Glossary of Terminology and Definitions from Business and Management

Business Vocabulary – Glossary of Terminology for Business Correspondence Part 5

Process – A method of manufacture or of rendering services.

Pilot Plan – A business operated to determine rates to be charged in its industry

Probate – Proof established by legal procedures; e.g., probate of a will.

Pipeline – Piping over long distance used in the transportation of oil or gas.

Privilege – Option on the sale or purchase of securities on specified terms.

Pivotal – A stock whose quotations influence the course of the market.

Priority – Precedence as in transportation, goods production, delivery of order, etc. .

Planned Economy – Economical organization, usually of a state, in which production is arranged to prevent or reduce fluctuation and waste.

Pricing – Setting a price on goods.

Plant – The building, machinery etc., taken together that are used in a unit of industrial production.

Practice – Professional service; e.g., legal practice customary procedure of a firm.

Plantation – Large scale farming operation, carried on by hired labour rubber plantation.

Package – Combined merchandise and/or service offered as a unit, in a ‘package deal’, e.g., radio or television programme in which script, actors, announcei etc., are all provided as a unit in a “package programme”.

Pamphlet – Paper-covered booklet used as advertising or to convey information about a business.

Plastics (in industry) – Synthetic materials mainly produced by molding process.

Power of Attorney – Legal authority to act for another, not as a lawyer, but to carry out transactions.

Pledge – Piece of property given as security for a loan.

Possession – Such control of property as to give exclusive legal enjoyment of it.

Policy – Contract of insurance, guiding principles of a concern, usually determined or governed by a Board of Directors.

Position – On produce exchanges, undertaking to make delivery in a given month e.g., October position.

Principal – A mutual party to transaction as distinguished from agent Money or other property on which interest is earned.

Pool – Merger of property or financial interests of a group, usually with the expectation of manipulating the market in its favour.

Primary Markets – Markets in farm produce such as foods or fibers.

Price – Value at which goods are exchanged or services rendered.

Practice – Professional service; e.g., legal practice; customary procedure of a firm.

Premium (in insurance) – Money or other consideration paid by the insured according to terms of contract.

Premium (in economics) – Greater value of one currency over another, additional payment for loan of money.

Premium (On the stock market) – Amount above par that securities are being quoted at; sum paid for an option.

Pre-Fab – A prefabricated article, usually a house or small industrial building, to facilitate speedy erection.

Preferred Stock – Issue which receives preference dyer common stock in dividends or distribution of assets.

Put and Call – To ‘put’ is to deliver according to agreement, specified stock at a specified price to a buyer who receives a payment for this service. The privilege of “putting” may be sold to a third party To “call” is to receive on demand specified stock at a specified price a seller who is paid for this service. The privilege of “calling” may be sold to a third party.

Profit – What remains after production and sales costs have been deducted.

Profit and Loss – Accounting, after a given period to determine condition of a business.

Public Utility – Company servicing the general public, such as a railroad, supplier of electricity etc.

Promissory Note – Note undertaking payment of a debt at a specified time or occasion.

Proxy – To act for another; one whose voting rights are entrusted to another, the usual reference being to voting of stock holders.

Promoter – One who initiates organization of a company, floating of securities, or other business undertaking.

Proprietor – Owner; one with legal right to possession.

Property – Things owned; real property is property in real estate, while personal property or personal estate refers to all other possession of value.

Quantity – Used relatively, usually in references to goods in bulk, e.g., “These castings can be supplied in any reasonable quantity”.

Quotations – Statements, oral or written, of market prices of stocks, bonds or commodities.

Qualified – Fit to do required work.

Query – To recheck a shipment, a shipper or an account may refer to goods, invoices personal, etc.; e.g., “Please query Hobson, rubber tape shipment overdue at warehouse.”

Quotation Board – Board in brokerage office on which market quotations are displayed.

Quantity Theory of Money – Economic theory that changes in quantity of money in circulation affect price levels and currency values.

Quit Claim – Document in legal form relinquishing some property right.

Retirement – Withdrawal from circulation, e.g., retirement of a currency.

Royalty – Share of profits paid by manufacturer to inventor (or owner of an invention), author, etc., or to his heirs.

Rebate – Repayment of a percentage of sum received in payment for goods or services. Rebate may be allowed for damage delay, or savings in shipping cost, etc.

Recued – Withdrawal of order or instructions.

Receipts – Signed paper in evidence that goods or money has been received.

Requisition – Order for supplies, materials, etc.

Receipts – Earnings of a business for a given period.

Reorgauization – ReeStab5lm1t of insolvent business with the consent of creditors and under court supervision, with the aim of avoiding receivership costs and forced sale losses.

Receiver – Person, firms, or bank appointed by courts to conduct a business declared bankrupt.

Reimburse – Repay money expended by another. An agent will reimbursed for costs incurred during his operation.

Recession – Decline in industrial activity not so drastic as a depression.

Refund – Return of entire amount paid for goods or services, usually because of their unsatisfactory nature.

Redemption – Payment of outstanding loans; e.g., redemption of a bond issue.

Retail Trade – Trade with consumers.

Refree – Appointed by court to hear evidence and render decision in business disputes.

Revenue – Source of income, usually referring to governmental income from taxation.

Restrictive – Limiting. A restrictive covenant is a clause in a document setting certain conditions; as in real estate contracts restricting residence to certain races.

Seat – Membership in the Stock Exchange entitling one to share in its assets and the privilege of trading there.

Shortage – Something missing from inventory or from cash, due to theft, loss, or error.

Salvage – Goods rescued from shipwreck or other disaster.

Sinking Fund – Fund continually added to and invested toward the payment of bonds or other maturing debts.

Sabotage – obstruction malicious waste of materials, or spoilage of product by workers during labour trouble.

Silver Standard – Rating of currency in terms of specified value in silver.

Sample – A representative piece of an article offered for sale; e.g., swatch of cloth.

Security – (Chiefly used in the plural) stock certificates, bonds, or other documentary evidence of indebtedness giving the possessor the right to claim properly secured by the document; listed security is one which, by meeting certain requirements, is listed for trading on the Stock Exchange.

Schedule – Systematic listing of time for production on other performance in manufacturing, transportation, distribution, etc.

Stock – Share of ownership in an incorporated business; supply of merchandise for sale common stock is ordinary stock as distinguished from preferred stock, which takes precedence over it in distribution of assets or dividends, guaranteed stock is one whose dividends are guaranteed by another company.

Search – To verify status of a property; e.g., mortage title search, patent search, etc.

Sitdown Strike – One where striking employees stay in or at their places of work to prevent operation of machinery by others.

Stipulation – Condition specified in agreement or contract, usually something undertaken by buyer tõ bolster his credit.

Slander – Oral statement held to be damaging to person or business about whom, it is made.

Statute of Limitations – Law setting time limit for legal action.

Stockpile – Reserve supply of essential material.

Syndicate – Group organized for special financing, such as purchase and resale of certain securities or underwriting of a stock issue, purchasing it at a discount.

Strike – Refusal by employees to work unless demands, generally for pay increase, vacations, and other benefits are met.

Supply – Amount of goods for sale at a given price.

Sublease – To lease all or part of premises one has leased.

Swindler – One who defrauds.

Sublet – To rent all or part of premises and has rented.

Swindle – To defraud; dishonest business transaction.

Subsidiary – A company, control of whose stock is held by another company.

Surplus – Oversupply; amount by which assets exceed liabilities and capital; amount of goods on hand above current demand.

Subsidy – Agreed sum paid, over and above market charges, to assure supply or service that would otherwise be unavailable because of lack of profit.

Substandard – Below standard quality

Slowdown – Slowing down of work operations, without actual walkout, as a worker tactic in labour dispute.

Statement – List of unpaid items in a business account; a financial statement is a listing of assets and liabilities.

Smong – Saturation of air with smoke or other industrial exhausts leading to fog conditions.

Staple – An established product; e.g., oil is a staple of Texas.

Social Security – System and fund set up, under the Act, to insure security in old age. The fund is made up of compulsory contributions by employers and employees. (E.S .I.C.)

Spot Delivery – In stock market, immediate delivery of stock.

Solicit – To seek business accounts.

Speculation – Buying or selling with chance of high profits and risk of considerable loss.

Solvency – Capacity to meet financial obligations.

Specimen – Sample of minerals, ores, plants, or other things that are complete units of their kind.

Specie – Metal (hard) money as distinguished from paper currency.

Tax – To exact payment, usually payment exacted by government to provide revenue for its operations.

Tax-Sale – Sale of property to recover unpaid taxes.

Terms – Terms of payment; prearranged conditions for payment o a debt; e.g., cash in 30 days, £5 down and £1 a week, etc.

Tariff – Schedule of duties imposed on importers and exporters.

Technological – Referring to technical processes or changes in industry; e.g., technological unemployment.

Tenders – Sealed bids or offers for securities.

Trust – Holding of properly by a responsible person or bank (trustee for the good of another person (beneficiary).

Testator – One who makes a will.

Turnover – Number of times, within a specified period such as year, in which a given commodity is sold out.

Title – All factors combined which accord right to exclusive possession of property.

Treasury Bills – Short-term government offerings, bearing no interest, but sold at a discount to buyers.

Trade Agreement – Agreement between employer and union fixing wages, hours, working conditions.

Travellers Cheques – Issued by banks, travel agencies for the convenience of travellers.

Trade Acceptance – Bill of exchange governing purchase price, drawn by seller upon buyer whose endorsement constitutes “acceptance”.

Transcript – Letter-perfect copy of document, which does not seek to reproduce exact appearance of original.

Trade Edition or Trade Book – Edition designed for general public as distinguished from educational and professional use.

Trade Paper – Endorsed notes (two or more names) given in payment for merchandise; a periodical published in the interests of a certain branch of business.

Trademark – Coined name, monogram, logotype, signature, picture, distinctively designed words or name, symbol, emblem or device, which may be registered in the Government Patent Office for exclusive use by the applicant.

Trade Name – Name or other symbol under which a firm does business and protected by common law against attempt to deceive customers by use of a similar name by a competing firm.

Upgrade – To advance an employee, a work process of a product in rank, earnings, price or quality.

Volume – Amount of business done.

Venue – Place where case is tried. A Change of venue may be granted with the object of securing a fairer trial.

Voucher – A receipt or other proof of money paid, vouches for the accuracy of the terms of a transaction.

Waive – To voluntarily forego a right.

Wharfage – Fee for use of piers.

Will – Testament of a property-holder directing the distribution of his property after his death.

Without Prejudice – A contract term signifying that the agreement will not injure any prior or subsequent rights.

Wages – Payment for labour.

Warrant – Order for the payment of money or delivery of goods or documents; in banking, primarily written order for the payment of money.

Wholesale – Sale of goods to dealers for resale to retail merchants.

Withholding Tax – Income tax payment deducted at source, as from wages, dividends, etc.

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