The study on Business Terminology under CSEET – Business Communication is very much appropriate for the students. It is just like to learn alphabets before words and sentences. In general, terminologies are collection of terms used with a particular significance in a subject of study, profession, business or industry etc. Having defined terminologies results in better understanding and minimizes ambiguity.


Being stepping into a professional course, sooner or later this terminologies becomes part of our daily conversation. In this study, let us make an attempt to inculcate these terms relatively easier to remember through linking method memorizing terms.

Since the curriculum covers a wide range of terms from various fields such as accounting,business, communications, management, corporate characteristics, legal etc., we can adopt a method of grouping all relative terms under a much appropriate heading which helps in remembering them easily.


Before we move to the vast pool of CommonBusiness Terminologies, few ‘basic’ business terms glossary are:


  • Management: People those who in charge of running/ managing a business.


  • Business: Activity of providing goods and services involving financial and commercial and industrial aspects.


  • Marketing: The commercial processes involved in promoting and selling and distributing a product or service.


  • Profit: The amount of money left over after expenses are taken out.


  • Telecommuting: Working at home usually on a computer.


  • Downsizing: Planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient.


  • Outsourcing: Contracting out selected functions or activities of an organization to other organizations that can do the work more cost efficiently.


  • Research and Development (R&D): Business or government activity that is purposely designed to stimulate invention and innovation.


  • Headquarters: The office that serves as the administrative center of an enterprise.


  • Market: the world of commercial activity where goods and services are bought and sold.


Hopefully most of the above words are very popular and already forms part of our daily conversation and discussions. Now moving on the few advance or advance terms that earned its importance in the recent past are groups as relative as possible for better learning experience.

Let usgo deeper into Business terms glossaryor Business Terminologies of Business Communication via categories for CSEET EXAM. Out of the vast list covering the most significant terms should be fruitful activity since theother terms are self-explanatory by virtue of their names.






Assent given by a party to a bill of exchange by signing across the face of it or if online by clicking on the Accept button
ARBITRAGE The business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in other or vice versa
CONSORTIUM An association of companies formed for the purpose of undertaking a particular activity. It is usually to share the limited resources and risks associated with the activity undertaken and no other connection other than the scope.
DERIVATIVE MARKETS Markets such as futures and option markets that are developed to satisfy specific needs arising in traditional markets.
DUMPING Selling goods in a market usually overseas, at a price well below cost, usually with an intention to ruin the indigenous market/competition
ECONOMIES OF SCALE Economies of scale refers the benefit of larger production

volumes allow fixed costs to spread over more units lowering the average unit costs and gaining a competitive advantage

FACTOR A mercantile agent who deals in his own name but enjoys the right to hold and dispose-off goods on behalf of the principal at pre-negotiated terms
FIRM OFFER A commitment to sell at a certain price subject to acceptance of offer within a specified time.
FORWARD CONTRACT A contract where a party agrees to deliver at a specified future time a certain amount of specified securities at an agreed rate
FORWARD DELIVERY A term implying that goods transacted will be delivered at a future date on agreed terms
FORWARD TRADING It means deferment of contracts traded at present to some future date at current prices
FUTURES The purchase of commodities or currencies or financial instruments for delivery at some future time. It protects the buyer against a possible rise in prices
HEDGE Reducing risk by taking a position which offsets an existing or

anticipated exposure in financial operations

INDENT An order sent to the agent to buy goods. It may mention specific goods or source from which to procure. Alternatively it may be left to the agent
LANDING ORDER It is an order to facilitate the delivery of a ship’s cargo issued after the completion of formalities. The loading or the discharge of cargo has to be completed within the lay days failing which a demurrage has to be paid
PIG Operators who get killed by the speculators
PRICE RIGGING It is the collective effort of bulls or bears to manipulate the price of a security without any regard for fundamentals of the company
QUOTATION A firm statement of the total cost for which specified work will be undertaken
QUOTE DRIVEN TRADING It refers to trading in which the brokers quote for buying and selling a security simultaneously.
RECESSION A condition of the economy in which business is conducted at a reduced level. Ex. Unemployment or falling prices
RESERVE PRICE The minimum price set in advance, that is acceptable to the

auctioneer, so as to ensure that the object for sale will not be sold at too low a value

RIGGED MARKET Manipulation of share prices to attract buyers and sellers to the rigger’s advantage
RUMMAGING A thorough search of a ship by custom officers to detect contraband or undeclared dutiable cargo.
SCAM A fraudulent activity where usually small sums of money is obtained from a large number of persons, so that the activity is not detected.
SEGMENTAL REPORTING Reporting on the various segments of a business’s activity
SWAP A financial transaction which exploits arbitrage opportunities

between markets and in which two counter parties agree to exchange streams of payments over time according to a predetermined rule

TAX HOLIDAY A period of time established under statute, during which a business is not required to pay tax on its earnings
TAX LIEN If your business fails to pay taxes owed to the designated government entity, namely the IRS, you may find your assets seized by the claim of a tax lien
TENDER Usually an offer to provide goods or services at mentioned prices and understated conditions in response to a notice published in a newspaper
TRADE DISCOUNTS A discount given by one business to another which is making a

purchase for resale to ultimate customers thereby enabling the buyers to earn profits

VENTURE CAPITAL Capital invested in a business on the basis that the investor receives a share in the outcome of the enterprise rather than an agreed fixed rate of return.
WOLF Speculators who make a kill in the market


ANNUAL RETURN A statutory document filed by every company annually with the Registrar of Companies, stating the particulars such as status, names of directors, shareholders, indebtedness etc. of the company
DEPOSITORY The system of organisation which works through registered members called depository participants, to maintain a record of securities in electronic or dematerialized form
ESOP Employee Stock Option Scheme
INSIDER TRADING Trading in a company’s shares by a person connected with and

having access to its sensitive, unpublished and confidential


JUMBO CERTIFICATE A document issued by consolidating or aggregating a large number of market lots into a single composite share certificate
MARKET LOT The minimum number of shares, say 100, required for a transaction on a Stock Exchange. Fewer shares constitute an odd lot. In Demat form, even a single share may be traded
MERCHANT BANKER A financial institution that specializes in securities market activities such as underwriting and trading, and in advisory activities such as mergers and acquisitions
NO-DELIVERY PERIOD The time during which the register of shareholders of a company remains closed. Transactions continue but the trades are settled later. This is done to avoid confusion about the beneficiaries of dividend.
NON-CUMULATIVE Implies that arrears of dividend will not accrue
PLACING A prior arrangement to place or sell shares to select investors such as financial institutions
PORTFOLIO A list of securities owned by a person or an institution
PRICE BAND The limits within which the price of a security is allowed to fluctuate
PROSPECTUS A document issued by a company inviting subscription to the public issue of its securities. It lists information for the use of investors and has to include the risk factors
PROXY One who acts on behalf of another, usually used to denote a person authorised by a member of a company to be present and vote on his behalf in a meeting
QUORUM The minimum number of members required to be present in order to transact business at a meeting
RECORD DATE A date on which the records of a company are closed for the purpose of determining the stockholders to whom dividends, proxies, rights, etc. are to be sent.
SPLITTING Sub-division of a share of large denomination into shares of smaller  denominations. Also means sub- division of holdings
STAG (1) An applicant, for a new issue of shares, who hopes to sell the shares on allotment at a profit once trading commences in the secondary market;

(2) A speculator who buys and sells stocks rapidly for fast profits

VANILLA ISSUE A straight fixed rate issue which has terms and conditions usually accepted as being conventional to a particular securities market
WARRANT A tradable instrument giving the holder the right to buy from the issuer a fixed income security or equity stock under specified conditions after some period of time



ACQUISITION COSTS Incremental costs involved in obtaining a new customer.
ATTACHMENT A lien on property or assets to hold it to pay or satisfy any final


EBIT Earnings Before Interest and Taxes.
EBITDA Earnings Before Interest Taxes Depreciation and Amortization
EPS Earnings per share. A company’s net profit attributable to equity/ ordinary shareholders
EX GRATIA Some action, normally the payment of money, taken where there is no legal necessity to do so but where some moral obligation is recognized
EX-DOCK/SHIP/ The prices, which exclude all expenses after the goods have been delivered on the docks, the side of the ship or at the designated warehouse
EXTRINSIC VALUE Amount by which the market price of an option exceeds the amount that could be realized if the option was exercised and the underlying stock is liquidated. Also known as time value.
FISCAL Relating to the raising and use of money by the Government
LIEN The right to retain some asset till a claim is settled or a contractual obligation has been fulfilled
MORATORIUM A freeze on the payment of debts by a government in times of national crisis or an emergency
REVOLVING CREDIT The facility to borrow money up to a certain specified amount and to replace one borrowing that has been paid off with another so long as the overall limit is not exceeded
SALVAGE Recovering items from a site of destruction
WORKING CAPITAL Financial resources necessary for maintaining the day-to-day operation of the business
WRITE OFF It is to extinguish or cancel a debt, treating it as if it has been paid by debiting it from the profit and loss account



AMERICAN DEPOSITORY RECEIPTS (ADR) A receipt showing evidence that the shares of a foreign corporation are held on deposit or under control of an U.S banking institution. Used to facilitate transactions and expedite transfer of beneficial ownership for a foreign security in the United States
BANK RATE The maximum lending/borrowing rate determined by the Reserve Bank of India from time to time taking into account the state of economy
COLLATERAL A security generally in the form of fixed assets and offered in addition to those already furnished.
EARNEST MONEY A refundable security in the form of demand draft or bank

guarantees to keep off non-serious applicants usually for tenders.

HYPOTHECATION The act of pledging or mortgaging movable or immovable assets
INDEMNITY A contractual obligation to compensate some other person in the event that a loss is suffered by them for a specified cause.
LETTER OF CREDIT It is a letter addressed by a banker to a correspondent abroad

authorizing payment of a specified sum on its credit to the mentioned beneficiary under stated conditions

MORTGAGE A legal charge on property which holds it as security for a loan
PAY-IN SLIP A form filled up to deposit cash or cheque in a bank. The account holder retains the counterfoil. For bulk users, they may be bound in a Pay-in- Book.
REPO RATE Repo Rate or the Repurchase Rate is the rate at which a bank borrows money from the Reserve Bank of India (RBI)
STANDING ORDER An instruction, which remains in force till withdrawn. It is useful to order routine and regular payments such as to an insurance company
STOP TRANSFER It is an instruction given by an account holder to his banker not to encash any payment for cheque/ demand draft from his account in case of loss, theft etc. of the same
TREASURY BILLS A short term bearer discount security issued by Governments as a means of financing their cash requirements
ZERO COUPON BOND A bond that pays no interest while the investor holds it. It is sold originally at a substantial discount from its eventual maturity value, paying the investor its full face value when it comes due, with the difference between what he paid initially and what he finally collected representing the interest he would have received over the years it was held.



ACT OF GOD Denotes events that arise out of natural causes that are beyond human control. Commonly used in insurance to denote risks and dangers that caused by nature. Ex: Floods or Earthquake
ACTION A civil judicial proceeding where oneparty sues another for a wrong done or toprevent a wrong or to protect a right. Also referred to as a case or lawsuit
ALLEGATION Saying that something is true. The assertion, declaration or statement of a party in a case, made in a pleading
CAUSE LIST Cause list is issued by the Registry of the matters to be heard by the court on any day. It contains information like bench, courtroom number and the position of the matter.
CAVEAT EMPTOR Let the buyer beware’ of what he is buying
CONVICTION To be found guilty of committing a crime
CROSS-EXAMINATION Questioning by a party or the attorney of an adverse party or a witness
DISPOSITION The manner in which a case is settled or resolved
DOCUMENTS OF TITLE Documents which provide conclusive evidence of ownership of some asset. Mostly non- negotiable such as Bills of Lading or Delivery Challans establishing title for a specific period
DOMICILE The permanent home of a person. A person may have several

residences, but only one domicile

ENCUMBRANCE Some liability which is attached to a property and thereby, imposes a burden on the owner
ESCROW A legal document kept in the custody of a third party, taking effect or made available only when some conditions are satisfied or some period of time has elapsed
EX PARTE Done for, or at the request of, one side in a case only, without prior notice to the other side
FIDUCIARY Imposing the obligations of a trust. A fiduciary relationship imposes a legal as well as moral relationship
FINDING The court’s or jury’s decision on issues of fact.
HABEAS CORPUS A court order used to bring a person physically before a court in order to test the legality of the person’s detention
INDENTURE It is deed signed between two or more parties as opposed to one made by a single party
INJUNCTION It is an order of the court directing a person to act or refrain from acting in a certain manner
JURY It is a body of persons appointed to hear evidence and give their verdict in a criminal trial
LAUNDERING The process of passing funds through a number of transactions with the intention to conceal their origin
LEGAL TENDER The form of money that may be legally used to pay for the goods procured or the services used. Ex. Currency notes
LIBEL Defamatory material in recorded form as opposed from slander which is oral. The victim may file a suit for damages.
MEDIATION A dispute resolution process in which an impartial third party assists the parties to voluntarily reach a mutually acceptable settlement.
LITIGANT A party to a case
NOTARY PUBLIC A person who attests or certifies documents by the authority of the court
NOTARIZE To formally complete a document by acknowledgement or oath
OATH To swear/affirm to the truth of a statement/document
PATENT A right or privilege granted by law to an inventor also called a

patentee, to enjoy the fruits of his invention for a specified period

PERJURY Making false statements under oath
PLEA An accused persons answer to a criminal charge
PLEA BARGAIN The agreement a defendant makes with the prosecutor to avoid a trial. Usually involves pleading guilty to lesser charges in exchange for a lighter sentence
PLEADINGS The court documents filed with the court by the parties in a civil or criminal case. Ex. motion to dismiss or modification
PROSECUTE To carry on a case or judicial proceeding
PROSECUTOR Represents the state in a criminal case against a defendant
SUB JUDICE A matter pending decision by a Court is called sub judice. Parties to such a matter should not to do anything that would affect the outcome of the case
SUBROGATION The legal principle that entitles an insured only the actual loss

sustained in cases of pure indemnity

SUMMONS A legal paper that is used to start a civil case and get jurisdiction over a party.
SUO MOTU The Court may take action on its own when facts requiring legal intervention reach its notice. The Court is then said to be acting suomoto.
TESTIMONIAL A certificate issued by a responsible person to an individual about his conduct, ability, qualifications or credit
TITLE Legal recognition of the ownership of property, usually proven by a document
TORT A civil injury or wrong to someone else, or their property
TRADEMARK A distinctive mark or sign or symbol protected by law and placed on goods to identify the manufacturer
TRESPASS To enter someone’s land or property without their permission. It is an offence which is punishable in law
USURY The unlawful practice of lending money at an exorbitant rate of


VAKALATHNAMA A straight fixed rate issue which has terms and conditions usually accepted as being conventional to a particular securities market
WRIT A document issued by the court directing the respondent to do or not to do some specified act
WRIT & WRIT PETITION A writ is a direction that the Court issues, which is to be obeyed by the authority/person to whom it is issued. A petition seeking issuance of a writ is a writ petition


Here are some Abbreviations of Business Terminologies or we can the Business Terms Glossary which can be asked in CS Executive Entrance Test, do have a look:

some Abbreviations of Business Terminologies Infographic
some Abbreviations of Business Terminologies Infographic


ADB Asian Development Bank
ASSOCHAM Associated Chamber of Commerce & Industry – one of the bodies representing the Indian industry
CRISIL Credit Rating and Information Services of India Limited
CRR Cash Reserve Ratio indicates the reserves of commercial banks set apart as ameasure of security as notified by RBI.
ED Enforcement Directorate, that looks into violations involving foreign exchange
EXCHEQUER The treasury of the Government
FEMA Foreign Exchange Management Act
FICCI Federation of Indian Chamber of Commerce & Industry
FIPB Foreign Investment Promotion Board, which clears proposals

involving foreign direct investment (FDI) into India

GAAP Generally Accepted Accounting Principles
GDR Global Depository Receipts
IAS International Accounting Standards
IMF International Monetary Fund
IRDA Insurance Regulatory and Development Authority
MCA Ministry of Corporate Affairs
NABARD National Bank for Agricultural & Rural Development
NASDAQ National Association of Security Dealers Automated Quotations
NSE National Stock Exchange
NYSE New York Stock Exchange
SAFTA South Asian Free Trade Area
SEBI Securities and Exchange Board of India.
SIB Securities and Investments Board of UK
TQM Total Quality Management
TRAI Telecom Regulatory Authority of India



These Common Business Terminologies will help you in understanding the Terms under Business Communication of CSEET Paper 1 Curriculum.

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