Corporate world

Question 1

assets

Answer 1

All things owned by a person or business and having some money value, esp. if they can be used to pay debts, produce goods, or in some way help the business to make a profit.

Question 2

assets and liabilities

Answer 2

The main difference between assets and liabilities is that assets provide a future economic benefit, while liabilities present a future obligation.

Question 3

balance sheet

Answer 3

A balance sheet summarizes an organisation’s assets and liabilities at a specific point in time.

Question 4

bankruptcy

Answer 4

Legal procedure for liquidating a business (or property owned by an individual) which cannot fully pay its debts out of its current assets. Bankruptcy can be brought upon itself by an insolvent debtor (called ‘voluntary bankruptcy’) or it can be forced on court orders issued on creditors’ petition (called ‘involuntary bankruptcy’). Two major objectives of a bankruptcy are fair settlement of the legal claims of the creditors through an equitable distribution of debtor’s assets, and to provide the debtor an opportunity for fresh start.

Question 5

cartel

Answer 5

A group of separate companies that agree to increase profits by fixing prices and not competing with each other.

Question 6

cash flow

Answer 6

The movement of money coming into and leaving a company.

Question 7

code of conduct/code of practice

Answer 7

Written guidelines issued by an official body or a professional association to its members to help them comply with its ethical standards.

Question 8

company/corporation

Answer 8

An organisation that sells goods or services in order to make money.

Question 9

concern

Answer 9

Broad term that covers all types of firms, whether or not for profit.

Question 10

conglomerate

Answer 10

A large business organisation consisting of different companies that produce goods of very different kinds.

Question 11

consumer base

Answer 11

The customers that a company gets most of its income from.

Question 12

corporate

Answer 12

Of, belonging to or shared by a corporation

Question 13

corporation

Answer 13

Firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm’s operations.

Question 14

creditor

Answer 14

A person or corporation to whom money is owed.

Question 15

customer

Answer 15

A person or organisation that buys goods or services from a shop, business etc. , especially regularly.

Question 16

customer base

Answer 16

All the people who buy or use a particular product or service.

Question 17

debtor

Answer 17

A person, group or organisation that owes money.

Question 18

(to) expand

Answer 18

To invest money to make your business bigger.

Question 19

(to) fold

Answer 19

To close down (of a business).

Question 20

fringe benefits

Answer 20

Extra benefits in kind, eg. a company car.

Question 21

head office

Answer 21

The headquarters of an organisation; main office.

Question 22

Inc

Answer 22

Incorporated; organized as a legal corporation, esp. in commerce (USA).

Question 23

invoice

Answer 23

A document issued by a seller to a buyer listing the goods or services supplied and stating the sum of money due.

Question 24

joint venture

Answer 24

A business or project in which two or more companies or individuals have invested, with the intention of working together.

Question 25

liabilities

Answer 25

The debts owed by a business to its creditors and to its owners an amount owing by a business or other organisation to other persons or concerns; debts of all kinds.

Question 26

(to) liquidate

Answer 26

To terminate the operations of (a commercial firm, bankrupt estate, etc) by assessment of liabilities and appropriation of assets for their settlement.

Question 27

ltd

Answer 27

Limited liability; a company whose owners only have to pay a limited amount if the company gets into debt; the shares are only sold privately to raise capital (and usually bought by the people that set up the company.

Question 28

(to) merge

Answer 28

Voluntary amalgamation of two firms on roughly equal terms into one new legal entity.

Question 29

merger

Answer 29

The combination of two or more companies, either by the creation of a new organisation or by absorption by one of the others.

Question 30

multinational

Answer 30

An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.

Question 31

non-profit organisation/non-stock corporation

Answer 31

A non-profit organisation is a group organized for purposes other than generating profit and in which no part of the organisation’s income is distributed to its members, directors, or officers. Non-profit corporations are often termed “non-stock corporations.”

Question 32

organisation chart

Answer 32

A diagram representing the management structure of a company, showing the responsibilities of each department, the relationships of the departments to each other, and the hierarchy of management.

Question 33

outgoings

Answer 33

Expenditure, the money spent.

Question 34

overheads

Answer 34

Business expenses, such as rent, insurance etc. that are not directly attributable to any department or product.

Question 35

parent company

Answer 35

Firm that owns or controls other firms (called subsidiaries) which are legal entities in their own right. Also called parent corporation.

Question 37

perks

Answer 37

Extra benefits in cash, eg. tips.

Question 38

plc

Answer 38

Public limited company; the shares for a PLC are available for anyone to buy on the stock market.

Question 39

production facility

Answer 39

Factory.

Question 40

product recall

Answer 40

A request made by a company for people who have bought a particular product to take or send it back, especially because it may have a dangerous fault.

Question 41

SME

Answer 41

Small and medium sized.

Question 42

subsidiary

Answer 42

An enterprise controlled by another (called the parent) through the ownership of greater than 50 percent of its voting stock.

Question 43

supplier

Answer 43

A party that supplies goods or services. A supplier may be distinguished from a contractor or subcontractor, who commonly adds specialized input to deliverables.

Question 44

take over

Answer 44

Assumption of control of another (usually smaller) firm through purchase of 51 percent or more of its voting shares or stock.

Question 45

TNC

Answer 45

Transnational company: a commercial enterprise that operates substantial facilities, does business in more than one country and does not consider any particular country its national home. One of the significant advantages of a transnational company is that they are able to maintain a greater degree of responsiveness to the local markets where they maintain facilities.