Business Vocabulary – Glossary of Terminology for Business Correspondence Part 4

Glossary of Terminology for Business Correspondence – Business Vocabulary Part 4

Funded Debt – Fund setup for payment of long term indebtedness.

Funded Reserve – A reserve for which a fund has been invested to earn income.

Factor – Commercial agent who sells or buys goods for others on commission; commission agent.

Foreclosure – Transfer of property to mortgage when mortgagor defaults on interest payments.

Factory – Building where manufacture of goods is carried on.

Fixtures – Fixed equipment in business or professional premises.

Freight Bill – Prepared by transportation company and rendered to receiver or sender, depending on who is paying the freight charges.

Fail – To become insolvent.

Fiscal – Relating to finance, e.g., fiscal year, period in which annual taxes are collected.

Fee – Compensation for professional or special services fixed charge for services of a public officer, e.g., sheriffs fee.

Firm – Correct meaning is partnership; in common usage, any business organization.

Fee Simple – Unrestricted title to property

Financial Rating – Financial information carried in directory

Felony – Crime whose penalty is death or prison sentence.

Finance – Management of money matters.

Freight Claim – Also called “Loss and Damage Claim” Or “overcharge Claim”, claim on transportation company for loss, damage or overcharge.

Fiduciary – In trust; a fiduciary is a trustee.

Goodwill – Intangible asset resting on a special earning power gained through advertising, reputation, good business methods, favourable location, business standing etc.

Gold Standard – Rating of currency in terms of supposed value in gold.

Gross – As a number, 12 dozen or 144 as an adjective, indicating a complete sum before deduction have been made,.e.g., gross income before deduction of taxes, expenses, etc.

Handicrafts – Goods produced by hand, e.g., certain pottery, woven goods, embroidery, basket work, etc.

High Pressure – To make sales of goods not actually needed or desired.

Handbill – Printed announcement handed out to passersby.

Heir – Person entitled by law or terms of a will to an inheritance.

Holding Company – One organized to buy and hold stock of another company.

Hypothecation – Pledging of collateral. Governments may “hypothecate” tax revenues as security for a loan. Property may be “hypothecateci” for payment of a debt. Its earnings may be so used and the property remain with the debtor; but if payment is defaulted, the creditor may demand sale of the property to secure payment of the debt.

IOU – Document bearing the letters “IOU” and a notation of a sum of money.

Installment – periodic payment on a time-payment purchase. The British equivalent is “hire-purchase’.

Invoice – A bill itemizing goods shipped and their prices.

Instrument – person or document useful in accomplishing a stated purpose.

Implement – To find means to carry out an agreement.

Insolvency – Inability to meet current financial obligations.

Impulse Item – Something marketed to appeal to spontaneous decision of customer, usually novelties and luxuries as opposed to staples or necessities.

Insert – Something added in a document; an enclosure in a mailing.

Interest – Payment by borrower for use of borrowed money measured in percentages and units of time; simple interest is payment on principal alone compound interest is payment of accrued interest added to capital.

Investment – Money or other property risked with expectation of profit.

Investment Trust – Company whose business is investment in securities and bond issue, and which markets its own securities on the basis of investments.

Income Group –Classification of people according to earnings.

Indemnify – To make secure against loss or damage, to make good a loss or damage.

Inflation – Rise in prices where income advance fails to keep up with prices.

Indenture – Sealed agreement of which each party concerned holds a signed copy.

Intestate – Descriptive of a properly holder who dies without leaving a will. Division of properly will then be made according to state inheritance laws.

Index – Stock market term referring to listed price quotations ofsecurities traded on the marked and analyzed for trends.

Inventory – Record of merchandise on hand and in stock rooms perpetual inventory is one maintained by recording every sale and receipt of goods on an inventory card. Usually inventories are made at periodic intervals.

Industry – Collectively, manufacturing as contrasted to agriculture any branch of production, e.g., shoe. industry paper industry, etc.

Joint Stock Company – Large partnership with some of the features of a corporation.

Journal – Bookeeping record in which transactions are first entered.

Know-How – Technical skill gained through training and experience.

Line – Type of merchandise offered for sale, e.g., line of pearl buttons.

Loan – Money lent on interest.

Lots – In real estate specified arrangement of ground in the stock market number of shares trades in.

Landlord – Owner of real estate usually reference is to owner of specified building.

Limit Order – Order to buy or sell stock at or above or below a specified price.

Layout – Sketch of a proposed advertisement, booklet etc., in store merchandising, arrangement of merchandise.

Lien – Legal right to property in payment of debt usually has priority over other claims e.g., tax lien, mechanics lien, etc.

Liquid – Convertible into cash, e.g., liquid assets.

Liquidate – To convert assets into cash, generally in reference to business in financial difficulty and in need of ready cash.

Lease – A contract for the temporary conveyance of property, usually in consideration of rent.

License – Legal permission to sell certain goods.

Ledger – Account book. In larger sense, accounting in general.

Libel – Written statement held to be damaging to person or business about which it is made.

Legacy – Inheritance through a will.

List Price – Selling price as listed in catalogue.

Liability – Indebtedness current liabilities are short term debts such as taxes, accounts payable, etc., to be met within the year fixed liabilities are long term debts such as mortgages, bonds, etc., deferred liabilities are advance payments such as rent or interest before they come due.

Lockout – Shutting out of employees during a labour dispute. Now illegal.

Legal Standard – Measure of value in gold or silver established by a government for the rating of its currency.

Legal Tender – Money that may lawfully be used in settlement of debts.

Lessor – One who grants a lease.

Long and Short – To be long is to hold stock in expectation of a rise to be short is to sell stocks one does not own, in a falling market, in expectation of buying them in at a still lower quotation and profiting from the difference.

Lessee – Tenant under a lease.

Market – In general, the range for buying and selling; in particular, the range for buying and selling in a particular field, e.g., the stock market, the cotton market etc.

Market Order – Order to sell at the market price of the day on which the order is issued.

Manifest – Invoice of a ship’s cargo, for evidence at customs house.

Manufacture – Conversion of raw materials into a finished product, e.g., converting iron into steel plate.

Mortage Certificates – Certificates for small shares of large first mortgages or first mortgage bonds. Issued by mortgage customers to investors.

Mark-up – Amount added, in selling price, to wholesale price to cover overhead and profit.

Mill – A machine for grinding, pressing, stamping, or almost every repetitive process; a building or group of buildings containing manufacturing machinery.

Mortgage – Transfer of rights in properly as security for a loan or for other considerations. Real Estate mortgages are load and improvements upon it crop mortgage is a mortgage on crops a first mortgage is one which has priority in any claims on the property over subsequent mortgages (Second and Third
mortgages, etc.)

Mass Market – The general public considered as potential consumer.

Mass Production – Large scale, mechanized production designed to lower production costs to permit purchase by the majority of potential consumers.

Monopoly – Exclusive control of an industry or some form of trade.

Maximum Hours – Limit of time workers may be employed without overtime payment.

Model Change-Over – Reorganization of manufacturing process for the manufacture of a new model (sometimes called mark) of an article.

Mediation – Resort to third party in disputes between employer and worker not as conclusive as arbitration.

Minor – Person under legal age assume certain responsibilities.

The age varies – it is different for marriage, for business transaction, or for liability to criminal charges.

Merger – Consolidation of two or more companies into one.

Minimum Wage – Lowest limit of wages that may be paid to workers.

Notary Public – A person authorized by state law to witness and certify to the authenticity of signature affixed to documents or statements in his presence.

Negotiable – Salable or transferable as payment for debts.

Number – Item of manufacture; usually refers to item in a catalogue.

Net – Sum, after deductions have been made, e.g., net income after expenses, taxes, etc. have been taken out.

Option – First choice or right to obtain goods or services without competition for a specified period, e.g., ten day option.

Omnibus Clause – Section in a contract covering several items not specifically covered elsewhere in the document.

Overstock – Goods in excess of current demand.

One Day Order – Order for stock transaction on a certain day, and cancelled if not executed on that day.

Order – Customers itemized description of goods desired for purchase.

Open Order – Order for a stock transaction to be executed at any time and to hold good until notice of withdrawal is received. Also called GTC (Good till cancelled) order.

Overhead – Fixed expenses, such as rent, salaries, maintenance costs, etc.

Par – Normal or face value of securities.

Patronage – Business given by a customer.

Panic – Sudden widespread fright over financial situation causing artificial depression through sales of securities and other property.

Patron – Customer.

Patent Office – Government bureau that registers patent applications and issues “letters patent”, granting patent rights.

Paper – Documents of any sort, negotiable notes, bills, etc.

Patent Attorney – One specializing in the preparation of patent applications and in the search to determine that the invention is new and does not infringe on previous patents.

Parity – Rate of exchange at which different currencies acquire equal purchasing power.

Patent – Right granted by the government for the exclusive production of an invented article or for an improvement on an article.

Partnership – An association of two or more persons to carry on as co-owners of a business for profit; except in “limited partnership” in which liability of certain partners is restricted to the amount of capital contributed, partners are individually liable for debts contracted by the business.

Passing a Dividend – Failure to declare an expected dividend.

Pay – To make an acceptable return, usually in money, for property delivered or services rendered; remuneration such as wages or salaries.

Passbook – A book borne by customer, containing records of credit purchases also bankbook.

Photostat – Photographic process for reproducing documents, drawings, etc., a document or drawing so reproduced.

Pattern (in industry) – A model made for duplication as in metal casting, dress manufacture, etc.

Photo Engraving – Process of reproducing pictures through photography, where printing surface is in relief in contrast to lithography or gravure.

Pattern-Maker – One who makes patterns needed in industry.

Payee – Person to whom money has been, or it is to be paid.

Petty Cash – Cash fund used to make small payments.

Payroll – Paymaster’s list of those entitle to wages or salary.

Petition in Bankruptcy – Written application by a debtor or his creditor that he be declared bankrupt.

Peg – To hold market prices at a set value by manipulating purchases or sales.

Petition – Written application to a court instituting an action or requesting action upon a matter before it.

Pension – Payment made through grant, insurance, or other arrangement to person retired from employment, business, or public office.

Personal – Employed staff.

Percent – Investment such as bonds or other securities described by their interest rate, e.g., 3%.

Personal property or Personal Estate – Property other than real estate.

Prepaid – Paid in advance.

Pica – 12-point type, usually used on typewriters and in other print where readability is desired.

Production – Creation of goods having value to purchasers. e.g., agricultural production, industrial production.

Piece-Goods – Fabrics sold by pieces or fixed lengths.

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