English Business

ALPHABET
VIDEO LINK: https://www.youtube.com/watch?v=um3YrKRfsr0

English alphabet

A B C D E F G

/ ei / / bi / / ci / / di / /i/ / éff / /dji /

H I J K L M N

/ eitch / / ai / / djei/ / kei / / éll / / emm / / enn /

O P Q R S T U

/ ou / / pí / / kíu/ / ârr / / éss / / tí / / iú /

V W X Y Z

/ vi / / da-bliú/ / éks / / uai / / zi - zed /

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BreakfastSurvey-Breakfast-drawing-1 huge

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 Conversation One:
Meeting for the first time

• Michael: Hi. My name is Michael Parker.

• Jennifer: I’m Jennifer Yang.
• Michael: It’s nice to meet you, Jennifer.
• Jennifer: Nice to meet you, too.
• Michael: I’m sorry. What’s your last name
again?
• Jennifer: It’s Yang.
 English Names
Jennifer Yang
first name last name

family name

Popular First Names in the United States

Christopher David James Jason John
Joshua Matthew Michael Robert Steven
Ashley Lisa Jennifer Michelle Jessica
Nicole Katherine Sarah Kimberly Stephanie
 Conversation Two
• A: What’s your name?
• B: I’m Sarah Conner.
• A: Is that S-A-R-A-H?
• B: Yes, that’s right.
• A: How do you spell your last name? C-O-
N-N-O-R?
• B: No, it’s C-O-N-N-E-R.
 Practice

• Jon • John
• Sara • Sarah
• Steven • Stephen
• Katherine • Kathryn
• Kris • Chris
 Greeting
How are you?
I’m Great! / Good! / Fine! / OK! / Not bad!

Great! How about you, Hi, Matthew. How are you?

Lisa?

Good morning, Matthew.

Not bad, thanks. How are you?
How are you?
 Saying Good-bye

Good-bye / Bye-bye

See you later/ tomorrow/ soon

Good night.

Have a nice day.

Have a good evening.

｝ Thanks. You, too.
 Telephone number
028-7890-3465
double 670-235-7985

oh 743-254-769

220-867-446

136-7790-7689

189-6780-3365
 Conversation Three
• A: What’s your name?
• B: I’m Michelle Jenkins.
• A: And what’s your phone number?
• B: It’s 555-2491

What’s your cell phone number?

My name’s Hanna, not Anna.

TEACHER GABRIEL HUERTAS

Now introduce yourself!!!
Now describe your best friend!!!
JOBS AND OCUPATIONS Let’s know about it…
NURSE

Nurses plan and provide medical and nursing

care to patients in hospital, at home or in
other settings who are suffering from both
chronic and acute physical or mental ill
health.
DOCTOR
Doctors diagnose and treat medical
conditions, disorders, and diseases
through the application of specialist
medical skills and knowledge.
DENTIST
Dentists are medical healthcare
professionals who focus specifically on
the oral and dental hygiene of their
patients.
RADIOLOGIST

A physician specialized in radiology,

the branch of medicine that uses
ionizing and nonionizing radiation for
the diagnosis and treatment of
disease.
PARAMEDIC

Paramedics provide patients that have

been involved in accidents, emergencies
or other crises with specialist care and
treatment.
FIREFIGHTER

Firefighters are primarily responsible

for responding to fires, accidents and
other incidents where risks are posed
to life and property.
POLICE
Police officers uphold law and order
through the detection, prevention and
investigation of crime.
MAIL CARRIER

A person, especially a postal worker, who

delivers mail. Also called letter carrier.
TEACHER

Primary school teachers provide

children between the ages of 5 and 11
with a general education according to
National Curriculum guidelines.
COACH

A person who teaches and trains an

athlete or performer
CARPENTER

A skilled worker who makes, finishes,

and repairs or make wooden
objects and structures.
1. For repeated or regular actions in the present time period.

I take the train to the office.

2. For facts.
A dog has four legs.

3. For habits.
I get up early every day.

4. For things that are always / generally true.

It rains a lot in winter.
 Subject + verb to be + complement Subject + verb + complement
I am a teacher I eat pizza
You are a student You eat pizza
He/she/it is happy He/she/it eats pizza
We are friends We eat pizza
They are brothers They eat pizza
Subject + verb to be +not + complement Subject + don’t/doesn’t + verb + complement
I am not a teacher I don’t eat pizza
You are not a student You don’t eat pizza
He/she/it is not happy He/she/it doesn’t eat pizza
We are not friends We don’t eat pizza
They are not brothers They don’t eat pizza

Verb to be + subject + complement? Do/Does + subject + verb + complement?

Am I a teacher? (Yes, I am // No, I’m not) Do I eat pizza? -> (Yes, I do. // No, I don’t)
Are you a student? (Yes, I am // No, I’m not) Do you eat pizza? (Yes, I do. // No, I don’t)
Is he/she/it happy? (Yes, he is// No, he isn’t) Does he/she/it eat pizza? (Yes, he does. // No, he
Are we friends? (Yes, we are// No, we aren’t) doesn’t)
Are they brothers? (Yes, they are // They, aren’t) Do we eat pizza? (Yes, we do// No, we don’t)
Do they eat pizza? (Yes, they do// No, they don’t)
1. For verbs that end in -O, -CH, -SH, -SS, -X, or -Z we add -ES in the third
person.
•go – goes
•catch – catches
•wash – washes
•kiss – kisses
•fix – fixes
•buzz – buzzes

2. For verbs that end in a consonant + Y, we remove the Y and add -IES.
•marry – marries
•study – studies
•carry – carries
•worry – worries
 WHAT DO YOU DO?

I am eat Pinky
pizza promise?
 Jobs

WORKPLACES
an actor- a theatre
an accountant- an office
a dentist- a surgery
a gardener- a garden
a librarian- a library
a masseur- a
massage
studio
a mechanic- a garage
a nurse- a hospital
a pilot- an airport
a plumber- a home
a policeman- a
police
station
a postman- a post office
a shop assistant- a
supermarket
a singer- a studio
a teacher- a school
a waiter/waitress- a
restaurant
A banker- a bank
A hairdresser- a
beauty
salon
A personal trainer- a gym
Present Simple
negative
I play tennis.


 I play tennis.

I don‘t play tennis.

I like pizza.


I like pizza.

I don‘t like pizza.

Mum works on Fridays.


Mum works on Fridays.

Mum doesn‘t work on Fridays.

 Present Simple
negative
For negative sentences in the present simple
we need to:
• split the main verb into
don‘t / doesn‘t + infinitive without
to
 Present Simple negative
take
I don‘t +
you look
we don‘t run
verb
(infinitive
they
love without ‚to‘)

take
he
she doesn‘t look doesn‘t
it run
love
+ verb
Exercise: Make negative statements.

We go to school by
bike.
Exercise: Make negative statements.

We go to school by We don‘t go to school by

bike. bike.
Exercise: Make negative statements.

Dad makes dinner

every day.
Exercise: Make negative statements.

Dad makes dinner Dad doesn‘t make dinner

every day. every day.
Exercise: Make negative statements.

You like school.

Exercise: Make negative statements.

You like school. You don‘t like school.

Exercise: Make negative statements.

Mice love cheese.

Exercise: Make negative statements.

Mice love cheese. Mice don‘t love cheese.

COLLOCATIONS
WORK and BUSINESS
 1. make yourself indispensable at work

• so good or
important that you
could not manage
without him, or her
• nonreplaceable
• irreplaceable
• She soon became an
indispensable member
of staff.
• A knowledge of
classical music is
indispensable to
anyone who wants to
apply for this job.
 2. to work overtime
• to spend time
working after • They’re working
the usual time overtime to get the job
needed or finished.
expected in a
job • Many employees work
countless hours of
unpaid overtime.
• Many of our offices will
be working overtime
until the end of the
year.
3. to have a permanent contract
• a legal
document that
states and
explains a formal
agreement
between two
different people
or groups and
lasts for a long
time
• I got a permanent
contract today after
six months of
temporary contract.
 4. to land a plum job
• informal
• a good job that other
people wish they had
• a very good job

• He landed a plum role

in a TV mini-series.
5. hands-on experience
• someone who has hands-
on experience of
something has done or
used it rather than just
read or learned about it

• Many employers
consider hands-
on experience to
be as useful as
academic
qualifications.
 6. to do menial tasks
• menial work is boring
• makes you feel tired
• unimportant and is given a low
social value
• does not need any skills or
talent or training
• badly paid

• Even well-trained women

were forced into menial
labor.
• It's fairly menial work, such
as washing dishes and
cleaning floors.
• a menial job/task
 7. to do an unpaid internship
• a period of time during
which a student works for a
company or organization in
order to get experience of a
particular type of work:

• The business students

often do an unpaid
internship during their
long vacation in e-
commerce companies.
• a paid/summer
internship
• an internship program
 8. entry-level job

• the lowest level of an

organization, type of
work, etc.
 8. entry-level job
• You find entry-level
jobs in most
industries and
careers. In food
service, an entry-level
position may be a
cashier. Acquiring
these entry-level jobs
in the industry you
wish to work enables
you to gain hands-on
experience and
prove your
capabilities before
getting higher-level
positions.
 9. to gain useful experinece
• get/gain experience

• He suggested that I
should gain some
experience in a related
industry like travel.
• As we gained
experience of
interpreting the data
we were able to work
faster.
 10. to cover employee’s
expenses
• money that you spend
when you are doing your
job, that an employer or
other organization pays
back to you:
• She was invited to
speak at the
conference, with an
offer to cover all her
expenses.
• Employers are to cover
employees’ expenses
when they travel on
business.
 11. to do a short-term placement
• a temporary job that someone does in an organization, usually
to gain some work experience:
• He got a two-week placement in the accounts
department.
 11. to pay the minimum wage
• the lowest amount of
money that an
employer can legally
pay to a worker
• Most of the junior
office people are
paid the minimum
wage.
• Most of the new jobs
in the area only pay
the minimum wage.
COLLOCATIONS
MONEY
make
• a situation in which a
business spends more
money than it earns
a loss
• money that you gain by
a selling things or doing
business, after your costs
profit have been paid
make
your • to sell as much as you have been asked to
You have to sell enough trips and tickets to
make your target this week.
target
• to have only just enough money to buy the
ends things you need
It’s not easy to make ends meet with a big
meet family, but somehow we manage.

• to earn a very large amount of money,

especially by doing something very
a mint successfully.
We'll make a mint if we can manage to
secure a trading partner in China.
I hear Sarah is making a mint with sales from
her latest novel.
get
• an increase in the
a (pay) amount of money you
earn for doing your job
rise
• a sum of money paid
a regularly to a person who
has retired (= stopped
pension working because of
having reached a certain
age)
get
• in addition to the salary, these
are employee benefits such as
perks the use of an expensive car,
meal breaks, health insurance,
paid vacation, etc.
a
financial
incentiv • extra money paid to encourage
or motivate people to do
e something, especially to make
them work harder, or produce
more
work
on • to receive payment
commiss according to how much
ion you sell

for • without any payment

nothing Some of the men
volunteered to work for
nothing.
work
• a very small amount of money,
for a especially wages, that is less than
someone needs or deserves
pittance He works hard but he's paid a
pittance.

for
peanuts • informal - a very small amount of
something, usually money
Some of the best investments are
made for peanuts.
Their earnings are peanuts compared
with the salaries of the top managers.
COLLOCATIONS
MONEY and BUSINESS
build
• We want to build a brand name
around a unique culture.
a brand
• How to build a business? The choices in
sales and marketing and advertising
are covered in this book.
a • People build a business for their
families.
business

a • conˈsumer base (also customer base)

[countable usually singular]
customer all the people who buy or use a particular
product
base • Computer manufacturers’ general
marketing problem is capturing and
retaining a customer base.
found • to found: to start something
such as an organization,
company, school, or city,
a charity often by providing the
necessary money SYN
establish
a
• Founded in 1935 in Ohio,
business TechnoPro Anonymous is
a now a world-wide
compan organization.
y • Eton College was founded by
Henry VI in 1440.
follow
• «Follow your heart and your
your intuition. They somehow
already know what you truly
dream want to become. Everything
else is secondary.» Steve Jobs
your
heart
• gut instinct (informal ): a
reaction or feeling that you
your gut are sure is right, although you
cannot give a reason for it
instinct He had a gut feeling that Sarah
was lying.
sustain
• sustain.: MAKE SOMETHING
a CONTINUE to make
something continue to exist
business or happen for a period of
plan time SYN maintain

economi
c growth
• IF a company sustains losses
or other difficulties, it has
financial them
losses • Like other insurance
companies, we have
sustained heavy financial
losses.
recruit
a new • to recruit: to find new
manage people to work in a
r company, join an
organization, do a job
etc. to hire/employ sb
students
• We’re having difficulty
recruiting enough
qualified staff.
talent • Many government
officials were recruited
from private industry.
 Gain
to get sth

feedback
• to gain insight: to learn or find out about
something
In order to gain insight into the problem, the form of
the method with digit signal processing technique is
insight analyzed.
By analysing simple situations, with essential features
in common, we can gain insight into the behaviour of
these complicated creatures.

recognitio • recognition: the act of realizing and accepting that

something is true or important.
n The company has gained recognition for its customer
service.
He has gained recognition and respect as a scientist.
1. to realise the potential
• potential syn:
possible
 2. to see a return

• To start making a
profit, the amount
of profit that you
get from something
• The markets are
showing extremely
poor returns.
 3. fluctuations in a revenue

• revenue: income
• money that a
business or
organization
receives over a
period of time,
especially from
selling goods or
services
4. to have a great rapport with sb
• rapport: friendly
agreement and
understanding
between people →
good relationship

• He had an
excellent rapport
with his customers.
• He built up a good
rapport with the
children.
 5. be fresh out of somewhere
• someone who has
completed a
university degree,
• having just arrived
from somewhere:
• We hired her fresh
out of college.
6. to give a flying start

• to make a very good start

to something, quickly
making good progress

• She's given a flying start in

her new job.
• The appeal has given a
flying start, with over
£200,000 raised in the
first week.
• The runners gave a flying
start and looked like
beating the record.
 7. to gauge consumer opinion
• to judge how people feel about something or what they
are likely to do
• to measure how people feel about something or the
effect that something is likely to have on them

• It is difficult to gauge what the other party’s next move will be.
• I looked at Chris, trying to gauge his reaction.
• He is testing, trying to gauge the mind of the jury.
• The magazine commissioned research to gauge opinion on how
British industry is meeting its environmental responsibilities.
• We’ve done extensive testing to gauge consumer reactions.
COLLOCATIONS
ADJECTIVES
 a. restless (adj)
• uneasy
• nervous
• anxious
• unwilling or unable to stay still or
to be quiet and calm, because
you are worried or bored:
• He's a restless type - he never
stays in one country for long.
• She spent a restless night (= she
did not sleep well), tossing and
turning.
• The children had been indoors all
day, and were getting restless.
 b. tenacious (adj)
• stubborn
• persistent
• holding tightly onto something, or
keeping an opinion in a
determined way:

• The baby took my finger in its

tenacious little fist.
• There has been tenacious local
opposition to the new airport.
• As a reporter, David was tougher
and more tenacious than the other
three.
• Anyone who has tried to remove a
hermit crab from its shell will know
how tenacious these creatures can
be.
 c. prosperous (adj)
formal
• wealthy
• affluent
• prospering
• successful, usually by earning a
lot of money:
• a prosperous
businessman/landowner

• In a prosperous country like

this, no one should go hungry.

• The region is becoming more

prosperous.
 d. perseverant (adj)
• trying to do something or
continuing to do something in a
determined way, despite having
problems:

• Farming is for people who are

ambitious and perseverant.
• Captain Benson praised his
men's courage and perseverance
in dealing with a very dangerous
situation.
• Stories about hard times teach
the value of perseverance and
hard work.
e. hypercompetition (n)
 e. hypercompetition (n)
• a situation of extreme competition,
where companies must try even
harder than usual to have better
products, sell more, etc.:

• The telecom company is preparing

for another year of “hyper-
competition”, focusing not only on
adding new subscribers but also on
creating new services for existing
users.
• Hypercompetitive environments
require businesses to stay flexible,
innovative and creative.
• Meanwhile, in the hypercompetitive
Chinese market, the F4 is suddenly
an old model.
 f. competent (adj)
• efficient
• qualified
• skilled
• suitable
• able to do something well:
• a competent secretary/rider/cook

• Charlie can cope here without you - he's

perfectly competent.
• They are a very competent group of
people, but they lack flexibility and
originality.
• He is an agricultural science graduate
from Cambridge University and feels
competent to assess evidence and act
logically.
COMMON AMERICAN ENGLISH
IDIOMS AND EXPRESSIONS USED IN
BUSINESS
AHEAD OF THE PACK

Meaning: To be more successful than the

competition

Example: If we want to stay ahead of the pack,

we’ll have to increase our marketing budget.
BACK TO SQUARE ONE/BACK
TO THE DRAWING BOARD
Meaning: To start something over again because
a previous attempt failed

Example: To make this software finally work, we

have to go back to square one/go back to the
drawing board.
 BALLPARK NUMBER/FIGURE
Meaning: A very inexact estimate

Example: To give you a ballpark figure,

how much the border wall to Mexico is
going to cost, I’d say about 30 million
dollars.
BEHIND THE SCENES

Meaning: describes things that happen which

the public don't know about or see directly
BALANCING
ACT

Example: We gave a successful presentation

and I need to thank all those behind the
scenes.
BRING SOMETHING TO THE TABLE

Meaning: to contribute something of value (to

a company)

Example: She brings a great deal of

experience to the table.
BIG PICTURE
VERY PERI
Meaning: Everything that is involved with a
Introducing the Pantone Color of the Year
particular situation
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: Working on all these details, we have

The four color palettes in this template
lost sight of the big picturefeature
. Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 BY THE BOOK
Meaning: to do things according to the rules or
the law

Example: Our accountant does everything by

the book so there are no problems in the
future.
CALL IT A DAY
VERY PERI
Meaning: to stop doing something (to leave
Introducing the Pantone Color of the Year
work or do something else)
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: I think we have spent enough time

The four color palettes in this template
discussing this project. Let's callVery
feature it a Peri
day. to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 CORNER THE MARKET
Meaning: To dominate a particular market

Example: Amazon more or less corners the online

retailing market.
CUT ONE'S LOSSES
VERY PERI
Meaning: to stop an activity that is unsuccessful to
avoid losing more money Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: We've decided to cutThe

our losses and close
four color palettes in this template
the restaurant.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 CUT-THROAT
Meaning: Very intense, aggressive, and merciless
competition

Example: Competition in the food retailing business is

cut-throat.
EASY COME, EASY GO
VERY PERI
Meaning: Something gained easily is also lost easily
Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: I lost 500 Euros in a poker game last night,

The four color palettes in this template
but that’s life – easy come, easy go.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 DO SOMETHING/GO BEHIND
SOMEONE’S BACK

Meaning: to talk about someone or take action without

their knowledge

Example: My team went behind my back and

complained to the boss before speaking with me.
FROM THE GROUND UP
VERY PERI
Meaning: to do something from the start/very
beginning Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: Our boss built this company from the

The four color palettes in this template
ground up.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 GAME PLAN
Meaning: A strategy or plan for achieving success

Example: What is our game plan for dealing with our

new competitor?
GET DOWN TO BUSINESS
VERY PERI
Meaning: Stop making small talk and start talking
about serious business topics Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: Now that everyone’sThe

here, let’s get down to
four color palettes in this template
business and start with the presentation.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 GET SOMETHING OFF THE GROUND/GET THE BALL ROLLING

Meaning: To start something (e.g. a project or a

business)

Example: Now that we have finished the planning

phase, we’re eager to get the project off the
ground/get the ball rolling on the project.
GIVE SOMEONE THE GREEN LIGHT
VERY PERI
Meaning: to authorize or allow someone to do
something Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: The directors have finally given us the green

The four color palettes in this template
light to increase spending.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 GET ONE’S FOOT IN THE DOOR
Meaning: to take the first step with the aim to progress
further in the future

Example: She took an entry-level job to get her foot in

the door and got promoted after 1 year.
GO BELLY UP
VERY PERI
Meaning: describes a company that fails or goes
bankrupt Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: Several of our competitors went belly

The four color palettes in this template
up during the last recession.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 GO DOWN THE DRAIN
Meaning: Something is wasted or lost

Example: All our efforts in entering this new market

went down the drain.
GO THE EXTRA MILE
VERY PERI
Meaning: To do more than what people expect
Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: To give our customers the best shopping

The four color palettes in this template
experience, we go the extra mile.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 HANDS ARE TIED
Meaning: Not being free to behave in the way that you would like

Example: I’d love to help you, but my hands are tied.

IN A NUT SHELL
VERY PERI
Meaning: Using as few words as possible
Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: In a nutshell, we willThe

run out of cash in three
four color palettes in this template
months time.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 IN FULL SWING
Meaning: At a stage when the level of activity is at its highest

Example: Construction of our new production site is

in full swing now.
IN THE DRIVER’S SEAT
VERY PERI
Meaning: To be in charge or in control of a situation
Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: Being offered the position of managing

The four color palettes in this template
director, I’ll soon be in the driver’s seat.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 KEEP ONE’S EYE ONE THE BALL
Meaning: To give something one’s full attention and
to not lose focus

Example: We should not diversify our product

offering too much, but rather keep our eyes on the
ball.
KEEP ONE’S EYE ON THE PRIZE
VERY PERI
Meaning: someone keeps their attention on
Introducing the Pantone Color of the Year
what they are trying to achieve, even
2022. PANTONE 17-3938 Very Peri is a
when this is difficult
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: I know this projectThe

is four
taking a long
color palettes in this template
time and the clients are demanding, but
feature Very you
Peri haveyou express your
to help
to keep your eye on the prize.
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 LEARN THE ROPES/SHOW SOMEONE THE ROPES
Meaning: Learn the basics of something/teach the
basics of something to someone

Example: I’m learning the ropes in my new position./

I’ll be showing you the ropes around the office
today.
LONG SHOT
VERY PERI
Meaning: Something that has a very low probability of
happening Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: Winning the lottery isThe

a long shot.
four color palettes in this template
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 NO-BRAINER
Meaning: Something that is really obvious or easy

Example: Making money working for an investment

bank is a no-brainer.
NO STRINGS ATTACHED
VERY PERI
Meaning: Something is given without involving special
demands or limits Introducing the Pantone Color of the Year
2022. PANTONE 17-3938 Very Peri is a
dynamic hue that blends the faithfulness
and constancy of blue with the energy and
excitement of red.

Example: They will let you try the product for free with
The four color palettes in this template
no strings attached.
feature Very Peri to help you express your
ideas and convey the right mood. Read on
to learn how to use these colors in any
presentation.
 NOT GOING TO FLY
Meaning: Something isn’t expected to work out

Example: This product is definitely not going to fly.

 ON THE SAME PAGE
Meaning: To be in agreement about something

Example: Let’s go over the contract details once

more to make sure we’re on the same page.
 OUT IN THE OPEN
Meaning: Something that is public knowledge and
not secret anymore

Example: Our financial situation is out in the open

now.
 PUT ALL ONE’S EGGS IN ONE BASKET
Meaning: To rely on only one thing to bring success

Example: It’s not smart to invest in American tech

stocks only and put all your eggs in one basket.
 PUT THE CART BEFORE THE HORSE
Meaning: To do or think about things in the wrong
order

Example: Trying to find an investor without having a

business plan is like putting the cart before the
horse.
 RAISE THE BAR
Meaning: To set standards or expectations higher

Example: The iPhone raised the bar for smartphone

makers.
 RED TAPE
Meaning: Official rules and processes that seem
excessive and unnecessary

Example: The new law is going to create a lot of red

tape.
 ROCK THE BOAT
Meaning: To do or say something that will upset
people or cause problems

Example: Don’t rock the boat until the negotiations

are finished.
 SAFE BET
Meaning: Something that is certain to happen

Example: It’s a safe bet that computer processor

speed will more than triple within the next 10
years.
 SAME BOAT
Meaning: To be in the same difficult situation as
someone else

Example: None of us has any money left, so we’re

all in the same boat.
 SEE EYE TO EYE
Meaning: To agree with somebody

Example: My boss doesn’t see eye to eye with me

about our marketing campaign.
 SEE SOMETHING THROUGH
Meaning: To continue until something is finished

Example: I want to see this project through before

taking on another one.
 SEVER TIES
Meaning: To end a relationship

Example: We had to sever ties with several

suppliers due to poor product quality.
 SHOOT SOMETHING DOWN
Meaning: To reject something (e.g. an idea or a
proposal)

Example: You shouldn’t shoot down your co-workers

ideas during a brainstorming session.
 SMOOTH SAILING
Meaning: A situation where success is achieved
without difficulties

Example: Once our largest competitor went out of

business, it was smooth sailing.
 STAND ONE’S GROUND
Meaning: To not change one’s opinion or position

Example: They tried to cut my travel budget, but I

stood my ground.
 TAKE THE BULL BY THE HORNS
Meaning: To directly confront a difficult situation in
a brave and determined way

Example: My mid-level managers constantly delayed

projects, so I took the bull by the horns and fired
several of them.
 THE ELEPHANT IN THE ROOM
Meaning: An obvious problem or controversial issue
that no one wants to discuss.

Example: We should have discussed our upcoming

lawsuit, but no one wanted to talk about the
elephant in the room.
 THINK OUTSIDE THE BOX
Meaning: To think of creative, unconventional
solutions instead of common ones.

Example: Our current approach will get us nowhere.

We have to think outside the box.
 TOUCH BASE
Meaning: To make contact with someone.

Example: I will touch base with you later today.

 TWIST SOMEONE’S ARM
Meaning: To convince someone to do something
that he or she does not want to do.

Example: My boss thought the budget was a little

high, so I had to twist his arm to get him to agree
to it.
 UP IN THE AIR
Meaning: Something is undecided or uncertain

Example: Our international expansion plan is still up

in the air.
 UPHILL BATTLE
Meaning: Something that is difficult to achieve
because of obstacles and difficulties

Example: Gaining market share in this country will

be an uphill battle due to tough competition.
 UPPER HAND
Meaning: To have more power than anyone else and
so have control

Example: Due to my experience, I had the upper

hand in the negotiation.
 WORD OF MOUTH
Meaning: Something is given or done by people
talking about something or telling people about
something

Example: Many local stores rely on word of mouth

to get new customers.
 Glossary of Business Terms
(List is separated by Accounting & Finance Terms. Note, terms may be repeated)

Accounting Terms

Account ‐‐ a record of financial transactions; usually refers to a specific category or type, such as travel expense
account or purchase account.

Accountant ‐‐ a person who trained to prepare and maintain financial records.

Accounting ‐‐ a system for keeping score in business, using dollars.

Accounting period ‐‐ the period of time over which profits are calculated. Normal accounting periods are months,
quarters, and years (fiscal or calendar).

Accounts payable ‐‐ amounts owed by the company for the goods or services it has purchased from outside
suppliers.

Accounts receivable ‐‐ amounts owed to the company by its customers.

Accrual basis, system, or method ‐‐ an accounting system that records revenues and expenses at the time the
transaction occurs, not at the time cash changes hands. If you buy a coat and charge it, the store records or
accrues the sale when you walk out with the coat, not when you pay your bill. Cash basis accounting is used by
individuals. Accrual basis accounting is used by most businesses.

Accrued expenses, accruals ‐‐ an expense which has been incurred but not yet paid for. Salaries are a good
example. Employees earn or accrue salaries each hour they work. The salaries continue to accrue until payday
when the accrued expense of the salaries is eliminated.

Aging ‐‐ a process where accounts receivable are sorted out by age (typically current, 30 to 60 days old, 60 to 120
days old, and so on.) Aging permits collection efforts to focus on accounts that are long overdue.

Amortize ‐‐ to charge a regular portion of an expenditure over a fixed period of time. For example if something
cost $100 and is to be amortized over ten years, the financial reports will show an expense of $10 per year for ten
years. If the cost were not amortized, the entire $100 would show up on the financial report as an expense in the
year the expenditure was made. (See Expenditure and Expense.)

Appreciation ‐‐ an increase in value. If a machine cost $1,000 last year and is now worth $1,200, it has appreciated
in value by $200. (The opposite of depreciation.)

Assets ‐‐ things of value owned by a business. An asset may be a physical property such as a building, or an object
such as a stock certificate, or it may be a right, such as the right to use a patented process.

Current Assets are those assets that can be expected to turn into cash within a year or less. Current
assets include cash, marketable securities, accounts receivable, and inventory.

Fixed Assets cannot be quickly turned into cash without interfering with business operations. Fixed assets
include land, buildings, machinery, equipment, furniture, and long‐term investments.
 Intangible Assets are items such as patents, copyrights, trademarks, licenses, franchises, and other kinds
of rights or things of value to a company, which are not physical objects. These assets may be the most
important ones a company owns. Often they do not appear on financial reports.

Audit ‐‐ a careful review of financial records to verify their accuracy.

Bad debts ‐‐ amounts owed to a company that are not going to be paid. An account receivable becomes a bad debt
when it is recognized that it won't be paid. Sometimes, bad debts are written off when recognized. This is an
expense. Sometimes, a reserve is set up to provide for possible bad debts. Creating or adding to a reserve is also an
expense.

Balance sheet ‐‐ a statement of the financial position of a company at a single specific time (often at the close of
business on the last day of the month, quarter, or year.) The balance sheet normally lists all assets on the left side
or top while liabilities and capital are listed on the right side or bottom. The total of all numbers on the left side or
top must equal or balance the total of all numbers on the right side or bottom. A balance sheet balances according
to this equation: Assets = Liabilities + Capital.

Bond ‐‐ a written record of a debt payable more than a year in the future. The bond shows amount of the debt,
due date, and interest rate.

Book value ‐‐ total assets minus total liabilities. (See also net worth.) Book value also means the value of an asset
as recorded on the company's books or financial reports. Book value is often different than true value. It may be
more or less.

Breakeven point ‐‐ the amount of revenue from sales which exactly equals the amount of expense. Breakeven
point is often expressed as the number of units that must be sold to produce revenues exactly equal to expenses.
Sales above the breakeven point produce a profit; below produces a loss.

Capital ‐‐ money invested in a business by its owners. (See equity.) On the bottom or right side of a balance sheet.
Capital also refers to buildings, machinery, and other fixed assets in a business. A capital investment is an
investment in a fixed asset with a long‐term use.

Capitalize ‐‐ to capitalize means to record an expenditure on the balance sheet as an asset, to be amortized over
the future. The opposite is to expense. For example, research expenditures can be capitalized or expensed. If
expensed, they are charged against income when the expenditure occurs. If capitalized, the expenditure is charged
against income over a period of time usually related to the life of the products or services created by the research.

Cash ‐‐ money available to spend now. Usually in a checking account.

Cash flow ‐‐ the amount of actual cash generated by business operations, which usually differs from profits shown.

Chart of accounts ‐‐ a listing of all the accounts or categories into which business transactions will be classified and
recorded. Each account usually has a number. Transactions are coded by this number for manipulation on
computers.

Contingent liabilities ‐‐ liabilities not recorded on a company's financial reports, but which might become due. If a
company is being sued, it has a contingent liability that will become a real liability if the company loses the suit.

Cost of sales, cost of goods sold ‐‐ the expense or cost of all items sold during an accounting period. Each unit sold
has a cost of sales or cost of the goods sold. In businesses with a great many items flowing through, the cost of
sales or cost of goods sold is often computed by this formula: Cost of Sales = Beginning Inventory + Purchases
During the Period ‐ Ending Inventory.
Credit ‐‐ an accounting entry on the right or bottom of a balance sheet. Usually an increase in liabilities or capital,
or a reduction in assets. The opposite of credit is debit. Each credit in a balance sheet has a balancing debit. Credit
has other usages, as in "You have to pay cash, your credit is no good." Or "we will credit your account with the
refund."

Debit ‐‐ an accounting entry on the left or top of a balance sheet. Usually an increase in assets or a reduction in
liabilities. Every debit has a balancing credit.

Deferred charges ‐‐ see prepaid expenses.

Deferred income ‐‐ a liability that arises when a company is paid in advance for goods or services that will be
provided later. For example, when a magazine subscription is paid in advance, the magazine publisher is liable to
provide magazines for the life of the subscription. The amount in deferred income is reduced as the magazines are
delivered.

Depreciation ‐‐ an expense that is supposed to reflect the loss in value of a fixed asset. For example, if a machine
will completely wear out after ten year's use, the cost of the machine is charged as an expense over the ten‐year
life rather than all at once, when the machine is purchased. Straight line depreciation charges the same amount to
expense each year. Accelerated depreciation charges more to expense in early years, less in later years.
Depreciation is an accounting expense. In real life, the fixed asset may grow in value or it may become worthless
long before the depreciation period ends.

Discounted cash flow ‐‐ a system for evaluating investment opportunities that discounts or reduces the value of
future cash flow. (See Present Value)

Dividend ‐‐ a portion of the after‐tax profits paid out to the owners of a business as a return on their investment.

Double entry ‐‐ a system of accounting in which every transaction is recorded twice ‐‐ as a debit and as a credit.

Earnings per share ‐‐ a company's net profit after taxes for an accounting period, divided by the average number
of shares of stock outstanding during the period.

80 ‐ 20 rule ‐‐ a general rule of thumb in business that says that 20% of the items produce 80% of the action ‐‐ 20%
of the product line produces 80% of the sales, 20 percent of the customers generate 80% of the complaints, and so
on. In evaluating any business situation, look for the small group which produces the major portion of the
transactions you are concerned with. This rule is not exactly accurate, but it reflects a general truth, nothing is
evenly distributed.

Equity ‐‐ the owners' share of a business.

Expenditure ‐‐ an expenditure occurs when something is acquired for a business ‐‐ an asset is purchased, salaries
are paid, and so on. An expenditure affects the balance sheet when it occurs. However, an expenditure will not
necessarily show up on the income statement or affect profits at the time the expenditure is made. All
expenditures eventually show up as expenses, which do affect the income statement and profits. While most
expenditures involve the exchange of cash for something, expenses need not involve cash. (See Expense)

Expense ‐‐ an expenditure which is chargeable against revenue during an accounting period. An expense results in
the reduction of an asset. All expenditures are not expenses. For example, a company buys a truck. It trades one
asset ‐ cash ‐ to acquire another asset. An expenditure has occurred but no expense is recorded. Only as the truck
is depreciated will an expense be recorded. The concept of expense as different from an expenditure is one reason
financial reports do not show numbers that represent spendable cash. The distinction between an expenditure and
an expense is important in understanding how accounting works and what financial reports mean. (To expense is a
verb. It means to charge an expenditure against income when the expenditure occurs. The opposite is to
capitalize.)

Fiscal year ‐‐ an accounting year than begins on a date other than January 1.

Fixed asset ‐‐ see asset.

Fixed cost ‐‐ a cost that does not change as sales volume changes (in the short run.) Fixed costs normally include
such items as rent, depreciation, interest, and any salaries unaffected by ups and downs in sales.

Goodwill ‐‐ in accounting, the difference between what a company pays when it buys the assets of another
company and the book value of those assets. Sometimes, real goodwill is involved ‐ a company's good reputation,
the loyalty of its customers, and so on. Sometimes, goodwill is an overpayment.

Income ‐‐ see profit.

Interest ‐‐ a charge made for the use of money.

Inventory ‐‐ the supply or stock of goods and products that a company has for sale. A manufacturer may have
three kinds of inventory: raw materials waiting to be converted into goods, work in process, and finished goods
ready for sale.

Inventory obsolescence ‐‐ inventory no longer salable. Perhaps there is too much on hand, perhaps it is out of
fashion. The true value of the inventory is seldom exactly what is shown on the balance sheet. Often, there is
unrecognized obsolescence.

Inventory shrinkage ‐‐ a reduction in the amount of inventory that is not easily explainable. The most common
cause of shrinkage is probably theft.

Inventory turnover ‐‐ a ratio that indicates the amount of inventory a company uses to support a given level of
sales. The formula is: Inventory Turnover = Cost of Sales ¸ Average Inventory. Different businesses have different
general turnover levels. The ratio is significant in comparison with the ratio for previous periods or the ratio for
similar businesses.

Invested capital ‐‐ the total of a company's long‐term debt and equity.

Journal ‐‐ a chronological record of business transactions.

Ledger ‐‐ a record of business transactions kept by type or account. Journal entries are usually transferred to
ledgers.

Liabilities ‐‐ amounts owed by a company to others. Current liabilities are those amounts due within one year or
less and usually include accounts payable, accruals, loans due to be paid within a year, taxes due within a year, and
so on. Long‐term liabilities normally include the amounts of mortgages, bonds, and long‐term loans that are due
more than a year in the future.

Liquid ‐‐ having lots of cash or assets easily converted to cash.

Marginal cost, marginal revenue ‐‐ marginal cost is the additional cost incurred by adding one more item. Marginal
revenue is the revenue from selling one more item. Economic theory says that maximum profit comes at a point
where marginal revenue exactly equals marginal cost.

Net worth ‐‐ total assets minus total liabilities. Net worth is seldom the true value of a company.
Opportunity cost ‐‐ a useful concept in evaluating alternate opportunities. If you choose alternative A, you cannot
choose B, C, or D. What is the cost or loss of profit of not choosing B, C, or D? This cost or loss of profit is the
opportunity cost of alternative A. In personal life you may buy a car instead of taking a European vacation. The
opportunity cost of buying the car is the loss of the enjoyment of the vacation.

Overhead ‐‐ a cost that does not vary with the level of production or sales, and usually a cost not directly involved
with production or sales. The chief executive's salary and rent are typically overhead.

Post ‐‐ to enter a business transaction into a journal or ledger or other financial record.

Prepaid expenses, deferred charges ‐‐ assets already paid for, that are being used up or will expire. Insurance paid
for in advance is a common example. The insurance protection is an asset. It is paid for in advance, it lasts for a
period of time, and expires on a fixed date.

Present value ‐‐ a concept that compares the value of money available in the future with the value of money in
hand today. For example, $78.35 invested today in a 5% savings account will grow to $100 in five years. Thus the
present value of $100 received in five years is $78.35. The concept of present value is used to analyze investment
opportunities that have a future payoff.

Price‐earnings (p/e) ratio ‐‐ the market price of a share of stock divided by the earnings (profit) per share. P/e
ratios can vary from sky high to dismally low, but often do not reflect the true value of a company.

Profit ‐‐ the amount left over when expenses are subtracted revenues. Gross profit is the profit left when cost of
sales is subtracted from sales, before any operating expenses are subtracted. Operating profit is the profit from the
primary operations of a business and is sales minus cost of sales minus operating expenses. Net profit before taxes
is operating profit minus non‐operating expenses and plus non‐operating income. Net profit after taxes is the
bottom line, after everything has been subtracted. Also called income, net income, earnings. Not the same as cash
flow and does not represent spendable dollars.

Retained earnings ‐‐ profits not distributed to shareholders as dividends, the accumulation of a company's profits
less any dividends paid out. Retained earnings are not spendable cash.

Return on investment (ROI) ‐‐ a measure of the effectiveness and efficiency with which managers use the
resources available to them, expressed as a percentage. Return on equity is usually net profit after taxes divided by
the shareholders' equity. Return on invested capital is usually net profit after taxes plus interest paid on long‐term
debt divided by the equity plus the long‐term debt. Return on assets used is usually the operating profit divided by
the assets used to produce the profit. Typically used to evaluate divisions or subsidiaries. ROI is very useful but can
only be used to compare consistent entities ‐‐ similar companies in the same industry or the same company over a
period of time. Different companies and different industries have different ROIs.

Revenue ‐‐ the amounts received by or due a company for goods or services it provides to customers. Receipts are
cash revenues. Revenues can also be represented by accounts receivable.

Risk ‐‐ the possibility of loss; inherent in all business activities. High risk requires high return. All business decisions
must consider the amount of risk involved.

Sales ‐‐ amounts received or due for goods or services sold to customers. Gross sales are total sales before any
returns or adjustments. Net sales are after accounting for returns and adjustments.

Stock ‐‐ a certificate (or electronic or other record) that indicates ownership of a portion of a corporation; a share
of stock.
 Preferred stock promises its owner a dividend that is usually fixed in amount or percent. Preferred
shareholders get paid first out of any profits. They have preference.

Common stock has no preference and no fixed rate of return. Treasury stock was originally issued to
shareholders but has been subsequently acquired by the corporation.

Authorized by unissued stock is stock which official corporate action has authorized but has not sold or
issued. (Stock also means the stock of goods, the stock on hand, the inventory of a company.)

Sunk costs ‐‐ money already spent and gone, which will not be recovered no matter what course of action is taken.
Bad decisions are made when managers attempt to recoup sunk costs.

Trial balance ‐‐ at the close of an accounting period, the transactions posted in the ledger are added up. A test or
trial balance sheet is prepared with assets on one side and liabilities and capital on the other. The two sides should
balance. If they don't, the accountants must search through the transactions to find out why. They keep making
trial balances until the balance sheet balances.

Variable cost ‐‐ a cost that changes as sales or production change. If a business is producing nothing and selling
nothing, the variable cost should be zero. However, there will probably be fixed costs.

Working capital ‐‐ current assets minus current liabilities. In most businesses the major components of working
capital are cash, accounts receivable, and inventory minus accounts payable. As a business grows it will have larger
accounts receivable and more inventory. Thus the need for working capital will increase.

Write‐down ‐‐ the partial reduction in the value of an asset, recognizing obsolescence or other losses in value.

Write‐off ‐‐ the total reduction in the value of an asset, recognizing that it no longer has any value. Write‐downs
and write‐offs are non‐cash expenses that affect profits.
 FINANCE TERMS

Accounts payable - a record of all short-term (less than 12 months) invoices, bills and other liabilities yet to be
paid. Examples of accounts payable include invoices for goods or services, bills for utilities and tax payments due.

Accounts receivable - a record of all short-term (less than 12 months) expected payments, from customers that
have already received the goods/services but are yet to pay. These types of customers are called debtors and are
generally invoiced by a business.

Accounts receivable finance - see Factoring.

Accrual accounting - an accounting system that records transactions at the time they occur, whether the payment
is made now or in the future.

Amortization - the process of expensing for intangible assets such as goodwill and intellectual property over a
period of time. See also Depreciation.

Assets - are things you own. These can be cash or something that can be converted into cash such as property,
vehicles, equipment and inventory.

Audit - a physical check performed by an auditor or tax official on a business' financial records to check that
everything is accounted for correctly.

Bad debts - money owed to you that is unlikely to be paid to you in the foreseeable future.

Balance sheet - a snapshot of a business as of a particular date. It lists all of a business' assets and liabilities and
works out the net assets.

Balloon payment - a final lump sum payment due on a loan agreement. Loans with a larger final 'balloon payment'
have lower regular repayments over the term of the loan.

Bank reconciliation - a cross-check that ensures the amounts recorded in the cashbook match the relevant bank
statements.

Bankrupt - an individual is bankrupt when they cannot pay their debts and aren't able to reach an agreement with
their creditors.

Bankruptcy - a process where an individual is legally declared bankrupt and their assets and financial affairs are
administered by an appointed trustee.

Benchmark - a set of conditions against which a product or business is measured.

Benchmarking - the process of comparing your business to similar businesses in your industry.

Bill of sale - a legal document used in the purchase of property or other assets that details what was purchased,
where the purchase took place, and for how much.

Bookkeeping - the process of recording the financial transactions of a business.

Bootstrapping - where a business funds growth purely through personal finances and revenue from the business.
Bottom line - see Net profit.

Break-even point - the exact point when a business' income equals a business' expenses.

Budget - a listing of planned revenue and expenditure for a given period.

Capital - wealth in the form of money or property owned by a business.

Capital cost - a one-off substantial purchase of physical items such as plant, equipment, building or land.

Capital gain - is the amount gained when an asset is sold above its original purchase price.

Capital growth - an increase in the value of an asset.

Cash - includes all money that is available on demand including bank notes and coins, petty cash, certain cheques,
and money in savings or debit accounts.

Cash accounting - an accounting system that records transactions at the time money is actually received or paid.

Cash book - a daily record of all cash, credit or cheque transactions received or paid out by a business.

Cash flow - the measure of actual cash flowing in and out of a business.

Cash incoming - money that is flowing into the business.

Cash outgoing - money that is flowing out of the business.

Chart of accounts - an index of the accounts a business will use to classify transactions. Each account represents a
type of transaction such as Asset, Liability, Owner's equity, Income, and Expense.

Chattel Mortgage - is similar to a hire-purchase agreement although the business owns the asset from the start.
Chattel mortgages require regular ongoing payments and typically provide the option of reducing the payments
through the use of a final 'balloon' payment.

Collateral - see Security.

Commercial bill - (also known as a bill of exchange) is a form of commercial loan that can be offered on an interest
only basis, or reducing basis. Commercial bills typically require some sort of security and suit short-term funding
needs such as inventory.

Contingent liability - a liability that only needs to be paid if a particular event or circumstance occurs.

Cost of goods sold - the total direct costs of producing a good or delivering a service.

Credit - a lending term used when a customer purchases a good or service with an agreement to pay at a later date
(e.g. an account with a supplier, a store credit card or a bank credit card).

Creditor - a person or business that allows you to purchase a good or service with an agreement to pay at a later
date. A creditor is also anyone who you owe money to, such as a lender or supplier.
Credit limit - a dollar amount that cannot be exceeded on a credit card or the maximum lending amount offered
for a loan.

Credit rating - a ranking applied to a person or business based on their credit history that represents their ability to
repay a debt

Credit history - a report detailing an individual's or business' past credit arrangements. A credit history is often
sought by a lender when assessing a loan application.

Crowd funding - Is a way of financing your business idea through donations of money from the public. This is
usually done online, through a crowd funding website.

Current asset - an asset in cash or that can be converted into cash within the next 12 months.

Current liability - a liability that is due for payment in the next 12 months.

Debit - in double-entry bookkeeping a debit is an entry made on the left hand side of a journal or ledger
representing an asset or expense.

Debt - any amount that is owed including bills, loan repayments and income tax.

Debt consolidation - the process of combining several loans or other debts into one for the purposes of obtaining
a lower interest rate or reducing fees.

Debt finance - money provided by an external lender, such as a bank or building society.

Debtor - a person or business that owes you money.

Debtors finance - See Factoring.

Default - a failure to pay a loan or other debt obligation.

Depreciation - the process of expensing an asset over a period of time. An asset is depreciated to spread the cost
of the asset over its useful life.

Disbursements - money that is paid out by a business.

Discount - a reduction applied to a full priced good or service. See also Markdown.

Double-entry bookkeeping - is a bookkeeping method that records each transaction in two accounts, both as a
debit and a credit.

Drawings - personal expenses paid for from a business account.

Drip pricing - Is when one price is presented at the beginning of an online shopping experience and gradually,
incremental fees and charges are added (or 'dripped') as you progress, for example, when buying a plane ticket.
Drip pricing can result in the customer paying a higher price for a service or product than they first thought. As a
business owner, you are required to show fees and charges at the beginning of an online shopping process and not
gradually add them in.
Employee share schemes: An employee share scheme (ESS) is where you give your employees the opportunity to
buy shares in your company. It is also known as an 'employee share purchase plan' or an 'employee equity
scheme'.

Encumbered - an encumbered asset is one that is currently being used as security or collateral for a loan.

Equity - the value of ownership interest in the business, calculated by deducting liabilities from assets. See also
owner's equity.

Equity finance - is money provided to a business in exchange for part ownership of the business. This can be
money invested by the business owners, friends, family, or investors like business angels and venture capitalists.

Excise duty - an indirect tax levied on certain types of goods produced or manufactured in Australia including
petrol, alcohol, tobacco and coal.

Facility - a predetermined arrangement such as an account offered by a financial institution to a business (e.g. a
bank account, a short-term loan or overdraft).

Factoring - (also known as debtors finance and accounts receivable finance) — is when a factor company buys a
business' outstanding invoices at a discount. The factor company then chases up the debtors. Factoring is a way to
get quick access to cash, but can be quite expensive compared to traditional financing options.

Finance - money used to fund a business or high value purchase.

Financial year - a twelve month period typically from 1 July to 30 June.

Financial statement - a summary of a business' financial position for a given period. Financial statements can
include a profit & loss, balance sheet and cash flow statement.

Fixed asset - a physical asset used in the running of a business.

Fixed cost - a cost that cannot be directly attributed to the production of a good or service.

Fixed interest rate - when the interest rate of a loan remains the same for the term of the loan or an agreed
timeframe.

Float - is when a private company offers shares in the company to the public for the first time. See Initial public
offering.

Forecast - a prediction of future financial transactions. Forecasts are often used to help plan a more accurate
budget.

Fringe benefits - non-monetary benefits such as company cars and mobile phones, included as part of a salary
package.

Fully drawn advance - is a long term loan with the option to fix the interest rate for a period. These loans are
usually secured and can be used to fund a new business or equipment.

Goodwill - an intangible asset that represents the value of a business' reputation.

Gross income - the total money earned by a business before expenses are deducted.

Gross profit - (also known as net sales) the difference between sales and the direct cost of making the sales.

Guarantor- a person who promises to pay a loan in the event the borrower cannot meet the repayments. The
guarantor is legally responsible for the debt.

Hire-purchase - a type of finance contract where a good is purchased through an initial deposit and then rented
while the good is paid off in instalments plus interest charges. Once the good is fully paid the ownership of the
good transfers to the purchaser. See also Rent to buy.

Initial public offering (IPO) - when a company first offers shares on the stock market to sell them to the general
public. Also known as floating on the stock market.

Insolvent - a business or company is insolvent when they cannot pay their debts as and when they fall due.

Intangible assets - non-physical assets with no fixed value, such as goodwill and intellectual property rights.

Interest - the cost of borrowing money on a loan or earned on an interest-bearing account.

Interest rate - a percentage used to calculate the cost of borrowing money or the amount you will earn. Rates vary
from product to product and generally the higher the risk of the loan, the higher the interest rate. Rates may be
fixed or variable.

Inventory - an itemized list of goods or materials a business is holding for sale.

Investment - an asset purchased for the purpose of earning money such as shares or property.

Invoice - a document provided to a customer to request payment for a good/service received.

Invoice finance - is finance offered based on the strength of a business' accounts receivable. This form of financing
is similar to factoring, except that the invoices or accounts receivables remain with the business. See also
Factoring.

Liability - a financial obligation or amount owed.

Line of credit - an agreement allowing a borrower the ability to withdraw money from an account up to an
approved limit.

Liquidate - to quickly sell all the assets of a company quickly and convert them into cash.

Liquidation - the process of winding up an insolvent company. An appointed administrator will do this by ceasing
business operations, selling assets, and paying creditors and shareholders.

Liquidity - how quickly assets can be converted into cash.

Loan - a finance agreement where a business borrows money from a lender and pays it back in instalments (plus
interest) within a specified period of time.
Loan to value ratio (LVR) - your loan amount shown as a percentage of the market value of the property or asset
that will be purchased. The ratio helps a lender work out if the loan amount can be recouped in the event a loan
goes into default.

Margin - the difference between the selling price of a good or service and the profit. Margin is generally worked
out as a gross margin percentage which shows the proportion of profit for each sales dollar. See also Mark up.

Margin call - when the value of a property or asset falls below a certain LVR. For higher risk loans such as margin
loans, the lender will request further payment to bring the LVR back to the agreed percentage. See also Loan to
value ratio (LVR).

Mark down - a discount applied to a product during a promotion/sale for the purposes of attracting sales or for
shifting surplus/discontinued products. See also Discount.

Mark up - the amount added to the cost price of goods, to help determine a selling price. Essentially it is the
difference between the cost of the good/service and the selling price, but it does not take into account what
proportion of the amount is profit. See also Margin.

Maturity date - when a loan's term ends and all outstanding principal and interest payments are due.

Net assets - (also known as net worth, owner's equity or shareholder's equity) is the total assets minus total
liabilities.

Net income - the total money earned by a business after tax and other deductions are taken out.

Net Profit - (also known as your bottom line) is the total gross profit minus all business expenses.

Net Worth - See Net assets.

Overdraft facility - a finance arrangement where a lender allows a business to withdraw more than the balance of
an account.

Overdrawn account - a credit account that has exceeded its credit limit or a bank account that has had more than
the remaining balance withdrawn.

Overheads - the fixed costs associated with operating a business such as rent, marketing, utilities and
administrative costs. See also Fixed costs.

Owner's equity - See Net assets.

Personal Property - covers any property someone can own, except for land, buildings and fixtures. Examples
include goods, plant and equipment, cars, boats, planes, livestock and more.

Personal Property Security Register (PPSR) - the PPSR replaces a number of registers of security interests and
provides a single national noticeboard of security interests in personal property.

Petty cash - cash for the purposes of small miscellaneous purchases such as postage.

Plant and equipment - a group of fixed assets used in the operation of a business such as furniture, machinery, fit-
out, vehicles, computers and tools.
Principal - the original amount borrowed on a loan or the remainder of the original borrowed amount that is still
owing (excluding the interest portion of the amount).

Profit - the total revenue a business earns minus the total expenses. See also Revenue.

Profit and loss statement - (also known as an income statement) is a financial statement listing sales and expenses
and is used to work out the gross and net profit of a business.

Profit margin - see Margin.

Projection - see Forecast.

R&D: Stands for 'research and development'. Businesses conduct research and development to innovate, create
new products and find better ways of doing things.

Receipt - a document provided to a customer to confirm payment and to confirm a good/service has been
received.

Record keeping - the process of keeping or recording information that explain certain business transactions.
Record keeping is a requirement under tax law.

Refinance - when a new loan is taken out to pay off an existing one. Refinancing is often done to extend the
original loan over a longer period of time, reduce fees or interest rates, switch banks, or move from a fixed to
variable loan.

Rent to buy - is a type of finance arrangement where a good is purchased through an initial deposit and then
'leased' while the good is paid off. Once the good is fully paid the purchaser has the option (but no obligation) to
buy the good or continue leasing. See also Hire purchase.

Repossess - the process of a bank or other lender taking ownership of property/assets for the purpose of paying
off a loan in default.

Retention of title - a type of clause that can be included in contracts where a buyer may physically receive
property, but doesn’t take legal ownership from the seller until the full purchase price is paid.

Return on investment (ROI) - a calculation that works out how efficient a business is at generating profit from the
original equity provided by the owners/shareholders. It's a way of thinking about the benefit (return) of the money
you've invested into the business. To calculate ROI, divide the gain (net profit) of the investment by the cost of the
investment - the ROI is expressed as a percentage or a ratio.

(Net profit) / (Cost) x 100 = ROI

Example: Annie buys $1000 worth of stocks and sells the stocks a year later for $1500.
The net profit is $500.
Return on Investment = (500 / 1000) = 0.5 x 100 = 50%.
Annie's ROI on the stocks is 50%.

Revenue - (also known as turnover) the amount earned before expenses, tax and other deductions are taken out.
Single-entry bookkeeping - a bookkeeping method used within a cash accounting system and records one side of
each transaction.

Scam - a deliberate and targeted deception designed to obtain money or information unlawfully.

Security - (also known as Collateral) is property or assets that a lender can take possession of, in the event that a
loan cannot be repaid.

Shareholder's equity - see Net assets.

SMSF: Stands for self-managed superannuation fund. An SMSF is a way of saving for your retirement. Unlike other
super funds, an SMSF is self-managed, which means you're responsible for making sure the super fund complies
with super and tax laws.

Stock - the actual goods or materials a business currently has on hand.

Stocktaking - a regular process involving a physical count of merchandise and supplies actually held by a business,
completed to verify stock records and accounts.

Superannuation - money set aside for retirement that must be paid into a complying superannuation fund.

Tax invoice - an invoice required for the supply of goods or services over a certain price. A valid tax invoice is
required when claiming GST credits. See also Invoice.

Turnover - See Revenue.

Variable interest rate - when the interest rate of a loan changes with market conditions for the duration of the
loan.

Variable cost - a cost that changes depending on the number of goods produced or the demand for the
products/service.

Venture Capital - capital invested in a start-up business that is thought to have excellent growth prospects but
does not have access to capital markets because it is a private company.

Working capital - the cash available to a business for day to day expenses.