Business Terms Dictionary which is used in business communication is really very important to know. We arrange this business term dictionary in alphabetical order so that everyone can find his needed business terms dictionary easily.
Business Terms Dictionary (C)
C & F: This stands for cost and freight. When used in quoting prices, it includes the price of the goods together with all possible charges up to the destination excepting insurance.
C.I.F: This abbreviation stands for the words cost, insurance and freight. These terms are used in quoting the prices of goods. A GIF price means and includes the price of the goods together with all charges and expenses needed for the carriage of the goods to the destination. This quotation also covers the risk during transit.
C.O.D: The abbreviation stands for cash on delivery. This signifies that the payment for the goods is to be made at the time of delivery.
C2C: Business takes place among consumers without the involvement of middlemen e.g. if you buy an old mobile phone from a consumer and resell the same to another consumer, this transaction is known as C26.
Capitalization: It is the act of converting revenue into capital.
Card Index: This is one of the methods of indexing. Under the system, a card containing the name, address and the holder number of the correspondent is kept in separate card drawers either loose or inserted on a rod passing through the drawer. The cards are arranged alphabetically, numerically or geographically.
Cash Credit: This is an arrangement under which a customer is allowed by the bank to overdraw his current account, up to a certain .specified limit. For this purpose, the customer is required to deposit some kind of security with the bank to cover the amount of credit (overdraft) granted to him.
Cash Discount: It is a rebate or an allowance from the invoice price allowed’ by the seller when payment is made in cash immediately after or within a reasonable time length from the date of presentation of the bill.
Cause Proxima: This Latin phrase meaning the proximate cause is used in case of Marine loss. It’s them is where the loss has been brought about by several causes regard should be given to the proximate or the nearest cause.
Caveat Emptor: This is a general law applied to the sale of goods. It means buyers beware. When a person buy goods, the onus is thrown by law on the buyer to see that the goods are free from any sort of defect and that they are suitable for his purpose.
CD-ROM Databases: This is the second major type of computer collection. The collection of information is stored on a high-capacity disk which is accessible by microcomputer with a CD drive. “Rather than pay for telephone hookup to the remote mainframe computer the library purchase the CD-ROM collection and periodic updates.
Central Bank: It is the number one bank of a country under the control of the government. Central Bank regulated the money and of the country. It is the pivot arc-which the whole money market of the
Certificate of incorporation: A document which is issued by the register of a joint-stock company certifying that the company has been duly incorporated is called a certificate of incorporation. The moment this certificate is issued, the company becomes a legal personality having the existence of its own.
Certificate of Origin: The certificate describing the place of manufacture of the growth of certain articles is known as the certificate of origin. This document is used in foreign trade and is prepared by the exported and usually signed by the secretary. President of the chamber of commerce or any such other body.
Chamber of Commerce: A chamber of commerce is a voluntary nontrading association of people engaged in practical commerce and industry of the country. Its purpose is to promote trade and industry of the country as well as to look after and protect the interests of its members. It performs several functions such as collecting information, issuing trade reports, acting as an arbitrator to settle disputes between businessmen and providing expert knowledge to the government.
Charter Party: A charter party is a document of a contract between a shipowner and a shipper. By this contract, the ship-owner agrees to furnish the entire ship or any portion thereof at the disposal of the shipper in return for a sum of money called freight, paid or to be paid by the shipper.
Cheque: A cheque is an order by a depositor of money drawn on a specified bank to pay a sum of money out of his account. It is payable either to the drawer himself or the third person or the bearer of the instrument.
Circular Cheque: A cheque issued by a bank to its agents or branch abroad is called a circular cheque. Anybody willing to visit the county of issuing bank may buy this cheque. The agent of the branch writes the amount on the cheque when it is sold.
Clearing House: In the course of daily transactions, each bank has to receive a number of cheques drawn on other banks. When the value of these cheques received by each bank is calculated and compared, it is found that some banks become indebted to other banks. These debts are settled through a department of the central bank, which is known as a clearinghouse.
Collateral Security: A commercial bank is a type of an organization that deals in credit i,e. it accepts deposits from the public withdraw-able by a cheque and it advances short-term loans.
Community of Interest: It refers to a group of persons having stakes or interests in something. When the business policy of several companies is controlled by a group of common shareholders, or directors without any formal central administration, a community of interest is formed.
Computer: A computer is a machine that consists of two parts the machinery and the human-provided logic. The computer machinery is known as hardware and the human-provided logic is called the computer’s software. Its symbols are a series of programs given by the users or by the manufactures. Consequently, a computer executes any program that it is instructed to do. This machine is very speed. The speed of its operation is measured in nanoseconds millions of a second. Computers may be of different types
- Mainframes (a large and expensive)
- Microcomputer also called personal computers (small, one user computer and relatively inexpensive)
- Minicomputers (in between a mainframe and personal computer. Used mostly by medium-sized business and academic situations)
Each of these types may again by classifying as analog or digital and as special-purpose and general-purpose computer.
Consular Invoice: An invoice signed by the Trade Commissioner or commercial Attache is called a consular invoice.
Contango: The term ‘contango’ is used in the Stock Exchange. It refers to a charge or consideration made by a broker and payable by the buyer of securities of a Stock Exchange.
Contraband: Goods banned for export or import are called contraband.
Copyright: It is the sole legal right to print or publish anything that belongs to the author.
Corner: The term ‘corner’ is used in the commercial world. It refers to an organization of speculators who are combined with a view to obtaining some financial gain by affecting prices somehow. This organization establishes a temporary monopoly in the supply of marketable goods, stocks by gaining control over them.
Credit Note: It is a statement (note) issued by a seller giving credit to the buyer for any incorrect billing by the seller. Incorrect billing may take place when a customer has returned some goods or has been overcharged or an allowance is made for any other reasons such as short weight, damage in transit, etc.
Cum-Dividend: It refers to the share (quoted in the Stock Exchange) which means that a buyer of the share is entitled to the dividend declared on it at the time of purchase.
Current Account: It is one of the kinds of banking account from which money can be withdrawn at any time without any prior notice, as is required in the case of a Fixed Deposit Account.
Customs Duty: It is a kind of tax imposed upon goods” imported or exported. These duties are imposed by the government on different rates. When it is levied on imported goods, it is termed import duty and the same will be known as an export duty when it is imposed on goods exported.
Business Terms Dictionary (D)
Days of Grace: These are the additional days allowed to the drawee of a bill to meet his obligation on the same after the expiry of the due date of the bill.
Dead Freight: It is the freight, which is paid by the charterer for the vacant space of the ship because of his failure to provide necessary cargo
Debenture: It is an instrument issued by a company acknowledging its debt to the holders. A debenture holder is a creditor to the company and hence he is entitled to interest irrespective of profits earned or not.
Debit Note: It is a statement sent by the seller to the buyer rectifying the invoice, which was wrongly cost i.e. the buyer was undercharged
Defamation: It refers to an injury to one’s good name or reputation. It is called slander when it is caused by means of spoken words, and ‘libel’ when it is in writing.
Deferred Ordinary Shares: Deferred Ordinary Shares are those shares, holders of which are usually the residual claimants to the dividend i.e., these shareholders receive the dividend after all other classes of shareholders have received fixed rates of dividend.
Deferred Rebate: It is a sort of discount or allowance given by the ship owners to the shippers to regulate the competition of ship owners outside the ring or their group. The allowance is called a deferred rebate because it is not paid at the time the transaction is carried and the payment is deferred or postponed till some future date.
Deficit Financing: It denoted financing public development expenditures in excess of the normal revenue of the government. The excess expenditures may be financed either by drawing an old accumulated saving, by receiving new aids or loans, or by printing and issuing new currency notes.
Deflation: It signifies a deliberate reduction in the amount of money in circulation so as to cause a sudden fall in prices.
Del Credre Commission: It is an additional premium charged by a factor or an agent in consideration of which he guarantees the payment of the customers and becomes personally liable for the price of the goods sold. The agent who guarantees the solvency of the buyers is called a del credit agent.
Demurrage: Demurrage is fine, which is charged, by the owner of the ship or by the railway company for the delay in loading or unloading beyond the specified time.
Depreciation: It is the gradual and permanent shrinkage in the value of assets due to their wear and tear by use or working, expiration of time, etc. The loss arising out of depreciation is debited to the profit and loss account.
Devaluation: Devaluation- is the reduction of value of a currency in relation to other currencies or to gold. Consequently, a unit of devalued currency buys a less foreign currency.
Dies Non: It is a non-business day.
Discount: Discount denotes a deduction allowed to a person for payment before the due date or a deduction from the invoice price allowed to a buyer for purchasing goods in bulk.
Dividend: It denotes a share of profits of a joint-stock company, which is divided periodically among the shareholders according to their respective holdings.
Dock (or Warehouse) Warrant: It is an important document used in foreign trade. This document is given by the owner of a dock or warehouse stating that certain specified goods are stored in the dock and registered in the name of a specified person. It entitles such a person to take possession of the goods.
Documentary Bill: A bill with which shipping documents like a bill of lading, an insurance policy, invoice, etc. are enclosed is known as a ‘documentary bill. These documents are required to take delivery of goods from the shipping company and from the customs authorities on, importation from any country.
Documentary Credit: This is one of the varieties of letter of credit which requires the attachment of documents of title to goods to any bill drawn thereunder.
Dormant (or Sleeping) Partner: The partner ‘who does “not take part in the management of the business but simply contributes capital to the firm is known as a dormant or sleeping partner.
Double Entry System: The double entry system of bookkeeping is the art of recording the two-fold aspects (viz every debit must have a corresponding credit and vice, versa) of each transaction.
Drawee in Case of Need: When the drawer of a bill mentions an alternative drawee to whom, the bill can be presented for acceptance in case the actual drawee refuses to accept or refuses to pay after acceptance, such an alternative’ drawee is called a drawee in case of need.
Dumping: The term ‘dumping’ is used in foreign trade to denote a sale of “goods abroad at prices lower than those prevailing in the home market. The purpose behind dumping is to undercut the producers in the importing country.
Dunning Letter: It refers to the letter that is written by a creditor to a debtor for the settlement of an overdue account. The letter should be written very” tactfully so that the debts can be collected and at the same time the existing good relations between the creditor and the debtor must be maintained.