Glossary+of+Commerce,+Finance+and+Shipping

__ Bills __ : requests for the payment of money owed for services such as electricity, gas and telephone connections.  __ Bonus __ : extra money given for meeting a target or for good financial results.  __ Commission __ : money paid to salespeople and agents – a certain percentage of the income the employee generates.  __ Fees __ : money paid to professional people such as lawyers and architects.  __ Health Insurance __ : financial protection against medical expenses for sickness or accidental injuries.  __ Living Expenses __ : money spent on everyday needs such as electricity, gas and telephone connections.  __ Mortgage __ : repayments of money borrowed to buy a house or flat.  __ Overtime __ : money received for working extra hours.  __ Pension __ : money paid by a company or the government to a retired person.  __ Rent __ : the money paid for the use of a house or flat.  __ Salary __ : money paid monthly by an employer.  __ Social Security __ : money paid by a company or the government to unemployed and sick people.  __ Tax __ : money paid to finance government spending.  __ Wages __ : money paid by the day or the hour, usually received weekly.  __Balance sheet__: A financial statements which shows the company’s assets, the things it owns, its liabilities, the money it owes and its capital. __Bonds __: loans that pay interest and are repaid at a fixed future date. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Capital __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money that people need to set up or start a company. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Debt __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money that is owed, that will have to be paid, to other people or businesses. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Loan __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money borrowed by companies from banks. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Interest __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the amount paid to borrow the money. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Profit and loss account __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the company’s revenues and expenses during a particular period, such as three months or a year. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Revenue __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: all the money coming into a company during a given period. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Shares or equities __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: certificates representing units of ownership of a company. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Shareholders __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the people who invest money in shares, they own part of the company. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Share capital __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the money provided by shareholders. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Working capital or funds __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the money that a business uses for everyday expenses or has available for spending.
 * __<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Unit 1 __**<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">
 * __<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Unit 2 __**<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">

__Assets__: things owned by the company, such as factories and machines that will bring future economic benefits. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Liabilities __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: obligations to pay other organisations or people, money that the company owes, or will owe at a future date. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Retained earnings __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: profits from previous years that have not been distributed, paid out to shareholders, as dividends. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Suppliers __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: companies which provide raw material or parts.
 * __<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Unit 11 __**<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">

__<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Brand names __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: legally protected names for a company’s products __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Current assets __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: things that will probably be used by the business in the near future. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Debtors __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: companies or people who owe money they will have to pay in the near future, and stock. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Fixed assets __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: buildings or equipment that will continue to be used by the business for a long time. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Patents __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: exclusive rights to produce a particular new product for a fixed period. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Tangible assets __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: assets with a physical existence, things you can touch, such as property, plant and equipment. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Trademarks __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: names or symbols that are put on products and cannot be used by other companies.
 * __<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Unit 12 __**

__Accrued expenses__: expenses that have accumulated or built up during the accounting year but will not be paid until the following year, after the date of the balance sheet. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Creditors __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: suppliers of goods or services to the business who are not paid at the time of purchase. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Deferred taxes __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money that will have to be paid as tax in the future, although the payment does not have to be made now. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Reserves __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: funds set aside from share capital and earnings, retained for emergencies or other future needs. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Share premium __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money made if the company sells shares at above their face value-the value written on them.
 * __<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Unit 13 __**<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">

__Cash flow statement__: A financial staements which shows how effectively a company generates and manages cash, money coming into and leaving the business. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Cost of goods sold __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the costs associated with making the products that have been sold, such as raw materials, labour and factory expenses. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Gross profit __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the difference between the sales revenue and the cost of sales. <span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EL; mso-bidi-language: AR-SA;">**__38 Unit:__** <span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EL; mso-bidi-language: AR-SA;"> __Downward movement__ Nouns: a fall, a decrease, a deterioration, a decline, a drop Verbs: to fall, to decrease, to deteriorate, to decline, to drop, to get worse __Increase and decrease__ Nouns: a rise, a growth, an increase, an improvement Verbs: to rise, to grow, to improve, to increase, to climb, to get better __High points, low points and staying the same__ To go up and down continuously: to fluctuate To reach the highest point and then go down: to peak, to top out, to reach a peak, to reach a maximum To reach the lowest point and then rise: to hit bottom, to bottom out, to reach a low point To stay at the same level on the graph or chart: to remain stable, to stabilize, to remain constant, to level off __Rate of change__ Fast changes: abrupt, quick, rapid, sudden Large changes: considerable, dramatic, sharp, significant, substantial Regular changes: gradual, steady Slow changes: slow Small changes: moderate, slight <span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EL; mso-bidi-language: AR-SA;">**__43 Unit:__** __ Absolute advantage or comparative advantage: __ Countries are the cheapest in the world, they are only more efficient than some others countries in producing certain goods or services. __ Balance of payments: __ adding invisibles to the balance of trade. __ Balance of trade or trade surplus: __ a country that exports more goods than it imports has a positive. __Comparative cost principle:__ is that countries should produce whatever they can make the most cheaply. __Dumping:__ selling goods abroad at below cost price in order to destroy or weaken competitors or to earn foreign currency to pay for necessary imports. __Economies of scale:__ reduced production costs because of large-scale production. __Exports:__ are goods or services sold to a foreign country. __Free trade:__ people and companies should be able to buy goods from all countries, without any barriers when they cross frontiers. __Imports:__ are goods or services bought from a foreign country. __Invisible:__ Services such as banking, insurance and tourism. __ Protectionism: __ restricting imports in order to help local products. __ Quotas: __ limits to the number of products which can be imported. __Trade deficit:__ the opposite of trade surplus. __Visible:__ trade in goods.
 * __<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Unit 14 __**<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">

<span style="font-size: 9pt; color: #ff9900; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EL; mso-bidi-language: AR-SA;">**__45, 46 units:__** __Additional costs:__ the costs on top of the cost of the goods. __ Bill of exchange or draft: __ Payment demand, written or drawn up by an exporter, instructing an importer to pay a specific sum of money at a future date. __Bill of lading:__ is a document signed by the carrier or transporters confirming that the goods have been received for shipment. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">CFR or Cost and Freight __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> (used for ocean freight) and __CPT or Carriage Paid To__.... (used for air freight and land freight0), the buyer is responsible for insurance. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">CIF or Cost, Insurance and Freight __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> (used for ocean freight) and __CIP or Carriage and Insurance Paid To__... (Used for air freight and land freight), the seller arranges and pays for insurance. __ Commercial invoice: __ contains detail of the goods. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Customs clearance: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> completing import documents and paying any import duties or taxes and transport insurance. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">DAF or Delivered At Frontier: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> the importer is responsible for preparing the documentation and getting the goods through customs. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">DDP or Delivered Duty Paid: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> the seller pays any import taxes. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">DDU or Delivered Duty Unpaid: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> the buyer pay any import taxes. __DEQ or Delivered Ex Quay:__ the seller pays for unloading the goods from the ship to the quay, and for the payment of customs duties and taxes. __DES or Delivered Ex Ship:__ the buyer pays for unloading the goods from the ship. __ Documentary credit: __ payment for imported products. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Documentation: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> preparing all the necessary documents. __ Endorse: __ a bill is to guarantee to pay it if the buyer of goods does not. __Exporter:__ a company which sells goods or services to other countries. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">FAS or Free Alongside Ship: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> means that seller delivers the goods to the quay next to the ship in the port. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">FCA or Free Carrier: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> means that the goods are delivered to a named place where the carrier can load them onto a truck, train or aeroplane. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">FOB or Free On Board: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> means that the seller pays for loading the goods onto the ship. __ Importer: __ a company which buys products from other countries. __In transit:__ while being transported. __Incoterms:__ companies exporting or importing goods use standard arrangements. __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EL; mso-bidi-language: AR-SA;">Irrevocable: __<span style="font-size: 9pt; color: black; font-family: 'Lucida Bright'; mso-ansi-language: EN-GB; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EL; mso-bidi-language: AR-SA;"> documentary credits cannot be changed unless all the parties involved agree. __Irrevocable credits:__ guarantee that the bank which establishes the letter of credit will pay the seller if the documents are presented within the agreed time.

Source: Professional English in Use (book), Ian MacKenzie