[M - R ] Glossary of Terminology from Business and Management

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Machine Code - Also known as Machine Language. A computer language, which consists only of numbers, that can be read and interpreted by a computer's central processing unit (CPU).

Macro - In a computer, a single instruction which results in a complete series of more detailed instructions being put into effect.

Magic bullet - A simple effective solution to a serious or complex problem, especially in medicine, for example a cure for a disease. The simplicity is for users, not necessarily for the developers. See also Silver Bullet, basically the same meaning.

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.

Mainframe  - Also known as Big Iron. A large powerful central computer to which a network of smaller computers are connected, used mainly by large organisations,

Majority Interest - Owning more than 50% of the total shares in a company, and therefore more than 50% of the voting interest.

Makegood - In advertising, a free advertising slot given to a company by a TV station, magazine, etc., if the company's advert was previously run incorrectly.

Make To Stock - In manufacturing, products which are made and stocked before customers orders have been received.

Maladministration - In business or government, the act of incompetence or running a system in a dishonest way.

Managed Economy  - An economy in which goods, allocation of resources and prices are determined by the government.

Managed Hosting - A type of Internet hosting in which the hosting supplier deals with technical issues and problems related to the website, in addition to the basic hosting of the website.

Management Buy-In - When a management team from outside a company acquires more than 50% of the company, so they become the majority shareholders, and then manage the company themselves.

Management Buy-Out - MBO. The purchase of all or part of a company by the company's existing managers.

Management By Exception - A management style in which managers give employees the authority to run projects, etc., by themselves and managers only become involved if the employees fail to meet certain criteria or standards.

Manager - A person who is in charge of a project, department, group, team, etc.

Mandatory Convertible Bond - Bonds that must be redeemed in shares by the company which issues them, usually by a specified date.

Mandate - Technically a legal or official document giving an order or instruction. More loosely it refers to a permission or approval. In politics or democratic situations such as trade unions it refers to an authorisation for leadership to act based on election or vote. Derived from Latin mandatum meaning 'something commanded', from manus (hand) and dare (give). Mandate is also a verb, meaning to empower someone to take action.

Margin - The difference in the price of producing a product and the price it sells for, calculated as a percentage, i.e., profit margin.

Margin Account - An account held by an investor with a broker in which the broker lends the investor money to purchase shares, etc., which are then used as collateral against the loan.

Marginal Productivity - The additional output of a product, etc., which is produced as a result of adding one unit of a resource, for example labour input, in the production process.

Margin Call - A demand by a broker for an investor to bring his margin account up to the minimum level required by depositing additional money, shares, securities, etc.

Market - The commercial activity of buying and selling goods and services. The customers who buy goods and services.

Market Basket - A way of measuring the cost of living. A collection of products or services which consumers buy on a regular basis, and the prices which are paid for them.

Market Clearing Price - The price of a product or service at which the level of demand equals the level of supply.

Market Control - A situation in which the quantity and/or price of goods or services is influenced by buyers or sellers.

Market Economy - A situation in which businesses operate in a free market, i.e., they are in competition with each other and are not under government control.

Market Forces - Influences, such as the availability of raw materials for the production of goods, or customer numbers, which affect supply, demand and prices of products and services.

Marketing - The promotion and/or selling of a company, product, service, etc.

Marketing Mix - A set of marketing tools used by a company to sell its products and/or services to a target market.

Marketing Myopia - When a business is being shortsighted regarding the needs of its customers, only focusing on its products or short range goals and missing marketing opportunities.

Market Leader - A company or brand which has the highest sales of a particular product. A best-selling product.

Market Orientation - A business strategy whereby a company focuses on meeting the customers needs and wants regarding products and services.

Market Penetration Price - A low price at which a new product is offered when it first comes onto the market, in order to attract customers, after which the price is usually increased.

Market Research - The process of gathering and analysing information about customers, competitors, etc., in order to make decisions and solve problems connected with selling products or services.

Market Sector - Competing businesses which produce or buy similar goods and/or services. The customers for which certain goods and services are marketed.

Market Test - The testing of a product or service in several areas of the country to see if customers will like it and want to buy it.

Market-To-Market - The process of valuing a security, share, etc., on a daily basis to assess its current price, rather than its acquisition price or book value.

Market Segment - A subgroup within a larger market in which people share certain characteristics and require similar products or services.

Market Segmentation - The process of identifying and dividing consumers into groups according to their purchasing behaviour.

Mark-up - The amount a producer, retailer, etc., puts on the price of the goods or services they are selling in order to make a profit. To raise the price of an item which is for sale.

Marque - A brand name or model of a well-known manufactured product, especially an expensive car.

Maslow's Hierarchy Of Needs - Developed by Abraham Maslow in 1943. A fundamental motivational theory describing five stages of human needs which must be met in a particular order.

Mass Market - Describes products or services which have mass appeal and are aimed at large numbers of people or a whole population.

Mass Marketing - Marketing a product or service to the general public through the mass media, for example, TV, radio, newspapers and magazines.

Master Franchise - Allows companies or individuals the right to purchase a sub-franchise business which can be developed in a particular area or country.

Material Requirements Planning - (MRP) The use of computer software to plan and manage a production process, for example the amount of materials or parts required, calculation of workload, delivery schedules, etc.

Maternity Leave - The time a pregnant employee is entitled to take off from her job before and after the birth of her baby. Entitlement to Maternity Leave depends on how long the woman has been with her employer.

Maternity Pay - An employee benefit paid to pregnant women when they take time off from their job to have their baby. Entitlement to Maternity Pay depends on how long they have worked for their employer and varies from country to country.

Mates Rates - To sell a product or service to a friend or family member at a discounted or reduced rate on the normal price.

Matrix Management - Also known as Dotted Line Responsibility. A system of management in which people from different departments in an organisation work together, so that each individual employee has two bosses, one functional and one operational. This is common in project management.

Maven - An expert, often self-proclaimed, in a particular field.

Maverick - An independent thinker who does not conform to accepted opinion on certain matters and takes a stand from other people.

Mediagenic - A tendency (for a person or activity, etc) to convey a favourable impression when reported by the media.

Meltdown - A situation in which something, or someone, suddenly dramatically ceases to function properly.

Meme - Originally a biological term referring to a behavioural characteristic which transfers non-genetically between people, meme increasingly refers more widely to other non-human characterstics or examples which arise as imitations of or variations on a particular theme.

Memo - Usually used for communication within an organisation. Memos can be formal letters or informal notes to colleagues.

Memorandum and Articles Of Association - a legal document drawn up when a company is formed containing details such as company name, type, objectives, and number and value of shares, etc.

Memorandum Of Understanding - MOU. A, sometimes informal written agreement between two or more parties which establishes each party's responsibilities and requirements.

Menial (work, job, task) - Unskilled typically poorly paid work.

Mentor - Someone who is experienced and gives guidance and support to a person less experienced to help them develop and grow and achieve their goals.

Menu Bar - On a computer screen, the strip at the top of each open window that contains pull down menus with functions, for example file, edit, etc.

Mercantile - Relating to trade or commerce.

Merchandising - The practice of promoting and selling goods. Commercial products which are associated with a film, pop group, TV show, celebrity, etc., such as toys, clothing, food products, household items, etc.

Merchant Bank - Known in the US as an Investment Bank. A financial institution which offers financial advice and services to large businesses and wealthy individuals.

Merge-Purge - The process of combining two or more lists or files of names and addresses etc., typically databases, and removing duplicated and/or unwanted items, to produce one new clean list or database.

Merger - The joining of two or more companies, organisations etc.

Meritocracy - In business, a system in which people advance because of their abilities rather than their connections or wealth, etc.

Merlin - TV/Movie term for a visual mistake in a film or TV show, derived from the accidental inclusion of a beer can in a TV drama scene featuring Merlin, in the days of King Arthur and the Knights of the Round Table.

Mesne Profits - Compensation or penalty charges instead of, or 'in lieu' of, rent claimed by a landlord against a person illegally occupying land or property and subsequently evicted, commonly arising from a court order.

Meta/Metatags/Metadata - Meta means an additional useful part of the whole thing, usually data or communication of some sort, and usually hidden or underlying and coded. The original sense is from the Greek word meta, loosely meaning 'with' and arises now commonly as a prefix in computing and communications terminology, for example referring to meta tags (increasingly 'metatags') within website or computer code, which are typically hidden in normal use but which carry useful or vital information about the material or functionality concerned - specifically useful for computerised automated functions and analysis, data search, retrieval, organization and display, etc. The similar term meta data (increasingly 'metadata') refers more generally to information or code which is usually hidden in normal use or communications but which carries important meaning towards understanding or using the whole message or instruction, or other form of data.

Mezzanine Finance - A high interest, usually unsecured, loan in which the lender often has the right to obtain shares in the business which has acquired the loan. Sometimes used in management buy-outs.

Microblogging - A type of blogging allowing users to post or broadcast pictures and/or short messages or articles typically in the range of 140-200 characters.

Microcap - In the US, small companies on the stock exchange that have shares which are very low in total value.

Microcredit - The loaning of very small sums of money to entrepreneurs, especially in the developing world, typically enabling the start-up of small business activities, especially social enterprise. Microeconomics - A branch of economics which studies individual parts of the economy, such as households, industries and businesses, and how they make decisions about spending money, use of goods and services, etc.

Microsite - A small separate part of a larger website which is designed to be used for a particular purpose, e.g., advertising or selling. Often co-branded or 'white label', i.e., run by a larger website organisation for a smaller website acting as an agent or affiliate.

Middleman - A person who arranges business or political deals between people, usually for a commission or fee, or, more generally, any person or company buying goods from a supplier and selling them to customers, usually at a profit.

Middle Management - In organisations and business, managers who are in charge of small departments and groups of people while reporting to upper management.

Midsession - On the stock exchange, the middle period of trading during the day, usually around noon.

Milk Round - In the UK, a term used when large companies visit universities each year to advertise job opportunities to students.

Mindshare - In advertising, the development of consumer awareness of a product or brand.

Minimax Strategy - In Game Theory and strategy generally, a method which seeks to minimise the maximum potential losses, which usually equates to 'playing safe'.

Minimum Wage - The legal lowest wage an employee can be paid by an employer.

Minister without portfolio - A government minister who has not been appointed to any specific department, and who has no specific departmental responsibilities. Also refers metaphorically to an executive or director or manager in an organization who has authority and rank but no responsibility for specific activity.

Minion - A low-ranking loyal and often favoured servant or worker.

Mirror Site - On the Internet, an exact copy of a popular website. This is done so that some of the traffic can be diverted from the original website to the Mirror Site when the original site becomes very busy. Alternatively a copy website whose purpose is to attract and direct additional visitors towards the original site, regarded as unacceptable SEO (search engine optimisation) or 'cheating' by most search engines.

Misery Index - Created by economist Arthur Okun, an economic indicator of a country which adds the inflation rate to the unemployment rate.

Mission Creep - Originally applied to military operations, a gradual expansion of a project that goes beyond original aims, so things turn out differently than planned, often resulting in undesirable consequences.

Mission Statement - A brief statement which sets out the activities and objectives of a company or organisation.

Mitigate  - To make something less severe or dangerous, e.g., using 'Mitigating Circumstances' as an excuse to try to make an offence seem less serious than it appears.

Mixed Economy - A country's economic system which has both private and state owned enterprises in operation.

Mnemonic - A technique or mechanism for helping to remember something, such as an acronym or rhyme.

Mob - A crowd of people - usually unruly and agitated. Mob is actually a shortened version of the full Latin phrase, mobile vulgus, meaning excitable crowd. The term was abbreviated in English first as 'mobile', in the 1600s. In more recent times the meaning of mob has become much wider - notably slang for gangsters (hence 'mobsters'), and in modern times to expressions such as 'flash mob', whose full technical meaning (aside from its earliest underworld meaning) is a secretly planned, surprising and quickly-formed excitable crowd.

Modem - From MOdulate and DEModulate. An electronic device which is used to connect computer systems using a telephone line for transmitting data.

Moderator - An arbitrator or mediator. Someone who presides over a debate. On the Internet - a person who presides over a website forum to make sure that rules and guidelines are adhered to.

Mogul - Also called a tycoon. A very rich, powerful business person.

Mojo - Magical or special power, referring to a charismatic person, or a product with unusually seductive qualities. Such people can be said to have their 'mojo working', an expression popularised by blues singer Muddy Waters in his 1957 hit song 'Got My Mojo Working'.

Mondeo Man - A derogatory term used to describe the average British man, who is depicted as boring, living in a semi-detached house in Kent with a wife and two children. Also used to describe travelling salesmen, a large number of who drive Mondeo cars.

Monetary Base  - Also known as Narrow Money in the UK. The total amount of a country's currency which is in circulation, for example, coins, notes, etc. - held by individuals and in bank deposits.

Money At Call - A loan or debt which must be paid upon demand.

Money Spinner - A product or project that generates a lot of earnings.

Monopoly - A situation in which one company or organisation has complete control of all, or nearly all, of the market for a particular type of product or service.

Monopsony - Also known as Buyers Monopoly, a market in which there is only one customer for a product or service being sold by several sellers.

Moore's Law - Founder of Intel Gordon Moore's theory that the power of computing has the potential to double every two years (often quoted as every 18 months).

Moral Hazard - The situation in businesses and organisations when people are protected, e.g. by insurance cover, so they are more likely to take risks.

Mortgage - A loan acquired from a bank, building society, etc., with which to buy property or land, usually to be paid back with interest over a specified number of years at regular monthly intervals. To borrow money from a bank, etc., using your property as collateral, giving the lender the right to own your property if the loan is not repaid.

Mothball - In business, to stop using a piece of equipment or building, etc., for a period of time, but keep it in good condition for when work can resume.

Motherboard - Also known as the Logic Board. The main circuit board of a computer which has all the components to make everything in the computer work together, such as the monitor, keyboard, mouse, DVD drive, etc.

Motivational Research - A type of market research used to investigate the reasons why people buy specific products or brands.

Mountweazel - A fictitious entry in a reference source or listing, traditionally an act of mischief, but also used to catch copyright cheats or those who obtain and use a database without a licence or a fee. Logically mountweazel entries are removed from legitimate authorized versions. Mountweazel is supposedly named after a false entry Lillian Virginia Mountweazel in the 1975 New Columbia Encyclopedia. Also called a nihilartikel, from the Latin nihil meaning nothing, and the German word artikel. A fictitious 'trap street' is the equivalent used to combat map copyright theft. (NB This is entry is not a mountweazel, probably..)

Mouse Potato - Amusing modern slang term for a person who sits for long periods in front of a computer, especially using the internet, instead of engaging in more active and dynamic pursuits. Mouse Potato is a clever adaptation of the older 1970s slang 'couch potato', referring to a person who spends too much time sat watching TV, eating and drinking too. Both terms originated in the USA, although these lifestyles are certainly not restricted to the USA.

Multilateral - Involving or agreed upon by three or more groups, nations, companies, etc.

Multinational Corporation - MNC. Also known as Transnational Corporation. A company which operates in several countries outside the country in which it is based.

Murphy's Law - Humorous saying: Anything that can possibly go wrong will go wrong.

Mutual Company  - A type of organisation, business, etc., which is owned by members and has no shareholders. The members usually have a share of the profits.

Mulct - A fine or financial penalty, or the verb form, to cheat or swindle someone out of money or penalize someone by imposing a fine, from the Latin word multare, to fine.

Myers-Briggs Type Indicator - (MBTI) A psychometric questionnaire or personality test in which people answer questions about themselves, which helps identify strengths and personal behavioural/behavioral preferences.

Mystery Shopper - A person hired by market research companies or manufacturers, etc., to visit or telephone shops or service providers anonymously in order to assess the quality of goods, helpfulness of staff, layout of premises, etc.

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Nagware - Also known as Begware. Computer shareware that periodically displays messages on your computer screen prompting you to register for a product and/or pay a fee.

Naked Debenture - Also known as Uncovered Debenture. A company's loan or debt which is not backed by any security, i.e., the company's assets.

Narrow Money - Also called M1. A country's money supply which can be exchanged, for example coins, bank notes, bank cheques, travellers cheques, etc.

National Brand  - A brand or product which is available nationwide rather than a local brand which is available in only one area of the country.

National Debt - The total amount of money owed by a nation's government.

National Insurance - (NI) In the UK, contributions made to the government by employers and employees which provide payments to the sick, retired and unemployed.

Nationalise/Nationalize - (UK/US English spellings) To convert a business or industry from private ownership to government control and ownership.

Natural Wastage - In business, the process of reducing the number of employees by not replacing those who have left their jobs, rather than by redundancy or dismissal.

Non-Departmental Public Body - Also known as Quangos (Quasi-Autonomous Non- Governmental Organisations) In the UK, organisations which are not government departments but are accountable to Parliament and are financed by the government to deal with public matters, e.g., Health Trusts.

Negative Certificate Of Origin - A document which states that goods, or any part of the goods, were not produced in a country from which the buyer refuses to accept goods or produce.

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.

Neologism - A word or expression which has been newly invented but is not yet in common use, or an old word which has a new meaning. There are a few in this very dictionary listing.

Nepotism - In business and organizations, nepotism refers to those in power showing favouritism towards friends and family, for example by giving them jobs because of their relationship rather than their abilities. The word came into English from French in the mid-1600s and originally derives from the Italian nipote, nephew, and the tradition of giving privileges to the 'nephews' of popes, who were typically actually illigitimate sons.

Nest Egg - A sum of money which someone has saved for the future.

Net Assets - The total assets of a company or individual minus all liabilities (debts).

Net-Centric - Activities, communities, services, information, etc., interconnected by the Internet.

Netiquette - A set of informal rules and regulations that govern Internet etiquette, i.e., the acceptable behaviour of people on the World Wide Web.

Net Lending - The total amount of funds lent by a bank or building society over a certain period, minus any repayments made by borrowers.

Net Price - The price payable for goods or services after any deductions, discounts, etc., have been taken off.

Net Profit Margin - Usually expressed as a percentage, in business, the money earned after costs, expenses, taxes, etc., have been deducted.

Networker - A person who meets and builds relationships with other people in order to make business or social contacts.

Net Yield - The profit from an investment after taxes, costs and all other expenses have been deducted.

Newbie - A newcomer or novice at something, especially on the Internet.

New Issue - On the Stock Market, a share or bond which is offered to the public for the first time.

Next-Generation - Term used to describe a product or technology which has been improved or upgraded so that the newest version is much more advanced than previous versions.

Niche Market - A specialised market in which a specific product is sold to a particular type or group of customers. A product or service for which there is sometimes little demand and often little or no competition.

Nielsen Rating - In the US, a system which measures TV audiences, i.e., which programmes are watched by which type of person. Companies use this information to decide when to advertise their products, and TV companies use this information to set prices for advertisement slots.

NIH Syndrome  - Not Invented Here. A term used for companies who reject ideas or products which are not theirs because they originated from outside the company.

Nikkei Index - A share price index for the 225 stocks traded on the Tokyo Stock Exchange in Japan.

No-Load Fund - A fund which does not impose a sales or commission fee on the investor for the buying and selling of stocks and shares.

Nominal Damages - A very small sum of money awarded by a court to the plaintiff when no real damage or harm was caused by the defendant, who has to pay the damages, usually $1 or £2.

Non-Callable - Also known as Bulletbond. A bond or stock which cannot be redeemed by the issuer before a particular date or until maturity.

Non-Compliance - Failure or refusal to obey or comply with a rule, regulation or standard, which can commonly result in serious action by an inspector or ombudsman.

Non-Disclosure - A signed formal agreement in which one party agrees to keep certain information secret. Often used in business when products or projects are being developed.

Non-Executive - In business, a member of a board of directors or a consultant who is not an employee of a company but who gives independent advice.

Non-Executive Director - Also called Outside Director. A person who is an independent member of a company's board of directors, i.e., they are not an employee of the company and are therefore not responsible for the day to day operations of the company but monitor the activities of the full time executives.

Nonfeasance - Failure to perform a duty or carry out an act when under legal obligation.

Non-Recourse Debt - A type of loan or debt in which the borrower is not personally liable to the lender. If the borrower fails to make repayments the lender can only take back what was bought with the loan and none of the borrowers other assets.

Non-Tariff Barrier - (NTB) A type of non-tax trade restriction on imported goods which is used to make it difficult for certain goods to be taken into a country.

Nosedive - A sudden drop or plunge in prices, values, etc.

Notary - A person, usually a solicitor, officially authorised to witness signatures and certify legal documents.

Notebook - A very small portable computer.

Not Enough Bandwidth - Term which is used when there are not enough people and/or enough time to get a job done.

Notice Of Deficiency - In the US, an official document sent to a taxpayer which shows that they owe more tax than has been declared on their tax form.

Notice Period - The period of time during which an employee must work between resigning from and leaving their place of work.

No-Win No-Fee - Conditional Fee Agreement. An agreement with your solicitor in which you don't have to pay their fee if your court case is not successful.

Not-Spot - An area of poor or lack of coverage in cellphone service or similar communications technology.

Number Cruncher - An accountant or person who's job is working with numbers, and who is able to do large calculations. A computer which can perform complex calculations in a short time.

Numbered Account - Often called a Swiss Bank Account. An account, offered by certain banks, which can only be identified by a number, so the account holder is known only to a restricted number of the bank's employees.

NVQ - National Vocational Qualification. In the UK, a qualification with no age limits, that does not have to be completed in a specified time, which reflects the skills and knowledge required to perform a particular job competently.

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Objects Clause - A section in a company's Memorandum Of Association which sets out the objectives of the company.

Obsolescence - The state of becoming obsolete or out of date. Old-fashioned.

Occupational Hazard - Aspects of a job which can be dangerous or pose a high risk of injury.

Occupational Psychology - Also called Organisational Psychology. The study of peoples behaviour at work, covering personal relations, mental health, employee selection and training, safety, etc.

Ochlocracy - Mob rule. Also known as Mobocracy. Ocholocratic groups are typically prone to extreme actions and not very clever decisions, which may be a reflection of vengeful motivation, weak intelligence, lack of organization, or any/all of these. An ochlocracy is usually an example of ineffective democracy, and of the so called 'wisdom of crowds' not working very well. Often mob rule results from a reaction against oppressive leadership. A popular metaphor which criticizes mob rule is: 'the lunatics have taken over the asylum'. Ochlocracy derives from the Greek word okhlos meaning mob. An ochlocrat is one who advocates or participates in mob rule. See the word mob, which is interesting in its own right.

Off-Balance Sheet - (OBS) Refers to items such as assets or a debts which are not recorded on a company's balance sheet.

Offer By Prospectus - A description of a company, for example financial structure, prospects, aims, etc., used when new shares are offered to the public, or when the company is for sale.

Offer Document - A document which a prospective buyer of a company sends to the company's shareholders giving details of the offer in the hope of persuading them to sell their shares.

Office Of Fair Trading - (OFT) In the UK, a non-ministerial government organisation, established in 1973, to protect consumers and ensure that competing businesses deal fairly, and to prohibit cartels, rogue trading, etc.

Official Strike - A work stoppage by employees that has the backing and approval of a union.

Offline - Refers to a computer which is not connected to the Internet.

Off-Market - Refers to the buying and selling of shares outside the Stock Market.

Off-Peak - A time period when a service, e.g. phone network, travel, electricity, gas, etc., is being used less frequently by consumers, therefore prices and rates are cheaper at this time.

Offshore - Refers to accounts, investments, banks, etc., which are in countries where there are lower taxes and/or little government control.

Off-the-Charts - Something way below or way above normal expectations.

Off-the-Books - A payment which is not officially recorded, usually to avoid tax.

Off-the-Grid - A person who does not wish to be in 'the system' (for example has no bank account, employment or tax identification, no fixed address, etc). May instead refer to a person who lives self-suffiently in terms of gas, electric, water, sewerage services, etc. Or someone not connected to the internet.

Off-the-Peg - Known in the US as Off-the-Rack. Describes merchandise, usually clothing, which is made in standard designs and sizes, rather than made-to-measure, and is available in stock at retail outlets.

Oligarchy - A small, elite group of usually wealthy people or families who control a government or organisation, and who are unwilling to share their power.

Oligopoly - A market in which a small number of companies control the supply of certain goods and services.

Ombudsman - A government official who investigates complaints from the general public about companies, government officials, the media, etc.

One-Stop - Describes a retail establishment which provides an extensive range of goods and services, so the customer can purchase everything they need without having to go elsewhere.

Online - Refers to a service or product which is available to use or buy on the Internet. A computer which is connected to the Internet. -

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.

Open-Ended Investment Companies - (OEIC) Limited investment companies which manage mutual investment funds. An OEIC can issue more shares if there is a demand from investors. The fund reduces if investors sell their shares back to the company.

Open Market - A market which operates without restrictions, in which anyone can buy and sell.

Open Offer - Also known as Entitlement Issue. An offer to existing share holders of a company, which entitles them to purchase new shares at a fixed price, usually lower than the current market price, in order to raise money for the company.

Open Shop - A business or factory which does not require employees to be members of a trade union.

Open Source - Describes computer software for which the original source code is freely accessible to everyone, so that anyone can modify or copy the program without paying a fee.

Operating Income - The gross earnings of a company minus operating costs, excluding taxes and interest.

Operating Lease - An arrangement in which a business leases equipment, cars, buildings, etc., for a period of time which is less than the expected useful life of the asset.

Operation Process Chart - Used in manufacturing, a chart which shows each stage of a production process, including when materials are needed, how much time is to be allocated for each job, how many people are required to carry out the work, etc.

Opinion Leader - A high-profile, influential public figure, such as a celebrity or business person, whose opinions and tastes are respected and/or copied by the general public.

Opportunism - The practice of exploiting and taking advantage of opportunities which present themselves, with no regard for other people or eventual consequences.

Opportunity Cost - Term which refers to the value or benefit of something which will be lost in order to achieve or pursue something else.

Optimise - To get the most out of something. To use something in the best possible way.

Ordinary Capital - The amount of capital invested in a company by shareholders.

Ordinary Creditor - A creditor who has no priority or security if a company which owes them money goes bankrupt. Therefore, they will be paid only after other creditors have been paid.

Ordinary Interest - Interest paid which is calculated based on a 360 day year, or 12 months of 30 days.

Ordinary Resolution - A resolution accepted and passed by a company's shareholders by a simple majority, i.e., more than 50%, at a shareholders meeting or by a signed postal resolution which has been sent to the shareholders.

Ordinary Share - Also called Common Stock. A share in a company which entitles the owner to a share in the company's profits, and the right to vote at shareholders meetings.

Organic Growth - Describes when a company develops and expands by increasing output and/or sales through its own activities, rather than by a merger or acquisitions (buying other companies).

Organigram - Also called Organisation Chart. A diagram which shows the structure of a business or organisation, showing connections between departments, jobs, etc.

Organised Labour - Employees who are members of a Trade Union.

Orphaned Technology - A term which refers to computer products, programs, etc., which have been abandoned or not marketed by their developers.

Orphan Product - In medicine, a test, device, drug, etc., which may be useful for certain rare diseases or disorders but is not financially viable, so is therefore not developed for commercial use.

Outbid  - To offer more money than a rival for something, especially at an auction.

Outbound Telemarketing - When a company calls prospective customers on the phone in order to sell them goods or services, compared to Inbound Telemarketing where the customer calls a company for assistance or to purchase goods.

Outdoor Advertising  - Also known as Out-Of-Home Advertising. Advertising which consumers can see while they are outside, e.g. billboards, newsstands, skywriting, advertising blimps, etc.

Outgoings - Term used in the UK to describe money being paid out on a regular basis by an individual or a company.

Outlay - The total amount of money which has to be spent to acquire an asset or start a project, including costs, taxes, delivery charges, etc.

Outplacement - A service provided by a former employer which helps a terminated employee find a new job.

Output Tax - In the UK, the amount of VAT (Value Added Tax) a company or business adds to the price of its products or services.

Outside Shareholder - A shareholder who doesn't own more than 50% of a company's shares.

Outsourcing - An arrangement in which a company produces goods or provides services for another company, usually in the same country.

Outstanding Shares - Also called Outstanding Stock. A company's ordinary shares which have been issued and are owned by investors.

Outward Investment - Investments which are made abroad.

Overage - A company's surplus, such as money or goods, which is available but exceeds the amount needed or required.

Overallotment - On the Stock Market, the offering for sale of more shares, etc., than are actually available, in the anticipation that some orders will be cancelled.

Overbought - On the Stock Market. a situation in which there has been too much buying of shares, etc., which has therefore caused prices to rise too high.

Overcapitalised - Refers to a business which has been provided with more money than it needs. To overestimate the capital value of a business.

Overdraft - Refers to the amount of money that is owed to a bank because withdrawals from an account exceed deposits. An arrangement in which a bank extends credit to a customer, usually up to a maximum amount.

Overheads - In business, regular costs which are incurred, such as wages, rent, insurance, utilities, etc.

Overmanned - A situation in which there are more workers than are needed for a job.

Overproduction - To produce more goods than are needed or wanted, an excess of supply over demand.

Overriding Commission - A commission paid to an agency office manager based on business created by agents who work at that office.

Overtime - Time worked in addition to normal working hours. The pay received, usually charged at a higher rate, for working outside regular working hours.

Overtrading - A situation which occurs when a company expands its business too quickly and does not have enough capital to pay expenses, such as debts, wages, etc., which often results in liquidation.

Own Brand - Known as House Brands in the US and Home Brands in Australia. Products which are sold by a retailer under the retailer's own name, rather than the name of the manufacturer.

Owner-Operator - A self-employed commercial truck or lorry driver who uses their own vehicle to run a business.

                                                                P

Paid-Up Capital - The total amount of money which has actually been paid in full by shareholders for their shares.

Paid-Up Policy - An insurance policy on which no more premiums are required, and the policy is considered paid in full and still remains in force.

Paid-Up Share - A share for which the shareholder has paid the full amount, as stated in the contract.

Package Deal - A set of several products which are offered for sale and must be bought in a combined package.

Packaging - Materials used to wrap a product. The way in which something, such as a product, person, proposal, etc., is presented, usually to the public.

Page Break - On a computer screen, a mark which indicates where a new page will be printed in a document.

Page Traffic - In computing, the number of times a web page has been visited.

Palm Top - A small computer which fits into the palm of the hand.

P and P (P&P) - Postage and Packing. In the UK, The cost of packing and sending goods, usually added to the price of mail-order goods.

Pan-European - Relating to all, or most of, the countries in Europe.

Pants - Street slang now mainstream, referring to anything of very poor quality. Interestingly the term first appeared in the late 1800s, based on the word 'knickers' as an expression of contempt or ridicule.

Paper Loss - In business, a loss which has occurred and appears in a company's accounts, but has not yet been realised until a transaction has been made, e.g. the sale of an asset which has lost value.

Paper Profit - A profit which has been made but has not yet been realised until a share, etc., has been sold.

Paper-Pusher - An office worker who has a boring job dealing with paperwork all day.

Paradigm Shift - Term first used by Thomas Kuhn in 1962 to describe when an important or significant change occurs in the perception of things. A sudden change in point of view.

Paralegal - A legal assistant who is not a qualified lawyer, but who is trained to work in or with the law.

Parallel Market - A country's separate market which deals in goods and currencies outside the country's normal official government controls.

Parastatal - In certain countries, a company or organisation which is partially or fully owned and controlled by the government.

Parent Company - A company or organisation which owns more than 50% of the voting shares in another company, therefore the Parent Company controls management and operations in the other (subsidiary) company.

Pareto Principle - Also known as the 80-20 Rule, e.g., 20% of employees perform 80% of the work. Or 20% of customers produce 80% of revenue. Or more generally, often situations whereby 80% of the consequences result from 20% of the causes. Commonly the ratio is (surprisingly) even more extreme.

Parkinson's Law - A humorous and generally true observation by Cyril Northcote Parkinson (British historian 1909-1993) that capacity or time is inevitably filled, for example: 'Work will expand so as to fill the time available for its completion'.

Part Exchange - Known in the US as Trade-In. A payment method, usually when purchasing a car, in which the buyer gives something they own, for example a car, as part payment to the vendor for the more expensive item. The balance is usually paid in cash or with a loan.

Participating Performance Share - A type of share/stock which gives a company's shareholder the right to receive dividends and also extra payments relating to the company's profits.

Partnership - A business which is owned by two or more people, all sharing the profits and responsibility for managing the business.

Part-Time Worker - Someone who works less hours than a full time employee on a permanent basis for a company, usually for a set number of hours a week.

Party Plan - Also called Party Selling. A method of marketing in which agents host parties, usually at someone's home, to demonstrate and sell products to invited potential customers.

Pascal - A computer language which is used to write programs, also used in teaching programming.

Passing Trade - Describes customers who go into a shop, public house, etc., because they notice it as they are passing by.

Patent - An official document which grants an inventor or manufacturer sole rights to an invention or product.

Patent Pending - A phrase sometimes printed on goods to show that a patent has been applied for but not yet granted.

Paternity Leave - The right of employees, male or female, to take time off from their job following the birth of their partner's baby. Entitlement to Paternity Leave depends on how long they have been with their employer.

Paternity Pay - An employee benefit paid to partners of pregnant women so they can take time off from their job after the birth of the baby to give support to the mother. Entitlement to Paternity Pay depends on how long the partner has been with their employer.

Patron - A person who purchases goods or services, often on a regular basis, from a shop or company. A benefactor or sponsor who supports and/or gives money to an individual or an organisation, such as a charity.

Pawnbroker - A money lender who lends cash at a high rate of interest in exchange for the borrowers personal possessions, such as jewellery, as security, which is returned when the loan is fully paid. If the loan is not repaid the Pawnbroker sells the item.

Payable To Bearer - A cheque, security, etc., which can be exchanged for money by the person in possession.

Pay-As-You-Go - Refers to a method of paying for a service as you use it, such as mobile phone credit. Also can be used to pay debts as they are incurred.

PAYE - Pay As You Earn. In the UK, a system of paying income tax, which is deducted from an employees salary by an employer and paid to the government.

Paying Agent - An agent, usually a bank, that makes dividend payments to shareholders on behalf of the issuing company.

Payment By Results - A system of paying employees according to the amount of work they do. Therefore, the bigger the volume of work output, the bigger the salary.

Payout Ratio - Also known as Dividend Payout Ratio. The percentage of a company's net earnings paid to shareholders in dividends.

PDA - Personal Digital Assistant. A small hand-held electronic device that is used for storing information and can serve as a telephone, diary, alarm clock, fax, etc.

Pecking Order - The hierarchy in businesses, organisations, etc, i.e., the order of people at different ranks. 

Pecuniary - Relating to, or involving money.

Peer Group - A social group of equals, for example, in age, social class, education, etc. A group of products or businesses which are similar.

Peer-To-Peer - P2P. Computer systems which act as servers and are connected to each other via the Internet, allowing people to share share files, so there is no need for a central computer.

Pen Portrait - A description of a person, a 'character sketch in words', now commonly a person-profile used for audience targeting purposes (marketing, recruitment, etc), although the expression dates back to the 1800s, originally referring to a description of a person, so as to produce a picture in the mind. 'Pen Picture' was an early alternative term.

Penalty Clause - A clause in a contract which states that a specified sum of money must be paid by the party who breaks the contract.

Penetration Pricing - The practice of charging a low price for a new product for a short period of time in order to establish a market share and attract customers.

Penny Share - Describes shares which have a very low value and therefore appeal to speculators.

Pen-Pusher - An employee with a boring job whose work consists of dealing with unimportant documents, paperwork, etc.

Pension - A private or government fund from which regular payments are made to a person who has retired from work, or who is considered too ill to carry on working.

Pension Fund - A fund set up to collect money on a regular basis from employers and employees, which pays the employees pension when they retire from work.

Peppercorn Rent - In the UK, a very low or nominal payment, which was originally a single peppercorn, made to secure a lease.

Per Capita - For each person in the population.

Per Diem - Latin for 'Per Day'. Often refers to money paid to employees for daily expenses or reimbursements.

Perfect Competition - Describes a market in which no one can influence prices because there is enough information about a product to prevent control by an individual or a single organisation.

Perfect Storm - Coincidentally arising circumstances combining to produce a disastrous effect. This is an allusion to weather factors, commonly applied to economic or trading situations, but applicable to any disaster or chaotic outcome resulting from forces or effects whose combination and timing has not been thought likely or anticipated at all.

Performance-Related Pay - A scheme set up in the workplace in which the employees get paid according to how well they perform in their job.

Peripatetic - Working or travelling from place to place, staying at different locations for a short period, such as, and especially as a teacher does, in working at more than one school. The teacher analogy is apt since the word derives from the Greek peripatetikos, and the earlier peripatein, which referred specifically to the teaching style of Aristotle (384-322 BC, Greek philosopher, student of Plato, teacher of Alexander the Great), who walked about while he talked. The ancient Greek prefix peri means around, or round, and patein means to tread.

Perishables - Describes food, such as fruit, meat, fish, dairy products, etc., which will decay or spoil rapidly.

Perjury - The criminal offence of knowingly telling a lie (with intent to influence the outcome of the hearing) in a court of law after having taken an oath or affirmation. It closely relates to and is often implicit within the offence of perverting the course of justice, which in the UK technically carries a maximum penalty of life imprisonment. The word perjury derives from Latin perjurium, meaning false oath, similar to jury which comes from jurare, meaning to swear.

Permatemp - A person who works for an organisation on a long-term contractual basis, but who is not a permanent employee.

Permission Marketing - A term used for the advertising of products or services on the Internet, for which the marketing company obtain the consent of prospective customers to send them information about certain products or services.

Personal Action - A type of court case in which an individual claims damages for personal injury, damage to his property, etc.

Personal Allowance - Known as Personal Exemption in the US. The amount of income an individual can earn in a year before paying tax.

Personal Assistant - PA. A person who works for one person, often an executive, in an organisation, performing secretarial and administrative duties.

Personal Day - When an employee is permitted to have time off work to deal with personal matters.

Personal Development - Also called Self-Development. Acquiring abilities, skills, knowledge, etc., in order to enhance one's performance and self-perception.

Personal Information Manager - PIM. Computer software which handles personal information, such as names, addresses, memos, lists, e-mails, etc.

Personal Liability - An individual's legal responsibility in the event of injury to someone, damage to property and/or the debts of their own company.

Personnel - The people who work for a business or organisation. An administrative department in an organisation which deals with employees and often liaises between departments.

Performance (Project/Program) Evaluation on Review Technique - PERT. A management scheduling tool which charts the tasks involved in a project, showing the sequence of the work, the time needed for each task, etc.

PEST Analysis - Political Economical Social and Technological Analysis. A business tool which is used in strategic planning and helps to understand the environmental influences on a business or orgasnisation.

Peter Principle - Formulated by Canadian author Laurence J Peter (1919-1990): 'In a hierarchy, every employee tends to rise to his level of incompetence'. The theory that employees rise in rank in an organisation until they are finally promoted to a level, and remain there, at which they do not have the ability to do their job.

Petrodollar - Term coined by professor of economics Ibrahim Oweiss in the 1970s which describes the large amounts of money earned by oil production in OPEC (Organisation of the Petroleum Exporting Countries) countries.

Petty Cash - A small amount of cash kept by a business to pay for small purchases.

Pharmaceutical - Relating to or engaged in the process of making and selling medicinal drugs.

Philanthropy/Philanthropist - Promotion of the welfare of others, typically through financial provision (a philanthorpist is one who does this). From the Greek philanthropos, meaning man-loving.

Philology - The branch of knowledge which deals with the study of the history of language and literature. Historical linguistics.

Phishing - A type of fraud carried out on the internet by sending people legitimate-looking e-mails asking for their personal information, such as bank account details, passwords, etc., and using them to steal their money.

Photocall - A planned and announced occasion during which celebrities, politicians, products launches, etc., have photographs taken by the press and other media for publicity purposes.

Physical Capital - Refers to a company's assets which are used in a production process, such as machinery, buildings, materials, etc.

Picket - A person, or persons, posted at the entrance of a place of work which is affected by a strike, in order to stop people entering the premises.

Pictogram - Also called a Pictograph. A graphic symbol or diagram which represents a concept, an amount, an activity, etc., in pictures.

Piece Rate - A payment system in which employees are paid a fixed rate for each item they produce.

Piecework - Work in which payment is based on the amount of work done regardless of the time it takes to do it.

Pie Chart - A chart or graph which is circular in shape and divided into triangular sections (like slices of a pie), the sizes of which are relative to the quantities represented.

Piggyback - A system which rides on the back of an existing system, e.g. a loan or mortgage or an advertising campaign.

PIN - Personal Identification Number. A number given by a bank to a customer so the customer can access their bank account using an ATM (cash machine), or use their credit/debit card in retail outlets.

Ping - Packet INternet Groper. An Internet program which is used to check if another computer on a network is working. To contact someone on a computer.

Pink Collar - Describes jobs which were once traditionally done by women, such as nursing, secretarial, teaching, etc.

Pink Sheets - Formally known as Pink Quote. In the US, a system displaying over-the-counter shares, which is published every day. Most companies listed on the Pink Sheets are very small and do not meet the minimum requirements for trading on the Stock Exchange.

Pink Slip - In the US, an official notice of job termination given to an employee.

Piracy - The unauthorised copying of CDs, DVDs, computer programs, etc., in order to sell them or give them away.

Pixel - Short for Picture Element. The smallest element of an image displayed on a computer screen. The quality of the image depends on the number of pixels per square inch, i.e., the more pixels the higher the resolution.

Plaintiff - A person who brings a lawsuit against someone else in a court of law.

Planned Economy - A country's economic system controlled by the government, which makes all the decisions about production, distribution and consumption of goods and services.

Planogram - In retailing, a drawing or diagram which shows when and how products should be displayed in a store.

Plasma - Interestingly, in physics, plasma is the often overlooked fourth state of matter, aside from solid, liquid and gas. Plasma is ionized gas containing free electrons, making it responsive to electromagnetism, and conductive of electricity, in turn enabling it to take a very visible physical shape unlike other forms of gas. The stars are made of plasma; so is lightening and the Northen Lights (Aurora Borealis). Plasma display screens also basically employ this effect.

PLC - Public Limited Company. In the UK, a company with limited liability, whose shares can be purchased by the public.

Plenary - Describes a meeting which should be attended by everyone who is qualified to attend, e.g., company directors, officials, etc. A diplomat who has full and complete power.

Plimsoll - Named after merchant Samuel Plimsoll. International Load line or Waterline on the hull of every cargo ship, which indicates the maximum depth to which a ship can be safely loaded with cargo.

Plutocracy - A government which is controlled by wealthy people.

PMI - Purchasing Managers Index. Published every month, an economic measure relating to manufacturing. A PMI over 50 indicates industry is expanding.

Poisoned Chalice - A job or situation which seems good at first but soon becomes unpleasant or harmful.

Poison Pill - A business strategy used by a company to avoid being taken over by another company, e.g., the selling of assets, shares, etc., to make the company look less attractive to the potential buyer.

Polimath - A person of great knowledge and varied learning. Loosely from Greek poly, many, and manthano, learn.

Political Correctness - PC. The practice of not using words, expressions, actions, etc., which could cause offence to minority groups. PC could also stand for Political Claptrappers - People who insist on political correctness from everyone at all times, even in their private lives.

Ponzi Scheme - Named after Charles Ponzi, a fraudulent investment scheme, similar to a Pyramid Scheme, in which people are offered high returns, while their money is used to pay earlier investors, so that later investors often end up with little or no return because new investors can't be found.

Pop-Under - On a computer, an advertisement, etc., which comes up on the screen behind the web page which is being viewed, and does not appear until the page is closed.

Pop-Up - On a computer screen, a small window containing an advertisement, etc., which appears on a page on top of the content which is being viewed.

Poorgeoisie - People who are rich but pretend they don't have much money.

Pork Barrel - A US political term for when government funds are used for projects which benefit certain local groups or constituents, and show their political representative in a good light.

Portal - On the Internet, a website, usually a search engine, which is the point of entry to other websites, and offers services such as e-mail, news, shopping, etc.

Porter's Generic Strategies - Named after economist Michael Porter. Describes strategies used by companies to achieve a strong advantage against competitors.

Portfolio - A collection of investments, such as shares, bonds, etc., which are owned by an individual or organisation.

Portfolio Career - Concept attributed to guru Charles Handy in the 1990s. A career in which a person pursues several jobs at the same time, rather than working full-time for one particular company.

Port Of Entry - A place in a country where people and/or goods can officially leave or enter.

Portmanteau Word - A word formed from parts of two separate words, whose combination generally produces the meaning also. Many new management and business words, especially slang and jargon, enter the language in this way, and some become popular and well-established.

Positioning - Term used to describe the way a company, product, service, etc., is marketed in order to make it stand out from the competition by choosing a niche according to brand, price, packaging, etc.

Positive Discrimination - In the UK, a company's policy of favouring a disadvantaged (because of race, sex, etc.,) group by making sure that jobs are given to people in these groups.

Positive Sum Game - A win-win situation in which both sides involved in a business transaction, etc., can profit.

Postage And Packing - Called Postage and Handling in the US. The cost of wrapping an item and sending it by post. Often used for mail order goods.

Post-Date - To insert a future date on a cheque or document at the time of writing, so it becomes effective at that later date.

Post-Fordism - Also called Flexible Modernity. An industrial production system which has changed from mass production in large factories, such as Ford Motors, and moved towards smaller flexible, more specialised manufacturing systems.

Power Brand - A brand of goods, etc., which is well known and has a large share of the consumer market for a long period of time.

Power Lunch - A business meeting held over lunch in which important decisions may be made, or high level discussions carried out.

Power Nap - A short nap. usually lasting about 20 minutes, taken during the day, that refreshes a person so they can carry on working.

Prairie Dogging - This occurs when someone who works in an open office, which is divided into cubicles, drops something or shouts and everyone else pops their heads above the dividing walls to see what is happening.

Precedent - A past act or decision which is used as an example to decide the outcome of similar subsequent acts.

Predatory Lending - The often illegal practice of lending money to people who the lender knows are unable to pay back the loan, such as low-income house-owners, who subsequently may lose their homes which they have used as security against the loan.

Predatory Pricing - Also known as Destroyer Pricing. A situation where a company charges very low prices for goods or services in order to put its competitors out of business, after which prices will be raised.

Preference Share - Also called Preferred Shares. A type of share which pays the owner a fixed dividend before other share owners are paid their dividends. Preference Shareholders do not usually have the right to vote at shareholders meetings.

Preferential Creditor - A creditor who has the right to receive payment of debts, before other creditors, from a bankrupt company.

Pre-Market - On the Stock Market, trading which takes place between members before the official opening time.

Premium Income - The revenue recieved by an insurance company from its customers.

Presenteeism - The opposite of Absenteeism. A situation where employees work very long hours or come to work when they are ill and their performance is below standard, which can have a negative effect on the business.

Press Agent - A person employed to arrange publicity for an individual or organisation, for example in newspapers, on television, etc.

Press Conference - Called A News Conference in the US. A meeting held by a business, organisation, individual, etc., to which journalists are invited to hear a public announcement, and usually to ask questions.

Pressure Group - An organised group of people, or lobbyists, who campaign to influence businesses, governments, etc., to change their policies, e.g. regarding the environment, or to change laws.

Price - The amount of money required to purchase something or to bribe someone. The amount agreed upon between the buyer and seller in a commercial transaction.

Price Control - Maximum and minimum price limitations, often during periods of inflation, which a government puts on essential goods and/or services.

Price Discrimination - The practice of a provider to charge different prices for the same product to different customers.

Price Fixing - The, often illegal, practice of prices being fixed, by agreement, by competing companies who provide the same goods or services as each other.

Price Mechanism - Describes the way prices for goods and services are influenced by the changes in supply and demand. Shortages cause a rise in prices, surpluses cause a fall in prices.

Price Support - A system in which a minimum price is set by a government, and sometimes subsidised, for a product or commodity.

Price Taker - A company or individual whose selling or buying of goods and services has little or no influence over prices.

Pricing - To evaluate the price of a product by taking into account the cost of production, the price of similar competing products, market situation, etc.

Primary Data - Data which is collected by a company, business, etc., itself for its own use, using questionnaires, case studies, interviews, etc., rather than using other sources to collect the data.

Primary Demand - Consumers demand for a generic product rather than a particular brand.

Primary Market - On the Stock Exchange, when shares, securities, etc., are issued for the first time.

Primary Research - Also called Field Research. The collection of new or primary data through questionnaires, telephone interviews, etc., for a specific purpose.

Prime Cost - In manufacturing, etc., the cost of direct materials and labour required to make a product.

Principal - In finance, principal (the principal, or the principal sum/amount) refers to an amount of money loaned or borrowed. The term is used particularly when differentiating or clarifying an amount of money (loaned/borrowed/invested) excluding interest payments. Separately, more generally, in business the term 'the principal' refers to the owner of a business or brand, as distinct from an agent or representative, such as a franchisee.

Private Brand - Also called House Brand. A product which is owned by a retailer, and therefore has its own brand label on it, rather than the manufacturer or producer.

Private Company - Called A Private Corporation in the US. A company whose shares are not offered to the general public on the open market.

Private Equity - Describes companies shares which are not available for investors to buy and sell on the Stock Market, because the company is unlisted.

Private Sector - The part of a country's economy which is owned and run for profit by private businesses rather than being government controlled.

Privatise/Privatize - (UK/US English spelling) To change or sell a government controlled business or industry to privately owned companies.

Privity - A legal relationship between two parties in a contract.

PRO - Public Relations Officer. Also known as a Chief Communications Officer. A person whose job is to promote and establish a good relationship between their client - an organisation or an individual - and the public.

Probation - A trial period during which an individual's suitability for a job or membership to a club, etc., is tested.

Probity - Complete integrity. Having strong moral principals and total honesty.

Pro Bono - Short for Pro Bono Publico (Latin for 'The Public Good'). Work carried out in the public interest for no fee or compensation, e.g. by a lawyer.

Proctor - Someone who supervises students, etc., taking exams to prevent cheating. Also a person or agent employed to manage the affairs of another person.

Product - The result of a manufacturing or natural process (such as food) which is offered for sale to the general public, usually by a retailer.

Product Evangelist - A person who is committed to a promoting a product through demonstrations, talks, blogging, etc.

Productivity - The rate at which goods are produced based on how long it takes, how many workers are required, how much capital and equipment is needed, etc.

Product Liability - Area of the law in which a manufacturer or retailer is legally responsible for any damage or injury caused by a defective product.

Product Life Cycle - The normal stages that a product passes through from development to decline until it becomes obsolete, usually because it has saturated the market because everyone who wants it has purchased it.

Product Placement - Also called Embedded Marketing. A type of advertising where a company pays a fee to have one or more of its products used as props in a film or television show.

Product Portfolio - A variety of products which are manufactured or distributed by a company or organisation.

Professional Liability - The legal liability of a professional, such as a doctor, accountant, lawyer, etc., who causes loss, harm or injury to their clients while performing their professional duties.

Profiteer - An organisation or individual who makes excessive profits by charging very high prices for goods which are in short supply.

Profit-centre - A business division or department or unit which is responsible for producing a profit, for example a shop unit within a chain of shops, or a branch within a network dealerships. Significantly a Profit-centre business unit will use a 'Profit and Loss Account' as a means of managing and reporting the business. A profit centre is involved in selling to customers. See Cost-centre, which tends only to be responsible for internal services and supply to other departments.

Profit Sharing - An incentive scheme in which a business shares some of its profit , usually in cash or shares, with its employees.

Profit Squeeze - A situation in which a company or business makes less profit over a period of time because of rising costs and/or falling prices.

Pro Forma Invoice - An invoice prepared by a supplier describing goods, price, quantity, etc., which is sent to the buyer before the goods are supplied.

Program Trading - On the Stock Market, the buying and selling of large amounts of shares by computer, the program of which is triggered when trading reaches a certain level of volume.

Prohibitive - Preventing or discouraging something, for example people are discouraged from buying a product because the price is prohibitive, i.e., too high.

Project Management - The process of managing and planning a successful project from start to finish, which includes controlling, organising, managing resources, etc.

PROM - Programmable Read Only Memory. In a computer, a permanent memory chip which can only be recorded on once, by the computer user, not the manufacturer, after which the data is stored and cannot be changed.

Promo - A promotional broadcast on television, radio, etc., advertising a product, TV show, film, etc.

Promotion - The use of marketing and/or advertising to bring attention to a product, brand, service, company, etc., usually in order to increase sales. The raising of an employee to a higher rank in an organisation.

Prompt Note - A document sent to someone to remind them when a payment is due on a purchase.

Proof Copy - The printed pages of a book, magazine, etc., which is read and corrected (e.g. spelling mistakes) by a Proof Reader before the final printing of all the copies.

Propaganda - Politically motivated publication or writing designed to influence thinking or action, usually in a misleading way. When carried out by a government or other authority this may also be referred to in more modern terms as 'spin'. The word derives from the Latin name of a Roman Catholic committee responsible for 'propagation of the faith' in the 1600s.

Proprietary Trading - The buying and selling of shares, bonds, etc., by a securities firm with its own money for its own profit, rather than for its customers.

Pro Rata - In proportion to. Refers to the division of costs, profits, income, etc., depending on the size of each persons share in the whole amount.

Prosecute - To bring a criminal charge against someone in a court of law.

Prospectus - A document published by a company which is offering its shares for sale, disclosing information such as the company's activities, objectives, finances, etc. A book published by a university or school containing information about courses, etc.

Prosumer - Profession/Producer Consumer. A consumer who is involved in the specification of products, or has professional tools and is involved in the the design and manufacture of products.

Protectionism - The policy of a country protecting its own industries against foreign competition by imposing taxes, etc., on imported goods.

Pro Tem  - Temporarily. For the time being.

Protocol - In computing, a set of rules which determine the way data is transmitted between computers. The code of conduct in an organisation, etc.

Proptype - An original design or working model of something, often used in demonstrations.

Provident Fund - A form of retirement savings. An employer and employee pay regular, usually equal, amounts into an investment fund, which is then paid to the employee upon retirement, often in a lump sum.

Proviso - A clause in a contract which makes a condition or stipulation.

Prudence - Aside from its usual general meaning of carefulness in judgment and decision-making, prudence particularly refers to caution in commercial/financial/economic risk-taking, and to the typically great caution exercised by financial folk (accountants and bankers notably) in planning, budgeting, forecasting, granting loans, extending credit, defining standards and policies, and accounting practice as a whole, etc.

Proxy - A person who has been given the authority to act for another person, e.g., a proxy can vote on behalf of a shareholder.

Pseudo - Pronounced 'sudo', this is a prefix which can be put before many different words to represent a fake or false quality which often attempts to imitate or behave as the real thing. From Greek pseudos, meaning falsehood.

Pseudonym - a false name, commonly adopted by a writer seeking to hide their true identity.

Psychological Contract - usually expressed as 'the Psychological Contract', this is the understanding between employee(s) and employer as to their mutual expectations arising from the employment relationship. The expectations involve a complex balance of inputs and rewards, including contractually clear elements such as hours and pay, and extend to implications and assumptions about security, loyalty, and other highly subjective factors. The Psychological Contract is a two-way notional agreement between employee and employer, typically analysed from the employee perspective. Psychological Contract theory potentially extends to relationships between suppliers and customers, and between the state and its people.

Psychographics - Used in marketing, the analysis of peoples characters, lifestyles, attitudes, purchasing habits, etc.

Psychographic Segmentation - The process of identifying and dividing consumers into groups according to their interests, attitudes, social class, values, personality, etc.

Psychometric Test - A test which measures a person's personality, mental ability, knowledge, etc., often used to ascertain whether a potential employee is suitable for a job.

Public Company - A company whose shares are traded on the Stock Market.

Public Debt - Also known as National Debt. The total amount of money owed by a country's national and local governments.

Public Domain - Something that is not protected by copyright and is openly available for anyone to use, look at, etc.

Public Employee - A person employed by the government.

Public Enterprise - A business or economic activity owned and controlled by the government.

Public Issue - When a company offers shares for sale to the public for the first time.

Publicist - A publicity or press agent who publicises organisations, people, etc.

Public Liability - When the owner of a business, etc., is responsible for any injury or harm inflicted on a member of the public because of negligence or unsafe products, etc., against which an insurance policy can be obtained by the business.

Public Relations - PR. The promotion of an organisation or person with the aim of creating a favourable relationship with the public.

Public Works - Buildings and structures constructed by the government for public use, such as roads, bridges, schools, hospitals, etc.

Puff - In advertising, to exaggerate the qualities of a product, etc., without actually breaking the law.

Pull Strategy - Used in marketing to create a demand for a product by means of advertising and promoting to the end consumer, rather than through the marketing channel. To 'pull' the product through from distributor to final consumer.

Pump And Dump - The illegal practice of artificially boosting share prices by false and misleading statements in order to sell the originally cheap shares at much higher prices.

Punitive - Inflicting or concerned with punishment, for example punitive taxes, punitive justice.

Punitive Damages - Damages awarded, over and above general damages, by a court of law against a defendant who has committed a malicious act which has resulted in injury to a person or damage to property, in order to deter the defendant from committing similar acts in future.

Purchase Ledger - A record of a company's accounts which shows amounts owed to suppliers for items purchased on credit.

Purchasing Officer - A company employee who is responsible for the purchasing of equipment, materials and services from suppliers and contractors.

Purchasing Power - Also called spending power, the amount of goods or services which can be purchased with a particular currency, or more generally, the amount of money a person or group has available to spend on goods and services. The term may also emphasise a group or organization's ability to achieve heavily discounted prices or rates due to the high buying volumes.

Pure Play - Term that relates to a company which deals in one specific line of business, rather than a range of products, services, etc.

Purveyor - A company or person who supplies provisions, especially food.

Push System - In production, a system in which the demand for goods is predicted by the company, so more goods are made to keep up with pre-set levels rather than customer demand.

Put Option - An option in a contract giving the holder the right to sell shares, materials, etc., at a specified price at, or up to, a fixed date.

Pyramid Selling - A system in which people buy the rights (often a franchise) to sell a company's products to other distributors who have been recruited, who then sell the products on to other recruits. This type of selling often ends up with no final buyer for the products. The few people at the top of the pyramid commonly make a lot more money than the many people at the bottom.

Pyramid Scheme - Illegal in several countries, a scheme in which people are paid for recruiting others who pay a fee, part of which goes to the person who recruited them as a commission. In order to get their payment the recruits then have to find new recruits to pay a fee. This goes on until there is no one left to recruit and the people who come into the scheme last end up losing their money. The difference between Pyramid Selling and a Pyramid Scheme is that is that the latter has no product.

                                                         Q

Qualified Opinion - A statement written by an independent auditor which accompanies a business's financial statements, saying that the audit has been limited, e.g., because the auditor may not have been able to collect all the information required to carry out a full audit.

Qualifying Period - The length of time an employee must serve in a job before being entitled to various benefits, or being able to make a claim against unfair dismissal.

Quality - An attribute or level of excellence. The standard of a product, service, etc., as measured against similar products, services, etc. A distinctive characteristic or attribute possessed by someone or something.

Quality Assurance - QA. A system in which the delivery of a service or the quality of a product is maintained to a high standard, especially by means of attention to every stage of the process.

Qualitative - Associated with a thing's quality which cannot be measured, such as feel, image, taste, etc. Describes peoples qualities which cannot be measured, such as knowledge, behaviour, attitude, etc.

Quality Circle - Originating in Japan, a group of workers in a company who meet regularly to discuss ways in which to improve working conditions for employees and productivity for the company.

Quantitive/Quantitative - Related to or measured in numbers. Comparison based on quantity rather than quality.

Quantity Surveyor - In the UK, a professional who works in the construction industry, whose job is to calculate the cost of materials, labour, etc., needed to complete a project.

Quarter Day - In the UK, a fixed day of each quarter of the year on which certain payments, such as rents, are due.

Questionnaire - A form containing a list of research or survey questions for people to answer, so that information can be gathered for analysis

Quorum - The minimum number of people who must attend a meeting in order for valid business to be conducted. The term is from the 15th/16th century and the earliest use of English, specifically from the Latin phrase used at the start of commissions for committee members, "quorum vos ... unum esse volumus," loosely meaning, "of whom we specify that ... be one."

Quota - An official allocation of something, or a limited amount of people allowed. A fixed amount of something, e.g. sales, which must be reached.

Quoted Company - A company whose shares are listed on the Stock Exchange.

                                                            R

R-Value/U-Value - Refers to insulation effectiveness in buildings, and to materials used in construction. Either term may be used. U-Value is the reciprocal of R-Value. The higher the R-Value the better the insulation. The lower the U-Value, the better the insulation.

Race Relations Act - A British government Act, introduced in 1976, making it unlawful to discriminate against someone because of their colour, race, nationality or ethnic origin.

Race To The Bottom - A phrase said to be coined by US Supreme Court Justice Louis Brandeis. A situation in which competition between nations could result in lower standards, cheaper wages, poorer working conditions, etc.

Racketeer - A person who makes money through illegal business or crime, such as extortion, bribery, fraud, etc.

Rack Rate - The full price of something before discounts have been offered, especially hotel rooms.

R&D - Research and Development. Investigative work carried out by a business to improve and develop products and processes.

Raid - On the Stock Exchange, a situation where an individual or company makes a hostile bid to take over another company by buying a controlling interest in the company's shares.

RAID - Redundant Array of Independent Disks. On a computer, a way of storing data by spreading it across multiple disks, therefore providing greater security, faster access, etc.

Rainmaker - An employee, often an executive, who brings a lot of business and income to a company.

RAM - Random Access Memory. In computing, the place where current data is stored while a computer is being used. The data is removed when the computer is switched off.

Random Sample - Often used in research, a method of sampling members of a large group, such as a population, in which everyone has an equal chance of being selected.

Rank And File - The ordinary members of a group, such as enlisted troops in an army, or members of a union, who have no power.

Rat - Slang term for an informer, or to inform, typically for personal gain. Rat is also a verb, meaning to inform or betray.

Rate of Return - The amount of profit or loss generated by an investment, expressed as a percentage of the total sum invested.

Rate Card - A printed list of charges and details regarding advertising costs on television, radio, websites, newspapers, etc.

Ratify - To sanction formally. Validate an agreement with a vote or signature.

Rating Agency - A company which assesses and rates businesses on their credit-worthiness and/or their ability to repay debts.

Ratings Point - The measure of a size of an audience, i.e., one point equals one per cent of all households watching a television program or listening to a radio station at a particular time.

Ratio Analysis - A study of a company's financial statements which show the relationships between items listed on a balance sheet and gives an indication as to whether the company can meet its current obligations.

Rat Race - The exhausting, competitive struggle and routine of working and living in a large town or city.

Reactive Marketing - Describes when companies or businesses wait for customers to contact them in order to buy their products or services.

Ready-To-Wear - Describes clothing that is produced in standard sizes and designs and sold as finished products in retail outlets.

Real Estate - Also called Realty. Property consisting of land with permanent structures on it, such as buildings, walls, fences, etc.

Real Time - In computing, systems which receive information and update it at the same time.

Ream - 500 sheets of paper. A large quantity of written material.

Rebadge - To change the name , brand or logo of an existing product or business, especially cars.

Reboot - To switch a computer off and restart it again immediately.

Rebrand - Change the name, packaging, etc., of an existing product or business and advertise it as new and improved.

Recall - To ask customers to return a product which they have bought because it has been found to be faulty or dangerous.

Recapitalise - To put more money into a business, often one which is facing bankruptcy. To reorganise a company's capital structure by exchanging preferred stock for bonds, usually to reduce taxes.

Receivables - Shown as assets on a balance sheet, money which is owed to a company by customers who have purchased goods or services on credit.

Receiver - An independent person appointed by a court to manage and control the finances, property, etc., of a bankrupt company, who usually sells the company's assets in order to pay the creditors.

Recession - The decline of a country's economy over a period of time, resulting in unemployment, less productivity, less trade, etc.

Reciprocal - Loosley meaning 'in return', based on the stricter mathematical sense of the word, found in financial and scientific theories, where reciprocal refers to the number or fraction which when multiplied by a specified other number or fraction will produce the number one. For example a half is the reciprocal of the number two; and a fifth is the reciprocal of the number five. The word derives from Latin 're' (back) and 'pro' (forward).

Reciprocal Trade/Trading - Exchange of product or services. A simple example might be an accountant providing book-keeping services to a telemarketing company which in return performs telemarketing services on behalf of the accountant.

Reciprocity - Based on the notion of mutuality or return in the term 'reciprocal', reciprocity means give-and-take, such as to achieve a mutually agreeable balance.

Recognition Test - Also known as Readership Test. A test carried out after people have read a newspaper, magazine, etc., to see if they have remembered or read a particular advertisement.

Record Date - A date set by a company by which an investor must be recorded as owning shares in order to qualify to receive dividends and be able to vote at a shareholders meeting.

Recorded Delivery  - A postal system for which an extra fee is charged in addition to postage. The sender is given a receipt at the time of posting and the recipient signs a form to confirm delivery.

Recruit - To seek employees for a business or organisation. To enlist military personnel.

Red Bag - A UK legal profession tradition in which a red fabric bag, to contain a barister's robes, is presented to a junior lawyer by a Queen's Counsel (QC) for recognition of good work in an important case.

Red-Circling - The practice of protecting the salary of employees whose jobs have been downgraded because of the restructuring, etc., of the company.

Red Ink - Term used when referring to a company's financial loss.

Redundancy - A situation in which an employer intends to cease business, so therefore the workforce lose their jobs, or an employee is made redundant because their job no longer exists in the company they work for. Employees in these situations often qualify for redundancy pay.

Reference - A letter/statement written about a person by someone who knows them, detailing their abilities, character, qualifications, etc., which is sent to a prospective employer.

Refer To Drawer - In the UK, a phrase used by banks when someone's account does not have sufficient funds to clear a cheque which they have written, or the cheque has been written incorrectly.

Registered Capital - Also called Authorised Capital. The maximum value of shares which a company can legally issue.

Registered Company - In the US, a company which has filed an SEC (Securities and Exchange Commission) registration, and may issue new shares. In the UK, a company which is listed on the Companies Register as a limited private company, a public limited company, or an unlimited company.

Registered Trademark - A distinctive symbol, name, etc., on a product or company, which is registered and protected by law so it cannot legally be used by anyone else.

Registrar - A person in a company or organisation who is in charge of official records.

Registration Statement - In the US, a legal document containing details about a company's activities, financial status, etc., which must be submitted to the SEC (Securities and Exchange Commission) before the company can issue shares.

Reinsurance - The practice of sharing insurance risk among several insurance companies, in case of major disasters such as floods, hurricanes, etc.

Remunerate - To pay a person for services rendered, goods, losses incurred, etc.

Renewal Notice - An advanced notice of payment required to renew insurance cover, subscription, etc., by a certain date.

Rental Fleet - Cars, vans, etc., which a business leases from a vehicle leasing company for its workers to use, usually sales teams, executives, service engineers, etc.

Reporting Line - In a business or organisation, employees, managers, etc., who report to the next person higher up, usually their boss.

Repossess - To take back property, goods, etc., usually from an individual or organisation who has failed to repay a loan or has defaulted on a repayment plan.

Repudiate - Refusal to perform a contractual duty or repay a debt.

Requisition - An official written request or demand for something.

Rescind - To make void or cancel, for example a law or contract.

Research - The gathering of information, facts, data, etc., about a particular subject.

Reserve Currency - A foreign currency which is permanently held by a country's central bank, and is used for international transactions.

Reserve Price - The lowest fixed price at which a seller will sell an item at auction. If the bidding does not reach the reserve price then the item is not sold unless the highest bidder comes to an arrangement with the seller.

Residual Income - Part of a person's income which is left over after taxes and living expenses, for example mortgage, bills, etc., have been deducted.

Residual Value - Also Called Salvage Value. The market value of an asset which is no longer in use or has reached the end of its useful life.

Resource Allocation - The process of assigning available finances, materials, labour, etc., to a project.

Restitution - Money paid by an offender in compensation for loss, damages or injury. To give something back to its rightful owner.

Restrictive Practice - A trading agreement between businesses or industries which prevents free competition. The practice of workers, often trade unions, of protecting their jobs in a manner which limits the freedom of other workers.

Resume - A written summary of a person's education, employment record, qualifications, etc., which is often submitted with a job application.

Retail Banking - Also called Consumer Banking. Banking services provided directly to the public, such as savings accounts, credit/debit cards, mortgages, etc.

Retailer - A business or individual who sells products or services directly to the customer.

Retail Investor - Also called Small Investor. An individual who buys and sells shares, etc., for themselves, usually in small quantities.

Retail Park - Usually situated on the outskirts of a large town, a large retail development consisting of shops, stores, car parking, and often cinemas and restaurants.

Retail Price Index - RPI. An inflation indicator, usually calculated on a monthly basis, reflected in the retail price of everyday goods, such as food, fuel, fares, etc.

Retail Therapy - Shopping which is done for enjoyment and to relieve stress.

Retained Earnings - The earnings of a business or company which is used for reinvestment, rather than being distributed to shareholders as dividends.

Retained Profits - A business profit, after tax and dividend payments to shareholders, which is retained by the business and often used for reinvestment.

Retainer - A fee paid in advance to someone, such as a lawyer, to engage their services as and when they are required.

Retrench - To cut down on spending, economise, for example to reduce a workforce.

Return On Assets - ROA. Net income divided by total cost or value of assets. The more expensive a company's assets, the less profit the assets will generate.

Return On Capital Employed - ROCE. A company's financial indicator which compares earnings with the company's capital investments.

Return On Investment - ROI. Also known as Rate Of Return. The percentage of profit earned by an investment in a business, etc.

Revenue Stamp - A stamp or sticker which is put on an item, for example a packet of cigarettes, as proof that a government tax has been paid.

Reverse Auction - A type of auction in which there are several sellers and only one buyer. The buyer usually purchases the goods or service from the seller who offers the lowest price.

Reverse Billing - A payment method used for messaging on mobile phones in which the recipient pays for the text message.

Reverse Merger - When a private company acquires the majority of a public company's shares, therefore enabling the private company to get a public listing on the stock exchange.

Revolving Credit - A type of credit agreement, e.g., a credit card, in which a person is given a specified credit limit which can be paid in full or in part, usually on a monthly basis. If the amount owing is paid in full in the first month then usually no interest is charged. When the full credit limit has been reached a payment must be made before the credit card can be used again.

Rider - An attachment which makes amendments or provisions to an original contract or official document. In the entertainment industry, a rider is a list of demands made by a performer, usually before a show, sometimes including particular foods and drinks, hotels and transport, free tickets for friends and family, etc.

Rights Issue - The issuing of new shares which are offered to a company's existing shareholders at a fixed price, usually lower than the market price.

Risk - In business, especially insurance, the amount of money a company stands to lose, or the threat of an action or event which will have an adverse effect on a business.

Roaming - A service which enables a person to connect to the Internet, or use their mobile phone, while they are travelling.

Rogue Trader - A stockbroker who makes unauthorised, usually high risk, trades on behalf of their employer, often resulting in huge losses.

Rolling Contract - A contract which runs for a specific period of time and continues to be renewed for further periods, subject to review.

Roll-On Roll-Off - Ro-Ro. In the UK, describes ferries which vehicles can be driven onto at one end and driven off at the other end on reaching their destination.

Round Lot - Also called Normal Trading Unit. A block of shares, usually 100, which is traded on the Stock Market.

Route 128 - Also known as Yankee Division Highway. A highway encircling Boston , Massachusetts, which is associated with the technology industry.

Router - A device which connects at least two computer networks and sends data from one to the other.

Royalty  - A fee paid for the use of another person's property, for example a copyrighted work, a patent, a franchise, etc. A payment made to a writer, composer or singer when a book, CD or performance of their work is sold. A share of the profit paid to the owner of the land which an oil or mining company is leasing.

RSI - Repetitive Strain/Stress Injury. Damage caused to hands, arms and neck due to continual computer use, or by repetitive movements while performing a task.

Rubber Cheque - A cheque which bounces, due to insufficient funds in the account of the person who wrote the cheque for it to be cleared by the bank.

Running Cost - The day to day running costs of a business, for example wages, rent, utilities, etc.

Run Of Network - RON. Describes when an advertisement is placed on any page on one or more websites and the advertisers have no say where their advert is placed, usually because the advertising rates are cheaper.

Rush Hour - The peak periods at the beginning and end of the day, usually longer than an hour, when people are travelling to and from work.

Russell 2000 Index - Published by the Russell Company, an index which tracks the performance of 2000 smaller companies in the US.

Rust Belt - Also called The Manufacturing Belt. In the US, an area which contains many old, unmodernised factories, such as steel works, many of which are now closed or not very profitable.