Definitions or Explanations Flashcards
Money, assets, and property owned by a company?
Capital
Organized market where shares are traded
Stock exchange
The total value of shares of a company?
Share capital
A person that owns (holds) shares
Shareholder
The condition when a company is unable to pay its liabilities?
Bankruptcy
Collecting money for a worthy case
Fundraising
Money available to a company trough its shares
Equity finance
To buy and sell shares
To trade shares
Money invested in a new business?
Start-up capital
Someone you owe money to?
Creditor
Money paid to shareholders from company profit?
Dividend
The cost of borrowing money?
Interest rate
A system of comparing share prices to a prvious level?
Share index
Making shares available on the stock exchange?
Going public
Equal parts of ownership of a company?
Equities/shares/stocks
Shares of large financially sound companies?
Blue chips
A company’s ability to pay debts
Creditworthiness
Developing and less developed countries
The third world
Removing barriers to trade
Trade liberalization
Only one company offers goods or services in a market and so it can dictate prices
Monopoly
Quantity or value restrictions on imports
Quotas
When companies agree to fix prices together instead of competing
Cartel
A factor that prevents rivals from entering the market
Barrier to entry
Buying goods directly from producers at a fair price
Fair trade
The tendency for the world economy to function as a whole
Globalization
Taxes on imported goods also called import duties
Import tariffs
Selling below production costs
Dumping
When suply exceeds demand
Saturation (zasičenost)
Imports exceed exports
Trade deficit
Government money to support domestic farming or industry
Subsidy
Using import to help your country’s trade
Protectionism
Companies try to sell more and make more profit than rivals
Competition
The difference between payments for exports and imports
Balance of payments
A blockade of all of one country’s trade by another
Embargo
Something that makes a company more able to compete
Comparative advantage
Exports exceed imports
Trade surplus
A measure imposed to punish a country for various reasons
Sanction
An increase in the price of goods set by retailers or dealers
Mark-up
A person or organisation that helps arrange deals
Intermediary
A system for moving goods from producers to consumers
Distribution channel
The business of carrying goods by road or rail
Haulage
Collection, transportation and delivery of goods
Forwarding
The management of the flow of products from raw materials to finished goods
Logistics
Buying servicesfrom other companies rather than providing your own
Outsourcing
A series of organisations involved in the movement of goods
Supply chain
A body representing organization within the same trade
Trade association
Goods carried in large quantities by plane, ship, road, or train
Freight
A load of goods send by road, rail, air, or sea
Shipment
Storing goods in large quantities called stock or inventory
Warehousing
A reduction in price offered to a business
Trade discount
A large request for goods or services
Bulk order
Goods not ready for sale
Unfinished goods
The sum paid for transport of goods
Shipping costs
Substances used to make goods
Raw materials
A reduction in price for payment in cash
Cash discount
A document showing that goods have beed delivered
Delivery note
Notification that an order has been accepted
Order confirmation
An unpaid account that will probably never be paid
Bad debt
An area beside a warehouse for loading trucks
Loading bay
Everything a company owns that has monetary value
Assets
Money owed to the company by customers
Accounts receivable
The most liquid of all assets
Cash
A fixed asset that does not wear out or depreciate
Land
Easily converted into cash within one year
Current assets
A snapshot of company financial position at a point in time
Balance sheet
All liabilities owed to creditors in more than one year
Long-term liabilities
A short-term obligations to suppliers
Accounts payable
Profits reinvested in the business after dividends are paid
Retained earnings
Land and buildings
Property
Debts owed by the company to creditors
Liabilities
Owners investment in the company and retained earnings
Stockholders earnings
Cost of heating, electricity, phone usage…
Utilities
Net sales less cost of goods sold
Gross profit
Daily expenses; selling, general and administrative expenses
Operating expenses
Costs directly related to the production of goods
COGS
A record of company’s profit and loss over a period of time
Income statement
Total revenues before paying expenses
Top line
Annual loss in the value of equipment, computers, machinery
Depreciation
Cash outflows
Expenses
Cash inflows from sales
Revenue
Net profit
Bottom line
An employee who acts as an entrepreneur within a company by being innovative and creative
Intrapreneur
A person that starts a business or a venture by taking risk and responsibility for the results, expecting to make a profit
Entrepreneur
Private equity capital provided by a person or investment firm for growth companies involving high risk but potentially high returns
Venture capital
A newly created business
Start-up
A detailed plan for setting up and developing a business written to raise finance
Business plan
Responsibility for debts with personal property
Unlimited liability
Money invested in anew business by friends and family
Seed money/capital
A document giving a company a name, aim, headquarters and share capital
Memorandum of association
A document outlining the duties and rights of directors and shareholders
Articles of association
The act of forming a registered company
Incorporation
Profits that a company expects to make in the future
Profit forecast
A company that is at least half-owned by another company
Subsidiary
Movement of money into and out of a firm
Cash flow
A large business organization that consists of several companies that all have the same owner
Group
Programmes to support entrepreneurial activity and start-up companies, including research or technology parks
Business incubator
A company that primarily does business on the internet
Dot-com
A company that owns at least half the shares in another company
Parent/holding company
Gross sales
Turnover
Money that a company expects to make in the future after subtracting costs
Profit forecast/projection
The legal situation when a company is not able to pay its debts
Bankruptcy
Income equals expenditure
Break-even
Growing by increasing sales without mergers or aquisitions
Internal growth
Growing fast by mergers and aquisitions
External growth
A company buying another company
Acquirer/bidder
Two or more companies cooperate in a project or enterprise; they share the investment and the profit or loss, but remain separate entities
Joint venture
A company to be taken over because of its assets, cash, or business potential
Target (firm)
Managers of a company buy a controlling stake in the company
Management buyout (MBO)
A joining of two or more companies resulting in a new company
Merger
A company making a hostile takeover
Raider
A combination of two companies producing similar goods or services
Horizontal merger
A company buys an ownership stake in the target company greater than 50%
Takeover
Over 50% of company shares
Majority stake
A company buying out its suppliers and/or customers
Vertical integration
Buying a controling stake of a company by usnig a large amount of borrowed koney (up to 90%)
Leveraged buyout (LBO)
Determining the value of a company
Company valuation
An aquisition that is welcomed by the management of the target firm
Friendly takeover
The market value of all company stocks
Market capitalization
Careful investigation of a potential investment
Due diligence
Making an offer to the target company’s shareholders to buy their shares
Takeover bid
Laws concerning anti-competitive concentrations of market power
Competition (antitrust) legislation
An acquisition that is opposed by the management of the target company
Hostile takeover
Good quality at a reasonable price
Value for money
Customer group with similar needs and wants
Customer segment
Point of sale, place where goods are sold
Retail outlet
Collecting first-hand info through direct contact with people
Field research
Identity od a product or service
Brand
A selling point of a product
Product feature
A group of consumers providing opinions about products
Focus group
Gathering information about a market
Market research
A written set of questions given to people to collect data
Questionnaire
The product (or company) with the largest market share
Market leader
A method of communicating and publicizing a product
Promotion
Funds allocated for marketing activities
Marketing budget
Percentage of all sales a company makes in a market
Market share
A memorable song or tune used in commercials
Jingle
A large outdoor structure used for advertising, either traditional with posters, mechanical, or digital
Billboard
A sign or symbol used as a trademark used to represent a company or brand
Logo
A catchy phrase used in advertising
Slogan
The amount of advertising, either paid or unpaid
Media coverage
A series of advertising activities with specific objectives
Advertising campaign
An advertisment broadcast on TV or radio
Commercial
A person that writes the text od advertisements
Copywriter
Promotion of a product by a celebrity
Endorsement
The written part of advertisement
Copy
The group of people an advert is intended for
Target audience
A booklet with advertising material
Brochure
The time when most viewers watch TV; the best time for ads
Prime time
A small leaflet used to advertise something
Flyer
Sneding by post
Direct mailing
Show how a product works
Product demonstration
Different ways of providing information and advertising
Media
Financially supporting an event in exchange for advertising a product
Sponsorship
Attractive arrangement of products in a shop
Store display
Telling the public about a product or company to generate positive publicity
Public relations (PR)
People cannot avoid exposure to advertising when waiting in an airport, bus…
Captive audience
Advertising on cell phones and on the internet
Digital advertising
A printed notice used for advertising on traditional billboards
Poster
Selling by telephone
Telemarketing
The way people see a product in comparision to other products
Positioning
A product appearing in a film or on a TV programme
Product placement
