Glossary of business-related terms – A to Z

Ability to payThe ability to pay rule determines what kind of loan a potential borrower should qualify for. This rule states that lenders must only lend money to borrowers demonstrating their ability and willingness to repay the loan in full.
Lenders base this decision on the borrower’s income level, debt-to-income ratio, employment history, credit score, and other factors.
Above-the-lineAbove-the-line (ATL) is a term used in marketing and advertising. It describes media activities from which an advertiser directly pays for the cost of delivering their message to audiences.
Above-the-line activities include television, radio, print, outdoor, and cinema advertising and product placement.
Absolute advantageAbsolute advantage is an economic concept that describes a country’s ability to produce a certain good or service better than another country.
It compares the productivity between different countries and assesses which one can produce a product with fewer resources and at a lower cost.
Absorbed businessAbsorbed Business is an innovative concept that aims to help small and medium-sized businesses succeed by providing them with the tools and resources they need to grow.
Through its comprehensive suite of services, Absorbed Business helps entrepreneurs create business plans, access financial capital, hire qualified talent, access marketing and branding solutions, and more.
Absorbed costsAbsorbed costs refer to expenses included in a product’s cost when calculating the total price. These costs are not separately listed on an invoice but rather absorbed into the item’s overall cost.
Examples of absorbed costs include labor, materials, overhead, and shipping.
AbstractThe abstract summarizes a longer work (such as a dissertation or research paper). The abstract concisely report the research aims and outcomes so that readers can quickly become acquainted with the main points and conclusions.
A good abstract will accurately reflect the content of the study, clearly describe its purpose and methods, provide actual results and findings, suggest further implications for research or action, and list key words for indexing.
Accessory goodsAccessory Goods allow consumers to express themselves through fashion and style. They can be used to add a personal touch to an outfit or be the stand-out piece that makes a look truly unique.
From jewelry and watches to hats and scarves, there’s an abundance of options for accessorizing.
ActionAction in business is often associated with strategic decision-making. It is the process of taking action to achieve a desired result using available resources and assets.
Effective action requires a combination of skills such as problem-solving, critical thinking, communication, and team dynamics.
Moreover, when taking action in business, it is important to consider short-term and long-term objectives, prioritize tasks and identify potential risks.
Active portfolio strategyActive Portfolio Management is an investment strategy that actively monitors and rebalances a portfolio to maintain a desired asset allocation.
This means that the investor monitors the performance of their investments and makes changes as needed to ensure that they remain on track with their goals.
Adaptive firmAdaptive Firms are companies that can respond quickly and effectively to changes in their external environment.
They can sense, interpret, and act upon market signals; anticipate customer needs; adapt to technological advances; and develop innovative business strategies.
Administrative expenseAdministrative Expense is a broad term that refers to any expense incurred in running the day-to-day operations of a business.
It includes accounting and legal fees, office space rent, employee salaries and benefits, utilities, insurance premiums, taxes, and other expenses such as advertising and promotional costs.
AdministratorAn administrator is responsible for the smooth functioning of an organization or a system. Administrators are expected to manage tasks such as planning, organizing, directing, controlling, and budgeting.

They also oversee the operations of a business or organization and ensure that everything runs efficiently. An administrator is usually involved in decision-making, problem-solving and staff management functions.
Adventure capitalistAdventure Capitalist is a business simulation game for mobile and browser platforms. Players take on the role of an entrepreneur, building up their virtual investment portfolio from nothing but pocket change.
As players progress, they can purchase businesses to generate more income, invest in real estate to increase the value of their properties, and upgrade investments for increased returns.
AdvertisingAdvertising is one of the most important tools for businesses to reach their target customers and drive sales.
Advertising provides a cost-effective way for businesses to increase brand awareness and promote their products or services.
It can be used in digital and traditional media, such as television, radio, newspapers, magazines, billboards, and the internet.
Automatic data classificationAutomatic data classification involves using software tools to categorize and identify data into predefined classes or categories. It is an important component of many organizational data management processes.
It can help organizations improve their security posture, reduce compliance risk, better manage data storage costs, and optimize the searchability of their information assets.
Bad debtsBad debts are a significant issue for any business. They can occur when customers fail to pay money owed or when lenders make unwise lending decisions.
This can reduce a company’s profits, increase costs, and cause financial hardship for the lender and the customer.
Balance sheetThe Balance Sheet is one of the most important financial statements to assess a company’s overall financial position. It records the company’s assets, liabilities, and equity.
Assets are resources owned or controlled by the company and consist of cash, accounts receivable, inventory, equipment, and other items of value.
Liabilities are obligations owed to creditors, including accounts payable, accrued expenses, and long-term debt. Equity represents the ownership interests of the owners in the company.
The balance sheet is based on the accounting equation: Assets = Liabilities + Equity.
BankingBanking is the activity of managing and safeguarding money. Banks are financial institutions that provide a wide range of services, such as accepting deposits, offering loans, and providing investment products to their customers.
The main role of banks is to act as intermediaries between borrowers and savers by bringing them together in the marketplace.
BrandA brand is a symbol, design, or expression that sets a product or service apart from its competitors. It is an important part of any company’s identity and can create customer recognition and loyalty.
Building a successful brand requires careful planning, research, market analysis, and ongoing monitoring of trends and customer feedback.
Brand equityBrand equity is an important concept for businesses to understand. It refers to the value of a brand and its ability to increase customer loyalty and generate more sales.
Brand equity can be built over time through consistent messaging, effective marketing campaigns, high-quality products and services, and positive customer experiences.
BusinessA business is an organization or enterprising entity engaged in commercial, industrial, or professional activities. It can also refer to an organization that provides goods and services to its customers in exchange for money.
Businesses can range from small sole proprietorships with a single owner/operator to large multinational corporations with thousands of employees and complex organizational structures.
Business administrationBusiness Administration is a field of study that focuses on developing and managing a business organization.
It encompasses the process of planning, organizing, leading, and controlling an organization’s operations.
The primary goal of Business Administration is to develop strategies that allow organizations to be successful in their operations and reach their goals.
Business analystBusiness analysts are a crucial part of any company’s success. They monitor and analyze business processes, systems, and data to identify areas of improvement, recommend solutions, and track progress to ensure successful implementation.
Business analysts must have strong analytical skills, problem-solving abilities, and a deep understanding of the industry in which they work.
Business developmentBusiness development is a combination of strategic analysis, marketing, and sales. It creates value for an organization by developing new markets, products, services, and customer relationships.
Business development activities range from market research and product design to competitive positioning and customer loyalty programs.
Business ethicsBusiness ethics refers to the ethical principles that govern business practices. Organizations need to uphold these principles to maintain ethical and moral standards.
This can then be reflected in their products, services, operations, and marketing strategies.
Business ethics include many considerations, such as environmental stewardship, truthfulness in advertising, employee rights, fair wages, work conditions, and other considerations.
Business expensesBusiness expenses refer to the costs incurred in running a business. They can include rent, office supplies, equipment, transportation, staff salaries and wages, marketing expenses, insurance premiums, etc.
These expenses are necessary for the business to meet its goals and fulfill its mission. Businesses can either incur these expenses as part of their daily operations or invest in them as part of their long-term strategies.
Business hierarchyBusiness hierarchy is the structure of a business that defines the chain of command and authority among employees.
It outlines who reports to whom, how decisions are made, what roles are responsible for which tasks, and how information flows throughout the organization.
Business hierarchy helps ensure that all areas of a company function efficiently by providing clear communication paths between different departments and allowing for a smooth flow of information.
Business modelA business model is a framework that outlines how an organization creates, delivers, and captures value. It describes the products or services the business will offer and how it will generate revenues from those offerings.
Additionally, a business model identifies the key resources required to operate the business, the cost structure associated with creating and delivering its products or services, and the sources of its revenues.
Business plan
Business ProfileThe Business Profile specializes in providing comprehensive services covering everything from business advice and strategy to marketing, financial analysis, project management, and more.
The team comprises experienced professionals with expertise in various business areas, such as accounting, finance, retail operations, human resources, information technology, and strategic planning.
Buy-inBuy-in is a term used to describe the commitment, enthusiasm, and ownership individuals or teams have in their work.
It is particularly important when implementing change initiatives, as buy-in helps ensure that everyone involved is willing to take ownership and be accountable for their part in achieving success.
CapitalizationCapitalization in business writing can be a bit tricky. The general rule is always to capitalize proper nouns and titles, such as names of people, places, companies, organizations, and products.
It’s also important to note that the first word in a sentence should always be capitalized.
Chief operating officerA Chief Operating Officer (COO) is a corporate executive responsible for overseeing the day-to-day operations of an organization.
They work closely with the Chief Executive Officer (CEO) to ensure that all operational functions run smoothly and efficiently, from finance and accounting to human resources and marketing.
Co-brandingCo-branding is a marketing strategy that combines two or more brands to create a new product or service.
This strategy can be highly effective in helping companies reach new consumers and establish stronger brand loyalty with existing customers.
By utilizing the strengths of both brands, co-branding can help increase recognition and visibility and boost sales.
Cold Call
Collaborative workflowCollaborative workflow is coordinating tasks and resources between teams or individuals to achieve a common goal.
It allows for increased efficiency, better communication, and improved collaboration among team members. Each participant has an important role in reaching the desired outcome in collaborative workflows.
This could involve sharing information, assigning tasks, creating reports, or performing other activities.
Commercial banksCommercial banks are financial institutions that provide services such as accepting deposits, issuing loans, providing payment services, and acting as intermediaries in financial markets.
They offer their customers a wide range of services, including savings accounts, current accounts, mortgages, and credit cards. Commercial banks also manage money transfers between parties and act as client-fund custodians.
CommodityA commodity is a basic good used in commerce that is interchangeable. Commodities are often used as inputs in producing other goods or services.
The quality of a given commodity may differ slightly, but it is essentially uniform across producers. Examples of commodities include grains, gold, beef, oil, and natural gas.
Competitive analysisCompetitive analysis is an important part of any business plan. It helps identify opportunities and threats in the marketplace and competitors’ strengths and weaknesses.
The process involves researching and analyzing competitors to gain insights into their market strategies and objectives.
Analyzing competitors can also provide useful information on new products or services that may be developed.
CopyrightCopyright is a form of legal protection for original works of authorship. It gives the creator exclusive rights to reproduce, distribute and publicly perform or display their work.
This means that anyone wishing to use the work in any way must first obtain permission from the creator or face potential legal action.
Copyright can be applied to anything from books, music, and software to sculptures and photographs.
Core competencyA core competency is an area of expertise a business can use to differentiate itself from its competitors.
The combination of specific, specialized knowledge and skills gives a company the edge over its rivals in terms of products, services, innovations, and other capabilities.
CorporationA corporation is a legal entity created through its state of incorporation laws. Corporations can take on different forms, such as LLCs or S-corporations.
Generally, a corporation has all the rights and liabilities of an individual. It allows business owners to limit their liability for business debts and claims, provide continuity and centralized management and raise capital more easily.
Data catalogA Data Catalog is a database of metadata that helps organizations store, organize, and retrieve data. It is an important tool for efficiently managing large amounts of information and making finding the exact data needed easier.
The catalog also provides data governance by providing security controls to ensure that only authorized users can access sensitive or confidential information.
Data lineageData Lineage tracks the data flow from its source to its end destination. This type of analysis helps organizations understand how their data is being used, where it comes from, and what changes have been made over time.
It provides visibility into the data’s history and can provide valuable insights for organizations to monitor and manage data quality.
Decision makerThe Decision Maker plays an important role in any organization. This person has the ultimate authority to decide what direction a business or project will take and how resources should be allocated.
This individual is also responsible for creating strategies aligned with organizational goals, managing risk, and setting policies and procedures.
DepreciationDepreciation is an important concept for businesses to understand. It refers to the decrease in value of a business asset over time, usually due to its wear and tear or obsolescence.
Depreciation allows a company to recognize the decline in value of an asset on its balance sheet, allowing them to account for it by charging it as an expense on its income statement.
Direct marketingDirect marketing is an effective tool to reach both current and potential customers. It allows businesses to target their message to a highly specific audience, creating a more personalized experience for the customer.
Furthermore, direct marketing helps improve customer loyalty and can increase sales by allowing businesses to offer incentives such as discounts and freebies.
Domestic marketThe domestic market is a key marketplace for many businesses. It allows them to interact directly with their customers and build relationships that can lead to more sales.
This type of direct contact also allows companies to gain valuable insights into consumer preferences and trends, allowing them to tailor their products and services accordingly.
Dynamic asset allocationDynamic Asset Allocation (DAA) is an asset allocation that automatically adjusts its portfolio to changing market conditions.
This strategy uses systematic, rules-based investment models to determine the optimal mix of investments to achieve the best possible returns while minimizing risk.
EarningsEarnings are among the most important metrics for investors and business professionals. Earnings can measure a company’s success or failure.
They reflect how well the company is generating revenue and profit and its ability to manage expenses.
Earnings are typically reported quarterly or annually and can be found in a company’s financial statements.
E-commerceE-commerce transforms people’s shopping, making finding and purchasing products online easier.
It has revolutionized how businesses conduct their operations, allowing them to reach new markets, lower costs, and increase sales. For customers, e-commerce offers convenience and a wide selection of goods at competitive prices.
EnterpriseEnterprise is a term used to describe the activities of businesses and organizations that aim to earn profits by supplying goods and services.
It includes all the activities related to running a business, such as production, marketing, sales, research and development, finance, accounting and human resources.
EntrepreneurAn entrepreneur is a person who identifies an opportunity and takes the initiative to turn it into a business venture. Entrepreneurs have the passion and drive to identify problems, develop solutions, take risks, and create something from nothing.
They are driven by their enthusiasm for innovation and strive to build businesses that can improve people’s lives.
EntrepreneurshipEntrepreneurship is about being creative, taking risks, and finding innovative solutions to problems. Being an entrepreneur requires hard work, dedication, and commitment.
It also involves understanding the needs of your customers and developing products or services that can meet those needs.
Equilibrium marketAn equilibrium market is a state of balance between buyers and sellers where the price for goods remains stable.
This stability occurs when the number of buyers and sellers is nearly equal, creating an environment where neither side has an advantage.
In such a situation, buyers and sellers operate on an even playing field, and transactions occur at fair market prices.
EquityEquity is the principle of fairness. Everyone should be treated equally, regardless of their social or economic status, identity, or other differences.
This concept has been included in laws and policies for centuries and promotes societal fairness and justice. Equity helps ensure everyone has access to the same resources and opportunities and can be held accountable for their actions.
Financial analystsFinancial analysts are experts in the field of finance, providing investors and businesses with important insight into their financial decisions.
They use various tools and techniques to study the performance of stocks, bonds, mutual funds, and other investments.
Financial analysis involves gathering and interpreting data on companies or industries to make investment recommendations or advise on potential mergers and acquisitions.
Foreign marketForeign markets offer vast opportunities for businesses to grow and expand by tapping into a new customer base.
By entering foreign markets, companies can diversify their operations, increase profits, and gain access to more resources that can help them become more competitive in the global marketplace.
Gross domestic product (GDP)
Hard good
Human Resource HR
Income Statement
Industrial relationsIndustrial relations is the complex mix of interactions between employees, employers, and the government.
It covers a wide range of topics, including wages, work hours, workplace health and safety, dispute resolution procedures, union representation and rights, diversity initiatives, and much more.
International marketing
Intrinsic Valuation
Market penetration pricing strategy
Market segmentation
Passive portfolio strategy
Performance evaluation
Price of RiskThe Price Of Risk is a concept used in financial analysis to assess the level of risk associated with any investment or financial decision.
It is calculated by dividing the expected return from an asset or activity by its standard deviation of returns, which is a measure of its volatility.
The Price Of Risk can be used to compare two different investments with different levels of risk and different expected returns, or to decide whether or not a certain investment is worth taking.
Price point
Public Relations
Random sampling
Retained Earnings
Sales agreement
Sales channel
Search Engine
SecuritiesSecurities are tradable financial assets representing the ownership of a company, debt obligation, or rights to receive or pay dividends.
They include stocks and bonds issued by corporations, government entities, and other financial institutions and derivatives such as options and futures contracts.
Skill set
Sole Proprietorship
StakeholdersStakeholders are an integral part of any project. They are the individuals or groups with a vested interest in the success or failure of a project and can be either internal to the organization or external.
Internal stakeholders include employees, management, shareholders, and board members, while external stakeholders can include customers, suppliers, government agencies, trade unions, and the local community.
StrategyStrategy is a plan of action to achieve a long-term or overall aim. It defines an organization’s approach, direction, and decisions to reach its desired goals.
The strategy involves setting objectives, analyzing resources and capabilities, improving operations, and creating competitive advantages.
Stock exchanges
SWOT analysis
Target market
TaxationTaxes are an important source of revenue for governments and can be used to fund public services, such as healthcare and education.
Taxation involves levying taxes on individuals or organizations based on income, profits, or spending.
Tax rates can vary significantly between different countries and regions. It depends on the type of taxation system in place.
Technical analysts
Thinking outside the box
Touch base
Web marketing