Monday, January 5, 2009
Monday, December 29, 2008
BUSINESS TURMS “L, M, N, O, P”
L
Legal Tender: Paper or metal money that a Government decrees must be accepted as a lawful payment for debts.
Letter of Allotment: A letter informing as applicant for shares that certain shares that certain shares have been allotted to him.
Lien: A legal right of a person to detain or control property belonging to another until certain charges upon it have been paid or until some pecuniary claim against the owner has been satisfied.
Liability: Debt or responsibility.
Long: The day-to-day record of ship’s voyage in the form of a diary.
Long Bills: Bills of exchange drawn payable at period exceeding three days after date of sight.
BUSINESS TURMS “F to J “
F
Face Value: The value stated on the face of a security or insurance policy. This is the value on maturity or death.
Factor: A merchant who buys and sells on commission the goods if the bill drawn is not honored.
Free on Board (F.O.B.): It means that the sale price covers all charges, including delivery of goods free on board, truck, car or vessel at a designated point, either at the origin or the destination of a shipment.
Free on Rail (F.O.R.): It means all expenses up to loading of goods in rail will be borne by the seller.
Fraud: Securing consent to a contract by misrepresentation made with knowledge or by trick.
G
Goodwill: Value of a firm’s reputation.
Gilt-edged Securities: Stock on which interest is not only safe but also sufficiently high.
Grace Period: Any period beyond due date granted to a debtor by a creditor.
Gross Profit: Total allocable receipts of a period’s operations less the cost of the goods sold, before allowing for operating expenses and income tax.
H
Hypothecation: Means Pledging of goods or a shop.
I
Imports: Commodities or services brought from foreign countries.
Impost: A tax, particular used to describe import duties.
Indent: An indent is an order for the goods. In large storehouses/factories workshops, etc., it is also used as a requisition for stores.
Indemnity: Security against damage or loss.
Indorsee: One to whom an instrument is transferred by endorsement.
Inland Bill: A bill of exchange drawn and payable within the country.
Inter Alia: Among other things.
J
Jerquer: Customs official who searches ships for dutiable articles. He also checks ship’s papers relating to imported goods.
Jettison: The throwing overboard a ship of goods etc., on account of bad weather or enemy action, etc. The owner of the property is sacrificed, for the preservation of the whole, has a claim upon the owners of the property preserved, who are bound to share his loss with him.
Jury: A body of person chosen and sworn to hear and pass verdict upon evidence brought forward in a trail, inquest or inquiry.
BUSINESS TURMS “A to E”
Every subject or branch of knowledge and every professional line has got some special terms which acquire particular connotation for that line or branch of knowledge.
In all trades and professions the functionaries use such terms the knowledge of which is very essential for those engaged in such professions. Students of the subject of commerce, therefore, would do well if they remember these terms. Some very important and often used terms are explained below.
A
Agreement: It is a bargain or a contract to do or not to do certain things. It is always good if an agreement is put in writing, but it has been observed that even verbal agreements are also honored by parties, since there is always fear of losing the goodwill of the firm.
Advance Bill: It is a bill of exchange drawn before shipment of goods.
Acceptance: It is writing of name across the face of the bill in the drawee of a bill of exchange. By doing so he binds himself to pay the same when due.
Act of God: Any act which is beyond human causes and is beyond foresight.
Broker: He or she is an agent who buys or sells on behalf of other people without taking possession of the goods.
Bad Debt: It is a debt which is thought to be no more recoverable from the debtor.
Bonded Goods: Goods stored in a warehouse by an owner who has execute a bond to pay duty or taxes due.
Bill of Entry: It is a document which importers give to the customs Authorities, describing goods before they are landed.
Bonded Warehouse: A government warehouse (or building) in which bonded goods are stored.
Brand: It is a trade mark of thing applied on packages, tins and other containers.
Back Bill: It is a statement of unpaid charges.
Call Loan: It is a loaned money payable on call or demand. Such loans are got by securities which can readily sold if money is not paid. The limit allowed for payment before selling the securities is 24 hours.
Bearer Cheque: It is a cheque made payable to payee or bearer.
Order Cheque: It is a cheque made payable to payee or ‘order’.
Crossed Cheque: A crossed cheque is one made payable to the payee only.
Post-dated Cheque: It is a cheque in which a future date is inserted. It is not encashable on the date of its issue.
Stale Cheque: It is a cheque which is not presented for payment within a reasonable time which is fixed in a country. In India a cheque becomes a stale cheque if it is not presented for payment for six months from the date it bears.
Circular Note: It is a letter of credit issued by a bank to its client enabling the holders to obtain payment at various places abroad.
Credit Bill: It is a bill of exchange where the debtor has arranged in advance for credit with the drawee.
Credit Note: It is a form in which are mentioned the details of seduction or rebate from already rendered account.
Creditor: A person to whom some debt is owned by another person.
Caveat Emptor: It is a Latin phrase which means ‘Let the Buyer Beware’. All risks are of the buyer except fraud or other implied warranties.
Debtor: It refers to a person, company or firm which owes a certain amount.
Debenture: It is a written acknowledgement of debt charging the whole property for repayment.
Dead Stock: List of goods for which there is no demand.
Demurrage: Amount charged for delay in talking delivery of goods.
Default: Amount charged for delay in talking delivery of goods.
Days of Grace: Days of Grace is extra time allowed by convention or law for making certain payments.
Depreciation: It is slow and steady decrease in value.
Dies Non: A non-business day.
In all trades and professions the functionaries use such terms the knowledge of which is very essential for those engaged in such professions. Students of the subject of commerce, therefore, would do well if they remember these terms. Some very important and often used terms are explained below.
A
Appeal Bond: It is a bond which an appellant executes to assure payment of costs and damages if the appeal is lost.
Agreement: It is a bargain or a contract to do or not to do certain things. It is always good if an agreement is put in writing, but it has been observed that even verbal agreements are also honored by parties, since there is always fear of losing the goodwill of the firm.
Advance Bill: It is a bill of exchange drawn before shipment of goods.
At The Market: It is an order to a broker to sell things at once at the highest possible price.
Ad Valorem: As per value.
Ad Valorem Duty: It is tax levied on the value of, and can be changed only by a special resolution of the members.
All-Risk Insurance: It is an insurance policy insuring against loss caused by all types of dangers except those specially mentioned on the policy.
Acceptance: It is writing of name across the face of the bill in the drawee of a bill of exchange. By doing so he binds himself to pay the same when due.
Act of God: Any act which is beyond human causes and is beyond foresight.
B
Brokerage: Brokerage is the remuneration which is paid to the broker. It is usually some percentage.
Broker: He or she is an agent who buys or sells on behalf of other people without taking possession of the goods.
Bad Debt: It is a debt which is thought to be no more recoverable from the debtor.
Bond: It is a sealed document by a person, by which he binds himself, his heirs, executors and administrator to pay a certain sum to another person on or before a specified date.
Bonded Goods: Goods stored in a warehouse by an owner who has execute a bond to pay duty or taxes due.
Bill of Entry: It is a document which importers give to the customs Authorities, describing goods before they are landed.
Bonded Warehouse: A government warehouse (or building) in which bonded goods are stored.
Brand: It is a trade mark of thing applied on packages, tins and other containers.
Back Bill: It is a statement of unpaid charges.
C
Call Loan: It is a loaned money payable on call or demand. Such loans are got by securities which can readily sold if money is not paid. The limit allowed for payment before selling the securities is 24 hours.
Bearer Cheque: It is a cheque made payable to payee or bearer.
Order Cheque: It is a cheque made payable to payee or ‘order’.
Crossed Cheque: A crossed cheque is one made payable to the payee only.
Post-dated Cheque: It is a cheque in which a future date is inserted. It is not encashable on the date of its issue.
Stale Cheque: It is a cheque which is not presented for payment within a reasonable time which is fixed in a country. In India a cheque becomes a stale cheque if it is not presented for payment for six months from the date it bears.
Circular Note: It is a letter of credit issued by a bank to its client enabling the holders to obtain payment at various places abroad.
Credit Bill: It is a bill of exchange where the debtor has arranged in advance for credit with the drawee.
Credit Note: It is a form in which are mentioned the details of seduction or rebate from already rendered account.
Creditor: A person to whom some debt is owned by another person.
Consignment: It is a form of bailment in which one party sends goods to another party for sale.
Closing price: It is the price on which the sales are made in an organized market on a particular day.
Caveat Venditor: It is a Latin phrase meaning ‘Let the Seller Beware.’
Caveat Emptor: It is a Latin phrase which means ‘Let the Buyer Beware’. All risks are of the buyer except fraud or other implied warranties.
D
Debtor: It refers to a person, company or firm which owes a certain amount.
Trade Discount: It is a discount which producers or manufacturers allow to their dealers. It is generally a certain percentage on the printed price of the product.
Deed: It is written or printed document under hand and seal.
Deed: It is written or printed document under hand and seal.
Dividend: It is a share in the profit payable to a shareholder. It also refers to interest paid on investment.
Debenture: It is a written acknowledgement of debt charging the whole property for repayment.
Dead Weight: The weight of the vehicles which carry freight without any load in them.
Dead Stock: List of goods for which there is no demand.
Demurrage: Amount charged for delay in talking delivery of goods.
Default: Amount charged for delay in talking delivery of goods.
Days of Grace: Days of Grace is extra time allowed by convention or law for making certain payments.
Depreciation: It is slow and steady decrease in value.
Dies Non: A non-business day.
E
Executor: A person who is appointed by a will to get its prevision carried out.
Endorsement: Writing of the holder’s name on the back of a cheque or bill of exchange in favor of another is known as endorsement.
External Debt: It is a debt held by persons outside the country.
Embargo: It is an order of a government preventing ships to enter or leave the ports of the country it rules.
Equitable Mortgage: It is a simple deposit of title-deeds as security for a temporary loan.
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