This is another word for the staff in a company. It is also the name of the department which looks after staff welfare. It used to be called Personnel Managemen
invisible exports
These are not tangible exports such as products, but may be services such as know-how or financial services.
comparative advantage
A superior competitive position, e.g. your products are cheaper or better than those of your competitors.
liability
Things that you owe to other people such as unpaid bills. Also the responsibility you have for example if you cause damage to someone else.
institutional investors
These are organisations like pension funds which invest money on behalf of their members.
futures
These are options to buy or sell shares at some future date. Speculators can win or lose lots of money with these financial derivatives.
collateral
Something of value which you can offer as security against a loan.
mixed economy
If a nation has some state-run business sectors and others which are private.
gross profit
This is what is left after the costs of production have been deducted form the turnover figures but before tax has been subtracted.
lead time
The amount of time it takes to complete something from start to finish, e.g. from receiving an order until the delivery of the goods, or the time it takes to de
inventory / stock
These are goods in storage waiting either as supplies, like photocopying paper, to be used or, in the case of fished goods, waiting to be sold.
a market challenger
A competitor who is trying to take over the leading position.
accounts payable
Money which a company owes to its creditors such as its suppliers.
line-filling
Creating new products to fill the gaps in the current range.
a market segment
This is a particular part of the whole market. There is, for example, the luxury and then the low-price part.
gross national product
This is similar to GDP, but also includes the revenue generated outside the country perhaps in subsidiaries or in foreign investments.
launch (v&n
To put something new on the market or to start an advertising campaign, for example. This verb comes from the French verb for "throw". It can also be used with
junk bond
An investment with a potentially high return, but with equally high risk.
maturity
In the case of a bond, this is the date at which the loan is paid back. In the case of a product, it is the stage when a product has become established on the m
horizontal integration
Two competing companies in the same business sector go together. Such a merger gives a bigger market share and the chance to benefit from economises of scale an
market value
The price you could sell something for today.
base rate/prime rate
The basic rate of interest charged on borrowing money.
maintenance
Everything involved in keeping something in working order, e.g. servicing a machine etc.
to diversify
This is what a company does when it decides to extend its range of products and even go into business sectors which are totally different from the original core
marginal cost
The additional cost incurred by the production of one more item or unit of production.
middlemen
Intermediaries, e.g. wholesalers, between the producer and the retailer.
a merger
When two companies go together or "fuse".
forward integration
This means expanding by buying up or acquiring companies further down the chain of distribution in your line of business. (As you can imagine, this is the oppos
go-slow (v&n)
This is a type of industrial action. It is not a strike, the workers go to work but they deliberately choose not to work as efficiently as they would otherwise
a market follower
A competitor who is not making any attempt to challenge the market leader - perhaps because he is too weak.
an entrepreneur
This is a word, which comes from French. It is used to describe a businessman who starts up and runs his own business ventures.
insolvent
This means, basically, that you have not enough cash available to pay your bills or debts. You are XXX.
a loss-leader
A product you sell very cheaply - perhaps below cost-price in order to attract customers, who will, for example come to your shop and buy other products which h
hedging
This is something you can do to reduce risk. You can insure against a rise in the value of the dollar so that, what you lose on the one hand will be compensated
market share
This is the percentage of sales which an individual company achieves of the total market. The market leader has the biggest.
hire purchase
This is a way of buying something without having to pay the full amount immediately. Normally, you pay a down-payment of, say, 10% and then you pay monthly inst
industrial espionage
This is a type of spying in order to steal secrets from a competitor, for example.
a leveraged buyout
Taking over a company by buying up the shares with borrowed money.
insider share-dealing
Technically illegal. It involves people inside a business passing on information to selected individuals who benefit from advance knowledge of secret informatio
line authority
Authority which passes from a superior directly down to his subordinates.
a merchant
Someone who buys and sells things. De Beers are diamond XXX.
consumption
The level or rate at which goods are used up. In the case of cars, you can talk about fuel XXX. With machines, you can refer to energy XXX. The higher this valu
gross domestic product
All the work done and profit made within a country by its industries.
hard currency
Some countries have money which is not considered trustworthy. Business transactions are therefore often carried out using something more reliable like the US d
to lend
To give somebody the use of your money or something else on the condition that they return it at some time in the future. The opposite of to borrow.
a hostile takeover
This is an unfriendly merger. One company buys up the shares of another until it can take over control.
trade union
An organisation which represents the interests of its members, who usually work in the same line of business, e.g. steel workers, coal-miners etc.
liquidation
Another word for bankruptcy. It can also refer to the selling off of goods cheaply to get rid of old stock.
monetary policy
A government can regulate the supply of money and thus stimulate growth or curb spending.
an incentive
This is a reward for work done well, for example. Often it is in the form of a bonus which is intended to encourage more conscientious work and increase motivat
limited liability
This is a situation in which the owner of a company can only lose the company's assets but not his own personal wealth in the case of bankruptcy.
to dismiss
A company will do this to the people they do not want to employ any more. Exemple: when there is a overcapacity or there are economic difficulties, a firm will
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