[1 - E} Glossary of Terminology from Business and Management

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1.4142 - The diagonal (approximate, to four decimal places) of a 1 x 1 square, also known as Pythagoras's Constant, and therefore also the ratio (1:1.4142) for calculating the diagonal side of a right-angled triangle in which the two short sides are of equal length.

1.6180 - The Golden Number (to four decimal places). Also known as the Golden Section, Divine Proportion, and phi (pronounced 'fy' as in the word 'fly') the twenty-first letter of the Greek alphabet. Also loosely referred to as Golden Ratio (1:1.618). Phi is used intentionally or instinctively in many different areas of design, for example architecture, music, and art. Phi is also an easy 'secret' to achieving aesthetically pleasing positioning and proportions. The Golden Ratio is found in diverse designs such as Stradivarius violins, the Pyramids, Notre Dame Cathedral, and in nature, for example the human face.

3.14159 - Pi, normally represented by the Greek letter pi (P) symbol p. Pi is typically used for calculating the area (p x radius squared) or circumference (p x diameter) of a circle. Pi has an infinite number of decimal places, and fascinates mathematicians in calculating pi itself, and memory experts too in memorizing as much of it as possible.

4/4 - Four beats to the bar, the most common rhythm in music.

10:10 - A UK environmental campaign that asks businesses, organisations and individuals to cut their carbon emissions by 10% in the year 2010.

13 - The most superstitious number, 13 affects business in surprising ways through absenteeism, cancellations, and design. Western airlines, for example, tend not to have seats and rows numbered 13. Friday 13th is a particularly superstitious date. Friday and the number 13 derive their superstitious reputations mostly from Christian beliefs and Norse folklore.

21-Gun Salute - Traditional honour given to royalty and heads of state, derived from the old signal of peaceful intent, when multiple firing practically removed capability for immediate threat due to re-loading time.

24-Carat/Karat - The purest form of gold (karat is US-English spelling, too soft for jewellery, hence gold jewellery is made of 22-carat, 18-carat, or 9-carat gold, etc., in which other metals such as copper are mixed. Carat is a measure of purity in which 24 parts equate (virtually) to 100% gold. 18-carat is therefore 75% gold. Less than 10-carat gold is generally not sold as gold. The carat measure of diamonds is different, for which carat is a measure of weight (1 carat = 200mg).

24-hour Society - Refers to a way of life available to many in the modern world in which people can work socialize, shop, bank, etc., 24 hours a day. The phenomenon has caused significant new thinking in business, management, marketing, etc., and continues to do so.

24/7 - Twenty four hours a day, seven days a week.

38 Ways of Persuasion - The classic semi-serious guide to winning arguments featuring in The Art of Always Being Right, by German philosopher Arthur Schopenhauer (1788-1860).

64,000 dollar/pound question - The key or crucial question in a particular issue, deriving from an old US TV gameshow called Take It Or Leave It, in which $64 was the top prize (it was an old old show..) Recently the expression commonly increases the sum to 64-million, to keep pace with inflationary values.

72 Rule - More commonly known as the Rule of 72, with variations 69 and 70, these are standard figures used by financial folk in calculating quickly the years required for an investment to double (or to halve) at a given interest rate. Typically 72 is divided by the compound interest rate to give the approximate years. 72 is more popular than 69 or 70 because it is quite reliable and easily divisible quickly by lots of different numbers.

80/20 Rule - The theory that 20% of effort produces 80% of results, and very many similar effects; also known as Pareto Rule or Pareto Principle, after its originator.

86 - 'Secret' code used by restaurant and bar staff when refusing service or ejecting a customer from the premises, and more recently referring to a menu item not available, which is sometimes a lie to achieve the first meaning. The term has existed since the early 1900s and no-one knows the true derivation, although increasingly daft ones are suggested.

360 Degree Thinking - A term used for considering all options in business, etc., as opposed to having narrow field vision.

360 Degree Feedback - An appraisal method typically entailing feedback about a manager given by fellow workers.

                                                         A

A la Carte - Technically à la carte, an eating-place menu from which individual dishes at separate prices can be ordered, or less commonly where a side dish may be ordered at no extra charge, from the French phrase meaning 'to the menu'. Increasingly now applied to non-food services in which individual selections are offered rather than fixed provisions.

A1 - Top quality rating, applicable to various business situations, e.g., credit-worthiness, and more general references to quality and fitness for purpose.

Abilene Paradox - Observed in many poor or daft decisions by groups or committees, in which the collective decision is considered silly by individual members. From Jerry B Harvey's book The Abilene Paradox and other Meditations on Management (Jossey-Bass, 1988): a family decide to go to Abilene, as suggested by someone believing others might want to go, though he had no strong personal view. The trip was a waste of time, after which it emerged that no-one wanted to go. The effect can also apply in elections and especially tactical voting, whereby the collective effect produces an outcome nobody wants.

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.

Accounts - An individual's or company's financial records. Also an arrangement to keep money with a financial institution, e.g., a bank, building society, etc.

Accretion - Growth or increase in the value or amount of something.

Accrual - The accumulation of payments or benefits over time.

Across The Board - The involvement of, or affect on, everyone or everything in an industry or company.

Actuals - Real costs, sales, etc., that have occurred, rather than estimations or expectations.

Added Value - Enables and justifies a profit in business.

Addendum - An added section of information in a letter or report.

Ad hoc - Created or done for a particular purpose as necessary and not planned in advance.

Adjunct - A thing which is added or attached as a supplementary, rather than an essential part of something larger or more important.

Adoption Curve - A graph showing the rate at which a new piece of technology is bought by people for the first time. It is based on the idea that certain people are more open for adaptation than others.

Ad Rotation - Describes the rotation of advertisements on a web page - each time a user clicks on a different page or returns to a page they've viewed previously in the same session, a different advert appears on the screen.

Adverse Event - Term used when a volunteer in a clinical trial has a negative or unfavourable reaction to a drug, etc.

Advertising - The promotion and selling of a product or service to potential customers. To announce publicly or draw attention to an event, etc.

Advertising Standards Authority (ASA) - The UK self-regulatory body funded by the advertising industry for ensuring that all advertising adheres to ASA standards, notably not to offend or mislead people. Equivalents named the same exist in other countries.

Advertorial - An advert in a magazine or newspaper that is written like an article giving facts rather than appearing as an advertisement for a product.

Affidavit - A sworn signed statement of fact used as evidence in court whose signature has been witnessed by a commissioner of oaths or other authorised officer, for example a notary. Medieval Latin for 'he has stated on oath', from affidare, meaning to trust.

Affiliate - A company or person controlled by or connected to a larger organisation. In web marketing an affiliate normally receives a commission for promoting another company's products or services.

Ageism - Unfair prejudice or discrimination on the grounds of a person's age.

Aggregate - A whole consisting of the combination of smaller separate elements.

Aggregate Planning - The process of planning and developing the best way of producing the right amount of goods, at the right time and at the minimum cost, based on the total number of items which need to be produced, and the amount of materials, equipment and workers necessary for production.

Aggressive Growth Fund - A high risk investment fund in which shares are expected to increase in value very quickly in the hope of making large profits.

Agile Development Method - A type of business development which gets things moving quickly and adapts during the development, as distinct from conventional planning and project management implementation.

Agio - The percentage charged by a bank for exchanging one form of currency or money, into another that is more valuable.

Agitprop - Political propaganda (published ideas designed to motivate people into certain political views or actions) typically in art, music, literature, etc., a portmanteau word combining the original Russian words agitsiya (agitation) and propoganda, where the term grew from the state department responsible for disseminating communist ideas and information to its people in the 1930s. In the west the term is more associated with publication of left-wing or socialist ideas, often targeted against a governing right-wing authority.

Agribusinesss - Farming industry on a large corporate scale.

A-list - A list of the most celebrated or sought-after companies or individuals, especially in show business and entertainment.

Alpha Test - The first stage of testing a new product, especially computer software or hardware, carried out by a developer under controlled conditions.

Amalgamate - When two or more companies combine or unite to form one large organisation.

Amortize - To gradually reduce and write off the cost of an asset in a company's accounts over a period of time.

Anchor Tenant - The first and most prestigious tenant, typically a store in a shopping centre, that will attract other tenants or shoppers.

Ancillary Staff - People who provide necessary support to the primary activities and work of an organization, e.g: schools, hospitals.

Annuity - Often used to provide a pension. An annuity is a fixed regular payment payed over a number of years to a person during their lifetime.

Antediluvian - An interesting and humorous metaphorical description of something (for example a product or service or concept) that is obsolete, old-fashioned or primitive, or devised a long time ago. 'Ante' is Latin for 'before', and 'diluvian' is from Latin 'diluvium' meaning 'deluge', so the overall literal meaning is 'before the flood', being the biblical flood and Noah's Ark, etc. Antediluvian is therefore a clever way to say that something is (so old as to be) 'out of the Ark'.

Appellant - A person appealing to a higher court against a decision of a lower court or other decision-making body.

Apple Box - Used in films, TV, etc. Wooden boxes of various sizes which are used to elevate actors and celebrities.

Appraisal - A review of performance, capability, needs, etc., typically of an employee, in which case the full term is normally 'performance appraisal'.

Arbiter - A person who settles a dispute or has the ultimate authority to decide the outcome of a matter.

Arbitrator - An independent person or body officially appointed to settle a dispute.

Archive/Archives - A collection of records no longer active. Also pluralised - archives - meaning the same, and referring to the place of storage.

Articles Of Association - The document which lists the regulations which govern the running of a company, setting out the rights and duties of directors and stockholders, individually and in meetings.

Aspirational Brand - A brand or product which people admire and believe is high quality, and wish to own because they think it will give them a higher social position.

Assets - Anything of value which is owned by an individual, company, organisation, etc.

Asset Stripping - Buying a stricken company and selling off its assets with no thought for the future of the company or its people, customers, etc.

Atmosphere - In films, TV, etc., a general crowd of people, extras.

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.

Autocratic - Offensively self-assured or given to exercising unwarranted power. Expecting to be obeyed and not caring about the opinions and feeling of others.

AV - Anti-Virus, a common abbreviation referring to virus protection software/services for computer and internet use.

Avant Garde - New or original and often unconventional techniques, concepts, products, etc, usually associated with the arts and creative areas.

Average Daily Rate - In the hotel industry a calculation of the average price at which a hotel room is booked each night based on total daily revenue divided by the number of rooms sold. The term may have more general meanings in other contexts.

Avatar - An identity, often in cartoon form, which can be chosen from a selection or created by the person using it to represent themselves in a website chatroom, etc.

                                                       B

Back-End Load - A fee or commission paid by an individual when they sell their shares in an investment fund.

Back Shift - A group of workers or the period worked from late afternoon until late at night in an industry or occupation where there is also a day shift and a night shift.

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 organisation, 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).

Bancassurance - The selling of both insurance and banking services, usually by a major bank.

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 speciality coffee maker, for example, cappuccino, latte, espresso, etc.

Base 2 - Also known as the binary system, which is the basis of computer logic. Normal counting is based on 0-9. Binary just has 0-1, which means a new column is started after two, not nine. Binary counting does not go 1, 2, 3, 4, etc. It goes 0, 1, 10, 11, 100, 101, etc. Other than for computing it's not very practical.

Bean Counter - An informal derogatory term for an accountant, especially one who is perceived or suggested to be overly concerned about expenditure detail.

Beanfeast - Also known as a beano - an annual party, dinner, or outing given by an employer for its employees.

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 unfavourable rumours about the company concerned.

Behemoth - A large and powerful organisation. (originally from Hebrew, behemot - beast)

Bells and Whistles - Extra features added often more for show than function, especially on computers, cameras, etc., to make the product more attractive to buyers.

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.

Bench Warrant - An order issued by a judge for an absent defendent to be arrested and brought before a court.

Benefit Principle - A taxation principle which states that those who benefit more from government expenditure, financed by taxes, should pay more tax for the product or service than those who benefit less.

Benefits Realisation - Also Benfits Realisation Management, or if you prefer the US Englisg it would be Benefits Realization. This refers to the translation of projects into real and perceived positive effects, seemingly a concept devised originally in the field of IT and ICT (Information and Communications Technology) project management, where projects are notoriously difficult to manage successfully and generate clear end-user appreciation. The term, abbreviated to BRM, is increasingly applied more widely to change management and project management of all sorts, representing an additional final stage of project management process, for which a manager is sometimes specifically responsible.

Best Boy - The person on film sets, TV, etc., who is the assistant to the electrician.

Beta Test - The second test of a product, such as computer hardware, software, or even a website, under actual usage conditions, before the final version is used by or sold to the public.

Bid Bond - A sum agreed to be paid by a company that wins a contract if the work is not carried out.

Big Bang - Occurred (UK) on 27th October 1986, when major technology changes took place on the London Stock Exchange chiefly to replace manual systems with electronic processes.

The Big Board - An informal name for the New York Stock Exchange on Wall Street.

Bikeshed Colour effect/Colour of the Bikeshed Law/The Bicycle Shed Law/Parkinson's Law of Triviality - This was originally a concept or 'law' proposed by C Northcote Parkinson in his (1957/8) book Parkinson's Law: The Pursuit of Progress, which also gave us Parkinson's Law itself. The revived Triviality Law was popularized in 1999 by Poul Henning Kamp, a computer developer, effectively and accidentally renaming it the Bikeshed Colour effect. Essentially the law contends that people in organizations (due to human nature and organizational behaviour) inevitably spend a disproportionately large amount of time and effort on trivia matters - especially attempting to apply personal influence - while neglecting the really important issues because they are difficult to understand, and consequently more difficult to influence.

Bilateral - Agreement or involvement or action by two parties, people, companies, countries, etc.

Biometrics - The biological identification of human features, such as eyes, voices and hands, increasingly used to identify individuals, e.g., in laptop computers, entry systems and passports.

Bit Part - In films and TV, a supporting actor who has at least one line of dialogue, and who is usually listed in the credits.

Black Economy - Money earned in private cash transactions, which is untraceable, and therefore untaxable.

Black Knight - A company which makes a hostile takeover bid for another company that does not want to be bought.

Blamestorming - Portmanteau term contrived from Brainstorming and Blame, referring to meetings or discussions seeking to allocate responsibility for a failure or disaster. Popularised in the late 1990s by viral emails which listed amusing office terminology.

Blatherskite - A person who talks at great length without saying anything useful. Originally a Scottish 16thC expression adopted into American slang from the song Maggie Lauder during the US War of Independence.

Blind Test - Research method in which people are asked to try a number of similar products which are not identified by brand name, to decide which product is the best.

Blind Trial - A trial, with two groups of people, to test the effect of a new product, especially in medicine. One group is given the real product while the other group is given a placebo or 'sugar pill', which does not contain any medication.

Bloatware - In computing, software that needs so much computer memory that it takes a long time to load and therefore does not function properly.

Blue Chip - On the stock market, shares of a large company with a good reputation, whose value and dividends are considered to be safe and reliable.

Blue-Sky Law - In the US, a law designed to protect the public from buying fraudulent securities.

Blue-Sky Thinking - Open-minded, original and creative thinking, not restricted by convention.

Bluetooth - Wireless technology which allows data to be transferred over short distances between laptop computers, mobile phones, digital cameras, etc.

Blue Law - In the US, a law which regulates and limits activities for religious reasons, such as Sunday working or shopping.

Bodhisattva - From Buddhism, a person who seeks enlightenment for the good of, and motivated by a compassion for, other people. In Western thinking we could see this to be similar to Maslow's notion of 'trancendence' in the pursuit of self-actualization, notably helping others to self-actualize. Not an easy concept to explain; in the spectrum of human behaviour it's about as far away that can be imagined from the pursuit of a merchant banker's bonus or the Presidency of Europe, if you'll forgive the clichés.

Boilerplate - A section of standard text, especially a contract clause, inserted into legal documents, or instead increasingly referring to a standard section of code inserted into computer programs or other digital applications.

Bold-Faced Names - Informal term for celebrities, used mostly in the USA.

Bona Fides - Credentials showing someone's true identity. (Latin - with good faith)

Bond - The financial meaning of a bond is normally a debt/investment instrument issued by a company or country for a period of more than a year, with fixed interest rates and a firm and full repayment date. Typically a bond will pay a stipulated rate of interest at fixed times, and the debt is repaid at a specified time, i.e., the investor is guaranteed to be repaid the amount loaned/invested in full. More loosely the word bond can refer to a mortgage in some parts of the world, for example South Africa. A bond may also refer to a legal deed or agreement by which one person or party is bound to make payments to another; or to an insurance contract; or (notably in the US) to a sum of money paid as bail. The specific and more general meanings of bond logically derive from the older and original sense of bond, meaning fasten together, or the tie/festening itself.

Bonded Warehouse - A warehouse in which imported goods are stored under bond, until the import taxes are paid on them.

Bonus - An extra sum of money given to an employee on top of their salary, often for achieving targets.

Bonus Culture - Term used when companies give their executives huge bonuses in addition to their large salaries, even if their performance has been poor, especially leaders of financial institutions.

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

Boomlet - A small period of rapid growth in trade and economic activity.

Bookkeeping - The recording of a business's transactions, such as sales, purchases, payments, income, etc.

Bootstrapping - Starting a business from scratch and building it up with minimum outside investment.

Bossnapping - Believed to have started in France, the unlawful imprisonment of a boss, in the offices of a company or on the site of a corporation, by employees who are protesting against redundancy, closure of the company, etc.

Bottom Fishing - Buying the cheapest investments available which are unlikely to fall much further in value.

Bounty Hunter - In the US, someone who pursues criminals or fugitives and brings them to the police in exchange for a monetary reward.

Boutique - A small shop typically selling fashionable and expensive items such as clothing. The term 'boutique' is now increasingly applied to various other sectors and products to denote small-scale and high individual or hand-made quality, for example Boutique Hotels, below.

Boutique Hotel - A small individual hotel, commonly within a historic building, with luxurious stylish themed and furnished rooms, typically independently owned.

Bracket Creep - Slowly moving into a higher tax bracket with small pay increases over a period of time.

Brain Drain - The loss of highly skilled people to another region, country or industry, where they can work in a better environment and/or earn more money.

Brainstorming - Problem solving in small groups, contributing ideas and developing creativity.

Brand - A unique identifying symbol, trademark, company name, etc., which enables a buyer to distinguish a product or service from its competitors.

Brand Association -  Something or someone which make people think of a particular product.

Brand Loyalty - When a consumer repeatedly buys a particular brand of product and is reluctant to switch to another brand.

Bread and Butter - The main source of income of a company or an individual.

Break Even - To make enough money to cover costs. In business, the point at which sales equals costs. To make neither a profit or loss.

Bridging/Bridging loan/Bridge - A short term loan, normally at high rates of interest calculated daily, which 'bridges' a period when funds are unavailable, typically when payment has to be made before finance can be released from elsewhere to cover the transaction.

Brinkmanship - The practice of pursuing a tactic or method to the point of danger or damage, typically employed in competitive situations in which it is felt that the tactic will unsettle or cause the withdrawal of the adversary/ies. Dervies from the word brink, meaning the edge of a cliff or other dangerously high point.

British Standards Institution - BSI. An organisation which sets out formal guidelines to help businesses, etc., produce or perform more efficiently and safely. The BSI operates in more than 25 countries, and represent UK interests in other organisations, such as the ISO - International Organisation For Standardization.

Brownfield - Previously developed land, either commercial or industrial, which has been cleared for redevelopment.

Brown Goods -  Household electrical entertainment appliances such as televisions, radios and music systems.

Brown-noser - Insulting slang term for a sychophant, originally 1930s US military slang (brown-nose). Brown-nosing describes crawling or creeping to please a boss; an amusingly disturbing interpretation of various expressions which juxtapose the head of the follower with the backside of the boss, as in the rude slang metaphors: kissing arse/ass, arse-licking, bum-licker, etc.

Bubble Economy - An unstable boom when the economy experiences an unusually rapid growth, with rising share prices and increased employment.

Budget - Allocation of funds or the estimation of costs for a department, project, etc., over a specific period. The management of spending and saving money.

Built To Flip - Companies which have been sold soon after they have been created, so that money can be made quickly.

Bullet Point - A symbol, e.g. a dot or a square, printed at the beginning of each item on a list.

Bull Market - On the Stock Market, a prolonged period in which share prices are rising and investors are buying.

Business Angel - Also known as Private Investor. A, usually wealthy, individual who invests money in developing (often high risk) companies, and who provides their advice, skills, knowledge and contacts in return for an equity share of the business.

Business Plan - A written document which sets out a business's plans and objectives, and how it will achieve them, e.g. by marketing, development, production, etc.

Business To Business - B2B. Commercial transactions or activities between businesses.

Business To Consumer - Transactions in which businesses sell goods and/or services to end consumers or customers.

Button Ad - A small advertisement on a website, typically measuring 120 x 90 pixels.

Buy-in - Purchase of a company where outside investors buy more than 50% of the shares, so they can take over the company.

Buzzword - A word or phrase which has become fashionable or popular, or sounds technical or important and is used to impress people.

                                                       C

Cafeteria Plan - A system which allows employees to choose from a selection of benefits which may be tax-advantaged, such as retirement plan contributions, health benefits, etc., in addition to their salary.

Calculated Risk - A risk which has been undertaken after careful consideration has been given to the likely outcome.

 

Callable - Usually applies to bonds or convertible securities which can be bought back, at an agreed price, before maturity, by the company or government which sold them.

Call Account - A bank account, which usually pays a higher rate of interest, from which investors can make instant withdrawals.

Callipygian - Having well-shaped beautiful buttocks. This fascinating obscure term (thanks S Marcus, PhD) - indeed the OED categorises the adjective as 'rare' - deserves wider exposure. Callipygian is pronounced 'Kallipijian' with the emphasis on the 'pij' syllable. A more recent variation is Callypygous ('kallipijus'). The word came into English in the late 1700s from Greek, kallipugos, which was used to describe a statue of Venus (the 1922 OED says it was actually the name of a statue of Venus), from kallos meaning beauty, and puge, meaning buttocks. Kallos is also a root of the word calligraphy (decorative handwriting/lettering), and callisthenics (graceful gymnastics).

Cap And Collar - The upper and lower limits of interest rates on a loan, usually fixed for a specific period of time.

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.

Capitialism - 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.

Carload - A shipment of goods which, typically by weight, qualifies for a lower shipping rate. The term 'Less than carload' refers to a shipment which is below the given size/weight necessary to qualify for such a rate. The term originated from USA railway freight car transportation and also applies to other methods of freight transport, notably shipping containers, hence similar terms containerload and 'less than containerload'.

Carnet - An international official permit which allows you to take certain goods, e.g. for display or demonstration, into another country, duty free, for a specific period - usually 12 months.

Carpet Bomb - To send an advertisement to a large number of people by e-mail or onto their computer screens.

Cartel - A group of separate companies or nations which together agree to control prices and not compete against each other. Also known as a Price Ring.

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.

Catch-22 - Much misused expression, it refers properly only to a problem whose solution is inherently self-defeating. Wrongly it is used to describe any insurmountable or difficult problem. It's from Joseph Heller's book of the same name;

Category Killer - Large companies that put smaller and less efficient competing companies out of business.

Cattle Call - Term used in the entertainment industry for a large number of actors, etc., who are all auditioning for the same job.

Caveat Emptor - When the buyer takes the risks and is responsible for checking the condition or quality of the item purchased. (Latin - Let the buyer beware)

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

Central Counterparty - Acts on behalf of both parties in a transaction, so that the buyer and seller do not have to deal with each other directly.

Central Reservation System (CRS) - A computer database system used by a chain of hotels (and other services providers) enabling availability and rates to be monitored and bookings to be made.

Chain Of Command - A system in a business, or in the military, in which authority is wielded and delegated from top management down through every level of employee. In a chain of command instructions flow downwards and accountability flows upwards.

Chamber Of Commerce - A group of business owners in a town or city who form a network to promote local business.

Channel Of Distribution - Also known as Distribution Channel. A means of distributing a product from the manufacturer to the customer/end user via warehouses, wholesalers, retailers, etc.

Check The Gate - A term used in the film industry after a shot is taken on a film set. The gate, or opening in front of the camera, is checked to make sure that there is no dirt, hair, etc., present.

Clapper Boy - On a film or TV set, the person who holds the clapperboard (which has information on it, for example film title, shot number, etc) in front of the camera for about one second at the start of each shot after the camera starts rolling.

Class Action - A lawsuit in which one person makes a claim and sues on behalf of a large group of people who have similar legal claims, usually against a company or organisation.

Class A Spot - In the media, commercials which are run on a prime time network.

Clicklexia - Ironic computing slang for a user's tendency to double-click on items when a single click is required, often causing the window or utility to open twice.

Clicks And Mortar - Also known as Clicks and Bricks. Refers to businesses which trade on the Internet as well as having traditional retail outlets, such as shops.

Clickstream - A record of an internet user, including every web site and web page which have been visited, and e-mails sent and received.

Click-Through - When a person clicks on an advertisement on a web page which takes them to the advertisers website.

Clip-Art - Ready made pictures of computerised graphic art which can be copied by computer users to add to their own documents.

Close Company - In the UK, a company which is controlled by five or less directors.

Code-Sharing - An arrangement between different airlines in which they all agree to carry passengers on the same flight using their own flight numbers.

Coercion - Forcing someone, by some method or other, to do something or abstain from doing something against their will.

Combined Ratio - In insurance, a way of measuring how much profit has been made by comparing the amount of money received from customers to the amount paid out in claims and expenses.

Commercial Monopoly - The control of a commodity or service by one provider in a particular market, virtually eliminating competition.

Commercial Paper - An unsecured and unregistered short-term agreement in which organizations can borrow money from investors who cannot take the assets from the organization if the loan is not repaid.

Commission - In finance, a payment based on percentage of transaction value, according to the local interpretation of value (e.g., based on total revenue, or gross profit, etc).

Commission Broker - A person who buys and sells shares, bonds, etc., on a commission basis on behalf of their clients.

Companies House - A government agency in the UK which is responsible for collecting and storing information about limited companies. The companies must file annual accounts or face penalties.

Comparative Advantage - See definition for Competitive Advantage.

Compensation Fund - A fund set up by a company or organisation from which to pay people who have suffered loss or hardship which has been caused employees or members of the company or organisation.

Competition Law - Known as Antitrust law in the US, regulates fair competition between companies, including the control of monopolies and cartels.

Competitive Advantage - A position a business gains over its competitors.

Competitor - A business rival, usually one who manufactures or sells similar goods and/or services.

Competitor Analysis - Also called Competitive Analysis. A company's marketing strategy which involves assessing the performance of competitors in order to determine their strengths and weaknesses.

Compliance Officer - A corporate official whose job is to ensure that a company is complying with regulations, and that its employees are complying with internal policies and procedures.

Compound Interest - Interest which is calculated on not only the the initial loan, but also on the accumulated interest.

Compulsory Purchase - When an organisation has the legal right to force the sale of land, property, etc., usually to build motorways or railways.

Concept - A thought or notion. An idea for a new product, advertising campaign, etc.

Concierge - An employee of e.g. an hotel who provides a service to guests, such as handling luggage, delivering mail and messages, making tour reservations, etc.

Conciliation - To bring two disputing sides together to discuss the problem with the aim of reaching an agreement.

Conditional Sale - A purchasing arrangement, usually where the buyer pays in instalments but does not become the legal owner of the goods until the full purchase price has been paid.

Conference Call - A telephone call which allows three or more people to take part at the same time.

Conglomerate - A corporation which consists of several smaller companies with different business activities.

Conservator - In law, a guardian or protector appointed by a court to manage the affairs, finances, etc., of someone who is too ill or incapable of doing so themselves.

Consortium - A group of businesses, investors or financial institutions working together on a joint venture.

Constructive Spending - Helping the local economy by buying home produced goods, holidaying in your own country, etc., rather than buying imported goods and holidaying abroad.

Consultant - An expert who is paid by a company, individual, etc., to give advice on developing plans and achieving goals.

Consumer - An individual who uses goods and services but who may not have been the purchaser.

Consumer Credit - Also called Personal Credit or Retail Credit. Loans given to consumers by financial institutions for household or personal use.

Consumer Debt - Money owed by people in the form of loans from banks or purchase agreements from retailers, such as 'buy now pay later'.

Consumer Panel - A group of selected people, usually a cross-section of a population, whose purchasing habits are monitored by an organisation, in order to provide feedback on products, services, etc., which are used.

Consumer Price - The price which the general public pays for goods and services.

Consumer Price Index - CPI. A measure of inflation which involves regularly monitoring the change in price for everyday goods and services purchased by households.

Consumer Protection - Laws which protect consumers against unsafe or defective products, deceptive marketing techniques, dishonest businesses, etc.

Consumer Watchdog - An independent organization that protects the rights of individual customers and monitors companies to check for illegal practices.

Consumption Tax - Tax paid which is based on the price of services or goods, e.g. value added tax.

Contango - A situation in which the price of a commodity to be delivered in the future exceeds the immediate delivery price, often due to storage and insurance costs.

Contingency Fee - In law, a fee that is payable to the lawyer out of any damages which have been awarded to the client by a court. There is no payment if the case is unsuccessful.

Contingent Liability - This is recorded as a debt on a company's accounts which may or may not be incurred, depending on the outcome of a future event, such as a court case.

Contraband - Goods prohibited by law from being exported or imported. Smuggling.

Contract Of Employment - A contract between an employee and an employer which specifies terms and conditions of employment, such as hours to be worked, duties to perform, etc., in return for a salary, paid benefits, paid holiday, etc., from the employer.

Contract Of Purchase - Also called Purchase Agreement. A legal document which states the terms and conditions, including price, of the sale of an item.

Contractor - An individual, company, etc., who agrees to provide goods and/or services to another individual or company under the terms specified in the contract.

Contract Worker - A person who is hired by a company (but not as an employee), often through an employment agency, for a specific period of time to work on a particular project.

Contra Entry - In accounting, an amount entered which is offset by another entry of the same value, i.e., a debit is offset by a credit.

Control Account - An account which a company keeps in addition to its official accounts, in order to cross-check balances, etc., to ensure that the official accounts are accurate.

Controlling Interest - The ownership of more than 50% of the voting shares in a company, which enables the owner of these shares to make decisions, direct operations, etc.

Convene - To gather together for an official or formal meeting.

Convention - A large formal meeting of politicians, members, delegates, sales people, etc.

Convertible - Refers to a security (bonds or shares) which can be exchanged for another type of security in the same company.

Convertible Currency - Currency which can be quickly and easily converted into other countries currencies.

Conveyancer - A specialist lawyer who is an expert in conveyancing, i.e., legal work carried out connected to the selling and buying of property.

Cookie - On a computer, coded information that an Internet website you have visited sends to your computer which contains personal information, such as identification code, pages visited, etc., so that the website can remember you at a later time.

Cooling-Off Period - A period of time after the exchange of contracts, purchasing agreements, etc., during which the purchaser can change their mind and cancel the contract, and usually get any deposit paid reimbursed.

Cooperative - An organisation or business which is owned and run by its employees, customers and/or tenants, who share the profits.

Cooperative Marketing - Also known as Cooperative Advertising. When two companies work together to promote and sell each others products. A manufacturer or distributor who supports, and often pays for, a retailers advertising.

Copyright - An exclusive legal right to make copies, publish, broadcast or sell a piece of work, such as a book, film, music, picture, etc.

Core Earnings - A company's revenue which is earned from its main operations or activities minus expenses, such as financing costs, asset sales, etc.

Corporate Advertising - Also called Institutional Advertising. Advertising that promotes a company's image, rather than marketing its products or services.

Corporate Hospitality - Entertainment provided by companies in order to develop good relationships with its employees, customers, other businesses, etc.

Corporate Ladder - The order of rank, position, etc., in a company from junior to senior, which can be progressed or 'climbed' by employees.

Corporate Raider - A term used for an individual or company who purchases large numbers of shares in other companies, against their wishes, in order to gain a controlling interest in the other companies, or to resell the shares for a large profit.

Corporate Social Responsibility - CSR. An obligation of a company to adhere to legal guidelines in order to meet the needs of its employees, shareholders and customers, and also to be concerned about social and environmental issues.

Corporate Veil - A term which refers to the fact that a company's shareholders are not liable for the company's debts, and are immune from lawsuits concerning contracts, etc.

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

Corporation Tax - A tax which limited companies and other organisations, such as societies, clubs, associations, etc., pay on their profits after adjustments for certain allowances.

Correspondence Course - A study course using written correspondence, books, etc., which are sent to you by post from learning institutes.

Corruption - Lack of honesty or integrity. Illegal behaviour, such as bribery, by people in positions of authority, e.g. politicians.

Cost Accounting - Managerial accounting which calculates, records and controls the operating costs of producing goods or services.

Cost-centre - Part of a business or organisation such as a marketing department, or quality assurance department, which is a cost to operations and does not produce external customer revenues or profit through trading. See Profit-centre, which trades with external customers and is responsible for producing profit.

Cost Control - A management process which ensures that departments within a company or organisation do not exceed their budget.

Cost Cutting - Reducing an individual's, company's, etc, expenditure.

Cost Effective - Producing a product, offering a service, etc., in the most economical way to the benefit of the company and the customer.

Cost Leader - A company which has a competitive advantage by producing goods or offering services at a lower cost than its competitors.

Cost Of Living - The standard cost of basic necessities which people need to live, such as food, housing and clothes.

Cost Of Living Allowance - COLA. A salary supplement which a company pays to employees because of an increase in the cost of living.

Cost Of Sales - Also known as Cost Of Goods Sold (COGS). The cost of providing a service or manufacturing a product, including labour, materials and overheads.

Cost Overrun - The amount by which the actual cost of a project, etc., exceeds the original budget.

Cost Per Click - CPC. The amount of money an advertiser pays to a website publisher every time a visitor clicks on an advert displayed on the publisher's website which links to the advertisers website.

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

Counterbid - To make a higher offer than someone else in a bid to buy something.

Counterclaim - In a court of law, a claim made against you (plaintiff) by the person (defendant) you are making a claim against.

Counterpart - A person or position which has a corresponding function in a different organization, country, etc. The corresponding function naturally is also a counterpart. Also a copy of a legal document.

Countersign - To add a second signature, where required, to a document or cheque, in order to make it valid.

Countervailing Duty - An additional tax imposed on certain imported goods which have been produced very cheaply in their country of origin, in order to bring the price of the goods up to the true market price to protect the importing country's producers.

Courier - A person who carries and delivers messages, documents, packages, etc., often between companies. A person employed by a travel company as a tourist guide.

Courseware - Computer software designed to be used in teaching or for self-learning.

Covenant - A written promise, sometimes part of a contract, to perform, or not to perform, a particular action.

Cover Charge - A fixed fee charged by a nightclub or a restaurant with live entertainment, which covers, or part covers, the cost of musicians, DJs, etc.

Cowboy - A dishonest, often unqualified, business person, especially one who overcharges for bad quality work. Not to be confused with the cowboy of top-shelf publications.

Crapola - Items of little importance or poor quality. Rubbish.

Crawling Peg - A system of frequently adjusting a country's exchange rate by marginal amounts, because of inflation, etc.

Creative Director - A person who usually works in the advertising or entertainment industry and is responsible for planning and managing the creative aspects of an advertising or promotional campaign.

Credit - An arrangement in which an item for sale is received by the purchaser and paid for at a later date. A loan. The positive balance in a bank account. An amount entered in a company's accounts which has been paid by a debtor.

Credit Analysis - The process of analysing a company's financial records and assessing its ability to repay a loan, etc.

Credit Crunch - Also known as Credit Squeeze. This usually precedes a recession. A situation in which loans for businesses and individuals are difficult to obtain when a government is trying to control inflation, because of the fear of bankruptcy and unemployment.

Credit History - A record of an individual's or company's debt repayment, used by lenders to asses a borrowers ability to repay a loan, mortgage, etc.

Creditor - A person, business, etc., to whom money is owned.

Credit Rationing - When a bank or money lender limits the amount of funds available to borrowers, or interest rates are very high.

Credit Rating - Information based on a person's or company's financial history, which determines their ability to repay debts, loans, etc. Lenders use this information when making a decision regarding a loan approval.

Credit Repair - The process of helping to improve a person or company's credit rating, sometimes by disputing or correcting credit history discrepancies.

Credit Union - A financial institution, similar to a bank, whose members create the funds from which they can obtain loans at low rates of interest.

Crib - Plagiarism. To copy someone else's written work and pass it off as your own.

Crisis Management - Actions taken by a company to deal with an unexpected event which threatens to harm the organisation, such as a loss of a major customer, bad publicity, etc.

Criterion - A principal or standard by which other things or people may be compared, or a decision may be based.

Critical Mass - The minimum amount of customers, resources, etc., needed to maintain or start a business, venture, etc. The point at which change occurs e.g., when a company is able to continue in business and make a profit without any outside help.

Cronyism - In business and politics, showing favouritism to friends and associates by giving them jobs or appointments with no regard to their qualifications or abilities.

Cross Guarantee - Also known as Inter Company Guarantee. A guarantee by a group of companies to be responsible for the debts, etc., of another company in the group if it fails to repay them. The group also use the guarantee to raise capital or take out multiple loans.

Cross Merchandising - Also known as Add-On Sales. In retailing, the practice of putting related products together on display in order to encourage customers to purchase several items.

Crowdsourcing - Term first coined by Jeff Howe in 2006 in Wired magazine. Describes when an organisation delegates a task to a large number of individuals via the Internet, thereby using the general public to do research, make suggestions, solve a problem, etc., usually without being paid.

Crown Jewel - The most valuable and profitable asset of a company or business.

C-Suite - The Chief Officers or most senior executives in a business or organisation.

Cube Farm - An open office which is divided into cubicles.

Culpability - Blame or liability for harm or damage to others, from Latin culpa meaning fault.

Currency Bloc - A group of countries that use the same currency, for example the Euro.

Current Account - A bank account which can be used to make deposits, withdrawals, cash cheques, pay bill, etc.

Current Assets - Also called Liquid Assets. A company's cash or assets which can be converted into cash usually within one year, including shares, inventory, etc.

Current Liability - In business, a liability or debt which must be paid within one year from the time of the initial transaction.

Current Ratio - A financial ratio which gives an indication of whether or not a company can pay its short-term debts.

Customer - An individual, company, etc., who purchases goods and/or services from other individuals, companies, stores, etc.

Customer Loyalty - Describes when a customer prefers to buy a particular brand or type of product, who prefers a particular shop, or who stays with the same company, such as a bank, insurance company, phone company, etc.

Customer Relations - The relationship a company has with its customers and the way it deals with them. The department in a company which is responsible for dealing with its customers, for example complaints, etc.

Customs Duty - A tax which must be paid on imported, and sometimes exported, goods, to raise a country's revenue and to protect domestic industries from cheaper foreign competition.

Customs Union - A group of nations which have agreed to promote free trade, for example, not to charge tax on goods which they trade with one another, and to set taxes for nations which are not members of the group.

Cutover - Also known as 'Going Live'. The point in time a company or organisation, etc., replaces an old program or system with a new one.

Cut-Throat - Ruthless and intense competition. An unprincipled, ruthless person.

Cyber Monday - In recent times, the busiest online shopping day of the year, in the USA typically the Monday after Thanksgiving Day (the fourth Thursday of November); in the UK typically the first Monday in December.

Cyberspace - Term credited to author William Gibson in 1984 which describes the imaginary place where e-mails, web pages, etc., go to while they are being sent between computers.

Cybersquatting - The illegal activity of buying and registering a domain name which is a well-known brand or someone's name, with the intent of selling it to its rightful owner in order to make a profit.

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The Daily Official List - The daily record setting out the prices of shares that are traded on a stock exchange.

Damage Limitation - The process of trying to limit or curtail the amount of damage or loss caused by a particular situation or event.

Dark Net - A term for online private websites and networks concealed from and inaccessible to unauthorised users in which materials are shared, normally illegally and anonymously.

Daughter Company - A company that is controlled partly or completely by a holding or parent company.

Dawn Raid - A sudden planned purchase of a large number of a company's shares at the beginning of a days trading on the stock exchange.

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 organisation, 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.

Defence 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.

Delegation - An assignment of responsibility or task, usually by a manager to a subordinate. Separately a delegation refers to a deputation, being a group of people appointed or responsible for representing a nation or corporation or other organization to attend talsk or negotiations, etc.

Deleveraging - An attempt by a company to reduce its debts, for example by selling off assets, laying off staff, etc.

Demerit Goods - Products or services such as as alcohol, gambling, drugs, prostitution, etc., which are considered unhealthy or undesirable, and are often subject to extra taxes in order to reduce consumption and potentially to fund remedial actions in response to consumption. See Sin Tax.

Democracy - Majority rule, by which the biggest proportion of members of a group determine decisions for the whole group. Democracy typically refers to a country's political system, in which government is elected through majority vote.

Demographic Profile - Used in marketing to describe a particular segment of the population, for example social class, age, gender, income, etc.

Demographic Segmentation - The process of identifying and dividing consumers into groups according to their race, age, gender, religion, etc.

Demonetize - To officially decide that a particular coin or banknote can no longer be used as currency.

Deposition - A sworn statement of evidence by a witness taken outside of the court proceedings before a trial.

Deregulate - The reduction or removal of government regulations from an industry or business.

Derived Demand - Demand for a service or goods which is created by the demand for another service or goods, such as the demand for steel to make cars.

Desk Jockey - An informal term for someone who spends their working day sitting behind a desk, and who is concerned about administration.

Desktop Publishing - Producing printed documents, magazines, books, etc., using a small computer and printer.

Didactic - Describes works of literature or art which are intended to be be informative or instructional, especially morally, rather than entertaining. From the ancient Greek word didaskein, which means to teach.

Digerati - People who consider themselves to be experts of the Internet and computer industry.

Digital Wallet - Computer software used to store a persons bank account details, name, address, etc., to enable them to make automatic payments when they are making purchases on the Internet.

Direct Marketing - The marketing of products, services, etc., directly to individual potential customers by sending them catalogues, leaflets, brochures, etc., by mail (including e-mail), calling them on the telephone or calling door-to-door.

Director - A person appointed to oversee and run a company or organisation along with other directors, In the entertainment industry, the person who directs the making of a film, TV program, etc.

Directives - At an official level, directives are instructions, guidelines or orders issued by a governing or regulatory body. They may amount to law. In a less formal way a directive equates to an instruction issued by an executive or manager or organizational department.

Direct Overhead - A portion of the overheads, e.g. lighting, rent, etc., directly associated with the production of goods and services.

Dirty Money - Money made from illegal activities which needs 'laundering' so that it appears to be legitimate.

Disability Discrimination Act - An Act of Parliament passed in Britain in 1995 which promotes the civil rights of disabled people and protects them from discrimination in employment, education, renting property, access to transport, etc.

Disburse - To pay out money from a large fund, e.g. a treasury or public fund.

Discount Loan - A loan on which the finance charges and interest is paid before the borrower receives the money.

Discount Window - In the US, when banks can borrow money from the Federal Reserve at low interest rates.

Discretionary Income - The amount of income a person is left with after taxes and living essentials, such as food, housing, etc., have been deducted.

Discretionary Order -  Permits a broker to buy or sell shares on behalf of an investor in order to get the best price.

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

Dispatch Note - Also called Dispatch Advice. A document giving details of goods which have been dispatched or are ready to be dispatched to a customer.

Distributable Profit - A company's profits which are available for distribution 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. A wholesaler.

Diversification - The act of growing a business by enlarging or varying its range of products, services, investments, etc.

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

Docking Station - A device to which a notebook computer or a laptop can be connected so it can serve as a desktop computer.

Document Sharing - Used in video-conferencing. A system which allows people in different places to view and edit the same document at the same time on their computers.

Dog - An informal slang term for an investment which has shown a poor performance. The slang term dog may also refer to other poor-performing elements within a business, for example a product or service within a company range, as in the widely used 'Boston Matrix'.

Dollar-Cost Averaging - Known in the UK as Pound-Cost Averaging. The practice of investing a fixed amount of money at fixed times in particular shares, whatever their price. A higher share price means less shares are purchased and a lower share price means more shares can be purchased.

Dolly - In the entertainment industry, a piece of equipment on wheels which allows the camera to move smoothly for long walking shots.

Double - In the film and TV industry, a person who stands in, or is substituted, for a principal actor.

Double-Blind - A method of testing a new product, usually medicine, in which neither the people trying the product nor those administering the treatment know who is testing the real product and who has been given a placebo containing none of the product.

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

Dystopia - The opposite of Utopia, a society in which conditions are characterised by human misery, deprivation, squalor, disease, etc. The term is said to have been coined by by John Stuart Mill in 1868 in a UK House of Commons speech criticizing the government's Irish land policy.

                                                      E

Earnest Money - Money paid in good faith as a deposit, usually for a property, to show that the buyer is serious about doing business with the vendor.

Earn-Out - An arrangement in which an extra future conditional payment is made to the seller of a business in addition to the original price, based upon certain criteria being met.

Easterlin Paradox - A theory that beyond satisfaction of basic needs, increasing wealth of a country does not produce increasing happiness, suggested by US professor of economics Richard Easterlin based on his research published in 1974.

Easy Monetary Policy - A policy which enables the public to borrow money easily, at low interest rates, in order to expand the economy by investing the money in business activities.

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, labour, 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.

Egalitarian - Believing that everyone is equal and should all have the same rights and opportunities in life.

E-Lance - Freelance working using the Internet to sell services or goods anywhere in the world.

Elasticity Of Demand - The measure of whether people require more or less of a product or service after a price change.

Electronic Cottage - A home which has the necessary electronic equipment, such as telephone, computer, etc., from which to run a business.

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

Electronic Purse - A type of microchipped smartcard which stores small amounts of money to enable payment for purchases, especially on the Internet, instead of having to use cash.

Embezzlement - Dishonestly appropriate goods or money from one's employer for personal gain; steal from one's employer, typically by electronic administrative methods, thus abusing a position of trust or responsibility.

Emolument - Total wages, benefits or compensation paid to someone for the job they do or the office they hold.

Emoticon - Used in e-mails, internet chat rooms and text messages, symbols which represent facial expressions, e.g. :-) = smile.

Emotional Capital - Emotional experiences, values and beliefs of a company's employees that make good working relationships and a successful business. Low emotional capital can result in conflict between employees, low morale and poor customer relations.

Emotional Intelligence - The ability or skill of a person to understand and control their emotions, and to understand and assess and respond appropriately to the feelings and situations of others. Commonly abbreviated to EQ (Emotional Quotient, alluding to the concept of IQ - Intelligence Quotient), Emotional Intelligence theory seeks to enable a sophisticated practical appreciation and application of the concept of intelligence, especially in work, management, leadership and human relationships.

Empirical - Information derived from experience, observation or experiment rather than from theory or subjective opinion. From Greek - empeiros, meaning skilled - in turn from peira, meaning trial or experiment.

Employee - An individual who is hired and paid by another person, company, organisation, etc., to perform a job or service.

Employee Buyout - A transaction in which employees purchase all or most of a company's shares, thereby gaining control of the company.

Employee Ownership - A business model and constitutional framework in which staff hold significant or majority shares of a company, thereby ensuring higher levels of loyalty and commitment, and fairness in the way that business performance relates to employee reward. The John Lewis Partnership is one of the prime and most successful examples of the concept.

Employee Self Service - An Internet based system which enables an employee to access their personal records and payroll details, so they can change their own bank account details, contact details, etc.

Employee Stock Option -  Allows specified employees the right to purchase shares in the company at a fixed price.

Employer - A person, business, organisation, etc., that pays for the services of workers.

Employment Equity - Promotes equal employment opportunities for everyone, regardless of gender, race, ability, etc.

Employment Law - Also known as Labour Law. The branch of the law that deals with the legal rights of employees, e.g. workplace safety, discrimination, compensation, etc.

Encrypt - Convert data into code which cannot be easily understood by people who have no authorisation to view it.

End Consumer - An individual who buys and/or uses a product or service.

End Marker - Used at the end of a take in a film, TV program or audition to cover a mistake or to remind people who the person auditioning was during auditions.

Enterprise - A company or business. A business project, often one which is sometimes difficult and/or risky.

Enterprise Application Integration - Software technology that links computer programs, data bases, etc., within an organisation, so that information can be shared.

Entrenpreneur - An ambitious person who starts new business ventures in order to make a lot of money, often taking financial risks.

Environmental Impact Assessment - The effect that a proposed project, such as a new building or development, will have on the environment.

Environmentalist - An individual who is concerned about the protection, conservation and improvement of the natural environment.

E-Procurement - Electronic procurement. Businesses using the internet to purchase from, or sell goods and services to, other businesses.

Equal Pay Act - In Britain, a government Act of 1970 which gives women the right to earn the same money and to receive the same benefits as men for performing the same job.

Equilibrium Price - The price at which the demand of a particular product or service is equal to the quantity supplied.

Equity Accounting - When a company records, in its financial records, profits which can be claimed from an affiliated company which they part own.

Escape Clause - A condition in a contract which allows the contract to be broken in particular circumstances.

E-Tailer - An retailer who uses the internet to sell goods and/or services to the public.

Ethernet - Technology, invented by The Xerox Corporation, which connects computers in a local area network (LAN).

Ethics Committee - In medicine, an independent body which is appointed to examine and consider the rights and safety of people taking part in clinical trials.

Ethnic Monitoring - Recording and evaluating the racial origins of employees in a company to ensure that all races are represented fairly.

Euroland - Also known as the Eurozone. All the countries in the EU (European Union) that use the Euro as currency.

European Union - EU. Previously called the European Community. An international, economical and political organisation which brought the nations of Europe together so that people, goods, money, services, etc., can move freely between member nations.

Exchange Rate - Also known as Foreign Exchange Rate. The rate, which can vary from day to day, at which a country's currency can be exchanged for another country's currency.

Exchange Rate Exposure - When a business risks losing money because of the need to change one currency for another of lower value.

Execution Risk - The risk that a company's plans, or a project, will fail because of changes being made, e.g. entering a new market, bad management, etc.

Executive Director - Also called Internal Director. A person who usually works as a full-time senior employee for a company, and is responsible for the day to day running of the business, and is often a member of the company's board of directors.

Ex Gratia - Something given or carried out as a favour or gift, rather than as a legal duty.

Exit Strategy - Also called Harvest Strategy. A plan by an investor to dispose of an investment, such as shares in a company, to make a profit, or a business owner to dispose of their company, e.g., by selling the business, floating it on the stock market, ceasing to trade, handing it over to another family member, etc.

Ex Officio - Someone who has a right to be included because of their job or position, e.g. to sit on a committee. (Latin - by virtue of office or position)

Experience Curve - In business, when costs fall and production increases as a result of increase in workers skills and lower material costs.

Expectancy Theory - A theory of motivation developed by Canadian Victor Vroom, Yale professor of management and psychology, established in his 1964 book, Work and Motivation, which essentially states that motivation necessarily comprises and is determined by three elements of belief:

1. Effort will produce success.
2. Success will produce reward.
3. These outcomes will be personally satisfying.

Expert System - A computer software system which can provide expert knowledge for a specific problem when users ask a series of questions.

Export Credit - A loan taken out by an importer with a bank in an exporters country, so that the importer can buy foreign goods and pay for them at a later date.

Export Factoring - A facility offered by banks to exporters. The bank is responsible for collecting payments for exported goods, so that the exporter can borrow money from the bank before the goods have been paid for by the customers.

Exposition - A public event at which businesses, that produce related goods, can showcase their products and/or services.

Ex Stock - Goods which are available for immediate delivery because the supplier has them in stock.

Extension Strategy - A marketing strategy to stop a product going into decline by making small changes to it, reaching new customers or finding new uses for it, e.g. a drink which was sold as an aid to those recovering from illness is now sold as a sports drink.

External Competitiveness - Being able to sell goods and services to customers in foreign countries at a competitive price.

External Debt - Also known as Foreign Debt. Money that is owed by the government, organisations or individuals to creditors in other countries.

External Equity - A situation in which an organisation's employees receive similar pay for the same type of work as employees in other organisations, i.e., pay which is equal to market rates.

Extranet - A private computer network to which a company's customers and suppliers can link and communicate using the Internet.

Extrapolation - The estimation or determination of what will happen in the future by extending (extrapolating) known information or data. The verb usage 'extrapolate' is common and means using mathematics or other logical process to extend a proven trend or set of data. 'What if?..' scenarios and business modelling generally involves some sort of extrapolation. It's a way of predicting something by assuming a historical pattern will continue into the future.

Ex Works - Goods which are delivered to the purchaser at the plant or place where they are manufactured. The purchaser then pays for transporting and insuring the goods from that point.

Eyeballs - Advertising term. A name given to the number of people who visit a website advertisement, which can be counted by the number of click-throughs.

E-Zine - An electronic magazine which is published on the internet, or delivered by e-mail.