Glossary
Glossary of business terms used on this site
There are 82 entries in this glossary.All
| Term | Definition |
|---|---|
| Absolute advantage |
used in the context of international trade to represent a situation where, for a given set of resources, one country can produce more of a particular good than another country |
| accounts |
Financial records of a firm's transactions |
| Acid test ratio |
This measures the liquidity of a business and is calculated by the ratio of current assets minus stock to current liabilities. |
| added value |
The difference between the selling price of a product or service and cost of inputs such as raw materials |
| annual general meeting |
General meeting held annually in limited companies where all shareholders meet and discuss important issues related to working of the company e.g. voting for board of directors |
| API |
Abbreviation for Application Programming Interface. API is a so-called protocol of communication that enables different computer programs to communicate with one another. A good API makes it easier to develop a program by providing all the building blocks that the programmer needs. Although APIs are designed for programmers, they are also good for program users insofar as they guarantee that all programs using a common API will have similar interfaces. This makes it easier for users to learn new programs. |
| appraisal |
Method of assessing the effectiveness of an employee, usually assessed by the immediate superior. |
| appropriation account |
Part of the Profit and Loss account which shows how the profit after tax is distributed as dividends and kept in the company as retained profits. |
| Arbitration |
Both sides in a dispute agree to abide by the decision of the arbiters who are independent and listen to both sides before making a decision. |
| arbitrator |
An independent person who listens to both the trade unions and the managements during an industrial dispute and then gives an unbiased ruling which both the parties have to follow. |
| Articles of Association |
A document which outlines the internal rules of a company. |
| assets |
Items of value which are owned by the business e.g. land, building etc. |
| Assisted areas |
Large areas or parts of a region that are identified for assistance by the Government because they have high unemployment and need help to keep and attract new business and industry. |
| Authoritarian |
This style of management means that one person makes the decisions. |
| autocratic leadership |
leadership style where instructions are issued and decisions taken at the top level of management and there is little opportunity for contribution from the employees. |
