Business Terms

BUSINESS TERMS
The terms in this list relate to business either directly or indirectly and are used in discussions and/or in conversation.
Highly-specialized technical terminology is not included.

A&P mix	advertising and promotion: the various amounts of different types of advertising, public relations, and other marketing communications activities that are used to meet a specific goal.
ABC analysis	a decision-making tool that puts items into categories (A, B, C) based on their significance.
abide by (a rule, an instruction)	to obey or to comply with (a rule, an instruction, someone’s orders, ...) If you want to advance here, you have to abide by the rules. I will abide by the executive committee’s decision.
abroad	in a foreign country or to a foreign country. (Also: overseas)
absenteeism	the rate at which an individual or a group fails to show up for work. (absent = not present)
access	the right or the ability to enter or use something. We don’t have access to the building on Sundays. Do we have access to that information?
access code	individualized number and/or letter that are used to enter an electronic system.
accommodation	anything that is supplied for someone’s convenience or to satisfy someone’s need. It often refers to services relating to travelling or eating or staying overnight. (often used in the plural form) Please arrange hotel accommodations for me in London. How are the accommodations (conditions and services) at your hotel?
account	In financial language, the word account means "a record of transactions during a fiscal period and the resulting current balance". Do you have an account with our bank? The word account also means "a particular customer", since each customer represents an account in the financial sense. He is an important account (customer) for us. See key account and corporate account. An account can also be a report (verbal or written) about something that happened. John will now give us an account of his week of training.
account executive	someone in an advertising or public relations agency or in a brokerage (or other service firm) who oversees a specific account (client) and is the principal contact person with the client.
accountant	a person qualified to interpret and report on the financial transactions and present condition of a company.
accounting	the work of keeping or checking accounts. He works in the accounting department.
accounts payable	all of the debts currently owed by a company to its vendors and suppliers.
accounts receivable	all of the debts currently owed to a company by its customers.
ace	(1) to do a perfect job. He aced the examination. (2) an excellent performer in an organization or in a field of activity. Tom is an investment ace.
achieve	to reach (an objective or goal) We will achieve our target of 5 million units sold before Christmas. achievement [noun] Learning a language is quite an achievement. achiever [noun] Bill is a real achiever. achievable [adjective] Is this goal even achievable?
acquire	to gain possession (of something) by working for it or by buying it. We have acquired a new client. She has acquired a lot of experience. He acquired a new computer. acquisition [noun] A new car is a major acquisition. We are considering the acquisition of a new car. acquisitive [adjective] We are an acquisitive people.
act as …	to function in the role of (a position) Mr. Jones will act as foreman until Mr. Quinn returns from the hospital. I will act as chairman today.
action items	a list of high-priority activities to be completed in a short amount of time (including the activity, who is to do it, and the deadline for completion).
action plan	items to be completed to meet a specific objective, usually including a timetable for getting them done.
actuary	a person who uses mathematics to compute the probability of insurance claims.
ad	short for advertisement
adapt	to make (something) suitable for a new use. It takes time to adapt to a different culture. adaptable [adjective] A person has to be adaptable in difficult situations. adapter [noun] Do you have an adapter for this cable?
adjourn	to end (a meeting) for a stated time We will adjourn the meeting until two o'clock.
adopt	to use (something) as your own He adopted my strategy.
advertise	to inform the public about a product with the goal of persuading them to buy it. We need to advertise on television more. advertisement [noun] We have a full-page advertisement in Time magazine. advertising [adjective] Our advertising budget is huge.
advice	helpful suggestions or recommendations Good advice is hard to find.
advise	[verb] to give advice advisor [noun]: someone who gives professional advice I suggest you see a tax advisor.
afford	to be able to do because you have enough money or time We can’t afford a new worker at this time. affordable [adjective] I found an affordable apartment in Manhattan.
agenda	a list of things to discuss at a meeting
agent	a person or company that acts for another person or company (the principal)
allocate	[verb] to designate how much of a resource (especially money) will be used, by whom, and for what purpose. We’ve allocated 20 seats to the press. Part of our budget is allocated for training. allocation [noun] We’ve already spent our training allocation for the year.
amalgamate	[verb] to combine two or more companies into one. amalgamation [noun]: a company comprised of two or more companies. High Play Inc. is an amalgamation of Cheaney Sporting Goods Inc. and Lewman Chemicals.
apply	to use (something) for a particular purpose. You can apply this method to other situations.
apply for	to ask for (something) officially and in writing. I’ve applied for a visa. He has applied for another job.
appreciate	to increase in value. The market value of our shares has appreciated.
ASAP or A.S.A.P.	"As Soon As Possible"
asset	something of value that is owned by a person or a company, such as buildings, machinery, money, land, patents, accounts receivable, inventories, etc.
ATTN	"attention" or "for the attention of" … used in addressing letters.
audience	the people who sit and listen to a presentation (speech, play, film, ballet, etc.). The audience was very interested in everything she said.
audit	[noun] an examination of a company's financial records audit [verb] to examine a company's financial records
auditorium	a large room with seats suitable for performances and lectures. The speech will be given in the auditorium.
authorize	to give (to another person) official permission or power. I have been authorized to sign company checks.
automate	to make (something) operate by machine without needing people. We want to automate all manufacturing processes. automation Automation is the answer to our problems.
autonomy	the right to make one’s own decisions. I have complete autonomy on this project. autonomous [adjective] This division is completely autonomous.
award	[verb] to give (a prize, certificate, contract) We awarded the contract to Acme. award [noun] We want to win the Baldridge Award.
balance	the difference between the credit transactions and the debit transactions in an account. What is the balance of our account now?
balance sheet	an accounting document that lists all of a company's assets on the left side and all of the company's liabilities plus owners' equity on the right side at a specific point in time, usually at the end of a financial period. It gets its name from the fact that the total on the left side (assets) must equal the total on the right side (liabilities plus owners' equity).
ban	to forbid (something) officially. They banned this medicine until tests are finished. ban [noun] We have a ban on all products made by child labor.
bankrupt	[adjective] unable to pay one's debts. to go bankrupt bankruptcy [noun] One of our competitors is facing bankruptcy.
bargain	a transaction where something is bought for a price below its real value. I bought this television at half-price; what a bargain that was.
bear market	a longer period of declining stock and commodity prices. > bull market
benefit	an advantage or valuable feature He receives good benefits, such as insurance and a company car.
bid	[noun] the price one company is willing to accept for doing a job for another company. Our bid for the construction project was much too high. bid [verb] the act of putting forward a bid. We are going to bid for the project.
bill	a written list of goods or services and the amount of money that must be paid for them. I got a bill for the damages caused by my dog.
blue chip	profitable, offering a reliable investment and good prospects. I only invest in blue-chip stocks.
board of directors	A group of people who are elected by the shareholders of a public corporation and who meet from time to time. They have the ultimate responsibility for the success of a corporation. They also appoint the chief executive officer (CEO), who has responsibility for the corporation on a daily basis. The board of directors will meet to name a new CEO.
bonds	a piece of paper issued by a corporation or a government which has a certain face value and pays interest — a way of raising funds which must be repaid by a certain date. Money is flowing out of stocks and into bonds.
bonus	an extra sum of money paid to an employee for special achievement. Everybody gets a bonus at Christmas.
bookkeeping	the recording of the financial transactions of a business.
boom	[noun] fast growth or a period of fast growth. We think there will be a boom in the biotech industry. boom [noun] We think the biotech industry will boom.
borrow	to take from someone (something that you intend to give back) Can I borrow ten dollars until tomorrow?
bottom line	(1) the net income line on an income statement. (2) figurative: the essence of any information. Don't give me a long explanation; just give me the bottom line.
branch	a division or section of a large business which is in a different location from the main division or headquarters. also: branch office, branch factory
brand	a particular make of goods or their trademark. Coca-Cola is the world’s most recognizable brand.
break even	[verb] to make neither a profit or a loss on a business or product If we don’t break even this year, we could lose our jobs. break-even point [noun] We expect to reach the break-even point soon.
break down	(1) [verb] to fail to function The machine broke down at a very bad time. breakdown [noun] We had a mechanical breakdown. (2) [verb] to divide into parts or categories. Can you break down the costs for us? breakdown [noun] Can you give us a breakdown of all the costs?
breakthrough	an important scientific, technological, or industrial discovery. We are about to have a scientific breakthrough of gigantic proportions.
bribe	[verb] to give money or gifts in order to persuade someone to do something dishonest. They wanted to bribe me. bribery [noun] They tried to change my mind with bribery.
brief	[verb] to instruct or inform (someone) thoroughly in advance. We briefed him about the situation before he went into the meeting. [adjective] short in duration. The meeting was very brief.
broker	a person who buys and sells things or (financial) services. also: stockbroker, insurance broker
budget	[noun] a financial plan showing how much money a company intends to make and spend. We have to rewrite our budget. [noun] an amount of money set aside for a special purpose. The advertising budget is not big enough. [verb] to set aside money for a special purpose. I think we should budget for more R&D.
bulk	a large size or amount of something. We purchase our paper in bulk.
bulk discount	a reduction in the price of something given when a certain quantity is bought.
bull market	a longer period of increasing stock and commodity prices. see bear market
business card	a small card that gives a business person's name, title, company name, etc.
buyer's market	a condition in a market in which supply is greater than demand, which puts downward pressure on prices. see seller's market
candidate	a person who is being considered for a job.
capital	(1) [noun] in accounting, the value of the assets which are left over when a company pays off all of its debts. – A corporation’s capital is equal to it assets minus its liabilities. (2) [noun] money available for investment. – We can raise more capital with a stock offering. (3) [noun] any economic resource or wealth. – Our intellectual property represents our greatest capital.
capital stock	the total amount of stock issued by a corporation see common stock and preferred stock
carriage	the cost of transporting goods from one place to another
cash dividend	a dividend paid in cash to the stockholders of a corporation
cc	carbon copy = "copies are being sent to the following people"
CEO	See chief executive officer
chairman of the board of directors Also: chairman of the board or chairman	The member of a company's board of directors who presides over the meetings. He or she is the highest ranking executive, although not necessarily the one with the most authority.
channel	the way along which something travels communication channels distribution channels
channel	In broad terms, the word channel refers to the path along which something flows. That something can be liquid (e.g. water) or electronic (e.g. digital data, voice messages, etc.) or solid physical objects (e.g. manufactured products as they "flow" along in a production process). In a production process, the channel for a product can extend beyond the manufacturing company's borders. It can begin with the manufacturing company's suppliers (of OEM parts and/or raw materials) and continue through to the companies (i.e. partners) that handle the finished product.
channel partners	Either companies that contribute to the manufacturing process before it begins (e.g. suppliers) or companies that get involved after the product has been manufactured (e.g. wholesalers, distributors, representative firms, dealers, retailers, and individual sales people).
charge	(1) [noun] the price for a product. – The charge for rent has gone up this year. (2) [noun] an individual item on a bill. – I don't understand some of these charges. (3) [verb] to demand a price for a product. – They are charging us more for rent this year.
chief executive officer	The highest position below the board of directors. Reports directly to the board. Runs the company on a daily basis. Also: CEO See president
CIF	cost, insurance and freight. A CIF price includes the costs of loading the goods onto the ship, the cost of marine insurance for the goods, and the cost of carrying the goods from the port of origin to the port of destination.
CIFC	the same as CIF plus a commission for the agent who helped to get the order.
claim	(1) a demand for something that is rightfully due; for example, a sum of money from an insurance company. – He filed a claim for damages from the flood. [verb] to ask for something as a right. – He claimed $40,000 in damages. (2) [noun] a statement about a product’s features or advantages. – They make a lot of claims about their latest software version. claim [verb] – They claim that their product represents a new generation of technology.
clause	a paragraph, section, or part of a legal contract.
client	a person or company that buys a service.
collaborate	[verb] to work closely with another person, especially in writing, research, or other creative tasks. collaboration [noun]
colleague	a person you work with.
collective bargaining	the bargaining (or negotiating) method in which representatives of the employees, the union, and the employer determine the conditions for employment.
commerce	the buying and selling of goods on a large scale which involves transportation of such goods from place to place
commercial	(1) [adjective] having to do with business or commerce (trade between companies or countries). She is a trained commercial secretary. (2) [adjective] having the possibility of making a profit. Our company is a commercial operation, not a charity. (3) [noun] an advertisement on television or radio or in the cinema I hate to sit through all of those commercials before the film.
commission	(1) a payment to an agent for his part in a sale. (2) a payment to an employee above the usual salary and based on performance, for example as a percentage of sales. I received a 15% commission on the sale.
commodity	(1) raw materials, semi-finished goods, or economic goods in general which have established standards of quality and which are traded in established quantities. (2) any product which is indistinguishable from its competition, a characteristic of mature products see life cycle. Memory chips have become commodity items.
common stock	securities issued by a corporation and which represent ownership. Common stock has the lowest priority claim to the corporation's assets, but shares directly in its profits and usually carries voting rights. see capital stock and preferred stock.
compensation	an appropriate amount of money paid by a person or a company that is responsible for some financial loss or injury. She received a large compensation for her on-the-job injury.
compete	[verb] to struggle against another person or company for the same goals. We can compete with anyone in any market.
competition	[noun] (1) other companies that strive after the same customers. Our competition is very strong. (2) the process of competing. We believe in competition.
competitor	[noun] another company operating in the same area of a market. Company X is our biggest competitor.
compile	[verb] to collect and arrange information or data We are compiling the sales figures. compilation [noun] We will soon have a compilation of the sales figures.
complimentary	[adjective] given without cost. We received a complimentary drink upon arrival.
component	[noun] any of the parts of which a product is made. We supply components for the car industry.
compound interest	interest which is paid on the sum of the principle plus any interest that has built up in the past.
compromise	[verb] to change a negotiating position in order to reach an agreement. We may have to compromise with the other side. compromise [noun] We may have to reach a compromise.
concession	[noun] something given up in a negotiation. What kind of concessions are we prepared to make? concede [verb] to give up (something) in a negotiation. We will concede our demand for a 10% increase.
conflict of interest	a situation in which a person or a company is involved in two relationships; and doing something positive for one relationship will result in a negative effect on the other relationship. A lawmaker who owns a company that does business with the government has a conflict of interest.
conglomerate	a large group of companies which produce a variety of products.
consign	[verb] to send (goods) to someone. consignee [noun]: the person receiving the goods.
consignment	a quantity of goods which are sent (1) to supply a customer’s order or (2) to provide an agent with goods to sell for the owner. goods on consignment: goods sold by an agent where ownership remains with the sender until a sale takes place.
consortium	a group of companies co-operating for a common purpose.
consult	[verb] to get advice from an expert. We consulted our legal department.
consultant	[noun] an expert who gives professional advice. We engaged an outside consultant for the project.
consultation	[noun] a meeting to discuss a problem, with the goal that a decision can be made. I think we should have a consultation with our partners before we attend the conference.
consumer	[noun] the person who buys a product for his or her own use and not for resale. Consumers are spending more. consume [verb] Americans consume a lot of coffee and cola. consumption [noun] The consumption of alcohol is increasing.
consumer goods	goods bought by the general public, e.g. food, furniture, cars, clothing, appliances.
corporation	[noun] a legal entity which is created under the laws of a state for the purpose of conducting business. Legally, people who own shares in the corporation cannot be held liable for the debts of the company. The stockholders, or owners, of a corporation are liable only for the amount of their personal investment. A public corporation is one whose shares are bought and sold publicly on a stock market. A private corporation is one that is privately owned; that is, you cannot buy shares of it on a stock market. corporate [adjective] We are very proud of our corporate identity. incorporate [verb] It is wise to incorporate in the United States if you want to do business there.
corporate account	The word account means "customer". So a corporate account simply means the customer is a corporation and not an individual. See account
cost	(1) (singular) the amount of money necessary to pay for something. – The cost of this project is too high. (2) (plural) a collection of individual costs. – There are too many costs involved in this project. > expense
cost effective	= economical
credit	(1) [noun] an amount of money which is owed to a customer. (2) [noun] praise for a positive accomplishment. No one gave him credit for his idea. (3) [verb] to record a transaction in the customer's favor. We have credited your account for the overpayment. (4) [verb] to acknowledge that a person is responsible for a positive accomplishment. He is generally credited with saving the company from bankruptcy.
currency	the money system of a country. The currency of Japan is the yen.
current assets	the assets which are regularly used and replaced in a business within the present time period.
current liabilities	the debts which must be paid within the present time period.
current ratio	one measurement of a company's financial status, computed by dividing the current assets by the current liabilities.
customer	a person or company that buys goods or services. see client
debit	in accounting, the recording of a transaction which shows an increase in an asset account or a decrease in a liability or equity account.
debt	money, goods, or services that are owed.
default	to fail to pay a debt when it is due.
deficit	the amount by which money going out is greater than money coming in for a certain period of time, usually one year.
demand	the amount of a product that the market wants. see supply
depreciation	a decrease in the value of a fixed asset over a period of time.
depression	a period of severe decline in employment, production, consumer buying, and economic activity in general. see recession.
devaluation	a decrease in the value of one currency relative to another.
direct costs	those costs that can be directly associated with the production of a product. also: direct expenses
direct expenses	see direct costs
discount	a reduction in the normal price of something given to special customers or for special reasons.
discretionary income	the part of disposable income which remains after paying for necessities, such as food, clothing and housing.
disposable income	the part of income which remains after paying taxes.
distributor	This term is used in the same way that the term wholesaler is used. Some areas of business prefer to call their wholesalers distributors; for example, the beverage industry (beers, colas, etc.).
dividend	a payment, either in cash or stock, to the holders of a company's stock. Dividends on preferred stock are usually fixed while dividends on common stock often vary with a company's success and growth potential.
division	any major section of an organization --- especially a large corporation --- which contains all the departments and resources that are needed to operate independently within the larger organization. He is in charge of the truck division at GM.
Dow-Jones Averages	a composite average of the thirty industrial stocks chosen by the Dow-Jones Company as representative of stock market activity.
downside risk	the maximum amount that can be lost in an investment if its outcome is unfavorable. see upside potential.
earnings	generally, a company's net income over an extended period.
economic	related to the economy or to the science of economics. The latest economic figures show a decrease in demand for consumer goods.
economical	inexpensive or cheap to operate; not wasteful. I drive a very economical car.
economy	the financial and commercial operations of a country. The most important issue in the last election was the state of the economy.
effective	able to bring about the planned result. We have developed an effective method of surveying our market.
efficient	able to work fast or well with very little waste. We need to invent a more efficient energy source for the automobile.
employ	to use the services of someone or something. This factory employs 2000 people. We employ the latest technology. We employ the latest technology.
employee	a person who works for a company.
employer	a person or company who gives work to people.
employment	work on a full-time or regular basis.
endorse	(1) [verb] to sign your name on the back of a check. (2) [verb] to give your name to the support of a product. We need a famous person to endorse our products. (3) [verb] to give support to someone else's idea. I endorse John's suggestion. endorsement I gave my endorsement to the idea.
entrepreneur	[noun] a person who owns and runs a business, taking all of the financial risks. – It is a meeting between entrepreneurs and government leaders. entrepreneurial [adjective] – We need our managers to display entrepreneurial responsibility in their duties.
equity	(1) [noun] the net worth of a business, computed by subtracting the liabilities from the assets. – He has a 65% equity in the company. (2) [noun] any of the forms of business ownership, such as preferred or common stock. – Most of the trading on Wall Street is in equities.
equity capital	money supplied by the owners of a company (e.g. money from the sale of common stock). – The individual stock price multiplied by the number of shares outstanding will give the equity capital of a corporation.
estimate	[verb] to express one's opinion concerning the cost of something, the time necessary to complete it, the size it will be, etc. – I estimate it will take six months to build. [noun] an official opinion concerning the cost of a project, the time it will take, etc. – We will send you an estimate in two weeks.
executive	an employee of a company of at least managerial level, although the term is usually used for vice-presidents or higher. It is rarely used for people who directly supervise manufacturing operations.
executive search agency	a service company that searches for qualified candidates for difficult-to-fill executive positions for a fee.
expenditure	amounts of money spent on specific projects. – We have to increase our research expenditures.
expense	any cost that results from the process of producing revenues. see direct expense and indirect expense.
farm out	to have someone outside the organization do some work in order to complete a job on time. – We had to farm out some of the typing in order to finish on time.
FAS	free alongside ship: the price of goods includes transportation to a point alongside a named ship. The cost of loading the goods onto the ship must be paid by the buyer.
fiduciary	(legal) legal responsibility for taking care of something that belongs to someone else. – Any manager with control over the finances of his area of activity has a fiduciary responsibility to the company.
finance	(1) [noun] the study of the management of money. (2) [verb] to provide money for a project. – We need help to finance this project.
finances	[noun] the monetary resources of an organization or individual. – I don’t have the finances that are needed for this kind of venture.
financial	[adjective] having to do with finance. – He is a financial genius.
financing	[noun] the supply of money for a company or a particular project. – Financing for more construction will not be a problem.
finished product Also: finished good	A product that is ready to be sold to a customer. (If the customer is another manufacturer, the product is an OEM product when seen from the customer's side.)
fiscal	[adjective] referring to financial matters in general. – I agree with their fiscal policy.
fiscal year	the accounting or tax year of a company as opposed to the calendar year. – Our fiscal year ends on June 30.
fixed assets	the property of a company that is meant to be used over a long period of time, e.g. land, buildings, machinery.
fixed cost	costs that are not affected by the volume of production, e.g. rent.
FOB	Free On Board: the price of goods covers all transportation costs, including the cost of loading the goods onto a ship (or to an airport).
franchise	the right to distribute a company's goods or services under its name and keep the profits in exchange for a fee and/or a share of the profits. – Most McDonald's outlets are franchises.
free agent	a someone with very valuable skills, whose contract has expired and is looking for the highest bidder for his services (from team sports). – At this time next year, I will be a free agent.
free lancer	an independent or self-employed worker. – Let’s use some free lancers for this project and save some money.
freight	a general term referring to goods that are transported by sea or air or rail or road. freight charges: the cost of transporting goods. freighter: a commercial transport ship.
funds	in general, highly liquid assets, such as cash and marketable securities.
gain	an increase in value over a period of time. – Our stocks had a gain last quarter.
gimmick	something new or unusual added to a product or to the marketing of a product in order to attract people's interest but without adding significant value. – This new product feature is not just another gimmick.
going rate	the current market price of a product, wages, materials, etc. – What is the going rate for eggs?
gross margin	the difference between the retail price of goods and the wholesale price, divided by the wholesale price. – The gross margin on memory chips is less than 10%.
Gross National Product	also: GNP. the total of all goods and services produced in a country in one year, including income from investments in foreign countries.
gross profit	the difference between the retail price of goods and the wholesale price.
gross sales	the total sales before taking off discounts, returns, damaged goods, etc.
holding company	a company which owns enough stock in other companies to have control over them.
horizontal integration	the joining of two or more companies in the same industry. see vertical integration
host / Web host	The most common meaning of host [noun] is someone who invites other people to come to his or her house for a dinner or a party [Gastgeber]. Similarly, a Web host is a company that invites other companies to use its server in order to operate a Web site. Most Web hosts also offer to help their customers design and develop their Web sites. The same word can be used as a verb, to host a Web site.
incentive	something offered to a worker in return for greater effort. – Profit sharing is an effective incentive for most workers.
income	all money received from the sale of goods and services plus money received from earnings on investments plus money received from the extraordinary sale of property. also: revenue
income statement	a financial statement that shows a company's revenues, expenses, and the resulting net earnings for a given accounting period. also: profit and loss statement
incorporate	[verb] to form a free-standing legal entity. corporation [noun] incorporated [adjective] corporate [adjective] Some companies use the word Inc. (pronounced "incorporated") in their names; other companies use the word Corp. (pronounced "corporation") in their names. There is no difference in the kind of companies they are; it is only a choice of words.
indirect cost	a cost which is not directly related to the making of a product. – Office rent is an indirect expense. see indirect expense
indirect expense	see indirect cost
intangible assets	unseen assets which are of value to a company; for example, a patent, exclusive rights to a product or process, a copyright, etc. see tangible assets
interest	money paid in return for the use of borrowed money. The borrowed amount is called the principal. see simple interest and compound interest.
Internet service provider (also: ISP)	An ISP is a company that offers individuals or other companies access to the Internet for a fee.
inventory	(1) the value of the raw materials, semi-finished goods, and finished goods that are still being held by the company. In accounting terms, inventories are assets. also: stock (2) a list of such items. (3) the physical collection of such items. – I must check to see if we have that item in inventory (in stock).
investment	money that is used in a way which is expected to result in a profit later: purchasing ownership in a company or project, purchasing assets, hiring people, doing research, putting money in bank account that pays interest, etc.
invoice	(1) a detailed statement of ordered goods which is sent to the buyer before the goods are delivered. (2) a detailed statement of ordered goods which is sent to the buyer along with the goods. (3) a detailed statement of goods or services already provided which is sent to the buyer along with a request for payment. also: bill
job	the defined duties which a person performs for pay. – I like my job. (2) a specific performance within one’s normal duties. – You did a good job with the Sanderson contract.
job description	a formal, written description of the duties to be performed in a job. – This isn’t in my job description.
job rotation	moving people between several different jobs on a regular schedule, either because no one has the jobs permanently or as a way to keep people fresh and interested and to give them cross-training.
job satisfaction	how much you like your job. – Salary and job satisfaction are both important to me.
job security	the relative likelihood that your job will be eliminated. – For some people, job security is more important than job satisfaction.
joint venture	when two or more entities combine resources for a one-time or on-going project, but do not merge all their business activities. Our two companies will be together in a joint venture involving the market in Poland. see venture
junior executives	entry level and midlevel managers who are being prepared for advancement.
just in time	also: JIT. a manufacturing inventory system in which raw materials and components are delivered from suppliers shortly before they are needed, thereby reducing inventory costs.
kaizen	a Japanese discipline of continuous improvement to reduce defects and variation and enhance the quality of the end product.
kanban	a Japanese term for a just-in-time inventory system in which materials are scheduled to arrive when needed rather than stockpiled in a warehouse (the word means "reminder").
key account	A key customer (one that is very important) is also called a key account, and a manager who is responsible for such a customer is a key account manager. See account
keynote	the most important speech at a conference.
kickback	money given to the giver of a contract in return for the contract (usually an illegal or unethical practice).
killing	a very great financial success. – He made a killing on the stock market last year.
KISS	"Keep It Short and Simple." good advice for people making presentations. (also: keep it simple, stupid!)
labor	(1) [noun] unionized workers. (2) [noun] blue collar workers. labor [verb] to work
labor force	all of the people who are employed.
labor-intensive	requiring a large amount of human work to produce. – Writing software is very labor-intensive.
launch	[verb] to introduce (for example, a product or an advertising campaign). – We are going to launch our new product in May. launch [noun] the introduction of a new product or ad campaign. – The launch of our new product will be in May.
lay off (lay - laid - laid)	[verb] to end the employment of a worker for economic reasons. – John was laid off yesterday.
layoff	[noun] the act of eliminating a job. – There will be 200 lay-offs next month.
lead time	the time between placing an order and receiving the product. – There is a seven-day lead time with our suppliers before we can start our manufacturing process. see turnaround time
leverage st.	Originally, to leverage an investment meant to use borrowed money with the goal of realizing a profit that is greater than the interest payments on the borrowed money. A leveraged buyout is the purchase of a company using borrowed money. Nowadays the expression also means to use something of value to improve one's position. - They are leveraging their expertise to receive financial support from other companies. The idea comes from the way a lever works [Hebel].
liability	the amount of money that is owed to someone; the amount of money that has to be paid or repaid. also: debt
life cycle	the natural movement of a product or business through the four phases of its lifetime: 1. development, 2. growth, 3. maturity, and 4. decline.
liquid	easily convertible to cash
liquid assets	cash, securities, and commodities that can be quickly converted to cash.
liquidate	to convert assets into cash.
liquidity	the degree to which an asset can be converted to cash.
loss	the amount by which expenses exceed revenue. The opposite of profit.
lump sum	an amount of money paid or received in one transaction. – You can either pay for this in monthly payments or in one lump sum.
margin	the difference between the price of something and its cost. If it is expressed as a percentage of the cost, it can also be called gross margin. If it is expressed simply as an amount of money, it can also be called gross profit.
market	(1) [noun] all potential buyers for goods and services. – Is there a market for this idea? (2) [noun] the actual place where goods and services are exchanged. – The American market is very big. (3) market [verb] to sell goods and services to actual buyers. – We market our products in Europe and Asia.
market segment	a group of consumers who have some characteristics in common, such as age, sex, income, education, occupation, marital status, geographic location, etc. – Males between the ages of 24 and 40 are an important market segment.
market share	the sales of one company's product expressed as a percentage of the total sales of all such products. – Our market share will soon be over 50%.
marketing	a company's total effort in directing its products to the buyer. It includes advertising, selling, packaging, distribution, and market research. – Our marketing has improved.
marketing mix	the elements of marketing: product, brand, package, price, channels of distribution, advertising, promotion, personal selling, etc.
mediate	[verb] to help to settle a dispute between two other people or organizations. – We hope to be able to mediate this dispute. mediation [noun] the process of mediating. – Are they willing to enter mediation with us? mediator [noun] – We need a strong mediator to sit down with us.
merchandise	goods which are bought and sold at wholesale or retail. The term does not include real estate or services but is limited to tangible goods that are for sale. Our store carries only the highest quality merchandise.
merchandising	the act of identifying and meeting market needs in terms of products. It involves advertising, promotion, personal selling, and other product-related marketing efforts.
merger	[verb] a legal joining of two companies in which one or both lose their former corporate identity. The merger of our two companies will help everyone. merge [verb] Our two companies will merge soon.
Mergers and Acquisitions	An area of banking which deals with the financing of company mergers and acquisitions.
middle man	(1) a person or company that buys and/or sells between a manufacturer and the consumers. (2) a person or company that brings together two complementary interests.
middle manager	someone who supervises people or projects and reports to someone higher in the organization.
minutes	the official written record of a meeting.
misinformation	false information planted deliberately in order to mislead someone. I think they’ve been giving out misinformation.
mismanage	[verb] to do a poor, inadequate, or careless job of managing. They mismanaged the project. mismanagement [noun] This is a classic example of mismanagement.
mission statement	an organization’s official statement of its overriding goals and principles.
mom-and-pop	[adjective] describing any small, privately-owned retail operation, usually in an industry dominated by large chains. We are certainly not some mom-and-pop operation.
moonlight	[verb] to work at a second job. He works the day shift at a factory and moonlights as a bartender evenings.
Murphy’s Law	"If anything can go wrong, it will." an observation made in 1949 by a frustrated development engineer named Ed Murphy.
near term	a vague term meaning "the not distant future". Our near term target is to penetrate the market.
negotiable	[adjective] (1) able to be changed by agreement. This topic is negotiable. (2) able to be transferred from the ownership of one person to the ownership of another by simply being endorsed (signed). Negotiable securities are as good as money. see non-negotiable
net earnings	the amount of profit or loss made from the sale of goods minus the cost of producing, selling, and distributing them.
net income	the profit after paying expenses (including interest and taxes) but before paying dividends or repaying the principal amount of debt.
net profit	the amount of profit made from the sale of goods minus the cost of producing, selling, and distributing them.
net sales	the total sales after taking off discounts, returns, damaged goods, etc.
non-negotiable	(1) not a subject for negotiation. These three items are non-negotiable demands. (2) unable to be transferred from the ownership of one person to another by simple endorsement. We keep our non-negotiable bonds in the safe.
OEM (original equipment manufacturer)	A company that provides a component or subsystem which is subsequently used in the creation of a more complex product or system.
operations	an area of a company that is directly responsible for producing a product.
operating profit	the profit from a company's normal business over a period of time, excluding profits from secondary sources, like investment profits.
option	the right to buy something at a pre-specified date and at a pre-specified price.
outlet	a shop or place where goods can be bought. This supermarket chain has 2000 outlets.
overhead	the costs or expenses of a company which are not directly related to production, such as rent, insurance, utilities.
overtime	time worked beyond the normal hours. I worked 10 hours of overtime last week.
parent company	a company which owns at least 50 percent of another company. see subsidiary
partnership	a legal agreement in which two or more people share ownership of a company. Each partner is fully responsible for the debts of the partnership and shares in the profits according to the details of the partnership agreement.
pension	money that is paid regularly to someone who is either retired or cannot work due to illness or injury.
performance appraisal	a record of how well an employee does his job, what his training needs are, what kind of pay raise he should receive, etc.
performance review	a meeting in which a manager discusses with a worker his performance appraisal.
perquisite (perk)	a benefit which a person receives as part of his job in addition to salary. A company car is one of the perks of my job.
personal	having to do with a person's private life. The items in my desk are my personal property. see personnel
personnel	[noun] all of the people who work in an organization. – We are proud of our personnel. [noun] the department that deals with the benefits and pay of employees. – She works in personnel. [adjective] having to do with all the people who work in an organization. This is a personnel problem. also: staff
plant	(1) the machinery and equipment in a factory. The plant in this factory is outdated. (2) a factory. I have to go to the plant on Saturday.
preferred stock	one of the two main classes of capital stock. Preferred stock is generally entitled to dividends at a fixed rate and which takes preference to the payment of common stock dividends. see common stock and capital stock.
premium	an additional sum added to the price of a product. This product sells at a premium. insurance premium: payment to an insurer for insurance coverage.
president	In a corporation, the highest-ranking officer below the chief executive officer (CEO). If the president is also the CEO, he outranks the chairman of the board of directors. If the chairman of the board is also the CEO, he outranks the president. In other organizations (private companies, non-profit organizations, clubs, etc.), the president is the highest-ranking officer.
price fixing	an illegal agreement among several companies to keep prices artificially high.
price-to-earnings ratio	a measure of the value of a company’s stock price. (The price of one share divided by the earnings per share.)
prime contractor	the contractor for a large project who negotiates with the buyer and is generally responsible for its completion. also: general contractor see subcontractor
principal	(1) the original amount of a loan. see interest (2) the person or company that employs an agent. see agent
product	[noun] anything which a company sells. In general, it refers to manufactured goods, but it can also mean services, securities, etc. production [noun] the process of turning raw materials into a finished product. productivity [noun] the rate of production. producer [noun] a person or company that makes a product. produce [verb] to make or manufacture.
product line	a group of products that a company sells to a particular marketplace.
product orientation	a marketing philosophy which emphasizes the product as opposed to the customer.
profit	the amount by which revenue exceeds expenses. The opposite of loss.
profit and loss statement	see income statement
profit center	a part of a company that is expected to make a profit from its operations by charging its internal and/or external customers for its products or services.
profit sharing	a part of a company’s profits which is either paid out directly to each employee as a benefit or invested and paid out later.
profit taking	cashing in short-term securities or commodities because of recent price increases.
profit margin	gross profit or net income as a percentage of sales. Profit margin may refer to either gross margin or net margin, depending on the context.
proprietor	the owner, especially of a business. proprietorship [noun]: an unincorporated business having a single owner.
proxy	(1) a person who is authorized to represent another, especially in voting at a stockholders meeting. (2) the legal document which gives such a right.
public offering	a block of shares in a company that is being offered for sale for the first time. see initial public offering
public relations	a service which tries to improve the way a client (either a person or a company) is seen by the public.
pull strategy	a marketing strategy which tries to increase demand for a product thereby "pulling" it through the channels of distribution. see push strategy
push strategy	a marketing strategy which tries to provide more incentive to the members of the channels of distribution thereby "pushing" the product through to the consumer. see pull strategy
racket	a dishonest way of making money in business. Insider trading is a real racket in some stock markets.
raw material	Any material (not a manufactured product) --- such as steel, glass, wood, copper, etc. --- that is purchased and used in the manufacture of a product.
real estate	property consisting mainly of land and buildings. also: real property
recession	a period of time when business suffers a serious decline in production and employment. also: economic slump see depression
red tape	time-wasting bureaucratic rules or procedures. We will never improve our efficiency until we cut some of this red tape.
reimburse	to repay (a person) for money already spent. We will reimburse you for all your expenses on the trip.
reinstate	to give a person his old job back. Most of the people who were laid off last fall were reinstated in the spring.
remit	to send (money, etc.) to someone by post. Please remit your payment in the enclosed envelope.
requisition	[verb] to make an official request for supplies or material. Please requisition some more paper. [noun] the form used in such a request. Please fill out a requisition.
retailer	a person or company that sells goods directly to the consumer (or end user). Most retailers buy products from distributors or wholesalers, rather than directly from the manufacturer.
retail price	the price which the consumer (or end user) pays for a product.
return on investment	or ROI. Also called return on equity, or ROE. This is a common ratio used in business analysis which measures the net income against the investment that was necessary to generate that income. ROI is calculated by dividing net income by the owners' equity.
revenue	all money received from the sale of goods and services plus money received from earnings on investments plus money received from the extraordinary sale of property. also: income
sales revenue	revenue (money received) from the sale of a company's product. also: sales Sales are up this year by 15%.
seller's market	a condition in a market in which demand is greater than supply, which puts upward pressure on prices. see buyer's market
securities	usually stocks and bonds, but technically anything that gives the holder the right to money or other assets.
share	(1) partial ownership in anything. I have a 25% share of a sailboat. (2) a document that shows an ownership unit in a corporation. I bought 300 shares of AT&T.
shareholder	a person or company that owns common or preferred stock in a corporation and is, therefore, legally a part-owner of the company. also: stockholder
simple interest	interest that is computed only on the principal. > compound interest
spin off (spin - spun - spun)	[verb] to transform a part of a company into an independent company. We may spin off two of our divisions.
spin-off	[noun] (1) a separate company that was originally part of another company. (2) an idea or product that is given birth from a pre-existing idea or product.
Standard and Poor's 500	This is a broad-based measurement of changes in the New York Stock Exchange. It is based on the average performance of 500 widely held common stocks. It is also known as Standard and Poor's Index and the S&P 500.
startup	a new business, usually one that is trying to develop a new product, new services or a new market.
stock	[noun] the individual units of ownership in a corporation. I sold some of my company stocks. also: stock certificate, share [noun] products in inventory. I think we have that item in stock. [verb] to put a product on a shelf in a store or to keep it in inventory. We don’t stock that anymore.
stock dividend	a dividend that is paid in stock (as opposed to cash) to the stockholders of a corporation.
stock holder	a person or company that owns common or preferred stock in a corporation. also: shareholder
stock split	the action of replacing existing shares in a corporation with a greater number of shares, usually at a lower value.
store	[noun] a place where goods or materials can be kept. You can buy that in a store. [verb] to keep something in a place until it is needed later. Please store this for me until I get back.
strategy	the plans adopted by a company or a person in order to meet long-term objectives. see tactics
subcontractor	a person or company who accepts part of a total contract or project from a general contractor (prime contractor) or from a company that cannot do all of the work itself. see prime contractor
subordinate	a person who is in a lower position in an organization. This word is used when talking about organizational relationships in general but is seldom used to describe individual workers. Managers should develop a good relationship with their subordinates.
subsidiary	a company controlled by another company. see parent company
superior	a person who is in a higher position in an organization. I want to speak with your superior.
supply	[noun] the amount of a product that is available on the market. The supply of oil has gone up. [verb] to provide a product or resource. They supply us with temporary help. supplies [noun] the available quantity of a product. Our supplies of paper and toner are low.
supply & demand	the relationship between the level of a product's availability (supply) and the level of desire for it in the marketplace (demand). The supply of Free markets operate under the Law of Supply and Demand.
supplies	goods needed by a company to operate its business. office supplies: paper, pens, etc.
surcharge	an additional cost to be paid. There will be a surcharge for not paying on time.
surplus	the amount of something that is more than needed. We keep a surplus of cash in the bank.
sweetener	an additional incentive provided to encourage the potential buyer to buy. The supply of We added a sweetener to our offer.
SWOT Analysis	a tool with which a company analyzes its current situation by identifying its internal Strengths and Weaknesses and its external Threats and Opportunities.
syndicate	a group of persons or companies that organize to perform a task that is too large for any of them individually. They are part of an international syndicate of banks.
tactic	the specific actions by which a company implements its strategy. see strategy
tangible asset	a physical thing of value; e.g. a house, equipment, furniture, etc. see intangible asset
task force	a small group of people working as a team to accomplish a specific goal.
temporary worker	a low-paid office worker who is hired one day at a time to replace a regular worker who cannot work. also: temp We need a temp to come in for three days.
tender	[noun] a formal offer to supply a product or do work for a certain price. They invited tenders for the construction project. [verb] to make a formal offer supply goods or to perform work for a certain price. We tendered for the construction of the factory. [verb] to offer anything formally. He tendered his resignation.
Theory X	the idea managers think and workers work; that workers are naturally lazy and uncreative; and that a manager's job is to force workers to do their work.
Theory Y	the idea that people are naturally productive and that a manager's job is to show them how their work can be satisfying to them and profitable to the organization.
tight money	a situation in which credit is hard to get and/or interest rates are high or increasing.
turnaround time	(1) the time necessary for the process of receiving, processing and sending out again. Our turnaround time for repairs should be less than 24 hours. (2) the time from when a product comes into a store until it is sold. (3) the time needed to turn a bad situation into a good one.
turnover	(1) percentage of workers in a company who must be replaced in a given time period. (2) the measure of how often an inventory must be restocked in a given time period. (Turnover in the American language does NOT mean sales.)
understaffed	not having enough workers for the work that must be done. We are understaffed at the moment and cannot complete the work on time.
undertaking	an activity or business. We are not prepared for such a large undertaking.
unit	Here unit means a part of a larger organization that functions as an entity. It could be a work team or a department or any other large or small group that is complete in itself. It is a general term, also used in the military. [Einheit] They were together in the same army unit for a while.
upside potential	the maximum amount that can be gained in an investment if its outcome is favorable. see downside risk
usury	interest charged at rates above the legal limits.
vacancy	an empty place or position. There is a vacancy in our department.
vacant	empty. That building is vacant.
vacation	time which a worker is given with salary to stay home or travel for pleasure. Where are you going for your vacation?
variable cost	costs that are directly related to the volume of production. see fixed costs
vendor	a person or company that sells something. Our company is a vendor for the computer industry.
vending machine	a machine that sells something. I bought a cup of coffee from a vending machine.
venture	a business or commercial activity in which there is some risk. He is thinking about starting a new venture in the music business. see joint venture
venture capital	capital invested or available for investment in a new company or at an early stage of a new company's growth. Venture capital in Europe is easier to find than a few years ago.
vertical integration	the joining of two or more companies, each of which contribute to the production of a product at different stages. see horizontal integration
vocation	a person's trade or profession. also: occupation
white goods	UK: large household appliances (for example, refrigerators, dish washers, washing machines, etc.) also: household appliances
wholesaler	someone who buys large quantities of goods from the producer and resells them to distributors and retailers, but not to end users.
windfall profits	unexpected profits arising from causes and situations outside the control of the person who receives them.
write-off	the act of recording as an expense an asset that cannot be liquidated.
yield	[noun] the return from an investment. Our investment had a very good yield last year. [noun] the amount of a product that is produced in a production run. Our factory had a good yield last month. [verb] to give up or surrender His land yields profitable crops every year.