F
Factory Floor - The area of a factory where the goods are made. Also the collective name of the ordinary workers in a factory, rather than management.
Factory Price - The price charged for goods direct from the factory, not including transport costs, etc. Factory Price is often quoted by retailers or in advertisements to show that products are for sale at a very low price.
Fairy Dust - A term often used in the entertainment business. The final enhancement or touch on a project. The unknown factor which turns something great into something fantastic.
Fallen Angel - Term used in finance to describe bonds which once had a good investment value, but have now dropped in value to a much lower rating.
False Accounting - A criminal offence. Giving false information in, or destroying, a company's accounts, usually for personal gain. Fraud.
False Bottom - On the stock market, selling prices which seem to have already hit their lowest level because of a subsequent price rise then fall through a false bottom because the price falls even lower.
Fast Track - Quick route in a career to success and promotion, associated with high ambition.
Fat Cat - A wealthy person living off investments or dividends, or a chief executive of a large company or organisation who is on a very large salary, huge pension, etc.
Fault Tolerance - Enables a system, especially in computing, to continue to operate properly even though a component in the system has failed.
Feasibility Study - A preliminary assessment of a new project, including costs, risks, etc., to determine whether the project will be successful and practical.
Feather-Bedding - A term often used in industry describing the practice of hiring more workers than is necessary to carry out a job, often because of a contract with a union.
Federation - An organisation which has been formed by the joining together of a group of companies, clubs, etc.
Fidelity Bond - Also known as Fidelity Insurance. Protects an employer against any losses incurred because of dishonesty, or damage caused, by an employee.
Fiduciary - Describes an organisation or individual who manages money or property for a beneficiary.
Figurehead - In business, organizations, politics, etc., a person who holds an important position or office but lacks real power or authority; a 'front man'. Derived from the carved painted figurehead models which traditionally were fixed to the front of sailing ships.
Filibuster - A person who attempts to delay or obstruct legislation by giving long speeches, but does not contravene rules concerning proceedings.
Fill or kill - Also FOK, on the stock exchange, an instruction received by a broker from a client to buy or sell specified shares immediately or not at all.
Filofax - A personal organiser (and the name of the company which makes it), which was very popular in the 1980s, with pages which can be easily removed or added. This product was associated with 'Yuppies'.
Finance - To provide or obtain funds for a business, commercial project, an individual, etc. The management of money. To sell or provide goods on credit.
Financial Engineering - The practice of solving financial problems or creating financial opportunities in a company, by changing the way money is borrowed, debts paid, etc.
Financial Equity - The ownership of interest in a company, usually in the form of shares.
Finite Capacity Scheduling - A process in which a computer program organises tasks, matching the resources available to the most efficient way of production.
Firepower - The amount of power, money and/or influence that is available to a business or organisation.
Firewall - A system in a computer which prevents unwanted or unauthorised access, but allows the authorised user to receive information.
Firmware - Describes the fixed programs, which cannot be lost or changed, in electronic devices such as digital cameras, calculators, remote controls, etc.
First Mover - A business that gains an advantage by being the first to establish itself in a specific market by producing a new product or offering a new service, or by being the first to use new technology.
First Order Of Business - The most important task to be dealt with.
Fiscal Drag - A situation in which wages rise because of inflation but income tax thresholds are not increased, which can push people into higher tax brackets and therefore makes them pay an increased proportion of their wages in tax.
Fiscal Policy - A government policy to regulate a nation's annual economic activity by setting tax levels and determining government expenditure.
Five Nines - Refers to the 99.999% of the time that some companies claim their computer systems work properly.
Fixed Assets - Assets, such as property, equipment, furniture, vehicles, etc., which are owned by a company and which are needed to operate the business.
Fixed Costs - Costs, or overheads , which are incurred by a business whether or not it is operating or generating income, such as wages, rent, insurance, utilities (for example electricity, gas, water), etc.
Fixed Parity - In foreign exchange, when the currency of one country is equal in value to the currency of another country.
Fixed Term Contract - Also known as Temporary Contract. A contract of employment which ends on a specific date, or on completion of a task or project. Fixed term employees have the rights to the same pay, conditions and benefits as full-time employees.
Fixer - A person who makes arrangements for someone else, usually for a fee, by using their influence and often underhand, illegal methods.
Flame - To send a rude or unacceptable message by e-mail, or to post a message on an Internet forum which is offensive or inciteful.
Flash Drive - A small portable device such as a 'pen drive' which connects to a USB port on a computer and is used to store data which can then be transferred to another computer. The term flash drive derives from 'flash' memory, invented by Dr Fujio Masuoka of Toshiba around 1980. The name flash (apparently, according to Wikipedia, 2010) was suggested by Masuoka's colleague, Shoji Ariizumi, who likened the memory erasure function to a camera flash.
Flash Mob - A secretly-planned (usually via modern computerised social networking technology), quickly-formed, organized group of people, assembled to engage in a quirky activity, typically for the amusement and entertainment of the participants. Potentially the term may be applied to similar gatherings organized for more conventional promotional, protest or other publicity/pressure purposes, although this strays somewhat from the usual concept, in which the flash mob event is an aim in itself, rather than part of a wider campaign with a specific purpose. The expression is not new. It originated in the 1940s US underworld when it referred to a gang of thieves or confidence tricksters. The word flash has been used in various criminal contexts since the 1600s and in the original 1940s phrase flash mob, flash literally meant criminal. The modern use of the flash mob expression naturally fits the notion of flash photography, a fast or fleeting appearance, a 'flash of inspiration', and especially the recent understanding of flash in relation to quick technology such as flash memory and flash drives.
Flats - In the entertainment industry, these are painted canvas sheets fixed onto wooden frames used on film sets, etc. for scenery.
Flexecutive - A manager who works flexible hours, often from home using the Internet. A multi-skilled executive who can change tasks or jobs with ease.
Flexitime - A work system in which employees work a set number of hours each week or month, but they decide when they are going to start and finish each day, usually between a range of given working hours.
Flight Capital - The movement of large sums of money from one of investment to another, or from one country to another, to avoid high taxes or financial instability due to political unrest.
Flighting - A cost effective method of advertising. A commercial is scheduled to appear on TV, usually when viewing figures are high (flight). There are periods in between the flights when the commercial does not appear on TV (hiatus). During the TV hiatus the product being advertised will often appear in newspapers or magazines, so the public is continually aware of it.
Floatation - See definition for Flotation.
Floor Limit - In retailing, the highest amount of money for a sale for which a debit or credit card can be used by a customer without authorisation from the customer's bank.
Floor Trader - Also known as a Local. An investor who is allowed on the trading floor of a stock exchange, to buy and sell shares, etc., for their own account.
Flotation - The process of financing a company by selling shares on the stock exchange for the first time.
Flyback - Also known as a Callback. A series of screening interviews for a job during which a person, usually a student, is interviewed several times, often on the same same day, by the prospective employer.
Flynn Effect - Research showing that the results of IQ (Intelligence Quotient) tests in various countries (i.e. internationally) have risen consistently over several decades, (after political scientist James R Flynn).
Focus List - A list of companies, recommended by an investment firm, whose shares are worth buying or selling.
Footer - In a report or document, a line or block of text that appears at the bottom of every page which is printed from a computer.
Footfall - The extent or measure of numbers of people who visit a business or shop or other retail/leisure/entertainment venue during a given period of time. Footfall is a crucial factor in retailing methods, and also in promotion and advertising which focuses on the physical presence - on foot - of consumers at a particular location.
Force Field Analysis - A technique developed by Kurt Lewin to support positive factors and decrease negative factors, as the result of a change in an organisation.
Force Majeure - A clause in a contract which exempts the contracting party (e.g., insurer) from liability in the event of an unforeseen intervention or catastrophe which prevents fulfilment of contractual obligations, such as war, act of God, etc. The term force majeure is French, meaning loosely 'superior strength'.
Forex - Also called FX, refers to Foreign Exchange, in which foreign currencies are bought and sold.
Fortune 500 - Published by Fortune magazine, an annual list of the 500 US corporations with the largest revenue.
Forwarding company - Also called a 'freight forwarder', a company specialising in transfer of freight from businesses or individuals by finding an appropriate transporter of the goods.
Forward Integration - A business strategy whereby a company takes control of its distributors, therefore guaranteeing the distribution of the controlling company's products.
Four-Colour Process - In printing, the use of four ink colours - yellow, magenta, cyan and black - which are combined together to produce the whole spectrum of colours.
Fractional Ownership - An arrangement where a number of people or companies each buy a percentage of an expensive asset, such as a property. The individual owners then share the asset, and when it is sold the profits are distributed back to the owners.
Franchise - An authorisation or licence - effectively a business, which can be bought - enabling someone (franchisee) to use the franchisor's company name and trademarks to sell their products services, etc., and usually to receive certain support, in a particular area of a country. A franchise for a whole country is typically called a master franchise.
Free Collective Bargaining - A situation in which workers and union members meet with employers to discuss working conditions, pay, etc., in talks that are not limited by law or government.
Freeconomics - A situation in which companies provide certain goods and services for free, and those businesses who don't follow suit are likely to fail.
Freedom Of Association - The right of individuals to join together to form, or join an existing, group or organisation, including a union.
Free Enterprise - An economic system in which private businesses have the freedom to compete with each other for profit, with minimal interference from the government.
Free Market - A market in which prices of goods and services are affected by supply and demand, rather than government regulation.
Free On Board - Maritime trade term. The supplier delivers the goods to a ship at a specified port. The supplier then pays the shipping costs after obtaining official clearance. Once they have been put on board, the buyer is then responsible for the goods.
Free Port - A port where goods can be brought and stored temporarily, without custom duties having to be paid, before being shipped to another country.
Freepost - A UK postal system, usually used in business, in which the recipient business pays the postage on mail, rather than the sender or customer.
Free Rider - A person or organisation that enjoys benefits and services provided by others, and doesn't pay their fair share of the costs.
Freeware - Computer software that is copyrighted by the author and offered, usually on the Internet, free of charge.
Free Zone - An area in a country where importers can store foreign goods, prior to further transportation, without having to pay customs duties or taxes on them.
Frictional Unemployment - Unemployment of people who are temporarily between jobs, changing careers, changing location, etc.
Fringe Benefit - A benefit given to employees in addition to their salary, such as a company car, pension scheme, paid holidays, etc.
Front-End Load - A fee charged for an investment, for example an insurance policy, limited partnership, mutual fund, etc. The fee is made with the initial payment, and subsequent payments are therefore lower.
FTSE - An abbreviation of the Financial Times Stock Exchange (Index), commonly referred to verbally as 'footsie'. There are various FTSE indices (indexes), including most notably the FTSE 100, which is the index of the top 100 shares on the London Stock Exchange, whose movement is regarded as an important indicator of national (and wider) economic health and buoyancy. The FTSE 100 represents about 80% of the market capitalization of all shares listed on the London Stock Exchange, which is interesting considering over 3,000 companies are listed in total. For Pareto enthusiasts (the '80-20 Rule') that's 3.3% of listed companies, accounting for 80% of total market value of companies listed on the London Stock Exchange, which is even by Pareto standards an extreme ratio of concentration. When economic commentators say the "...the footsie is up/down (a number of points)..." this is a reference to the relative movement of share prices among the companies listed in (usually) the FTSE 100. The 'footsie' is owned and operated by FTSE Group, which is basically a provider of economic information and data services, especially about stock and commodity exchanges. FTSE Group was until 2012 50% owned by Pearson Group (owners of the Financial Times newspaper group) and 50% by the London Stock Exchange, the latter buying full ownership from Pearson in 2012. It is not likely that the 'Financial Times' origins of the FTSE abbreviation will be strongly acknowledged in future, given its change of ownership.
Fulfilment House - A company which is paid for its services by another company, for example for dealing with mail, processing orders, etc.
Full-Time Contract - FT. A permanent or ongoing contract of employment in which the employee works at least the standard number of hours in a working week, usually 35.
Fungible - Describes goods or commodities which can be exchanged for something of the same kind, of equal value and quality.
G
Gaffer - In the entertainment industry, a member of a film crew who handles the lighting equipment.
Gagging Clause - A clause in an employment contract which prevents an employee from disclosing certain information about the company to the press, union officers, etc.
Gagging Order - A legal order issued by a court to prevent the public reporting of a court case.
Gainsharing - Also called profit sharing. An incentive system which enables employees to have a share in a company's profits.
Game Theory - Sometimes called Games Theory, this is a potentially highly complex branch of mathematics increasingly found in business which uses the analysis of competing strategies (of for example market participants) and their effects opon each other to predict and optimise outcomes and results. Relates strongly to cause and effect and chaos theory. Game Theory may also arise in military strategy.
Gantt Chart - Developed by Henry Gantt in 1917. A type of bar chart which illustrates the scheduled and completed work of a project. It shows start and finish dates, compares work planned to work done and tracks specific tasks.
Gap Analysis - Enables a company to assess the gap between its actual performance and its potential performance, by comparing what skills, products, etc. are available to what is required to improve performance, output, etc.
Garden Leave - Also called Gardening Leave. Term used when an employee's contract has been terminated but they are instructed by the company to stay away from work, on full pay, during their notice period. Often to prevent them from working for competitors during that time.
Garnish - To take part of someone's wages, by law, to pay their debts, e.g. child support, alimony.
Gatekeeper - A person in an organisation who controls access to the people in the organisation, and/or controls access to information or goods.
Gazelle - A US term for a fast growing company that creates a lot of job opportunities, and which has grown by at least 20% in the last four years.
Gazump - In selling and buying property, a term used to describe when a purchaser has an offer accepted by the vendor but is then gazumped because someone else makes the vendor a higher offer which the vendor then accepts instead of the first person's offer.
Geek Speak - Technical language often used by computer experts which doesn't make sense to non-technical people.
General Creditor - A person or company that lends unsecured money, so that the creditor is unlikely to recover much of the loan if the debtor goes bankrupt or does not pay it back.
Generalist - A person who has a broad general knowledge at a high level, and/or many skills.
General Strike - Widespread withdrawal of labour by a nation's workforce, which aims at bringing the country to a standstill because of a disagreement over pay and/or working conditions. -
Generation X - A term used for people born during the 1960s and 1970s, who are often described as disaffected and irresponsible.
Gerontocracy - A government or political system which is ruled by old men (elders).
Get All Your Ducks In A Row - A term for getting organised, having everything in order and making sure all the small details are accounted for before embarking on a new project.
Get Go - From the start, the earliest stage of something. Used in the phrase 'From the get go.'
Gift Tax - A tax payable on gifts over a certain annual value made during the lifetime of the giver.
Giro - A system, used in some countries, of transferring money from one bank or post office account into another using a central computer.
Giveback - An agreement in which employees accept a wage reduction or fewer benefits as a gesture of goodwill, usually because of an economic downturn. The employees are often offered wage rises and new benefits at a later date.
Glamour Stock - A company's shares, which are very popular with investors, because they have performed well on the stock exchange.
Glamping - A portmanteau word meaning 'glamorous camping', for example staying in a posh serviced yurt (a large Mongolian-style nomadic tent) and eating luxury hamper foods.
Glass Ceiling - An invisible barrier in the workplace which prevents women and minority groups from advancing to positions of leadership in a company, although some do manage to 'break through' the glass ceiling.
Glass Wall - An imaginary barrier in the workplace which prevents women and minority groups from being employed in other sectors of business or industry.
Glitterati - Combination of Glitter and Literati. Glamorous, rich, famous people, often connected to show business.
Globalisation - The process of integrating nations, economically and socially, through free trade, international business activities, technology (for example the Internet), etc.
Global Village - A term used to describe the whole world as a single community, connected by electronic communication systems, such as the Internet.
Glocalisation - Global Localisation. A term used when an international company adapts its manufacturing methods, products or services to suit local conditions.
Gofer - From 'Go for'. An employee who runs errands, as well as doing their normal job, usually in an office or on a film set. A dogsbody.
Golden Formula - In the UK, a term used to describe industrial action, or strikes, which are legal, i.e., about matters connected to working conditions and employment, rather than political matters, and that workers striking for legal reasons should not lose their jobs.
Golden Handcuffs - Financial incentives or benefits given to a valued employee to ensure that they continue working for a company, and to discourage them from wanting to leave to work for another company.
Golden Handshake - Usually offered to high-ranking executives in a large company. A clause in their contract which provides them with a large sum of money and/or other benefits in the event of them losing their job or retiring.
Golden Parachute - A company's agreement with an employee, usually a top executive, which promises a significant amount of money and/or benefits if the employee is forced to leave their job, usually because of a change of company ownership, outside of the control of the original employer company.
Gold Reserve - The amount of gold bullion or gold coins held by a country's central bank to support its currency and provide security for its international debts.
Gone To The Wall - Describes a business which has failed.
Goodwill - The difference or premium which a purchaser pays, or which a seller asks, for a business or company compared to the 'book value' of its assets, typically representing intangibles such as brand value, intellectual property, talent, market relationships, etc., and which tend to reflect the overall value and appeal with which the purchaser regards the target acquisition. Over-estimating goodwill value, sometimes to an extraordinarily stupid degree, is a surprisingly common downfall of many big corporate takeover deals, when arrogance and blindness to market trends of the acquiring CEO and takeover team can lead to a reckless waste of shareholder funds and ruthless cost-cutting, post-acquisition, when performance, synergies and return on investment fail to reach required levels.
Googlewhack - Two proper words (found in a dictionary) which together produce just a single result from a normal Google search. A googlewhack tends not to retain its status indefinitely, and sometimes only fleetingly, because due to the strange popularity of the effect, googlewhacks are likely to be published on the web when discovered, which immediately produces a second occurrence. Aside from the study of language and statistics there is no earthly purpose for this phenomenon, which apparently was first described by Gary Stock in 2001 and who runs a website dedicated to the concept.
Grace - A period of time given to a debtor to enable them to pay an overdue bill or loan, or extra time given in a contract for a piece of work to be finished.
Grandfather Clause - A provision in a new law which allows the person or business already engaged in the activity, which may have been made illegal, to continue to be so engaged.
Graphology - The study of handwriting, often used as a way of analysing a person's character.
Grass Roots - The ordinary people in a business or organisation, rather than the management or the decision-makers.
Gratis - To do or give something without payment. Free of charge.
Graveyard Market - A term used on the Stock Exchange to describe a Bear Market in which share owners are reluctant to sell because they face substantial losses, and buyers are reluctant to buy because the financial outlook is poor. Those who are in it can't get out, and those who are on the outside have no desire to get in.
Gravy Train - A business activity which makes a large profit for an individual or an organisation without much effort. To have it easy.
Green Audit - Also called Environmental Audit. An official assessment which shows the effect that an organisation or a company has on the environment.
Greenback - An informal term for US paper money, i.e., the dollar, derived from the colour of the money.
Green Card - In the US, a legal document which allows an immigrant to become a permanent resident, to work legally and to become eligible for citizenship.
Green Taxes - Also called Ecotax. Taxes which are levied on companies, businesses, etc., to discourage activities which will harm the environment.
Grey Knight - A third person, or company, who makes an unsolicited bid in a corporate takeover, and who takes advantage of any problems which arise between the first bidder (White Knight) and the company being acquired.
Grip - In the film and TV industry, a member of the film crew who makes sure that the lighting is right for a scene. They also move scenery and set up large pieces of equipment.
Gross Profit Margin - Expressed as a percentage, what is left from a company's sales after cost of goods sold is paid out. Gross profit margin is obtained by dividing gross income by net sales.
Guru - An influential teacher or an expert in a particular subject who shares their knowledge, often by writing books.
H
Hacker - Nowadays the word hacker commonly refers to a person who breaks into or 'hacks' into the secure computer systems of an organization, especially websites and online systems, using online connection, often just as a technical challenge, or potentially with intent to steal, destroy, vandalise information, websites, etc. Originally however the terms hack and hacker referred to a person who enjoyed exploring and experimenting - perfectly legitimately and legally - with computer code and related computing systems, out of curiosity or for purposes of technical challenge and improvement, discovery, etc. This is an example of how language and meanings evolve over time, particularly when a term becomes distorted for dramatic effect by mass media. Be aware in this case therefore, that some people - especially original 'old-school' hackers and computer code enthusiasts could be offended and unjustly maligned by the criminal implication of the common illicit hacking interpretation. Incidentally among coding enthusiasts the original technical term for a criminal 'hacker' was a 'cracker'. (Thanks to Vit Kavan, an 'old-school' hacker, for help in for clarifying this entry.)
Haggle - Negotiate with someone over the price of something until an agreeably mutual price is reached.
Hall Test - A term used when a group of people are gathered together at a particular location and asked to take part in market research.
Handbill - A small printed advertisement, usually on one sheet, often given out to people by hand.
Hands-Free - Term used when a telephone can be used without having to be held in the hand.
Hands-Off - A term often applied to managers who do not directly participate when dealing with a situation in the workplace by letting the people involved decide what they want to do.
Hard Selling - An aggressive type of selling which puts a lot of pressure on a prospective customer to buy a product or a service.
Harvesting - A term used when a product is still being sold, although it is no longer being invested in, prior to being withdrawn from the market.
Hashtag - A type of tag (here a prefix used with a word/term/reference/etc via electronic keypads, computing, smartphones, etc) in the social networking website Twitter and similar short messaging systems, so that a word preceded by the hash symbol (#) may be found subsequently or otherwise organized, analyzed, displayed, etc. The symbol is generally called the pound sign in the US, since it is used commonly instead of the traditional British £ symbol in referring to sterling currency.
Hawthorne Effect - Specifically the inclination of a group of workers to change their behaviour positively because they were being studied, irrespective of whether they were subjected to 'positive' or 'negative' conditions. First observed in studies by Elton Mayo at the Western Electric plant in Chicago, beginning 1928. The Hawthorne Effect basically established that attitude was more influenced by emotional rather than economic factors.
Headhunt - To find a person who is specialised in a particular job, usually for a senior position in a company, and then persuade them to leave their present employment.
Health And Safety - Concerned with the protection of employees from risks and dangers in the workplace.
Health And Safety At Work Act - HSWA. In Britain, a 1974 act of Parliament which regulates and reinforces the health, safety and welfare of employees in the workplace.
Heatseeker - A person who, without fail, always buys the most up to date version of an existing product as soon as it comes onto the market.
Hedge Fund - A type of investment fund, which is unregulated and usually very high risk, used by individuals and organisations (not the general public) with large amounts of money to invest.
High Net Worth - Term which describes a rich individual or family who have investable assets of $1million or more, but this can vary. A person with more than $50million is classed as Ultra High Net Worth. (as at 2009)
Hire Purchase - HP. A contract between a buyer and seller in which the buyer takes possession of an item and then pays for it in regular instalments, usually monthly, and does not become the owner of the item until the final payment has been made. Also referred to as 'Buying on the never-never'.
Holding Company - A company which is formed for owning and holding controlling shares in other companies.
Hole in The Wall - An informal term for a cash dispensing machine, also called an ATM (automated teller machine).
Horizontal Sector - Often called simply a 'horizontal' - this refers to products/services which can be supplied to or 'across' a number of 'vertical' sectors, for example, office cleaning services to various industries (verticals), or transport services to different industries (verticals).
Horizontal Integration - The joining together of businesses which produce similar goods or offer similar services, or are involved in the same stage of activities, such as production or selling.
Hot Desking - In an office, the practise of having a pool of desks, which are usually equipped with phone and computer links, so that workers can use them when they are required, rather than having their own individual desk.
Hothouse/Hothousing - Informal term for an intense development environment or method, or the verb equivalent, typically applied to training people or developing ideas or ventures; a metaphor alluding to a heated greenhouse for growing plants.
Human Resources - HR. The people who are employed by and operate a business or organisation. The department within a company which deals with recruitment, training, employee benefit, etc.
Hunt and Peck - Inexpert slow typing on a keyboard using only one or two fingers.
Hushmail - An internet service offering encypted email, file storage, etc.
Hush Money - A bribe or payment, which is often illegal, given to someone to stop them from disclosing information, usually to prevent bad publicity or to hide a crime.
Hyperbole - (Pronounced 'hy-per-bollee' - emphasis on the 'per' syllable) - Hyperbole is an extreme and figurative exaggeration or overstatement, which in strict grammatical terms is not generally expected to be taken seriously or interpreted literally, for example, "I've been waiting for ever for a bus," and yet where hyperbole is used for motivational or persuasive effect in business or politics, the technique very often intends to convey maximum impact on an audience, for example, "You'll never have another opportunity like this..." The word derives ultimately from the Greek root words: huper, over, and ballein, to throw.
Hyperinflation - An extraordinarily high rate of economic inflation during which a country's prices rise and currency loses its value uncontrollably in a vicious cycle, usually occurring during severe political instability or war. Normally inflation is measured in terms of a few percentage points increase per year - typically below 10% and sometimes approaching 20%. By contrast hyperinflation may be at a rates of tens of percentage points increase per month, and in extreme rare cases hundreds of percentage points per month. In this event, where prices can be doubling and currency values halving every few weeks (or days, in very rare situations), a country is forced to issue new banknote denominations of ludicrously high values, and within living memory news stories have featured workers collecting their wages in wheelbarrows.
I
Idea Showers - Usually called Brainstorming. A method of problem solving involving members of a group meeting and sharing ideas.
Identity Theft - A crime in which someone obtains another person's personal information, such as passport, credit card details, etc., and poses as that person in order to steal money, get benefits, make purchases, etc.
Idle Time - The time that a piece of equipment or a machine, such a as computer, is available, but is not being used.
Impeach - To charge somebody, usually a government official, with serious misconduct. To cast somebody out of public office, for example a president or courtroom judge because of a serious crime or misdemeanor.
Imperfect Market - A market in which buyers do not have access to enough information about prices and products, and where buyers or sellers can have an influence over the quantity and price of goods sold.
Import Duty - A tax charged on certain goods which are brought into a country.
Impound - To seize and hold property, funds, etc., in custody (typically by a state-empowered authority), often during legal dispute.
Incapacity Benefit - A state benefit in the UK which is paid to people below pensionable age who have made National Insurance contributions, and who are too ill or disabled to work.
Incentive Marketing - The offering of rewards or gifts to sales people as an incentive to get more orders from dealers or customers. To offer customers rewards for buying products or services.
Income Fund - An investment fund with high returns which pays the owners a regular income.
Income Tax - A tax paid by individuals to the government, the amount of which is dependent on how much a person earns from their salary and/or other sources of income.
Incubator - An organisation or company which provides support to new businesses to help them develop and grow.
Indemnify - To insure and offer financial protection against loss, damage or liability.
Independent Financial Advisor - (IFA) Someone who works independently, i.e., not for a particular company, and offers people advice about financial matters and recommends where to invest their money.
Index-Linked - Concerning salaries, pensions, investments, etc. If they are Index-Linked it means that the payments or income from these may vary according to the rate of inflation.
Indict - To formally charge someone with a crime.
Indirect Materials - In accounting, products or services, such as electricity, cleaning materials, chemicals, etc., which are used in the production of goods but are not part of the end product.
Induction - The introduction and training of a member of staff in a new job or position in a company.
Industrial Action - Also called a strike in the UK. Known in the US as Job Action. A protest by employees during which they refuse to work, usually because they want better wages and/or better working conditions.
Industrialist - A person who owns or runs a large industrial enterprise. They are often referred to as a Business Magnate.
Industrial Relations - Relations between the management and the workers, especially those in unions, in industry.
Industrial Tribunal - An independent judicial body which deals with disputes between employers and employees.
Inflation - Normally referring to the economy of a country, inflation is the gradual increase in the price of goods and/or services, and the consequential devaluing of the national currency. Inflation is typically up to 10%, or more unusually approaching 20% per year. Minimising inflation is normally a high priority within national fiscal policy since higher levels of inflation cause a variety of economic and business problems. See also deflation and hyperinflation.
Inflection Point - In business, when important significant changes take place in an organisation. (Andrew S. Grove - Intel)
Infomediary - An agent who works on behalf of a business, collecting information on, and developing profiles of, individual customers.
Infomercial - Information Commercial. A long television commercial presented in the form of a documentary or TV program. This format is used so that it does not appear to be selling a product or service.
Information Superhighway - Communications network, notably the Internet, which provides high speed access to information in the form of sound, text, images, etc.
Inheritance Tax - Also called Death Duty in the UK. Known as Death Tax in the US. A tax imposed by the government which much be paid on the total value of the estate of a deceased person.
Injunction - An official court order which demands that someone must refrain from carrying out certain actions.
Innovation - The introduction of new ideas, goods, etc., or new methods of production. A new way of doing something.
Inorganic - A term used to describe the growth of a business from mergers or takeovers, rather than from the increase in productivity or activity of the company's own business.
Inside Information - Information about a company which is known only by the owners, management and/or employees, and not the general public. The use of Inside Information for the buying and selling of shares is usually illegal.
Inside Track - An advantageous position in a company or organisation. To know about something before others get to hear about it.
Insolvency - Not having enough finances or assets available to pay all your debts.
Instant Access Account - A bank or building society account which allows you have instant access to your money without any penalties.
Insurance Adjuster - Also known as a Claims Adjuster. An independent person who investigates insurance claims for an insurance company and evaluates the damage caused and decides whether the claims are valid, and if they are, how much should be paid in settlement to the insured party.
Intangible Asset - A company's assets which do not physically exist, such as brand name, trademarks, copyrights, etc.
Intellectual Capital - The skills and knowledge of a company's employees, which can be used to make the company more successful than its competitors.
Intellectual Property - Commonly abbreviated to IP, an idea or creation, e.g., artwork, writing, etc., that belongs to an individual or organisation, which has commercial value and therefore cannot be copied or sold without the owner's permission.
Inter Alia - Latin for 'among other things' - a traditional term which typically precedes a list of examples, and is found in official or formal text or various sorts. Inter alios means 'among other people', but is much less used.
Interest Rate - A fee which is charged for borrowing money, e.g., a loan from a bank or financial institution, lease arrangement, goods bought through hire purchase, etc.
Intermediary - A mediator or agent who negotiates between two parties who are unable or unwilling to reach an agreement by themselves.
Internal Equity - In a company or organisation, ensures the pay each employee receives is determined fairly by the type of job they do.
International Monetary Fund - IMF. Established in 1944 by the United Nations to monitor foreign exchange systems and encourage trade between member nations. It also lends money to developing countries with economic problems.
International Organisation For Standardization - ISO. A non-government organisation with over 150 member nations, which promotes international standards in trade, technology, science, economy, etc.
Internesia - Relating to the Internet. Being unable to locate a particular website which you found interesting or on which you saw a useful piece of information.
Internet Cafe - Also called a Cybercafe. A public place where people can use a computer, usually for a fee, to check e-mail, access the Internet, etc. These places often sell drink and food, like a regular cafe.
Interventionism - The policy of a government to intervene and manipulate a country's (often its own) affairs and/or economy.
Intervention Price - A guaranteed minimum price set by a government for a product, usually farm produce. If the price falls below this then the government, or agency, will buy the produce at the Intervention Price.
Intestate - Without leaving a will, as used in the phrase, 'to die intestate'.
Intrapreneur - A person employed by a large company to work independently to develop new projects and business within the company.
Intrinsic Value - The actual or real value of a business, commodity, asset, etc., rather than the market value or share price.
Invention - A new device, process, product, etc., which has been created and developed by an individual or a group.
Investment - Money or capital that is invested in a business or in an account with a financial institution in order to make a profit or earn interest.
Investment Boutique - A small company which offers specialist advice about investments and business.
Invisibles - 'Invisible' services of a country, such as banking, tourism, insurance, etc, of which the buying and selling are from international trade.
Involuntary Liquidation - When a company is forced into bankruptcy by its creditors, so that its debts can be paid.
Island Position - An advertisement or commercial which is surrounded by text, or placed between TV programs, with no other advertisements, so it has no competition.
Issue Price - On the Stock Exchange, the price at which a new share, stock, etc., is offered to the public.
Information Technology - Also known as IT. The study and use of computers and communications systems.
J
Jasdaq - Japanese Association of Securities Dealers Automated System. Japanese securities exchange, the headquarters of which are situated in Tokyo.
Job Costing - A system of calculating the cost of each individual job or project carried out by a business, includes time, labour, materials, etc.
Job Lock - A situation in which a person feels they cannot leave their job because they are afraid of losing benefits connected to the job.
Job Protected Leave - Allows people to officially take time off from their work for a longer period without the fear of losing their job, often because of illness or pregnancy.
Job Sharing - A work schedule in which two or more people voluntary do one full-time job, sharing the work and dividing the hours between them.
Joint Consultation - An organisational decision-making
process in the UK, where managers and employees representatives, usually from unions, meet to discuss matters relating to the employees working conditions, etc.
process in the UK, where managers and employees representatives, usually from unions, meet to discuss matters relating to the employees working conditions, etc.
Joint Stock Company - A company or organisation owned by joint shareholders, which is a type of corporation and partnership. The stockholders run the company and share its profits and debts.
Junk Bond - Also known as High Yield Bonds. A high risk bond with a high interest rate, often used by companies to raise finances in order to take over other companies.
Just-In-Time - JIT. A manufacturing system in which materials and components are delivered immediately before they are required, in order to increase efficiency, reduce waste and minimise storage costs.
K
Kaizen - Japanese for 'improvement'. When implemented in the workplace, Kaizen activities help to improve the running of a business.
Kanban - Japanese for 'visible record'. In industry, a manufacturing system which is regulated by the use of cards or boards which contain specifications and instructions for the production process of goods.
Keiretsu - In Japan, an alliance of companies or organisations which own shares in one another as a means of security, but each individual company operates independently.
Kerb Market - In the US, the buying and selling of shares in companies which are not listed on the stock exchange. In the UK, the buying and selling of stocks and shares outside official trading hours.
Kettling - Term which is used to describe the police tactic of penning protesters into an area by forming a barrier around them and refusing to let them out.
Key Account - In business, a company's main client or customer, who represents a large percentage of the company's income.
Keyword Advertising - Used on the Internet. When a user types in a particular 'keyword', an advertisement which is linked to a business relevant to that word, is displayed alongside the search engine results.
Kickback - A bribe or illegal payment made to someone in exchange for a successful referral for a job or transaction.
Kidult - An adult who enjoys films, games, TV, clothes, etc., which are deemed more suitable for children or much younger people.
Killer App - Short for Killer Application. Derives from the computer industry. A new product or service which is the first in its category and therefore dominates that particular market, creating huge returns on the initial investment.
Kitemark - In the UK, the official mark of approval by the British Standards Institution, to show that a product or service is safe, reliable and of good quality.
Knocking Copy - In advertising, the criticism or attacking of a competitor or a rival product.
Knock-Off - An unauthorised copy of a product, usually designer clothing.
Knowledge Base - In a computer system, a database with a store of information, facts and rules which can be used for problem-solving.
Knowledge Worker - Also known as an Intellectual Worker. A person who is employed by a company to use their brain and intellect to work with information, rather than performing manual tasks.
Kudos - Common management term meaning positive recognition, praise or fame - from the Greek word kudos, meaning glory.
L
Labour - Work, especially manual/physical work, for wages.
Labour Intensive - A job requiring a lot of work, and often a lot of workers, in comparison to the costs of materials, equipment, etc.
Labour Law - Also known as Employment Law. Legislation which defines the legal rights and obligations of employees in the workplace.
Lading - Freight or cargo carried by a large vehicle. The act of loading cargo onto a ship.
Laicisation - The defrocking of a minister or priest. The changing to lay status.
Laid-Off - In industry, etc., when workers lose their jobs, sometimes temporarily, because there is no work for them.
Landing Page - On the Internet, the first page that visitors to a website arrive at after they've clicked on a link to the site.
Larceny - The crime of unlawfully taking someone else's property or money. Theft.
Large Cap - On the Stock Exchange, a company that has a large market capitalisation, i.e., a high total value of shares.
Law Of One Price - The rule that without trade barriers and transportations costs, identical products would cost the same worldwide using the appropriate exchange rate of currency.
Layaway - Often referred to as Lay-By. A means of purchasing an item by paying a small deposit to reserve it and then paying the balance in installments. When the total purchase price has been paid the customer can then take delivery of the goods.
Leader - Someone who leads, sets example, inspires, motivates, etc - technically having the personal qualities which attract followers for given situations.
Leadership - A person or number of people responsible for leading a team or group of people, usually in some sort of organized body or company, or the direction of a smaller team in a specific project or situation.
Leading Indicator - A particular measure of a country's economic activity, used to predict near future economic trends.
Lead User - Term introduced by economist Eric von Hippel in 1986. Lead users are individuals or companies who greatly benefit from being the first to use or adapt a product for a particular need, often months or years before the general public or other businesses are aware of the need for the product.
Lean - Also known as the Toyota Production System or Just-In-Time Production. A system used in management, production, manufacturing, etc., to decrease waste and increase efficiency, especially with the use of automated assembly lines in the motor industry.
Learning Curve - A graph depicting the rate at which a person learns a new skill. A steep learning curve shows that a person is learning quickly, and a shallow learning curve means that a person is slower and taking more time to learn.
Leaseback - An arrangement between a purchaser of a property and the vendor in which the vendor immediately leases the property back from the purchaser.
Leave Of Absence - The period of time which a person is permitted by their employer to be absent from their job.
Lease Purchase - A finance agreement in which an item, usually a car, is leased for a certain period of time with an option to purchase at the end of the contract.
Legal Aid - Legal assistance provided , usually by the state, for people or organisations who cannot afford to pay for solicitors or legal advice.
Legal Entity - An individual or organisation who has the legal right to enter into a contract or an agreement, is responsuble for its actions, and can sue or be sued if the terms of the contract are broken.
Legal Reserve - The minimum amount of money, required by law, that a bank, insurance company, etc., must set aside in order to be able to operate.
Legal Tender - In day-to-day language the term generally refers to coinage or banknotes which have not been withdrawn or demonetised by the Bank of England and so are valid, but technically the term the UK refers to forms of currency which by law must be accepted by a creditor in payment of a debt.
Lemon - A defective product which is poor quality and fails to function as promised.
Lender Of Last Resort - A country's central bank which loans money to other banks or financial institutions which cannot borrow money from anywhere else and do not have enough reserves to cover cash withdrawals by their customers.
Letter Of Comfort - A letter of approval written to a bank by a parent company on behalf of a subsidiary company which needs financial backing.
Letter Of Indemnity - A document in which an individual, company, etc., guarantees to protect another from costs, liability, etc., as a result of certain actions which may be carried out.
Liabilities - Debts which are owed to someone, obligations or responsibilities which are legally binding.
Libertarian/Libertine - A person who believes in the freedom of speech and thought, and that people should be able to do whatever - within reason - they wish with minimal interference from government. The words derive from the Latin root liber, meaning free, like the word liberty, meaning freedom.
Lien - A legal right to take and keep another persons property until a debt has been paid by the property owner.
(in) Lieu - The word lieu rarely appears outside of the expression 'in lieu of', which means 'instead of', or 'in place of'. For example, 'time off in lieu' means (and is a shortening of) time given off work instead of payment for extra hours worked. The word lieu is from French, 'lieu' and earlier 'leu', place, which came into English in the 1500s, originally from Latin locum/locus, place.
Lifeboat - An emergency loan offered to a company or bank which is in financial trouble.
Life Tables - Also called Mortality Tables. Tables which show peoples life expectancy, depending on their age, lifestyle, etc., often used by insurance companies.
Lightning Strike - A sudden strike by workers, with little or no warning. These strikes are often short in duration and usually without official union backing.
Limited Company - In the UK, a company that has a name ending in 'Ltd.' The owners of these companies have limited liability if the company gets into debt.
Limited Liability - In law, the owners and/or shareholders of a limited company only lose the amount they have invested if the company gets into debt.
Linchpin - The most important person or thing in a business or organisation.
Line Authority - In business, the power given to management allowing them to give orders and to control subordinates.
Liquidate - The closing down of a business by selling its assets to pay its debts.
Liquidated Damages - The fixed amount agreed upon by parties to a contract, to be paid to one party in the case of a breach of contract by the other party.
List Price - Known as 'Sticker Price' in the US. The advertised or recommended retail price (RRP) of a product.
List Rental - The renting, from an organisation, of a mailing list which has potential customer names and addresses, for a one-off mailing.
Litigant - A person or party who is involved in a court action or lawsuit.
Litigate - To legally settle a dispute in, or take a claim to, a court of law.
Litigious - To routinely or enthusiastically take legal action to settle disputes.
Litotes - A language term referring to understatement, used for emphasis, often ironically, in which the negative-opposite is used instead of the positive expression, for example, "It wasn't the best presentation I've ever given," when the speaker means that they considered it to have been a particularly poor one. Another example is the commonly used "Not bad," or "Not half Bad," when referring to something very good. The word litotes comes from Greek, litos, meaning single, simple or meagre.
Living Trust - A trust created in which assets can be transferred to someone while the grantor (the person who owns the assets) is still alive. Living Trusts avoid dealing with the legalities of a will.
Loan Shark - Someone who offers unsecured loans at excessive rates of interest.
Local Content Measure - Where a business or investor is required to purchase a certain amount of locally sourced materials to be used in the manufacturing, etc., of their product.
Lockout - A term used during an industrial dispute, when management closes down a workplace and bars employees from entering until they agree to certain terms and conditions.
Locus Standi - (Latin - place of standing) The right or capacity of a litigant to be heard or to bring an action in court.
Long Grass - To 'Kick something into the long grass' means to push a problem aside in the hope that it will be ignored or forgotten.
Long Position - A situation in which an investor or dealer holds onto shares, etc., which they have purchased, expecting them to rise in value in the future.
Long Term Liability - Taxes, leases, loans, etc., which are payable over a period greater than one year.
Loophole - An unintentional mistake in a contract or a law which allows people to evade an obligation in the contract, or to get round the law without actually breaking it.
Looping - In films, TV programs, etc., the process of dubbing the original film footage by synching (lining it up) with new or replacement dialogue.
Loss Leader - In retail, a product which is offered at a very low price to attract customers who will then buy other goods which will produce more profit for the retailer.
Low Hanging Fruit - A term used in business for something which is easily obtainable and highly visible, and provides a quick easy way to making a profit.
Low Yield - A term used to describe investments which are low risk and do not produce a high level of income.
Loyalty Card - A card given to customers by a retailer which gives the customer points, etc., every time they shop there. These points convert into vouchers which the customer can spend at the store at a later date.
Luddite - A derogatory term for someone who opposes or disapproves of new technology and/or new methods of working, often because the changes threaten jobs. From the Luddite rioters of 1811-16, who in defence of labourers' jobs in early industrial Britain wrecked new manufacturing machinery.
