for the services of workers.

Employment Equity – The promotion of equal employment opportunities regardless of race, gender and ability.

End Consumer – The person who buys a product or service.

Entrepreneur – A person who starts a new business to make money, often by taking financial risks.

E-Procurement – Stands for Electronic procurement. When businesses use the Internet to either purchase from other businesses or sell goods and services to businesses.

Equal Pay Act – The 1970 Act that states that women have the right to earn the same and receive the same benefits as men performing the same job.

Equilibrium Price - The price when the demand for a product or service is equal to the quantity supplied.

Escape Clause – Can be found in a contract and states the contract can be broken in particular circumstances.

Ethernet - Technology connecting computers in a local area network (LAN).

Ethnic Monitoring – The recording and evaluation of the racial origins of employees in a company to ensure that all races are represented fairly.

Exchange Rate Exposure – When, by changing one currency for another of lower value, a business risks losing money.

Experience Curve - When businesses see costs fall and production increase due to an increase in workers’ skills and lower material costs.

Extension Strategy - A marketing strategy with the aim stopping a product going into decline by finding new customers or new uses for it or by making small changes to the product.

External Debt - Also known as Foreign Debt this is money owed by government, businesses or people to creditors in other countries.

Extranet - A private computer network in which selected people can link and communicate using the Internet.

Ex Works - Goods delivered to the purchaser at the plant or place where they are manufactured. The buyer will then pay for transporting and insuring the goods from there.

Eyeballs – Used in advertising, this is a name given to the number of people who visit a website advertisement. It can be counted by the number of click-throughs (****LINK TO CLICK-THROUGHS).

E-Zine - Any electronic magazine published on the Internet or sent by e-mail.

F

Face Value – The amount written on a coin, banknote or share certificate. What you see is exactly what you get.

Facility – Most commonly refers to a permanent, semi-permanent or temporary commercial or industrial property such as a building, plant or structure. In banking a facility is an arrangement in which a bank or supplier extends an advantageous service to a customer.

Facsimile – Exact duplicate of a document in terms of content, form and appearance, however size may vary.

Factor – An element or component that brings about certain effects. In finance a factor is someone who buys accounts receivable (debts) for a discounted price.

Factoring – Short-term, non-bank financing of accounts receivable. See article.

Fair Competition – Competition based upon factors of price, quality and service.

Fair Notice – Proper and legally adequate, where nature and subject matter can be determined by any person of reasonable competence.

Fair Trade – A movement designed to protect farmers of less privileged countries and societies who may otherwise be taken advantage of by purchasers. Promoting fair prices for their products as well as fair pay for workers and often environmentally friendly practices.

Fiscal Year – The UK Fiscal year runs from April 6^th to April 5^th

Fixed costs – Costs that a company incurs in making goods regardless of how much it is producing.

Financial Times Stock Exchange (FTSE) – One of the multitude of stock exchanges containing several of the well known indexes, including the FTSE 100, FTSE 500 and the FTSE TechMARK.

G

Gearing - A highly geared company is one where a large amount of money has been borrowed relative to the company's equity.

GDP - GDP is the sum of all goods and services produced in the economy, including the service sector, manufacturing, construction, energy, agriculture and government.

Guarantor - If a lender thinks there is a risk you will not be able to meet your repayments, they may ask you to provide a guarantor. Essentially, this is a third party who agrees to honour your debts if you don't.

Grey Knight - A takeover bidder whose intentions are as yet unclear

Growth - Increases in total output (GDP)

H

Hyperinflation - Rapid, out-of-control inflation at double digit rates per month and more, usually occurring only during wars and periods of severe political instability

Hierachy - The levels of management within a business organisation, from the lowest to the highest.

Hedging - the process of protecting oneself against risk. For example, a company who owes money to an overseas company may want to hedge against the risk that the exchange rate moves against them. They could do this by taking out a future contract for foreign exchange. In other words they agree to buy now at a fixed price in the future.

HM Treasury - The Treasury is the government department responsible for economic management. The Chancellor of the Exchequer is the government minister in charge of the Treasury, the Treasury set fiscal policy

Holding Company - A company that controls other companies

Hostile Takeover - A hostile bid is when a takeover is unwelcome or the terms are unacceptable, and the board advises against agreeing to the bid

Horizontal Merger - A merger of two companies at the same production stage in the same industry.

I

Inflation - Inflation is when prices rise, If inflation is 10%, then a £50 pair of shoes will cost £55 in a year's time and £60.50 a year after that.

Inheritance Tax - A tax on assets left on death.

Income Statement - An annual summary of income and expenses of a given business in order to determine the net income (profit) of the business.

Insider Trading - The trading of shares based on knowledge not available to the rest of the world.

Internal Growth - When a firm gets larger by increasing its own output

Interest Rates - Interest is the reward for giving up use of money and is an amount paid to a lender over and above the original sum borrowed. The rate is expressed as a % per annum

J

Job – Different to the way that an employee understands the term. I business job is used to refer to a group of similar and/or uniform tasks related by function.

Joint Account – Bank account held in the name of two or more people, often but not limited to a couple. In most cases one holder can operate the account without the other.

Journal – Business diary in which all day to day business transactions are recorded using the double-entry bookkeeping system.

Junk Mail – Unsolicited mail sent out mostly by direct marketing or direct mail companies. Generally used to introduce a new product or service, books, magazines, merchandise, investment opportunities, etc.

Jurisdiction – The practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters. By implication they are also permitted to administer justice within a defined area of responsibility.

Just In Time (JIT) – JIT Manufacturing/Inventory is a Japanese innovation whereby goods, materials, parts and/or support items are produced exactly when needed, never before or after. It aims to reduce the requirement for warehousing space down to as little as possible.

K

Kickback – Portion of an income demanded as a bribe by an official for facilitating a job or order which generated that income.

Kicker – Advantage or benefit demanded by a lender, or offered by a borrower, to make a load deal more appealing.

L

Labor – A primary factor of production. The size of a nations labour force is determined by the size of its adult population and the extent to which those adults are either working or willing and eligible to work.

Laissez-Faire – French meaning: allow to pass; let go. Used in business when an easy going, less authoritarian approach is taken.

Lame Duck – Term for a business suffering financial difficulties. It can also be used to denote an officer with considerably eroded authority at the end of their contracted term, either because they are ineligible or not seeking another term.

Local Area Network (LAN) – A network of computers and devices, the common name for an Ethernet network cable is a LAN cable (the cable used to connect a computer or device to a network). Used to share resources between linked devices.

Landlord – A person or company that rents a property or space to a another (tenant or lessee). The landlord is also known as a lessor.

Law – Defined as a recognised causal link or principle whose violation must or should result in a penalty as failure, injury, loss, or pain. There are a variety of legislative acts any business must familiarise themselves and become compliant with.

Lawyer – A person who is certified and trained in the theory and practice of law; licensed to give legal advice and represent others in litigation within their particular jurisdiction.

Layoff – Suspension or termination of employment, with or without notice, by employer or management. A layoff is not due to fault by the employer but from considerations such as a lack of work, cash or materials. When a layoff is permanent it is usually called redundancy.

Lease – Written or implied contract whereby and owner (lessor) of a specific asset (e.g. land, property, equipment, machinery, etc) grants the exclusive possession and use of this asset to a second party (lessee) for a specific period of time and under specific conditions. In return the lessee pays the lessor specific, periodic rental or lease payments.

Ledger – Collection of an entire group of similar accounts in double-entry bookkeeping systems.

Legal – Not condemned as illegal: Allowable or enforceable while conforming to the laws of all countries the action will affect and to public policy.

Lender – An entity that advances cash to a borrower for a stated period and for a rate of interest (fixed or variable). This may be with or without security other than the borrower's signatures.

Liability – Responsibility for the consequences of ones acts or omissions. This could be legal liability by being responsible for the consequences of breaking a law or financial whereby you may have to transfer assets (in some cases personal assets) in order to satisfy a debtor.

M

Mailshot: bulk distribution of a unsolicited marketing material.

Mail Merge: Facility provided by most word processing program whereby a letter can be sent to many recipients personalized to each of them via information from a data base.

Margin: Difference between cost price and selling price.

Marginal Benefit: An increase in the overall benefit that can be derived from an activity, caused by a unit increase in the level of that activity whilst all other factors remain constant.

Market Condition: Characteristic of a market into which a firm is entering or into which a new product will be introduced, such as number of the competitors, level or intensity of competitiveness, and the market's growth rate.

Mark up: Amount added to the cost price of an item to cover costs and provide a profit.

N

National Association of Securities Dealers Automated Quotation (NASDAQ) – United States computer based securities trading and quotes platform. Similar to the London Stock Exchange (LSE) in the U.K. but indexing different (mostly technology) companies. The number listed for the NASDAQ is an indication of the market strength as a whole.

National Insurance Contributions (NICs) – A payment covering a range of 'safety net' expenses including national healthcare, state pensions and some unemployment benefits. In familiar terms they are insurance premiums collected from you by the state in order to offset the cost of your non-tax-generating time (illness, retirement, short-term unemployment and the like).

Negotiation – In general, bargaining between two or more parties to find some common ground. This can be in terms of price, salary, a matter of mutual concern or to resolve a conflict.

Net – Amount remaining after all deductions from, or adjustments to, a gross figure have been made.

Networking – Creating a group of contacts and acquaintances and keeping it active through regular communication. There are many Social Networking sites which offer facilities businesses can take advantage of such as FaceBook, Twitter, LinkedIn and Google+. Networking is said to be based on the question “How can I help?” as opposed to “What can I get?”.

New York Stock Exchange (NYSE) – New York securities trading and quotes platform. As with the other exchanges it holds a list of market indexes, each with their own listings of companies securities.

Newsletter – Small, printed communication, used by businesses to keep their clients and partners informed as to current events relevant to the business. Modern newsletters tend to be circulated via email.

Nikkei 225 – A stock market index of the Tokyo Stock Exchange (TSE) more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average. Currently the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow Jones Industrial Average.

Nominal – Existing or being of, related to, or constituting name only (not necessarily bearing relation to the actual thing). Apparent, estimated, temporary or token. Often used in accounting and valuation, as in the nominal value of an asset.

Nominee – Entity (person or organisation) appointed by another to act, or hold securities and/or assets on its behalf.

Non-Financial Asset – Physical assets on a company financial statement such as buildings or machinery.

Non-Governmental Organisation (NGO) – A legally constituted organisation that operates independently from any government.

Non-Negotiable – Documents: Not able to be bought, sold, exchanged or transferred.

Non-Profit Organisation (NPO) – An organisation that does not issue shares or distribute surplus funds (profits) to owners or shareholders. Instead a NPO uses funds to help achieve its goals. Charities are NPOs.

O

Objectivity – Striving to approach a subject without biased, prejudice or subjective evaluations. It is advantageous ability for any entrepreneur to be able to approach aspects of their business from an objective point of view.

Occupancy – Residence or tenancy in a piece of land, property or dwelling. Can also refer to the period of that tenancy or lease.

Off The Book(s) – Any payment or receipt of money where no official record has been kept; as opposed to On The Book(s).

Offer Price – The price at which investors buy new shares or units. The opposite of this is called the Bid Price and the difference between the two is called the Spread.

Officer – A person who holds a position of authority, command or trust. In the U.K. we use the term for anyone who acts in an official capacity for a company: a director, company secretary, executive, manager or anyone else authorised to do so.

Office – A location (usually a building or portion of a building) in which a business conducts its operations. A business may just have a single home/main office, or additional to this they may also have several branch/field offices.

Official – Any person holding an office or title of responsibility. Officials are often responsible for controlling and/or regulating an activity/operation to ensure fairness and correct procedure.

Offset – Most commonly referring to accounting: to cancel out an entry with an equal but opposite entry.

Offshore – Any country other than ones own, for example offshore holdings.

Offsite – Making reference to a location other than the main or subject site.

Online – Computer or device connected to a network and ready to be accessed by other computers/devices. Most commonly referring to the internet and internet related activities, e.g. online sales, online marketing.

Open Market – A market in which prices of good and services is governed by the forces of supply and demand, not by outside manipulation. Also free market.

Operating Profit – Income resulting from a businesses primary operations, excluding extraordinary income (insurance settlements, one of sales or temporary rises) and expenses. Alternatively Operating Income or Operating Margin. [Formula: Sales Revenue – (Cost of Sales + Operating Expenses)]

Operating System (OS) – The background system that a computer uses to manage its internal components into the interface you use. Examples are Windows, Mac OS, Linux.

Operations – Jobs or tasks made up of one or more smaller tasks (subtasks) or elements. A term for the overall process or processes.

Opt In/Out – When a customer expresses their desire as to whether they wish to receive information from you (Opt In) or not (Opt Out). This is typically in the form of advertising, marketing information or merchandising though it can be other messages as well.

Optimum – The best possible result/outcome from a series of circumstances or processes. Often used in business as optimisation, meaning to find the best way to do things.

Oral Agreement/Contract – A contract expressed only through verbal communication with no written counterpart, but still entirely valid and enforceable. Oral contracts can be very difficult to prove (unless by witness testimony) as there is no audit trail.

Organisation – A collective, group or social unit of people with an underlying management structure. Individuals have defined functions and responsibilities in order to benefit the organisation as a whole. In business and organisation can refer to any business with a group structure (i.e. not a sole trader).

Outsourcing – Contracting or subcontracting out activities and operations in order to free up cash, personnel, time and/or facilities. Businesses often choose to outsource to other businesses that have strengths and skills in areas they are less proficient in so they can concentrate on their core processes.

Overdraft – An extension of loan credit most banks will offer over the amount held in an account.

Ownership – Ultimate and exclusive right offered by lawful claim or title, subject to certain restrictions, to enjoy, possess, occupy, rent, sell, use, give away, or even destroy an item of property. Ownership may apply to tangible objects such as premises or assets (Corporeal) or intangible objects such as copyright or rights.

P

Pay and you earn (PAYE): Tax payment method where employees have income and national insurance deducted from their wages

Payroll: Amount paid to employees over a specified period. i.e payslip shows salary and deductions incurred

Pension: Lump sum or monetary contribution to retirement

Performance Analysis: Examination of various financial performance indicators in comparison with the results achieved.

Point of sales: Point at which a sale is made and the goods are transferred from the seller to the buyer.

Policy: The set of basic principles and processes set out by an organization.

Premium: In general a premium is an excess over apparent worth, however it can also mean a fee charged for a service of some kind or the fee for an advance on a loan.

Primary: Ranked first in order order of importance, as opposed to Secondary or Tertiary.

Q

Qualitative: Subjective quality such as taste

Quantifiable: To assess the performance of a company through ratios.

Quality: Degree of excellence

Quarterly: Issued 4 times a year usually in line with the seasons.

Quote: to estimate what a cost or price is likely to be

R

Random Access Memory (RAM): Physical memory installed on a computer or storage device.

Random Sample: A sample selected on the basis of pure chance in situations that are free from any inherent bias.

Rate:    1) To judge something with respect to its value. 2) Proportional or relative value. 3) Amount charged or paid.

Rating: A term from marketing meaning the percentage of total potential audience who choose one particular media vehicle (print or digital impression) over another.

Ratio: Result of one number or quantity, divided by another. In business we employ many different ratios to represent a companies relative success or failure in various aspects.

Read Only Memory (ROM): Memory chips that come with instructions and/or data pre-programmed onto them. Normally not erasable by the user and not lost when powered off.

Real Estate: American property term meaning – Land and anything fixed, immovable or permanently attached to it.

Real Time: A response that appears to take place instantaneously or in the same timeframe as its real world counterpart action. Commonly and electronic action with an immediate, obvious output; like checking an online bank account after a transaction to see the result.

Rebate: Return of a portion of a payment by the receiving party to the paying party. Unlike a, discount which is deducted in advance, a rebate is given after payment is received. (see refund)

Rebuttal: An attempt to contradict or disprove an argument by offering a counter argument or countervailing proof. A rebuttal is not automatically a refutation (disproof).

Recall: In business a recall is removal or withdrawal of a contaminated or defective good for sale by its manufacturer or producer. This can be voluntary or under duress and may even occur after a product has been sold.

Receipt: Formal, written acknowledgement that something of value has been received.

Record: All documented information, regardless of its characteristics, media, physical form, and the manner it is recorded or stored. This is also the name for a document that contains information and provides objective evidence of activities, events, results or statements. Thus it is possible to have a record of records.

Recoup: Payment to cover the costs associated with legal claims.

Recovery: In general a recover is any return to a normal state (or better) after a loss of some kind. It is also a term used for the collection of certain types of debt.

Redress: To compensate or set a situation right.

Referendum: Ballot by which people directly decide between (usually two) alternatives on a major issue, such as whether or not to join a particular community of nations.

Refund: Compensation paid to one party for over-invoicing another or for returned goods. This may also be return of tax paid in excess of the required amount. (see rebate)

Registry: Government agency that keeps a public register of certain items of information such as company records and land titles.

Regulation: Principle or rule (legal or otherwise) employed in controlling, directing, or managing an activity, organisation or system.

Renewal: The continuation of an already in-force status that is cause by the payment of a premium.

Rent: Compensation paid by a tenant (lessee) to the property owner (lessor) for use or occupancy of the property.

Repair: Restoration of a broken, damaged or failed asset to an acceptable or usable operating condition or state.

Report: A document containing information organised in a narrative, graphic or tabular form and produced as required regularly or irregularly.

Resource: An economic or productive factor required to accomplish a desired outcome. The three most basic resources are: land, labour and capital.

Restrictions: Limitations which cannot be exceeded or rules which cannot be broken. These can be either explicit or implicit.

Retail Price Index (RPI): Official measure of the general level of inflation as reflected in the retail price of a basket of goods and services such as energy, food, petroleum, housing, household goods, travel fare, etc.

Retainer: A fee paid to a business or individual to secure the privilege of obtaining its services as and when required.

Revenue: The income generated from sale of good or services, or any other use of capital or assets associated with the main operation of an organisation, before any costs or expenses are deducted.

Risk: A probability of negative occurrence, cause by internal or external vulnerabilities that may be counteracted through pre-emptive action.

Royalty: Compensation, consideration or fee paid for a license or privilege to use an intellectual property (brand, copyright, patent, process) or natural resource (fishing, hunting, mining). Royalties are usually computed as a percentage of revenue or profit realised from the use.

S

Saleable: Fit for sale in the usual course of commerce, also known as merchantable.

Salary: Agreed-upon, regular recompense for employment. Most commonly paid monthly but may be paid in any frequency.

Sample: 1) Entities or observations randomly selected to represent the behaviour and characteristics of the whole group (batch, population, universe) that they are associated with or drawn from.

2) This also has a dual meaning of an item representing all items pertaining to a deal, offer, shipment or transaction. Used to demonstrate a standard of quality for further items to be judge by.

Satiation: Saturation level of any activity which when achieved means its maximum benefit has been derived. It is at this point that its marginal benefit is equal to zero.

Scalar: 1) Arranged or organised like a ladder, in an unbroken series of steps. 2) Capable of being represented by a point on a line or scale. 3) Having magnitude but not direction.

Scatter Diagram/Chart/Graph: A chart where points are plotted according to two sets of variable in order to determine whether a pattern exists.

Scope (of work): The sum of all individual jobs comprising a contract, employment, program or project. Scope itself put simply means the bigger picture.

Search Engine Optimisation (SEO): The process by which a website is made more visible to search engine results in order to improve traffic to that website.

Secondary: Ranked second in order of importance, as opposed to Primary or Tertiary.

Secretary: Person who organises information and work for or on behalf of another person.

Secured: Credit, loan or obligation whose full payment or satisfaction is guaranteed by the pledge of something of equal or greater liquidation value.

Securities: Financing or investment instruments (negotiable or not) bought and sold in financial markets. Examples include bonds, debentures, notes, options, shares (stocks) and warrants.

Self-Assessment: 1) Process by which an individual evaluates the effectiveness of their performance in an attempt to identify areas where improvement is necessary.

2) In taxation self-assessment refers to the responsibility of the tax payer to accurately compute and report on their own tax liability.

Self-Employed: Sole-proprietor or partner in a partnership to whom legal requirements under the contract of employment do not apply. They however may employ others under such a contract. Self-employed individuals obtain their own work or sales and pay their own expenses.

Sell: To transfer ownership of any asset or property in exchange for money or value.

Share Certificate: Legal document that provides proof of ownership in a company. 'Paper' shares are becoming less common in favour of the newer 'electronic' shares.

Share/Stock Exchange: Organised and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of supply and demand.

Share/Stock Index: An indexed figure based on the current market price of share on a stock exchange.

Shareholder: An individual, group or organisation that owns one or more shares in a company, and in whose name the share certificate is issued.

Shortage: Situation in which the quantity available or supplied in a market falls short of the quantity demanded or required at a given price.

Small and Medium Enterprise (SME): A UK company would fall into the SME classification if it has anywhere between 1-250 employees. There are also caveats in terms of turnover however these are re-evaluated regularly and in terms of industry and size. It is important to be aware that different countries define SMEs differently.

Smartphone: Mobile phone that incorporates functions similar to those found on a personal computer. There has been an explosion in availability of smartphones in recent years offering a wide variety of solutions for information management, mobile emails and internet, as well as phone calls in a single package.

Social Media: Primarily internet or mobile phone based applications and tools functioning as an information sharing portal for people. A powerful networking, marketing and PR tool that is becoming more and more widely utilised by businesses.

Supply and Demand: The amount of a product available versus the amount which is wanted by the customers.

Syndicate: Temporary association of two or more individuals or businesses in order to carry out a specific business venture or project.

Synergy: A state in which two or more things work together in an especially prolific way, producing a greater effect than the sum of the individual parts. “The whole is greater than the sum of its parts”

T

Take off: The estimate of materials needed to construct a building.

Takeover: Assumption of control of another (usually smaller) company through purchase of a majority share or stock holding (over 50%).

Tangible: To have a physical existence/form. For example tangible assets would be assets you can see and touch like buildings, machinery, etc.

Target: Any objective or desired accomplishment, used as a measurement of success in any one activity, “Are we meeting our targets?"

Target Market: Group, or subgroup who will ideally buy your product. Once identified this enables marketing to be directed at and adjusted for the specific individuals that fall into these groups. The target market can also be used to adapt the product itself and in some cases even company policy.

Task: The smallest identifiable and essential piece of a job that serves as a unit of work, and as a means of differentiating between the various components of a project.

Tax: Compulsory monetary contribution to the state's revenue, assessed and imposed by the government. Tax can be imposed upon a variety of factors including: activities, enjoyment, expenditure, income, occupation, property, etc., of an organisation or individual.

Taxation: The collection of tax. A means by which governments finance their expenditure by imposing charges on citizens and business entities.

To Be Announce (TBA): Used in the abbreviated form to indicate a detail that is not yet known, or finalised, but will be made clear in the future.

To Be Determined (TBD): Used in the abbreviated form to indicate a detail that has not been decided yet, but will be determined in the future.

Transmission Control Protocol/Internet Protocol (TCP/IP): Standard networking rules that govern the sending and receiving of data for any computer connected to the internet.

Team Based Organisation (TBO): Non-traditional, innovative working environment that relies on teams to achieve its objectives. TBOs major characteristics include 1) Mutual trust, 2) Employee empowerment in planning, organisation and goal/target-setting, 3) Shared responsibility for self-management, 4) Shared accountability for performance, and 5) Shared leadership.

Tenancy: Right or legal claim of a tenant who occupies or possesses land or property from another for an agreed period, most commonly in exchange for rent and under lease agreement. Also the term for the period this arrangement will continue for.

Tenant: Entity that occupies or possesses a property by any type of claim, right or title. Or one that pays periodic rent for a temporary right to occupy, possess and/or use a property; the right having been granted by the property owner (landlord) through a lease or tenancy agreement.

Terms & Conditions (Ts & Cs): General and special arrangements, provisions, rules, requirements, specifications and standards that form an integral part of an agreement or contract.

Territory: Geographical region in which a franchisee, distributor or sales representative can sell their goods or services.

Tertiary: Ranked third in order of importance, as opposed to Primary and Secondary. The service industry is also known as the Tertiary Sector.

Testing: Quality control means by which a product or process is proved against its specified requirements by means of subjecting it to pre-determined operating conditions and documenting the results. The gathered information is then used to make improvements and adjustments.

Threat: Indication of an approaching or imminent menace or negative event that can cause a risk to become a loss. A threat may be a natural (earthquake, flood, etc.) or man-made (power outage, sabotage, etc.) occurrence, but may also be another businesses practice taking them into a market share you are targeting or releasing a rival product.

Threshold: A boundary that once crossed exists a radically different state of affairs. This may be a minimum or maximum value of an attribute, characteristic or parameter; serving as a benchmark which when breached may require a full review of the current system or situation.

Toronto Stock Exchange (TSX): Canadian equities exchange, located in Toronto, Ontario.

Total Cost of Ownership (TCO): Estimate of all costs (direct and indirect) associated with an asset or acquisition over its entire lifecycle.

Trend: A pattern of gradual change in a condition, output or process. It may also be seen as an average or general tendency in a series of data points to move in a certain direction over time. Identified trends are used to plan product launches and marketing, predict sales patterns and have a wide variety of other business uses.

U

Umbrella Fund: A mutual fund that primarily invests in other funds. (Also called fund of funds)

Unabsorbed Costs: The unused proportion of manufacturing costs that cannot be applied to income earned if the production level drops during the manufacturing process.

Unabsorbed Overhead: Indirect cost that cannot be apportioned to a few customers but instead must be spread over all customers according to some measure of purchase volume.

Unauthorised Expenditure: Sum spent for purposes other than what it was allocated for, or in excess of the allocated amount.

Uncollectible Amount: Alternative term for Bad Debt. Accounts receivable that is unlikely to be paid and therefore treated as a loss.

Underlying Cost: A cost associated with normal production or other business processes that can be predicted as part of the budget cycle. Underlying costs do not include one-time costs or costs dues to unexpected events such as market fluctuation or natural disasters.

Underwriter: Entity who is in the business of evaluating and taking over other people's risk for a fee (also called commission, interest, premium or underwriting spread). Also the term for a sponsor of an event/program who pay some of the associated costs in return for publicity or brand integration.

Underwriting: The process by which lenders analyse the risks a potential borrower presents and set appropriate conditions for their particular loan.

Unfair Competition: Unjust and potentially illegal attempt to gain unfair competitive advantage through false, fraudulent, or unethical commercial conduct. Examples include: below cost selling, counter-fitting and trademark infringement among others.

Union: A group of workers joined together in a specific type of organisation for the purpose of improving their working conditions as well as to help in promoting common interests of the group.

Unit: Definitive or determined quantity adopted as a standard of measurement and exchange. Also the term used for fractional undivided-interest in a unit trust (mutual fund).

Unlimited Liability: Indefinite extent of liability to pay debts or obligations, extending beyond the investments of a businesses owner(s), partners or shareholder(s) to their personal assets.

Utility: Larger firm that owns and/or operates facilities used for generation and transmission or distribution of electricity, gas or water to the general public.

V

Volunteer: A person who freely offers to take part in an enterprise or undertake a task

Variable interest rate: An interest rate that moves up and down based on the changes of an underlying interest rate index

Viable: Capable of developing under favourable conditions

Value: An amount of goods, services, or money, considered to be a fair and suitable equivalent for something else in return

Ventures: A business enterprise involving some risk in expectation of gain.

Validity: Period for which an agreement, bid , offer, claim, document, etc., remains in force.

Variable: A characteristic, number, or quantity that increases or decreases over time

Vested interests Groups that seek to maintain or control an existing system or activity from which they have a private benefit.

Visible trade: Trade in tangible goods, not services or intellectual rights.

Vocation: Regular employment.

Volatile: Unstable, or varying frequently between extreme highs and lows.

W

Wealth maximising: Experienced businessmen and women investing for financial gain

Wage: Monetary remuneration computed on hourly, daily, weekly, or piece work basis.

Waiver: Expressed or implied voluntary and intentional relinquishment or abandonment of a legal advantage, claim, requirement, or right.

Wal-Mart Effect: A term applied by economists to describe the cascade of events resulting from the entry of a major cost-cutting influence in a local economy.

Wall Street: Financial district of New York (NY), the home to New York Stock Exchange (NYSE), American Stock Exchange (AMEX), and several major banks and brokers in lower Manhattan

Weak market: Market where sellers far outnumber buyers and prices are in a general state of decline.

Whitelist: A list of authorized or approved entities that are allowed to use a particular service or are given access to a specific entity.

Write off: A procedure used in accounting when an asset is determined to be uncollectible and is therefore considered to be a loss.

World Wide Web (WWW): Collection of internet , hyperlinked text, audio, and video files, and remote sites that can be accessed and searched by browsers based on standards such as HTTP and TCP/IP.

Work year: The number of hours that a full-time employee can work in a year. The commonly accepted standard is 2,080 hours (52 weeks x 40 hours per week).

Work to rule: Industrial action where, in contrast to a strike, workers do not withdraw their labour. Instead, they stay on their jobs but drastically slow down the operations to be used for a collective bargaining

agreement.

X

x or xd: Symbol used in financial press to indicate that a (1) stock is trading without (ex) dividend, (2) bond is trading without interest, or (3) a mutual fund recently paid a capital gain or dividend.

x table: A term used to refer to a table in progress that is not yet able to be used in rating.

xr: Symbol used in financial press to indicate that a stock is trading without (ex) rights.

Y

Year plan: A year during which plan records are kept. This can be a fiscal or calendar year.

Year to date (YTD): Based on the beginning of the calendar year to a specified date.

Yield: The annual income earned from an investment, expressed usually as a percentage

of the money invested.

Year-end closing: An accounting procedure undertaken at the end of the year to close out business from the previous year, carry forward balances from the previous year, and open posting accounts for the upcoming year.

Z

Z bond: Alternative term for accrual bond.

Zero growth stock: When a stock has a return of a definite amount until the stock reaches maturity.

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