Glossary of Terminology for Business Correspondence – Business Vocabulary

Glossary of Terminology and Definitions from Business and Management

Account – Right to transact business in a bank by depositing money or its equivalent therein a salesman’s customers business transacted with a firm or an individual right to conduct business with a firm by establishing credit record of business transactions with a firm or an individual.

Account Sales – Record delivered by a broker or commission merchant to the owner of a consignment of goods, showing the amount and sale prices of goods sold and deductions for commissions and freight and other expenses.

Abstract of Title – Record summarizing deeds, mortgages and other documents and transactions affecting title to a piece of real estate.

Accommodation Paper – Negotiable paper bearing – the endorsement of a person who thereby lends his credit to the maker of the paper.

Accessory after the Fact – one who knowingly aids the criminal after a criminal act.

Accessory before the Fact – One who instigates or aids in crime but takes no part in its commission.

Accountant – One skilled in keeping the accounts of a firm and responsible for their accuracy. Certified Public Accountant (abbrev CPA), corresponding to a Chartered Accountant in England, is one who has qualified for a certificate from the state and is consequently engaged to check on and certify the accuracy of a firm’s books

Agent – Person or company acting for another person or company.

Actuary – One whose profession is to calculate insurance risks and premiums.

Announcer – A person hired by a radio station or commercial sponsor to introduce radio programs and performers.

Agreement – Mutual consent to terms of trade or employment, usually in written form.

Adjustor, Adjuster – One who makes the settlement in claims arising out of losses or complaints with the purpose of avoiding possible litigation.

Amortization – Gradual liquidation of a mortgage or other debt by periodic payments in addition to interest.

Adjust (in insurance) – To determine the sum to be paid in settlement of a loss covered by a policy.

Allowance – A customary deduction from the gross weight of goods in law, a sum in addition to regular taxable costs awarded by the court a reduction in cost allowed to the purchaser by the seller.

Administrator, Administratrix – A person appointed by a court to settle an estate.

Affiliate – A company in financial association with another.
Allocation – Apportionment of goods in short supply so that all companies, when the government is the allocator, or all customers, when a company is the allocator, may secure a share assigned according to their regular consumption or their comparative immediate needs.

Classified Advertising – Small advertisement listed alphabetically.

Annuity (in insurance) – Annual or periodic income to the insured for life or for a specified long term.

Advertising – Promotion of business through notices in the public prints, on posters, by radio, television, or other media.

Asset Currency (in banking) – Currency secured exclusively by the general assets of the issuing bank as distinguished from the secured by special deposit of government bonds, commercial paper, etc.

Auditor – A person authorized to examine accounts.

Appeal – Resort to a higher court for review of a lower court’s decision in the hope of having it reversed, or the case retried.

Assessment – A valuation of property a fine an imposed contribution Assessor – One appointed or elected to value property for taxation.

Audit – A verification of accounts to make an audit.

Assets (Properly) – In accounting, items on balance sheet of business showing book values of its resources as at a given date.

Fixed or Permanent Assets – land, building, machinery, capital stock of another company which can be used repeatedly.

Current, Liquid or Floating Assets – Cash or goods which can be used only at one time.

Quick Assets – Cash or goods which can be immediately disposed of without loss.

Appeaise – To set a value on goods, land, the estate of a deceased person to estimate loss as by fire, etc.
Appraisal – act of appraising or the stated result after appraising.

Appraiser – one designated by court or appointed by agreements to set a value on property.

Assess – To set a value for taxation to imposed a fine, to impose a contribution as a ‘lodge assessment’.

Appreciate – To increase in value

Appreciation – arise in value.

Arson – Deliberate burning of a house (in some states, of any property), a statutory crime. .

Arbitrage – Purchase of stock in one market for profitable resale in another.

Arbitration – Submission of a dispute to judgment by a third party agreed on by both parties to the dispute.

Association – Organization of a large number of people to transact business if not incorporated, members are liable for its debts as in a partnership.

Auction – Public sale of properly by competitive bidding of prospective buyers.

Auctioneer – A person whose job is to conduct auction sales.

Arrival Notice – Announcement by transportation company of consignee when shipment reaches destination.

Arraignment – Formal summoning of accused into court where indictment is read to him and he is called upon to plead “guilty” or “not guilty”.

Attachment – Court order authorizing seizure of property, usually pending outcome of trial.

Bank – Institution where money or other property is deposited.

Bear – One with a pessimistic attitude toward business, one who anticipates downswings in the market, as opposed to Bull.

Bank Discount – Interest deducted in advance.

Banker – Officer of a bank. Private Banker generally lands money to finance projects, may also engage in commercial banking.

Balance (in book keeping) – To prepare an accounting of assets and liabilities the money in a bank account left after current withdrawals.

Balance Sheet – Statement of financial condition showing current assets and liabilities.

Bill – Account of or invoice for goods sold or work done. Abbreviation for bill of exchange’, now chiefly designating piece of paper money.

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