Financial Banking College

Glossary
Of Business Terms

Elaborated by: .
Checked by: Branite Silvia

1. Economy: the system through which a society answers the three

economic questions- what, how and for whom.
2. Economics: the study of how wealth is created and distributed.

3. Supply: the quantity of a product that produccers are willing to sell at

cach of various prices.
4. Demand: the quantity of a product that buyers are willing to purchase
at each of various prices.
5. Price: the amount of money that a seller is willing to accept in
exchange for a product, at a given time and under given
circumstances.
6. Business: the organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy societys needs.
7. Business ethics: the application of moral standards tu business
situation.
8. Consumer: individuals who purchase goods or services for their own
personal use rather than to resell them.
9. Producer: a person who creates economic value, or produces goods
and services.
10.Interview: a formal meeting in which one or more persons question,
consult, or evaluate another person.
11.Business writing: is a conventional communication from an
administration to its clients, the common public for their selective
information, a different company or the agencies.
12.Social responsibility: the recognition that business activities have an
impact on society, and the consideration of that impact in business
decision making.
13.Sole proprietorship: a bussines that is owned by one person.
14.Partnership: an association of two or more persons to act as coowners of a business for profit.
15.Corporation: an artificial person created by law, with most of legal
rights of a real person, including tha right to start and operate a
business, to own or dispose of property, to borrow money, to sue or be
sued and to enter into binding contracts.
16.Entrepreneurship: the capacity and willingness to develop, organize
and manage a business venture along with any of its risks in order to
make a profit.
17.Business plan: a carefully constructed guide for the person strating
ones own business.
18.Management: the process of coordinating the resources of an
organization to achieve the primary goals of the organization.
19.Marketing: the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational objectives.

20.Business negotiation: the act of discussing an issue between two or

more parties with competing interests with an aim of coming to an
agreement.
21.Product: everything that one receives in an exchange, including all
tangible and intangible attributes and expected benefits; it may be a
good service or idea.
22.Wholesaling: the sale and distribution of goods to users other than
end consumers.
23.Retailing: commercial transaction in which a buyer intends to
consume the good or service through personal, family,
or household use.
24.Andvertising Media: the various form of communication through
which advertising reaches its clients.
25.Statistics: branch of mathematics concerned
with collection, classification, analysis, and interpretation of
numerical facts, for drawing inferences on the basis of
their quantifiable likelihood (probability).
26.Accounting: the process of systematically collecting, analyzing and
reporting financial information.
27.Bookkeeping: the routine, day to day record keeping that is a
necessary part of accounting.
28.Balance sheet: a summary of a firms assets, liabilities, and owners
equity accounts at a particular time, showing the various dollar
amounts that enter into the accounting aquation.
29.Securities: a financial instrument that represents: an ownership
position in a publicly-traded corporation (stock), a creditor
relationship with governmental body or a corporation (bond), or rights
to ownership as represented by an option.
30.Insurance: the protection against loss that is afforded by the purchase
of an insurance policy.
31.Risk: the possibility that a loss or injury will occur.
32.Business law: encompasses the law governing contracts, sales,
commercial paper, agency and employment law, business
organizations, property, and bailments.
33.Good: a commodity, or a physical, tangible item that satisfies some
human want or need, or something that people find useful or desirable
and make an effort to acquire it.
34.Computer: an electronic machine that can accept, store, manipulate,
and transmit data in accordance with a set of specific instructions.
35.Share: a unit of ownership interest in a corporation or financial asset.

36.Bond: a bond is a debt investment in which an investor loans money

to an entity which borrows the funds for a defined period of time at a
variable or fixed interest rate.
37.Shareholder: Any person, company or other institution that owns at
least one share of a companys stock. Shareholders are a company's
owners.