Business Management Glossary

20 terms

Business management, also known as BA, is a field related to the ins-and-outs of handling and running a business. This glossary is meant for beginners in the BA field who might want to learn a few usual words about the topic.

account reconciliation
The act of confirming that the balance in one's checkbook matches the corresponding bank statement.
accounting
The measurement, processing, and communication of financial information about economic entities such as businesses and corporations.
amortize
Reduce or pay off a debt with regular payments.
asset
An item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
bankruptcy
A legal proceeding involving a person or business that is unable to repay outstanding debts.
bargaining power
The relative ability of parties in an argumentative situation to exert influence over each other in order to achieve favorable terms in an agreement.
business
An organization that produces income by selling goods or services.
commerce
A set of activities, including, but not limited to, trade, auxiliary services or aids to trade, communication and marketing, logistics, finance, banking, insurance and legal services related to trade.
corporation
A business structure that can be for-profit or non-profit.
credit
The deduction of a payment made by a debtor from an amount due.
franchise
A system in which entrepreneurs purchase the rights to open and run a business from a larger corporation.
free cash flow
The amount of cash that a company has left over after it has paid all of its expenses, including investments.
human capital
A concept used by economists to designate personal attributes considered useful in the production process.
legal person
A business that can do the things a human person is usually able to do in law.
limited liability
A legal status in which a person's financial liability is limited to a fixed amount.
parent company
A company that owns enough voting stock in another firm to control management and operations, by influencing or electing its board of direction.
regulatory agency
A government authority that is responsible for exercising autonomous jurisdiction over some area of human activity, in a licensing and regulating capacity.
shareholder
An individual or legal entity that is registered by a corporation as the legal owner of shares of its shares capital.
sole proprietorship
A type of enterprise owned and run by only one person, and in which there's no legal distinction between the business entity and the owner.
trade union
An organization of workers whose purpose is to maintain or improve the conditions of their employment.