This glossary will help you learn different terms related to the Business Management course.
Accountant
noun
One that keeps, audits, and inspects the financial records of individuals or business concerns and prepares financial and tax reports.
Example: Michael Storfer (Director)- an investor of Fresh Breath and an experienced chartered accountant.
fr: Comptable
Amortization
noun
The reduction of the value of an asset by prorating its cost over a period of years.; The paying off of a debt in equal installments composed of gradually changing amounts of principal and interest.; In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of the premium between the purchase date and the maturity date.
Example: In 2003, the value of fixed asset after depreciation and amortization increased to £1,498 million, compared with £1,491 million in 2002.
fr: Armotissement
Audit
noun
An examination of records or financial accounts to check their accuracy.
Example: Audit firms should not offer other non-audit services such as tax or business advisory to companies that they audit.
fr: Audit
Balance sheet
adjective
A statement that shows the financial position of a business enterprise at a specified date by listing the asset balances and the claims on such assets.
Example: The rules require companies to assign current market values to the interest-rate swaps, options, and other derivatives they hold and to reflect any changes in their value on the balance sheet.
fr: Bilan
Bankruptcy
adjective
A legal process intended to ensure equality among the creditors of a corporation declared to be insolvent.; The condition of being financially insolvent.
Example: Cash position is core to corporation when comparing with profit, for a company may loss in profit for several times, while facing bankruptcy after exhausting cash.
fr: Faillite
Board of directors
noun
A group of persons chosen to govern the affairs of a corporation or other large institution.
Example: However, I believe that Shell's approach has imbued the theory with a more prescriptive element, for example, by including guidelines for the board of directors and CEOs on its implementation.
fr: Conseil d'administration
Break-even point
noun
The sales or revenues necessary to cover costs and prevent a firm from operating at a loss.; Refers to the price at which a transaction produces neither a gain nor a loss.
Example: llegations include cutting fares beyond the break-even point, hence operating at a loss in an attempt to run smaller competing carriers into the ground and capacity 'dumping' on selected routes.
fr: Seuil de rentabilité
Compound interest
noun
Interest paid on both the principal and on accrued interest.
Example: The power of compound interest can do wonders to increase the amount of your initial investment over a dozen or more years.
fr: Intérêt composé
Creditor
noun
A person or commercial enterprise to whom money is owed.
Example: American banks were ill- prepared to become the world's chief creditor after the war, however, so leant heavily and unwisely to borrowers in Europe, in particular Germany, who later had trouble repaying the loans.
fr: Créancier
Gross Domestic Product (GDP)
noun
The total value of all goods and services produced domestically by a nation during a year. It is equivalent to gross national product minus net investment incomes from foreign nations.
Example: However, with respect to the aim of our analysis the emphasis will merely lie on the relationship between gross domestic product (GDP) and imports.