Business terminology

Above The Fold - Originally a newspaper editorial/advertising term referring to

the upper-half of the front page ('above the fold') in terms of its immediate and
optimal viewing viewing position. More recently 'above the fold' has been adopted
and adapted for use in internet terminology, where it refers to the upper section of
a webpage that is viewable without scrolling down the page. 'Above the fold' is
therefore a reference to the best (most read) position in online/printed media such
that it commands highest demand/prices for editorial/advertising. It is by its nature
a rather loose term, dependent on the publication itself, and especially given the
different screen sizes and page layouts for content viewable online using PCs,
smartphones, tablets, etc.
Above The Line - Marketing and advertising through mass-media, such as
television, radio, newspapers, magazines, Internet, etc., which is less personal than
Below The Line Marketing. Companies usually use advertising agencies for ATL
marketing.
Abram's Law - Construction industry theory relating to concrete strength as
determined by the ratio of water to cement.
Absolute Advantage - Being able to produce goods more cheaply than other
countries.
Abstract - A brief summary covering the main points of a written article or
research project.
Accelerator - A company which supplies office space, marketing services, etc., in
exchange for payment, to help get new companies started.
Acceptance Bonus - The amount paid to an employee who agrees to perform a
difficult task
Attrition - The process of reducing the number of employees in an organisation by
not replacing people who leave their jobs.
Auditor - A qualified person who officially examines the financial records of a
company to check their accuracy.
Auteur - An artist or creative, for example a film director, whose personal style is
recognizable because he/she keeps tight control over all aspects of the work.
Backscratching - Informal term for reciprocity or returning favours, as in the term
'you scratch my back and I'll scratch yours'.
Back-To-Back Loan - A loan in which two companies in separate countries
borrow each other's money at the same time for a specific period at an agreed upon
interest rate.
Back with Music - In the entertainment business, films, TV, etc., dialogue which
is spoken over music.
Bait-and-Switch - In retail sales, when customers are lured by advertisements for
a product at a low price, then find that the product is not available but a more
expensive substitute is.
Balance Sheet - A financial statement of an individual, company or organization,
which shows assets and liabilities (money owed) at a specific date.
Balloon - Describes a long term loan in which there is a large final payment when
the loan matures.
Bandwidth - In computing, the amount of information that can be transmitted
through a communication channel over a given period of time, usually measured in
'bits per second' (bps).
Bankers Hours - A short working day, often with a long lunch break.
Bank Loan - A loan made by a bank to an individual, company, etc., for a fixed
term, to be repaid with interest.
Bank Run - Lots of sudden and heavy cash withdrawals at the same time from a
bank or banks, because customers believe the banks may become insolvent.
Barista - A person who is a professional specialty coffee maker, for example,
cappuccino, latte, espresso, etc.
Bear Market - In the stock market a period of declining prices in which investors
continue selling shares, expecting the prices to fall further.
Bear Raid - The practice, in the stock market, of attempting to push the price of a
stock lower by selling in large numbers and often spreading unfavorable rumors
about the company concerned.
Behemoth - A large and powerful organization. (originally from Hebrew, behemot
- beast)
Below The Line - BTL. Describes marketing which has a short-term duration,
such as non-media advertising, direct-mail, e-mail, exhibitions, incentives,
brochures, etc., which is targeted directly at the consumer/customer. Often used by
companies on a limited budget.
Capital - The net worth of a business, including assets, cash, property, etc., which
exceeds its liabilities (debts). The amount of money invested in a business to
generate income.
Capital Allowance - Money spent by a company on fixed assets, such as
buildings, vehicles, machinery, which is deducted from its profits before tax is
calculated.
Capital Flight - The sudden movement of money from one country or investment
to another in order to reduce risk, such as high inflation, or to increase profit.
Capital Gains Tax - Tax payable on profits made on the sale of certain types of
assets by a company or individual.
Capitalism - When an economic system of a country is controlled and profited by
private individuals and corporations, rather than the government.
Capitalization Issue - When a company converts its spare profits into shares,
which are then distributed to existing shareholders in proportion to the amount of
shares they already hold.
Capital Outlay - Money which is spent for the acquisition of assets, such as land,
buildings, vehicles, machinery.
Capped-Rate - Interest rate, usually on a loan, which cannot rise above the upper
set level but can vary beneath this level.
Carbon Credit - Allows the right to emit a measured amount of harmful gases,
such as carbon dioxide, into the air, and can be traded between businesses and
countries.
Carey Street - To be heavily in debt or bankrupt. Originates from Carey Street in
London where the bankruptcy court was situated.
Cash Call - A request by a company to its shareholders to invest more money.
Cash Cow - A steady dependable source of income which provides money for the
rest of a business.
Cash Flow - The movement of money into and out of a company, organisation,
etc.
Cash Flow Forecast - Also called Cash Flow Projection. An estimate of the
amounts of cash outgoings and incomings of a company over a specific time
period, usually one year.
Casting Vote - The deciding vote cast by the presiding officer to resolve a
deadlock when there are an equal number of votes on both sides.
Day Player - In the entertainment industry, actors, etc., who are hired by the day.
Deadbeat - A person or company who tries to avoid paying their debts.
Dead Cat Bounce - A derogatory term used on the stock exchange to describe a
huge decline in the value of a stock, usually a share, which is immediately
followed by a temporary rise in price before continuing to fall. From: "Even a dead
cat will bounce if it falls from a great height".
Dear Money - Also known as Tight Money. When money is difficult to borrow,
and if a loan is secured then it would be paid back at a very high rate of interest.
Debenture - Unsecured certified loan over a long period of time with a fixed rate,
based on the trust that payment will be made in the future.
Debriefing - A meeting or interview in which a person or group of people report
about a task or mission just completed or attempted.
Debt - Money owed to another person or organization, such as a loan, mortgage,
etc., which is required to be paid back, usually with interest.
Debt-Equity Swap - An arrangement between a lender and a debtor, usually a
company, in which the lender agrees to reduce the debt in exchange for newly
issued shares from the borrower.
Debt Exposure - Money that a lender risks losing if the borrower fails to pay it
back.
Decertification - In employment this refers specifically to action taken by workers
to disassociate themselves from a trade union which previously represented them.
Aside from this the general meaning refers to withdrawal of certification of one
sort or another.
Decision Consequence Analysis - A process for helping decision makers, usually
in the pharmaceutical and petroleum exploration industries, decide where resources
such as time, money, etc., should be invested.
Decision Tree - A diagram which starts with an initial decision, and possible
strategies and actions are represented by branches which lead to the final outcome
decided upon.
Deed of Partnership - A legal document which sets out how a partnership is to be
run, and also the rights of the partners. A Deed of Partnership is not compulsory
but it helps to avoid any misunderstandings or disputes in the future.
Deep Throat - In business, an anonymous source of top secret information. First
used in this sense in the reporting of the US Watergate scandal.
Deep Web - Also known as the Invisible Web, said to contain about 500 times
more information than the generally accessible world-wide web, the Deep Web
comprises data held by secure organizations, for example military and government.
De Facto - Latin - Existing in reality or fact, with or without legal right.
Defense Document - A document that a company's shareholders receive which
explains why an offer to buy the company should be rejected.
Deficit Financing - When a government borrows money because of a shortage of
funds from taxes. This usually results in pushing up interest rates.
Deflation - Economic decline typified by falling costs of goods and services;
falling levels of employment; limited money supply or credit; reduced imports;
lower wage increases, often caused by lower personal spending or investment,
and/or a reduction in government spending. Deflation is broadly the opposite of
inflation.
Double-dip Recession - A recession during which there is a brief period of
economic growth, followed by a slide back into recession, before final recovery.
Also called a W-shaped recession.
Double-dipping - The practice, usually regarded as unethical, of receiving two
incomes or benefits from the same source, for example receiving a pension and
consultancy income from the same employer.
Double-Entry Bookkeeping - An accounting method which results in balanced
ledgers, i.e., for every transaction a credit is recorded in one account and a debit is
recorded in another.
Double Indemnity - A clause in a life insurance policy where the insurance
company agrees to pay double the face value of the policy in the event of
accidental death.
Doula - A birthing or labor coach, from the Greek word doule, meaning female
slave.
Drayage - The fee charged for, or the process of, transporting goods by lorry or
truck.
Drip Advertising - An advertising campaign in small amounts over a long period
of time to ensure that the public is continually aware of a product or service.
Drum-Buffer-Rope - A method, usually in manufacturing, which ensures an
efficient flow of work in a production process by taking into consideration any
possible delays or problems which may occur.
Duopoly - Two companies, or a situation, in which both companies control a
particular industry.
Dutch Auction - A type of auction which opens with a high asking price which is
then lowered until someone accepts the auctioneers price, or until the sellers
reserve price has been reached.
E-Business - Electronic Business. Using the internet to conduct business or enable
businesses to link together.
E-Commerce - Electronic Commerce. The buying and selling of products and
services over the Internet.
Econometrics - Using mathematics and statistics to study the economy.
Economic Growth - An increase in a region's or nation's production of goods and
services.
Economic Life - The period of time during which an asset, e.g. property, vehicle,
machinery, etc., is expected to be usable, including repairs and maintenance,
before a replacement is required.
Economic Union - Also known as a Common Market. An agreement between a
group of countries which allows the free flow of goods, services, labor, etc.,
between the member countries and usually has a common currency.
Economies of Scale - In manufacturing, the more units being made the cheaper
each unit costs to produce.
Economy - The management of money, currency and trade of a nation. The
efficient management of resources.
Ecotourism - Nature based travel to unspoilt places in the world with a view to
conservation and to bring economic benefit to the local people. Also known as
Ecological Tourism.
E-Currency - Electronic currency. Used on the Internet for making and receiving
payments. Companies which provide this service include PayPal and E-Gold.
Edutainment - Products or media which both educate and entertain at the same
time, such as TV, books, computer software.
E-Enabled - Being able to communicate and/or conduct business using the
internet.
Fast Track - Quick route in a career to success and promotion, associated with
high ambition.
Fat Cat - A wealthy person living off investments or dividends, or a chief
executive of a large company or organization who is on a very large salary, huge
pension, etc.
Fault Tolerance - Enables a system, especially in computing, to continue to
operate properly even though a component in the system has failed.
Feasibility Study - A preliminary assessment of a new project, including costs,
risks, etc., to determine whether the project will be successful and practical.
Feather-Bedding - A term often used in industry describing the practice of hiring
more workers than is necessary to carry out a job, often because of a contract with
a union.
Federation - An organisation which has been formed by the joining together of a
group of companies, clubs, etc.
Fiat Currency/Fiat Money - A very bold term for monetary currency which is
established and traded as a national currency, such as US Dollar, Sterling, Euro,
etc. From Latin 'fiat', 'it shall be'.
Fidelity Bond - Also known as Fidelity Insurance. Protects an employer against
any losses incurred because of dishonesty, or damage caused, by an employee.
Fiduciary - Describes an organisation or individual who manages money or
property for a beneficiary.
Gantt Chart - Developed by Henry Gantt in 1917. A type of bar chart which
illustrates the scheduled and completed work of a project. It shows start and finish
dates, compares work planned to work done and tracks specific tasks.
Gap Analysis - Enables a company to assess the gap between its actual
performance and its potential performance, by comparing what skills, products,
etc. are available to what is required to improve performance, output, etc.
Garden Leave - Also called Gardening Leave. Term used when an employee's
contract has been terminated but they are instructed by the company to stay away
from work, on full pay, during their notice period. Often to prevent them from
working for competitors during that time.
Holding Company - A company which is formed for owning and holding
controlling shares in other companies.
Hole in The Wall - An informal term for a cash dispensing machine, also called an
ATM (automated teller machine).

Garnish - To take part of someone's wages, by law, to pay their debts, e.g. child
support, alimony.
Gatekeeper - A person in an organisation who controls access to the people in the
organisation, and/or controls access to information or goods, or even a market.
Microsoft could be described as a gatekeeper to the computer industry. Google
could be described as a gatekeeper to the internet industry.
Gazelle - A US term for a fast growing company that creates a lot of job
opportunities, and which has grown by at least 20% in the last four years.
Gazump - In selling and buying property, a term used to describe when a
purchaser has an offer accepted by the vendor but is then gazumped because
someone else makes the vendor a higher offer which the vendor then accepts
instead of the first person's offer.
Incapacity Benefit - A state benefit in the UK which is paid to people below
pensionable age who have made National Insurance contributions, and who are too
ill or disabled to work.
Incentive Marketing - The offering of rewards or gifts to sales people as an
incentive to get more orders from dealers or customers. To offer customers rewards
for buying products or services.
Income Fund - An investment fund with high returns which pays the owners a
regular income.
Income Tax - A tax paid by individuals to the government, the amount of which is
dependent on how much a person earns from their salary and/or other sources of
income.
Incubator - An organisation or company which provides support to new
businesses to help them develop and grow.
Indemnify - To insure and offer financial protection against loss, damage or
liability.
Independent Financial Advisor - (IFA) Someone who works independently, i.e.,
not for a particular company, and offers people advice about financial matters and
recommends where to invest their money.
Index-Linked - Concerning salaries, pensions, investments, etc. If they are Index-
Linked it means that the payments or income from these may vary according to the
rate of inflation.
Joint Stock Company - A company or organisation owned by joint shareholders,
which is a type of corporation and partnership. The stockholders run the company
and share its profits and debts.
Junk Bond - Also known as High Yield Bonds. A high risk bond with a high
interest rate, often used by companies to raise finances in order to take over other
companies.
Just-In-Time - JIT. A manufacturing system in which materials and components
are delivered immediately before they are required, in order to increase efficiency,
reduce waste and minimise storage costs.
Landing Page - On the Internet, the first page that visitors to a website arrive at
after they've clicked on a link to the site.
Larceny The crime of unlawfully taking someone else's property or money. Theft.
Large Cap - On the Stock Exchange, a company that has a large market
capitalization, i.e., a high total value of shares.
Law Of One Price - The rule that without trade barriers and transportations costs,
identical products would cost the same worldwide using the appropriate exchange
rate of currency.
Magalog - A catalogue which appears to be a magazine, used for marketing
purposes.
Magnetic Media - Disks and tapes which are used to record and store computer
data.
Mail Merge - The process of automatically personalising a customised letter or
document by using a list of individual names and addresses, so the same letter can
be sent to many people.
Mail Order - The purchasing or selling of goods over the Internet, telephone, from
catalogues, etc., which are delivered to the customer by mail.
Negative Equity - A term commonly used in the property market during a
recession when a property is worth less in value than the outstanding balance of the
loan with which it was purchased. This usually only affects the borrower if they
need to sell the property during this time.
Negative Growth - A term used to describe a recession. The opposite of economic
growth.
Negative Inventory - A situation where a mistake in the ordering system or
transactions of a business shows the stock to be less than zero. Sometimes this is
done deliberately to reduce costs.
Negotiating Table - Describes formal discussions where agreements are trying to
be reached.
Onshore Accounts - Bank accounts or investments held in countries which have
normal rates of tax and strict government control.
Open Account - An arrangement between a vendor and buyer in which the vendor
allows the buyer to pay at a later date for goods received.
Open-Book Management - A management technique in a company whereby all
the employees are involved in the running of the company by training them in, and
giving them access to, financial and operational details.
Open Border - A border which allows the flow of unrestricted goods and people
between countries.
Open Cheque - Also known as an Uncrossed Cheque. A cheque which does not
have to be paid into an account, and can be cashed at the bank of the person who
wrote it. Also means a cheque which has been signed but no amount has been
filled in.
Open Communication - In business, a situation in which employees have full
information about the organisation, and are encouraged to exchange ideas and
objectives with management.