COMMON BUSINESS TERMINOLOGIES – BUSINESS COMMUNICATION – CSEET (PAPER 1)
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.
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BUSINESS& TRADING |
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| ACCEPTANCE
(BILL OF EXCHANGE) |
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 |
CORPORTE / COMPANY |
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| 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 information. |
| 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 |
FINANCE |
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| 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
judgment. |
| 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 |
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BANKING& INSURANCE |
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| 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. |
LEGAL |
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| 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
Interest |
| 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:
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INSTITUTIONS & ABBREVIATIONS |
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| 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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