Business Jargons A Business Encyclopedia

Definition: Consignment implies a trading arrangement, wherein one party transfers goods to another party without immediate payment, who agrees for selling them on behalf and at the risk of the former, as per the instructions, to the customers, for a commission as a percentage of revenue from the sale proceeds. Consignment is opted when the…

Definition: Macro Environment can be described as the collection of those factors and conditions, which has the capability of influencing the business positively or negatively. Macro Environment is the type of external business environment in which the firm and its micro-environmental forces exist which gives opportunities or pose threats to the firm. It comprises of…

Definition: Micro Environment, refers to the environment comprising of all the actors of an organization’s immediate environment which influences the performance of the company, as they have a direct bearing on the firm’s regular business operations. The micro environment is popularly referred to as task environment or operating environment. Elements of Micro Environment The elements…

Definition: Coordination can be described as that invisible cord, which runs through all the activities of the organization and binds them together. It is not a function of the management, rather it is the essence of management, which is needed at all levels and at each step of the firm, to achieve the objectives of…

Definition: Knowledge Management implies the effective governance of organization’s acquired and generated knowledge relating to technical know-how, insights, experiences, strategies and tactics. In finer terms, knowledge management is the process of handling organization’s knowledge efficiently, so as to create value and fulfil strategic objectives. Knowledge Management aims at identifying, acquiring, creating, assessing, organizing, utilizing, storing,…

Definition: Vouching is the process of analysing vouchers of the business enterprise. It is a step pursued in auditing, with an aim of checking the accuracy and reliability of the transactions entered in the company’s books of accounts. In this process, the company’s transactions are thoroughly verified with the documentary evidence and the authority, which…

Definition: Corporate-Level Strategy refers to the top management’s approach or game plan for administering and directing the entire concern. These are based on the company’s business environment and internal capabilities. It also called as Grand Strategy. It reflects the combination and pattern of business moves, actions and hidden goals, in the strategic interest of the…

Definition: In business terminology, goodwill is the monetary worth of the advantage which a firm possesses over the other firms in the market with respect to profits which are expected to be derived in future over and above the normal profits. As the time goes by, a business develops a good reputation, name, strong connections…

Definition: Responsibility Centre refers to an operating segment within the firm, lead by the manager who is accountable for its activities, performance and results, in terms of expenditure, profit, and return on investment. A responsibility centre has its own goal and objectives, plans and strategies, policies and procedures. Further, it has a dedicated team or…

Definition: Economic Activities implies all the activities of producing, distributing, trading, consuming, exchanging and supplying, goods and services of value, at any level, in a society, for monetary consideration. These activities are undertaken with the aim of making money, acquiring wealth, earning a livelihood, and generating income from different sources. The economic activity in a…