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Contingent Liability The Liability depending on a certain event

Operating Expenses The expenses which are incurred in order to operate the businessefficiency

Non-operating Expenses Those expenses which are not related to the operation of the

business

Operating Income The portion of income which is earned from the operation of

business

Non-operating Income The income which is not earned from the routine operations of

business

Capital Reserve Any reserve created out of capital profits

General Reserve Any reserve created out of capital profits for any unforeseen

contingencies and strengthens the financial position

Striking Fund A fund established and invested outside the businessDepreciation A permanent and gradual

Indemnity period The period for which insurance policy taken against the risk of

five

Preferential Creditors The creditors who receives the settlement fully

Royalty It is an amount payable by one person to another for the use of an

asset

Default If the five purchases fails to make payment of any installment

Realisation account Account which is mailnly prepared to show profit or loss on

realization of assets and payment of liabilitiesVendor Company The company which is selling its business to another

Leasing A method of acquiring right to use an equipment or assets for

considerations

Crashing The use of extra resources to short the project completion time

Bridge Finance The loan taken by firms to form loans from financial institutions

Speculation Taking of risks that are implicit in a situation

Collateral The assets which the customer can offer by way of security

Duopoly Prevails when there are only two producers or sellers to a market

Oligopoly Refers to that forms of imperfect competition

Revocation Withdrawal

Tenders Offer

Entrepot Trade Reexport Trade

Endorsement Signing at the back of the negotiable instrument

Ergonomics

Delegation The process of entrusting a part of authority to subordinates

Bounce A dishonoured cheque

Proxy A document authorizing a person to attend a meeting and vote on

behalf of a member

The minimum number of members to be present at a meeting

Roster The list of personnel

Goodwill The reputation of a firmContributory A person liable to contribute towards the debts of a company on

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winding up

Emporium A central market for trading

Endogenous Variable A value determined within the context of a model

Public auction

Hall Mark A mark made on precious metals after an array list

Banking

demand To ask

Conditional A condition to be fulfilled

Alteration To change

Drawing two parallel lines on the

Transferring

Person in possession of an instrument

Order A direction

Letter of credit An authorization given by a buyer to his banker

Draft A written order drawn by one party

Mail transfer Transfer of money through post

Consultancy Agency providing professional advice

Overdraft Amount by which payment exceeds the amount of credit

Mortgage A conditional conveyance of a property

Pledge Something given as security

Enterprise A business undertaking

Defer To postpone