CORPORATE FINANCE
In Company 3.0 ESP Corporate Finance:
Glossary (A–Z)
What are red words?
90% of the time, speakers of English use just 7,500
words in speech and writing. These words appear in red.
abnormally /æbˈnɔː(r)m(ə)li/ (adverb) in a way that is not
usual or normal, especially in a way that is worrying or
shows there may be something wrong or harmful. This
tax bill seems abnormally high.
account /əˈkaʊnt/ (noun [countable] [usually plural]) a
detailed record that a business keeps of the money it
receives and spends in a particular period of time. They
want to look over our accounts before they make a decision
about investing in our company.
account /əˈkaʊnt/ (noun [countable]) a record showing
how much you owe a shop or other business for goods
or services that you have received. We need you to settle
your account.
account /əˈkaʊnt/ (noun [countable]) an arrangement in
which a bank looks after your money. You can deposit
(= put in) or withdraw (= take out) money when you
need to. There isn’t much money left in our account.
accounting period /əˈkaʊntɪŋ ˌpɪəriəd/ (noun [countable])
the period of time which a company’s financial
statements are prepared for. When does their accounting
period finish?
accounts payable /əˌkaʊnts ˈpeɪəb(ə)l/ (noun [plural])
a record of how much money a company owes other
people or companies for goods and services, or the
department in a company that deals with this. Get in
touch with accounts payable about this week’s payment run.
accounts receivable /əˌkaʊnts rɪˈsiːvəb(ə)l/ (noun
[plural]) a record of how much money customers owe
a company for goods and services, or the department
in a company that deals with this. She runs accounts
receivable very efficiently.
acquisition /ˌækwɪˈzɪʃ(ə)n/ (noun [countable]) a company
that is bought by another company. Is there a suitable
potential acquisition that we can target?
actuals /ˈæktʃuəlz/ (noun [countable] [usually plural]) real
financial data from a specific period. Let’s look at the
actuals and see where we stand.
address /əˈdres/ (verb [transitive]) to try to deal with a
problem or question, for example by thinking carefully
about it or by doing things to improve a situation.
Governments have been slow to address the problem of
global warming.
aggressive /əˈɡresɪv/ (adjective) used about plans or
methods that are designed to do everything possible
to succeed. I felt that his aggressive plan put us in too
vulnerable a position.
allocate /ˈæləkeɪt/ (verb [transitive]) to officially give
something to someone, or to decide that something can
be used for a specific purpose. Our task is to decide the
best way to allocate scarce resources.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
amend /əˈmend/ (verb [transitive]) to make changes to a
document, law, agreement, etc, especially in order to
improve it. A law amending the Chilean constitution was
approved on 22nd January.
amendment /əˈmen(d)mənt/ (noun [countable]) a change
made in a document or plan. Once you have made the
amendment, can you send the new version of the contract to
me, please?
amortize /əˈmɔː(r)taɪz/ (verb [transitive]) to pay back
money that you owe by making regular payments over
a specific time period. We will need to either deduct or
amortize these costs.
analyst /ˈænəlɪst/ (noun [countable]) someone whose job
is to carefully examine a situation, event, etc in order to
provide other people with information about it. I think
we need to get some advice from an economic analyst before
we proceed.
anticipate /ænˈtɪsɪpeɪt/ (verb [transitive]) to guess that
something will happen, and be ready to deal with it. The
businesses that will survive will be those that anticipate
changes in technology.
approachable /əˈprəʊtʃəb(ə)l/ (adjective) someone who is
approachable is friendly and easy to talk to. My boss is
very approachable and always has time to listen.
approval /əˈpruːv(ə)l/ (noun [uncountable]) official
agreement or permission, given by someone in
authority. We sent the design to the planning department
for approval.
assertive /əˈsɜː(r)tɪv/ (adjective) behaving in a confident
way in which you are quick to express your opinions
and feelings. You need to be more assertive to succeed in
business.
asset /ˈæset/ (noun [countable]) something such as
money or property that a person or company owns. The
business has assets totalling £5.1 million.
assist /əˈsɪst/ (verb [intransitive/transitive]) to help
someone more skilled to do their job, for example, by
doing the easier parts of the work. Her job is to assist the
head chef.
audit /ˈɔːdɪt/ (verb [transitive]) to officially examine the
financial records of a company, organization or person
to see that they are accurate. They’re going to audit us
next week.
audit /ˈɔːdɪt/ (noun [countable]) an official examination
of the financial records of a company, organization or
person to see that they are accurate. A full audit was
conducted and a number of discrepancies were found.
auditor /ˈɔːdɪtə(r)/ (noun [countable]) someone whose
job is to officially examine the financial records of a
company, organization or person to see that they are
accurate. He finds his work as an auditor quite stressful.
authorize /ˈɔːθəraɪz/ (verb [transitive]) to give official
permission for something to happen. All overtime
payments must be authorized by a senior member of staff.
GLOSSARY (A–Z) 1

background /ˈbækˌɡraʊnd/ (noun [singular/uncountable])
information about what has happened in the past that
helps you to understand the present situation. We need
to know the background to the case.
balance /ˈbæləns/ (noun [singular]) the amount of money
that you owe after paying part of the cost of something.
You pay a deposit now and the balance in 12 months.
balance sheet /ˈbæləns ˌʃiːt/ (noun [countable]) a
written statement showing the value of a company at a
particular time. I’d like to take a closer look at their balance
sheet before committing to any decision.
balanced scorecard /ˌbælənst ˈskɔː(r)kɑː(r)d/ (noun
[countable]) a way of measuring and tracking the
performance of a company in relation to strategic
objectives. In the light of changing economic conditions,
we have changed our strategy, and our balanced scorecard
needs to reflect this.
bankrupt /ˈbæŋkrʌpt/ (adjective) a person or business
that is bankrupt has officially admitted that they have
no money and cannot pay what they owe. Many of the
companies that they had invested in went bankrupt.
basis /ˈbeɪsɪs/ (noun [countable]) a particular method or
system used for doing or organizing something. They
were only ever employed on a temporary basis.
bill of exchange /ˌbɪl əv ɪksˈtʃeɪndʒ/ (noun [countable])
the seller’s order for payment by the buyer (usually the
buyer’s bank) on or after receiving the goods. Have they
received the bill of exchange?
bill of lading /ˌbɪl əv ˈleɪdɪŋ/ (noun [countable]) a shipping
company’s receipt for goods transported. I just need to
check the bill of lading.
body /ˈbɒdi/ (noun [singular]) the main part of
something. I did the body of the work and she just made a
few changes here and there.
brand /brænd/ (noun [uncountable]) a product or group
of products that has its own name and is made by one
particular company. The word for a machine or vehicle
made by one particular company is a make. It’s a brand
that people trust.
breakdown /ˈbreɪkˌdaʊn/ (noun [countable]) information
that has been separated into different groups. We’ll
need to see a breakdown of these figures before we sign the
contract.
bring down /ˌbrɪŋ ˈdaʊn/ (phrasal verb [transitive]) to
reduce the rate, level or amount of something. Our
principal responsibility is to bring down the level of
unemployment.
bring forward /ˌbrɪŋ ˈfɔː(r)wə(r)d/ (phrasal verb
[transitive]) to change the date or time of an event
so that it happens earlier. We have brought forward
the launch date in order to maximize sales across all our
markets.
budget /ˈbʌdʒɪt/ (noun [countable]) the amount of money
a person or organization has to spend on something.
Two-thirds of their budget goes on labour costs.
budget /ˈbʌdʒɪt/ (verb [intransitive]) to plan the way you
will spend the money you have, especially so that you
do not spend too much. We haven’t budgeted for this level
of overtime.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
CORPORATE FINANCE
budget /ˈbʌdʒɪt/ (adjective [only before noun]) very cheap.
We can’t have the CEO stay in a budget hotel!
budget variance /ˈbʌdʒɪt ˌveəriəns/ (noun [countable])
the difference between the budgeted amount and the
amount achieved at the end of the budget period. We
have a budget variance of 2.1%.
burden /ˈbɜː(r)d(ə)n/ (noun [countable] [usually singular])
a serious or difficult responsibility that you have to deal
with. Unemployment places a heavy burden on the welfare
state.
capital allowance /ˌkæpɪt(ə)l əˈlaʊəns/ (noun [countable])
the right to deduct spending on equipment or other
capital investments from the company’s tax bill. We
should be able to consider the purchase of the new fleet of
vans as a capital allowance.
capital gains tax /ˌkæpɪt(ə)l ˈɡeɪnz tæks/ (noun
[uncountable]) tax that a person or organization has
to pay on the sale of a property or an investment. The
amount of capital gains tax that we’ll need to pay means it’s
hardly worth selling the plant.
cash disbursement /ˌkæʃ dɪsˈbɜː(r)smənt/ (noun
[countable]) money that a company pays to cover the
costs of running the business and paying off loans. We
need to make several cash disbursements in the next period.
cash flow /ˈkæʃ ˌfləʊ/ (noun [uncountable]) the rate at
which a business takes in money through sales and pays
it out for the things it needs to continue operating.
Getting the money upfront will improve our cash flow
significantly.
cash receipt /ˌkæʃ rɪˈsiːt/ (noun [countable]) a record of
the payment for a product or service in cash. I’ll need to
look through the cash receipts to check exactly when they
paid.
claim /kleɪm/ (verb [intransitive/transitive]) to officially
ask for money that you believe you have a right to.
Customers who aren’t satisfied can claim a full refund.
clarification /ˌklærəfɪˈkeɪʃ(ə)n/ (noun [countable/
uncountable]) an explanation that makes something
clearer and easier to understand. Can I ask for some
clarification of these numbers?
clarify /ˈklærəfaɪ/ (verb [transitive]) to explain something
more clearly so that it is easier to understand. He’s
expected to clarify his position today.
clerk /klɑː(r)k/ (noun [countable]) someone whose job is
to look after the documents in an office, court, etc. He’s
a clerk in the accounts department.
closing balance /ˈkləʊzɪŋ ˌbæləns/ (noun [countable]) the
amount of money that remains in an account at the end
of a period of time. The closing balance is lower than we
expected.
coincide /ˌkəʊɪnˈsaɪd/ (verb [intransitive]) to happen at
the same time as something else. The fact that the strike
coincided with some terrible weather meant that it was
even more difficult to get orders out on time.
come before /ˌkʌm bɪˈfɔː(r)/ (phrasal verb [transitive]) to
be more important than someone or something else. In
these situations, your family comes before everything else.
GLOSSARY (A–Z) 2

commodity market /kəˈmɒdəti ˌmɑː(r)kɪt/ (noun
[countable]) a market in which people trade basic goods
such as food, metal or fuel rather than manufactured
goods. Fluctuations in the commodity markets are
worrying investors.
competitiveness /kəmˈpetətɪvnəs/ (noun [uncountable])
the extent to which a company is able to compete with
other companies that provide a similar product or
service. Our competitiveness is reduced because we can’t
offer the low prices that our nearest rivals are able to offer.
compromise /ˈkɒmprəmaɪz/ (noun [countable/
uncountable]) a way of solving a problem or ending an
argument in which both people or groups accept that
they cannot have everything they want. Neither of them
is willing to make compromises.
confirmation /ˌkɒnfə(r)ˈmeɪʃ(ə)n/ (noun [uncountable])
the process of formally supporting or accepting a
decision. We need confirmation from the board before we
can proceed.
considerable /kənˈsɪd(ə)rəb(ə)l/ (adjective) large in size,
amount or degree. Proper research needs to be done before
we agree to spend such a considerable amount of money.
consistency /kənˈsɪstənsi/ (noun [uncountable]) the
quality of remaining the same in behaviour, attitudes
or qualities. There is a lack of consistency in how orders are
processed.
consolidate /kənˈsɒlɪdeɪt/ (verb [transitive]) to combine
several small things into one large unit. Once we’ve
consolidated all of these figures, we’ll have a better idea of
where we stand.
consultant /kənˈsʌltənt/ (noun [countable]) an expert
or a professional person whose job is to give help and
advice on a particular subject. They brought in a design
consultant.
convince /kənˈvɪns/ (verb [transitive]) to persuade
someone to do something. The salesperson was trying to
convince me to take the maintenance package as well.
convinced /kənˈvɪnst/ (adjective) certain that something
is true. I’m not convinced that this is the right course of
action.
core /kɔː(r)/ (adjective) most important, or most basic.
We need to focus on our core activities rather than try to do
everything.
corrective action /kəˈrektɪv ˌækʃ(ə)n/ (phrase) corrective
action is intended to make a bad situation better.
Despite taking corrective action, they couldn’t avoid making
a loss this quarter.
cost of goods sold /ˌkɒst əv ɡʊdz ˈsəʊld/ (noun
[countable]) how much money a company has to
spend on materials and production in the creation of a
product. Their profits were impacted by an increase in the
cost of goods sold.
cost structure /ˈkɒst ˌstrʌktʃə(r)/ (noun [countable]) a way
of calculating how much it will cost a company to make
a product and how much profit they will make from
selling it. These administration fees will need to be factored
into the cost structure.
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CORPORATE FINANCE
credibility /ˌkredəˈbɪləti/ (noun [uncountable]) qualities
that someone has that make people believe or trust
them. If we don’t improve our recycling processes, we’re
going to lose our credibility as an environmentally friendly
company.
credit facility /ˈkredɪt fəˌsɪləti/ (noun [countable]) a
service companies offer to customers to receive a
product or service now and pay for it at a later date.
Our credit facility with our main supplier really helps us to
manage our cash flow.
credit period /ˈkredɪt ˌpɪəriəd/ (noun [countable]) the
amount of time that a company gives to a customer
before they have to pay for the goods or services they
have received. We need to ask for an extension of our credit
period as we don’t have the cash available to pay.
credit purchase /ˈkredɪt ˌpɜː(r)tʃəs/ (noun [countable])
something that is bought that will be paid for at a later
date. We need to be careful that we don’t make too many
credit purchases without being sure that the money will be
there to pay for them.
creditor /ˈkredɪtə(r)/ (noun [countable]) a person or
company that is owed money by another person or
company. They’re working with their creditors to reach an
agreement on a payment plan.
creditworthiness /ˈkredɪtˌwɜː(r)ðinəs/ (noun
[uncountable]) the degree to which a person,
organization or country is considered likely to pay back
money that they borrow. There are questions about their
creditworthiness that need to be resolved.
creditworthy /ˈkredɪtˌwɜː(r)ði/ (adjective) likely to pay
back money that you borrow. They need to be sure that we
are creditworthy before they will lend us the money.
crisis /ˈkraɪsɪs/ (noun [countable/uncountable]) an urgent,
difficult or dangerous situation. A period of economic
crisis might actually be the best time to invest.
current account /ˈkʌrənt əˌkaʊnt/ (noun [countable]) a
bank account that you can take money out of whenever
you want using a cheque or a cash card. The American
word is checking account. I withdrew the money from the
current account.
current asset /ˈkʌrənt ˌæset/ (noun [countable]) cash or
things that a company has that it expects to turn into
cash in the next year. I’m worried about how our lack of
current assets is going to affect our cash flow.
current liability /ˌkʌrənt laɪəˈbɪləti/ (noun [countable])
money that a company owes to its creditors that it has
to pay in the next year. Do we have the cash to cover our
current liabilities?
cut /kʌt/ (verb [transitive]) to reduce something such
as the amount or level of something. We have cut our
spending by 33%.
cut /kʌt/ (noun [countable]) a reduction in something. The
cuts in the budgets are starting to have some very negative
effects.
days sales inventory /deɪz ˈseɪlz ˌɪnvəntəri/ (noun
[countable]) a ratio that is calculated by dividing the
number of days in the year by the number of times
that a company sells all of its inventory. The days sales
inventory is higher than we’d like; how can we reduce it?
GLOSSARY (A–Z) 3

deal with /ˈdiːl ˌwɪð/ (phrasal verb [transitive]) to take
action to do something, especially to solve a problem. I
spent the morning dealing with my emails.
debt finance /ˈdet ˌfaɪnæns/ or /ˈdet faɪˌnæns/ (noun
[uncountable]) a way of getting money in which the
person or organization that borrows the money will
have to pay it back, usually with interest. We should
contact the bank and see what our options are for debt
finance.
debtor /ˈdetə(r)/ (noun [countable]) a person, organization
or country that owes money. Let’s get in touch with our
debtors and see who can start to pay us the money we are
owed.
declarable income /dɪˈkleərəb(ə)l ˌɪnkʌm/ (noun
[uncountable]) money that a person or company earns
that they have to let the tax office know about so that
they can be charged tax on it. I’ve asked my accountant to
look into ways of reducing my declarable income.
decline /dɪˈklaɪn/ (verb [intransitive]) to become less or
worse. The number of people buying their own homes has
declined.
defer /dɪˈfɜː(r)/ (verb [transitive]) to arrange for
something to happen at a later time than you had
planned. Let’s defer making a decision until we have all of
the facts.
demand /dɪˈmɑːnd/ (noun [uncountable]) the amount of
a product or service that people want, or the fact that
they want it. Demand for organic food is increasing.
deposit /dɪˈpɒzɪt/ (verb [transitive]) to pay money into a
bank account. Billions of dollars are deposited in banks
every day.
depreciation /dɪˌpriːʃiˈeɪʃ(ə)n/ (noun [uncountable]) the
value an asset loses over time. I’m not sure that this
valuation takes depreciation into account.
deteriorate /dɪˈtɪəriəreɪt/ (verb [intransitive]) to become
worse. The economic situation in the country has been
deteriorating rapidly.
devise /dɪˈvaɪz/ (verb [transitive]) to invent a method of
doing something. We need to devise a way of preventing
such miscommunication in future.
dip /dɪp/ (verb [intransitive]) to become less. Our profits
dipped 30%.
dip /dɪp/ (noun [countable]) a reduction in the amount or
level of something. The dip in the share price wiped £36.8
million off the value of the company yesterday.
direct cost /dɪˈrekt ˌkɒst/ or /daɪˈrekt ˌkɒst/ (noun
[countable]) a business cost that is directly connected
with a particular product or operation. Direct costs
should be attributed to a specific cost centre.
direct debit /daɪˈrekt ˌdebɪt/ (noun [countable]) an order
to a bank to regularly pay money from your account to
a person or organization. We prefer payment as a direct
debit.
director’s loan /dəˈrektə(r)z ˌləʊn/ or /daɪˈrektə(r)z ˌləʊn/
(noun [countable]) money that someone who runs a
limited company borrows from the company’s accounts
for their own personal use, or the personal money that
person lends to the business. I think I’ll need a director’s
loan to finance this.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
CORPORATE FINANCE
discrepancy /dɪsˈkrepənsi/ (noun [countable/
uncountable]) a difference between things that should
be the same. There’s a large discrepancy between estimated
and actual spending.
discretionary spend /dɪˈskreʃ(ə)n(ə)ri ˌspend/ (noun
[countable/uncountable] [usually singular]) money that
doesn’t need to be spent. Looking at our discretionary
spend, I think we can make some savings by reducing the
number of staff socials.
dispute /dɪˈspjuːt/ or /ˈdɪspjuːt/ (noun [countable/
uncountable]) a serious disagreement, especially one
between groups of people that lasts for a long time.
The company has been in a dispute with the union over
conditions in the factory for the last six months.
disregard /ˌdɪsrɪˈɡɑː(r)d/ (verb [transitive]) to not
consider something important, or to not pay any
attention to it. They disregarded safety procedures and
that’s why the accident happened.
disrupt /dɪsˈrʌpt/ (verb [transitive]) to interrupt
something and prevent it from continuing by creating a
problem. Protesters tried to disrupt the meeting.
distribution /ˌdɪstrɪˈbjuːʃ(ə)n/ (noun [uncountable]) the
process of supplying goods from one central place
to shops. What are our plans for the marketing and
distribution of the new software?
dividend /ˈdɪvɪdend/ (noun [countable]) a share of the
profits of a company, paid once or twice a year to the
people who own the company’s shares. They’ve paid a
dividend to their shareholders every year for the last ten
years.
don’t hesitate to do something /dəʊnt ˌhezɪteɪt tə ˈduː
ˌsʌmθɪŋ/ (phrase) used for encouraging someone to do
something. Don’t hesitate to call me if you need any help.
downturn /ˈdaʊnˌtɜː(r)n/ (noun [countable]) a reduction in
economic or business activity. Analysts are warning of a
severe economic downturn in the near future.
draft /drɑːft/ (verb [transitive]) to write something such
as a legal document, speech or letter that may have
changes made to it before it is finished. The government’s
first task was to draft a new constitution for the country.
dramatic /drəˈmætɪk/ (adjective) sudden and surprising or
easy to notice. Last month, we saw a dramatic increase in
sales.
dramatically /drəˈmætɪkli/ (adverb) suddenly or
surprisingly or easily noticed. Prices for steel have risen
dramatically in the last quarter.
drastic /ˈdræstɪk/ (adjective) a drastic action or change
has a very big effect. The company will be taking drastic
measures to reduce its debt.
draw up /ˌdrɔː ˈʌp/ (phrasal verb [transitive]) to
prepare and write something such as a document or
plan. Guidelines have been drawn up for dealing with
emergencies.
drive /draɪv/ (verb [transitive]) to cause something to
happen. We need to look into what is driving this shift in
consumer behaviour.
GLOSSARY (A–Z) 4

driver /ˈdraɪvə(r)/ (noun [countable]) something that
makes important things happen, for example in an
organization or economy. It’s a very interesting study of
technology as a driver of change in industry.
earnings /ˈɜː(r)nɪŋz/ (noun [plural]) the profit made by a
company. The company reported that earnings were down
last quarter.
EBIT /ˈiːbɪt/ (noun [uncountable]) earnings before interest
and taxation. I’m happy with the increase in our EBIT.
economize /ɪˈkɒnəmaɪz/ (verb [intransitive]) to use
something such as money or fuel very carefully, so that
you waste as little as possible. We need to find ways to
economize or we’ll run out of cash before the end of the
month.
empathy /ˈempəθi/ (noun [uncountable]) the ability to
understand how someone feels because you can imagine
what it is like to be them. The way he announced the
redundancies showed a lack of empathy for the staff.
enable /ɪnˈeɪb(ə)l/ (verb [transitive]) to give someone
the ability or opportunity to do something. This new
training portal will enable more self-directed learning.
ensure /ɪnˈʃɔː(r)/ (verb [transitive]) to make certain that
something happens or is done. Our new system ensures
that everyone gets paid on time.
entitle /ɪnˈtaɪt(ə)l/ (verb [transitive] [often passive]) to
give someone the right to do something. The people who
are entitled to vote should be aware of that fact.
entity /ˈentəti/ (noun [countable]) a business. She’s done
legal work for a number of different corporate entities.
equity /ˈekwəti/ (noun [uncountable]) ownership of a
company. I own 50% of the equity in this company.
equity finance /ˈekwəti ˌfaɪnæns/ or /ˈekwəti faɪˌnæns/
(noun [uncountable]) the selling of shares (ownership
in the business) by a company to raise money. I’m
reluctant to use equity finance as I don’t want to have to
give up so much control of the company.
exchange rate /ɪksˈtʃeɪndʒ ˌreɪt/ (noun [countable]) the
value of the money of one country when you change
it into the money of another country. We’re very
susceptible to changes in the exchange rate.
expansion /ɪkˈspænʃ(ə)n/ (noun [uncountable]) the
process of making a business, organization or activity
grow by including more people, moving into new areas,
selling more products, etc. The company has looked at a
number of ways of financing its expansion.
expenditure /ɪkˈspendɪtʃə(r)/ (noun [countable/
uncountable]) money spent by a government,
organization or person. Expenditure should ideally not
exceed income.
exposed /ɪkˈspəʊzd/ (adjective) not protected from risk
or danger. This policy will leave us far too exposed to
fluctuations in exchange rates.
exposure /ɪkˈspəʊʒə(r)/ (noun [countable/uncountable])
the state of being put into a situation in which
something harmful or dangerous might affect you. We
have to reduce our exposure to volatility in the price of oil.
extend /ɪkˈstend/ (verb [intransitive/transitive]) to increase
the size of a building or area, especially by adding extra
parts onto it. We’re going to extend the first floor.
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extension /ɪkˈstenʃ(ə)n/ (noun [countable]) extra time that
you are given to pay money that you owe. Can you give
me an extension on this invoice until the end of the week?
facilitate /fəˈsɪləteɪt/ (verb [transitive]) to make it
possible or easier for something to happen. The new
processes should facilitate the sharing of findings between
departments.
factor /ˈfæktə(r)/ (noun [countable]) one of the things
that influence whether an event happens or the way
that it happens. Safety is the single most important factor
in a car’s design.
factoring /ˈfæktə(r)ɪŋ/ (noun [countable]) a transaction
in which a company sells unpaid debts to another
organization for less than they are worth in order to
gain access to cash. We should consider factoring as a way
to raise some money in the short term.
finance /ˈfaɪnæns/ or /faɪˈnæns/ (noun [uncountable])
money that is used to pay for something such as a
large project. We are now trying to raise finance for more
research projects.
financial statement /faɪˌnænʃ(ə)l ˈsteɪtmənt/ (noun
[countable]) a record of the movement of money into
and out of a company. I’d like to look through the financial
statements more thoroughly before deciding where to
invest.
fixed /fɪkst/ (adjective) something such as an amount, date
or time that is fixed has been agreed on and will not
change. The contract is for a fixed period of three years.
fixed asset /ˌfɪkst ˈæset/ (noun [countable]) something a
company owns and uses but does not sell, for example
machines, buildings or land. A lot of their money is tied up
in fixed assets.
flexible /ˈfleksəb(ə)l/ (adjective) able to make changes
or deal with a situation that is changing. The job offers
flexible working hours.
float /fləʊt/ (verb [transitive]) to start to sell a company’s
shares on the stock market. The company was floated in
1993.
fluctuate /ˈflʌktʃueɪt/ (verb [intransitive]) to change
frequently. The price fluctuates between 50 pence and £1
per kilo.
fluctuation /ˌflʌktʃuˈeɪʃ(ə)n/ (noun [countable/
uncountable]) frequent changes in the amount, value
or level of something. These fluctuations in demand are
making it very difficult to plan production levels.
follow up /ˌfɒləʊ ˈʌp/ (phrasal verb [intransitive/
transitive]) to try to find out more about something, or
to do something more to deal with it. After talking about
the possibility of doing business at the conference, I followed
up with a telephone call.
follow-up /ˈfɒləʊ ˌʌp/ (noun [countable/uncountable])
something that is done in order to complete something.
The researchers conducted a follow-up study two years later.
forecast /ˈfɔː(r)kɑːst/ (verb [transitive]) to make a
statement about what is likely to happen, usually
relating to the weather, business or the economy. He
forecasted that the economy’s downturn would be
short-lived.
GLOSSARY (A–Z) 5

forecast /ˈfɔː(r)kɑːst/ (noun [countable]) a statement
about what is likely to happen, based on available
information and usually relating to the weather,
business or the economy. Her forecast for the economic
situation was bleak.
foreseeable /fɔː(r)ˈsiːəb(ə)l/ (adjective) a foreseeable
event or time is one that can easily be imagined or
known about before it happens. The increased demand
for organic produce was not foreseeable ten years ago.
forward contract /ˈfɔː(r)wə(r)d ˌkɒntrækt/ (noun
[countable]) an agreement between two people or
organizations to buy or sell an asset at a set date in
the future. We can use a forward contract to balance any
fluctuations in commodity prices.
fraud /frɔːd/ (noun [countable/uncountable]) the crime of
obtaining money from someone by tricking them. Police
are investigating a complex fraud involving several bogus
contractors.
fraudulent /ˈfrɔːdjʊlənt/ (adjective) made with the
intention of tricking someone, especially illegally. The
judge agreed that the scheme was fraudulent.
fund /fʌnd/ (verb [transitive]) to provide the money
for something that costs a lot. The National Asthma
Campaign is funding research into allergy and air pollution.
get back to /ˌɡet ˈbæk tuː/ (phrasal verb [transitive])
to phone, write or speak to someone at a later time
because you were busy or could not answer their
question earlier. I’ll find out what the hold-up is and get
back to you today.
go over /ˌɡəʊ ˈəʊvə(r)/ (phrasal verb [transitive]) to check
something carefully. Could you go over this report and
correct any mistakes?
going forward /ˌɡəʊɪŋ ˈfɔː(r)wə(r)d/ (phrase) from now
into the future. I think that we should all follow the new
process going forward.
gradual /ˈɡrædʒuəl/ (adjective) gradual processes and
changes happen slowly and by small amounts. We’ve
seen a gradual fall in sales in the last few months.
gross income /ˌɡrəʊs ˈɪnkʌm/ (noun [countable/
uncountable]) the difference between the price that
someone sells goods for and what it costs to produce
them. Another term for gross profit. We’ve seen a
worrying fall in our gross income.
gross margin /ˌɡrəʊs ˈmɑː(r)dʒɪn/ (noun [countable]) a
percentage that is calculated by dividing the gross profit
by revenue. I think we can be satisfied with a gross margin
of 23% in the circumstances.
gross profit /ˌɡrəʊs ˈprɒfɪt/ (noun [countable/
uncountable]) the difference between the price that
someone sells goods for and what it costs to produce
them. Another term for gross profit. The accounts show
that gross profit has risen 7% on last year.
guarantee /ˌɡærənˈtiː/ (noun [countable]) a promise that
something will definitely happen. I can’t give you any
guarantees at the moment.
healthy /ˈhelθi/ (adjective) a healthy amount of money is a
large amount. Last year the company made a healthy profit
of over five million pounds.
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hedging /ˈhedʒɪŋ/ (noun [uncountable]) an action taken
to reduce the risk of a financial transaction. Our hedging
means that there is very little risk of loss.
highlight /ˈhaɪˌlaɪt/ (verb [transitive]) to describe
something in a way that makes people notice it and
think about it. The case highlights the need for adequate
controls on such experiments.
hold something on your books /ˌhəʊld ˌsʌmθɪŋ ɒn jə(r)
ˈbʊks/ (phrase) to have something in your accounts.
How much inventory are we holding on our books?
IBAN /ˈaɪbæn/ (noun [countable]) International Bank
Account Number: a number that allows you to make or
receive international payments. If you let me know your
IBAN, I can get the money to you by the end of tomorrow.
impact /ˈɪmpækt/ (noun [countable]) an effect, or an
influence. She’s only been at the company for a month, but
she is already making an impact.
impartially /ɪmˈpɑː(r)ʃəli/ (adverb) in a way that is not
connected to or influenced by one particular person or
group. Judges need to behave impartially.
in arrears /ɪn əˈrɪə(r)z/ (phrase) late in making a regular
payment. Your mortgage payment is a month in arrears.
in default /ɪn ˈdɪˌfɔːlt/ (phrase) the position of someone
who has not done something that they were officially
ordered to do. A worrying number of people are in default
on their mortgages.
in relation to /ɪn rɪˈleɪʃ(ə)n tuː/ (phrase) concerning
something. I have nothing further to say in relation to this
matter.
in the foreseeable future /ɪn ðə fɔː(r)ˈsiːəb(ə)l ˌfjuːtʃə(r)/
(phrase) at a future time that is not very distant,
and that can be at least partly guessed from present
conditions. I can’t see any of our competitors launching
anything similar in the foreseeable future.
income /ˈɪnkʌm/ (noun [countable/uncountable]) money
that someone gets from working or from investing
money. Our income has dropped considerably since the
scandal broke.
incur costs /ɪnˈkɜː(r) ˌkɒsts/ (phrase) to lose money,
owe money, or have to pay money as a result of doing
something. They will incur costs related to the closure of a
number of their factories.
inflation /ɪnˈfleɪʃ(ə)n/ (noun [uncountable]) an economic
process in which prices increase so that money becomes
less valuable. Your pension is protected against inflation.
inflow /ˈɪnfləʊ/ (noun [countable/uncountable]) an
amount of something such as money or goods that
comes into a place. There has been a welcome inflow of
foreign investment.
infrastructure /ˈɪnfrəˌstrʌktʃə(r)/ (noun [countable/
uncountable]) the set of systems within a place or
organization that affect how well it operates, for
example the telephone and transport systems in a
country. They have spent over 4 billion euros on improving
their existing infrastructure.
in-house /ˈɪn ˌhaʊs/ (adjective) done, working or
happening inside a company or organization. He’s doing
some in-house training today.
GLOSSARY (A–Z) 6

innovate /ˈɪnəʊveɪt/ (verb [intransitive]) to invent or begin
using new ideas, methods, equipment, etc. In order to
stay relevant, you have to continue to innovate.
insight /ˈɪnsaɪt/ (noun [countable/uncountable]) a chance
to understand something or learn more about it. The
report provided some interesting insights into the reasons
behind certain purchasing patterns.
insist /ɪnˈsɪst/ (verb [intransitive/transitive]) to say very
firmly that something must happen or must be done.
He insisted that we review the budget and find further
savings.
interest /ˈɪntrəst/ (noun [uncountable]) money that a
person or institution such as a bank charges you for
lending you money. They have increased the interest
charged on personal loans.
interim /ˈɪntərɪm/ (adjective [only before noun]) intended
to last or perform an activity only until someone or
something permanent or final is available. This is only
an interim report, but I think that it gives us a lot to start
thinking about in terms of ways we can improve.
internal /ɪnˈtɜː(r)n(ə)l/ (adjective) existing or happening
within an organization or institution. They conducted an
internal enquiry into the accusations.
invaluable /ɪnˈvæljuəb(ə)l/ (adjective) extremely useful.
Her experience in marketing has proved to be invaluable in
her new role.
inventory /ˈɪnvəntəri/ (noun [uncountable]) the stock of
goods in a warehouse or storeroom. Most companies
reduce their inventory to a minimum at the end of the
financial year to make the balance sheet look better.
invoice /ˈɪnvɔɪs/ (noun [countable]) a document giving
details of goods or services that someone has bought
and must pay for. We send out our invoices on a monthly
basis.
irregularity /ɪˌreɡjʊˈlærəti/ (noun [countable] [often
plural]) a situation in which the rules, laws or usual
ways of doing things have not been followed. There were
a number of irregularities in the accounts that nobody could
explain.
issue /ˈɪʃuː/ or /ˈɪsjuː/ (verb [transitive]) to officially make
things available for people to buy or use. A new range of
stamps will be issued to commemorate the event.
keep track /ˈkiːp ˌtræk/ (phrase) to have all the
information that you need about something. We need a
system to keep track of all our expenses.
key /kiː/ (adjective) very important. The marketing
campaign has been a key factor in increasing sales.
leeway /ˈliːweɪ/ (noun [uncountable]) the amount of
freedom that someone has to make their own decisions
or to take action. They have been given too much leeway to
decide on how they should regulate themselves.
letter of credit /ˌletə(r) əv ˈkredɪt/ (noun [countable])
a document sent from one bank to another that
guarantees payment as long as certain conditions are
met. We still haven’t received the letter of credit.
leverage /ˈliːv(ə)rɪdʒ/ (noun [uncountable]) the amount of
debt the company currently has. This company has very
high leverage.
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liability /ˌlaɪəˈbɪləti/ (noun [countable] [usually plural])
an amount of money that a company owes. How are we
going to find the money to pay these liabilities?
limit /ˈlɪmɪt/ (verb [transitive]) to prevent a number,
amount or effect from increasing past a particular
point. The regulations are designed to limit environmental
damage.
liquidity /lɪˈkwɪdəti/ (noun [uncountable]) a situation in
which a business has money or property that it can sell
in order to pay money that it owes. They don’t have the
liquidity necessary to meet their obligations.
lock into /ˌlɒk ˈɪntuː/ (phrasal verb [transitive]) to involve
someone or something in a system, plan, etc in such a
way that they cannot easily escape from it. Their strategy
is to lock subscribers into long-term contracts.
logistics /ləˈdʒɪstɪks/ (noun [uncountable]) the activity of
moving goods. I know someone who works in logistics that
might be able to help us.
long-term liability /ˌlɒŋ tɜː(r)m laɪəˈbɪləti/ (noun
[countable]) money that a company owes to its creditors
that it has more than one year before it has to pay. We
mustn’t forget about our long-term liabilities when thinking
about how much cash we have to invest in opening new
branches.
lump sum /ˌlʌmp ˈsʌm/ (noun [countable]) money in
a single large payment rather than small separate
payments. We tried to negotiate an instalment plan, but
they insisted that we had to pay one lump sum.
maintenance /ˈmeɪntənəns/ (noun [uncountable]) work
that is done to keep something such as a building,
machine or piece of equipment repaired and in good
condition. Routine maintenance is included in the price.
major /ˈmeɪdʒə(r)/ (adjective [usually before noun])
important, serious, large or great. There has been a major
increase in our staff turnover recently.
make an exception /ˌmeɪk ən ɪkˈsepʃ(ə)n/ (noun
[countable/uncountable]) to deal with someone or
something in a different way from usual on a particular
occasion only. We don’t usually offer such generous terms,
but in your case, we’ll make an exception.
manage expectations /ˌmænɪdʒ ekspekˈteɪʃ(ə)nz/ (phrase)
to maintain a realistic view of what can be achieved in
order to reduce the potential for disappointment. I think
we have to stop being so over-optimistic about this project
and manage our expectations.
manufacture /ˌmænjʊˈfæktʃə(r)/ (verb [transitive]) to
make goods in large quantities in a factory. The firm
manufactures women’s clothing.
manufacturer /ˌmænjʊˈfæktʃərə(r)/ (noun [countable]) a
person or company that manufactures a product. She
works for one of the leading computer manufacturers.
manufacturing /ˌmænjʊˈfæktʃərɪŋ/ (noun [uncountable])
the business of making goods in large quantities in a
factory. The region has suffered because of the decline in
manufacturing.
marginal /ˈmɑː(r)dʒɪn(ə)l/ (adjective) very small. There’s
been only a marginal change in the price of flour in the last
twelve months.
GLOSSARY (A–Z) 7

marginally /ˈmɑː(r)dʒɪn(ə)li/ (adverb) by only a very small
amount. Revenue rose marginally last year.
massive /ˈmæsɪv/ (adjective) very large in amount or
degree. We’ve lost a massive amount of money.
measure /ˈmeʒə(r)/ (noun [countable]) an action
that is intended to achieve or deal with something.
Stronger measures will have to be taken to bring down
unemployment.
merger and acquisition /ˈmɜː(r)dʒə(r) ənd ækwɪˌzɪʃ(ə)n/
(noun [countable]) the combining of two or more
companies. Through a merger and acquisition, the company
has become one of the leaders in the market.
mitigate /ˈmɪtɪɡeɪt/ (verb [transitive]) to reduce the
harmful effects of something. Only international
cooperation can mitigate environmental damage.
morale /məˈrɑːl/ (noun [uncountable]) the amount of
enthusiasm that a person or group of people feel about
their situation at a particular time. Morale is low, and
many people are disillusioned.
negotiate /nɪˈɡəʊʃieɪt/ (verb [intransitive/transitive]) to
try to reach an agreement by discussing something
in a formal way, especially in a business or political
situation. The airline is negotiating a new contract with the
union.
net /net/ (adjective) a net amount of money is the total
amount after taxes or costs have been removed. Net
earnings per share amounted to £0.78.
net 90-day terms /net ˈnaɪnti deɪ ˌtɜː(r)mz/ (noun [plural])
an agreement with a supplier that you can pay for goods
you receive 90 days after you receive them. People may
also talk about net 30-day terms or net 60-day terms.
Let’s see if we can renegotiate and get net 90-day terms
from them.
one-off /ˈwʌn ˌɒf / (adjective) happening, done or made
only once. There’s a lot of money going out this month, but
these are mostly one-off purchases.
opening balance /ˈəʊp(ə)nɪŋ ˌbæləns/ (noun [countable])
the amount that is in an account at the start of a period
of time. I think that this opening balance means that we
can be confident that we can meet our liabilities.
operating cost /ˈɒpəreɪtɪŋ ˌkɒst/ (noun [countable]) a cost
a company incurs in running its business, such as the
cost of renting premises, repairing equipment, paying
salaries, etc. We managed to reduce operating costs by
streamlining our processes.
operating expense /ˈɒpəreɪtɪŋ ɪkˌspens/ (noun
[countable]) a cost a company incurs in running its
business, such as the cost of renting premises, repairing
equipment, paying salaries, etc. Are there any savings
that we can make in our operating expenses?
operating income /ˈɒpəreɪtɪŋ ˌɪnkʌm/ (noun [countable/
uncountable]) the profit that a company makes from
its normal activities of selling goods or services.
Another term for operating profit. We have seen a
significant drop in our operating income.
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operating profit /ˈɒpəreɪtɪŋ ˌprɒfɪt/ (noun [countable/
uncountable]) the profit that a company makes from
its normal activities of selling goods or services.
Another term for operating income. A look at the
company’s operating profit suggests that they are in a
healthy position.
operation /ˌɒpəˈreɪʃ(ə)n/ (noun [countable]) a company,
or a part of a large company. The company has recently
expanded its UK operation.
options contract /ˈɒpʃ(ə)nz ˌkɒntrækt/ (noun [countable])
a contract that gives the holder the right to buy or sell
an asset at today’s price at a future time. We can use an
options contract to buy oil at today’s price if the price rises.
organic /ɔː(r)ˈɡænɪk/ (adjective) happening or developing
in a natural and continuous process. The business has
expanded through organic growth, rather than by taking
over other companies.
outflow /ˈaʊtˌfləʊ/ (noun [countable]) an amount of
something such as money or goods that goes out of a
place. We’re looking at a big cash outflow this month.
outline /ˈaʊtlaɪn/ (verb [transitive]) to give the main ideas
of a plan or a piece of writing without giving all the
details. The document outlines our company’s recycling
policy.
output /ˈaʊtˌpʊt/ (noun [countable/uncountable] [usually
singular]) the amount of something that a person,
organization, system, etc produces. Industrial output
increased by 4% last year.
outstanding /aʊtˈstændɪŋ/ (adjective) an amount of money
that is outstanding has not yet been paid. All your
outstanding debts must be settled now.
overcapitalized /ˌəʊvə(r)ˈkæpɪt(ə)laɪzd/ (adjective) when
the real value of a business is lower than its price
on the open market, making it difficult to obtain a
return on capital. I’m not going to invest. This company
is overcapitalized, so they can’t provide a decent return on
investment.
overdraft /ˈəʊvə(r)ˌdrɑːft/ (noun [countable]) an
agreement with your bank that allows you to spend
money when you have no money left in your account.
It’s very useful to have an overdraft when we are having
cash-flow issues.
overdue /ˌəʊvə(r)ˈdjuː/ (adjective) a payment that is
overdue should have been paid before now. We really
need to get these overdue invoices paid as soon as possible.
overexpose /ˌəʊvərɪkˈspəʊz/ (verb [transitive]) to have
too much risk in your business operations. Borrowing
this much overexposes us to an increase in interest rates.
overhead /ˌəʊvə(r)ˈhed/ (noun [usually plural]) the costs,
such as rent, insurance, administration, etc that a
company has to pay which don’t relate to a specific
product. Is there any way we can reduce overheads?
over-optimistic /ˈəʊvə(r)ˌɒptɪˌmɪstɪk/ (adjective) expecting
things to happen in the future in a better way than most
people think is likely. I think you’re being
over-optimistic with this forecast; the outlook isn’t that good.
GLOSSARY (A–Z) 8

overproduce /ˌəʊvə(r)prəˈdjuːs/ (verb [intransitive/
transitive]) to produce more of something, for example
a product or a crop, than is wanted or needed. We are
overproducing for what is becoming an increasingly niche
market.
overtime /ˈəʊvə(r)ˌtaɪm/ (noun [uncountable]) extra hours
that someone works at their job. They have been working
a lot of overtime recently.
overtrading /ˌəʊvə(r) ˈtreɪdɪŋ/ (noun [uncountable]) the
act of doing more business than a company’s working
capital will allow. Due to overtrading, the business went
bust.
overview /ˈəʊvə(r)ˌvjuː/ (noun [countable]) a description
of the main features of something. We need an overview
of market conditions.
overwhelm /ˌəʊvə(r)ˈwelm/ (verb [transitive] [usually
passive]) to exist in such great amounts that someone
or something cannot deal with it. With three projects
happening at the same time, it’s not surprising that you’re
overwhelmed by it all.
ownership /ˈəʊnə(r)ʃɪp/ (noun [uncountable]) legal
possession of something, usually something big and
valuable. Dutch ownership of the company was formally
recognized.
P&L /ˌpiː ən ˈel/ (noun [countable]) profit and loss
statement: a summary of the amount of money that
comes into and goes out of a company in a period of
time. Let’s take a look at the P&L to see where the problem
is.
panic /ˈpænɪk/ (noun [singular/uncountable]) a sudden
strong feeling of fear or worry that makes you unable to
think clearly or calmly. She felt a moment of sheer panic.
partial /ˈpɑː(r)ʃ(ə)l/ (adjective) not complete. Despite all
the problems that we’ve had, they only offered us a partial
refund.
partner /ˈpɑː(r)tnə(r)/ (noun [countable]) one of two or
more people who own a company and share its profits
and losses. A business owned in this way is called a
partnership. I’ll need to discuss this with my business
partner.
pass on /ˌpɑːs ˈɒn/ (verb [transitive]) to make someone
who is buying something from you pay for the cost of
something. The retailer is forced to pass these extra costs
on to the customer.
payable /ˈpeɪəb(ə)l/ (adjective [never before noun]) an
amount of money that is payable must be paid. Which of
these invoices is payable within the month?
payment run /ˈpeɪmənt ˌrʌn/ (noun [countable]) the
process in which all the invoices that need to be paid
by a company are organized and paid on a set day
each week. Which payments are going out in this week’s
payment run?
payment schedule /ˈpeɪmənt ˌʃedjuːl/ (noun [countable])
the timetable of dates when a company will make
payments to the companies that it owes money to.
We need to update the payment schedule to add the new
suppliers.
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penalty /ˈpen(ə)lti/ (noun [countable]) a punishment for
breaking a rule or law. The government needs to be able to
impose tougher penalties on companies that fail to ensure
the safety of their staff.
policy /ˈpɒləsi/ (noun [countable/uncountable]) a set of
plans or actions agreed on by a government, political
party, business or other group. We have to follow the
official policy for how to handle situations like this.
port of discharge /ˈpɔː(r)t əv ˌdɪstʃɑː(r)dʒ/ (noun
[countable]) a place where the items in a shipment are
unloaded before being sent on to the recipients. There
has been a hold-up at the port of discharge due to some
errors in the paperwork.
potential /pəˈtenʃ(ə)l/ (noun [uncountable]) the possibility
to develop or achieve something in the future. Our
common goal is to maximize our potential for economic
growth.
prediction /prɪˈdɪkʃ(ə)n/ (noun [countable/uncountable])
a statement about what you think will happen in the
future, or the process of making such a statement. The
government maintained its prediction that inflation will
hold to 8.5% this year.
predominantly /prɪˈdɒmɪnəntli/ (adverb) mainly, or mostly.
Ours is predominantly a bricks-and-mortar operation.
premises /ˈpremɪsɪz/ (noun [plural]) the buildings and
land that a business or organization uses. While on the
premises, all visitors must carry some form of identification.
premium /ˈpriːmiəm/ (adjective) more expensive or of
higher quality than other similar things. They only deal
with premium brands.
prioritize /praɪˈɒrɪtaɪz/ (verb [transitive]) to treat a
particular job or issue as being more important than
any others. A decision was taken to prioritize investment
in alternative energy supplies.
proceed /prəˈsiːd/ (verb [intransitive]) to start to do
something, usually as the next step in a process. They
are going to proceed with the plan to relocate their offices.
procurement /prəˈkjʊə(r)mənt/ (noun [uncountable])
the process of buying supplies or equipment for a
government department or company. How will we go
about the procurement of these materials?
profit margin /ˈprɒfɪt ˌmɑː(r)dʒɪn/ (noun [countable]) the
difference between how much money you get when you
sell something and how much it costs you to buy or
make it. Despite their high turnover, their profit margin is
actually very low.
profitability /ˌprɒfɪtəˈbɪləti/ (noun [uncountable]) the
degree to which something is profitable, or the state of
being profitable. We have consistently increased turnover
and increased profitability.
profitable /ˈprɒfɪtəb(ə)l/ (adjective) likely to increase your
profits. We need to be able to identify profitable markets.
project /prəˈdʒekt/ (verb [transitive] [usually passive])
to calculate how big something will become in the
future using information that is available now. Total
expenditure was projected to increase by 4.7%.
GLOSSARY (A–Z) 9

projection /prəˈdʒekʃ(ə)n/ (noun [countable]) a calculation
of the way that something will change and develop in
the future, especially of how fast it will grow or become
smaller. It is his job to make projections about publishing
trends.
proposal /prəˈpəʊz(ə)l/ (noun [countable]) a plan or
suggestion, especially a formal one that a group has to
consider. Not many people agreed with his proposal.
propose /prəˈpəʊz/ (verb [transitive]) to suggest a plan,
idea or action. He proposed taking on more temporary
staff.
purchase order /ˈpɜː(r)tʃəs ˌɔː(r)də(r)/ (noun [countable])
a document issued by the buyer’s company authorizing
the transaction. We sent the purchase order directly.
purchasing department /ˈpɜː(r)tʃəsɪŋ dɪˌpɑː(r)tmənt/
(noun [countable]) the part of a company that is
responsible for getting the supplies that the company
needs. The purchasing department is assessing the prices of
a number of potential suppliers.
push for /ˈpʊʃ ˌfɔː(r)/ (phrasal verb [transitive]) to try
hard to get or achieve something. They continue to push
for fair pay, but management won’t listen.
quarter /ˈkwɔː(r)tə(r)/ (noun [countable]) one of four
periods of three months that the year is divided
into, especially when you are talking about financial
accounts. The company’s profits fell in the third quarter.
quarterly /ˈkwɔː(r)tə(r)li/ (adjective, adverb) done or
produced four times a year. Reports are published
quarterly.
rate /reɪt/ (noun [countable]) the speed at which
something happens within a particular period of time.
He was concerned by the rate at which people were leaving
the company.
raw data /ˌrɔː ˈdeɪtə/ or /ˌrɔː ˈdɑːtə/ (noun [uncountable])
information, facts, etc that have not been examined or
organized. I’m looking at the raw data and I don’t like what
I’m seeing.
reasonable /ˈriːz(ə)nəb(ə)l/ (adjective) someone who is
reasonable behaves in a sensible and fair way. I think
that the union’s demands are reasonable.
reassurance /ˌriːəˈʃʊərəns/ (noun [uncountable]) the act
of making someone feel less worried about something.
It’s at difficult times like this that we all look to the CEO for
reassurance.
reconcile /ˈrekənsaɪl/ (verb [transitive]) to make two sets
of accounting data consistent. I can’t reconcile these
figures.
recruit /rɪˈkruːt/ (verb [intransitive/transitive]) to get
someone to work in a company or join an organization.
We won’t be recruiting again until next year.
reduction /rɪˈdʌkʃ(ə)n/ (noun [countable/uncountable])
the process or result of making something smaller
or less in amount, size, importance, etc. The price
reductions have failed to increase sales.
reflect /rɪˈflekt/ (verb [transitive]) to show the existence or
nature of something. He said that the statement did not
reflect his own views.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
CORPORATE FINANCE
refurbishment /ˌriːˈfɜː(r)bɪʃmənt/ (noun [countable/
uncountable]) the act of improving a room or a building
by cleaning and painting it, adding new furniture or
equipment, etc, or the changes and improvements that
are made. The refurbishment of the offices cost more than
expected.
regardless of /rɪˈɡɑː(r)dləs ɒv/ (phrase) without being
affected or influenced by anything else that happens or
exists. Regardless of how many people we put on the job, we
simply don’t have time to complete the order.
regulation /ˌreɡjʊˈleɪʃ(ə)n/ (noun [countable]) an official
rule that controls the way that things are done. The
government has introduced regulations to prevent the
exploitation of workers.
regulative /ˈreɡjʊlətɪv/ (adjective) relating to regulations.
There are a number of regulative considerations here.
reinstate /ˌriːɪnˈsteɪt/ (verb [transitive]) to start using or
having something such as a law or benefit again. The
government finally agreed to reinstate our licence to operate
there.
reinvest /ˌriːɪnˈvest/ (verb [intransitive/transitive])
to invest income back into a business instead of taking
it as profit. We should reinvest some of this money in new
equipment.
reminder /rɪˈmaɪndə(r)/ (noun [countable] [usually
singular]) a letter or note that reminds you of
something that you need to do or need to remember. If
an instalment is not paid, a reminder is issued.
render /ˈrendə(r)/ (verb [transitive]) to officially announce
a judgment or decision. We are still waiting for the
committee to render a judgment.
repayment /rɪˈpeɪmənt/ (noun [countable]) an amount of
money that you pay to the person, bank, etc that you
have borrowed it from. She’s worried about how they are
going to make the next repayment.
repossession company /riːpəˈzeʃ(ə)n ˌkʌmp(ə)ni/ (noun
[countable]) a company that buys an unpaid debt from
another company. They sold the debt to a repossession
company.
reserve /rɪˈzɜː(r)v/ (noun [countable] [usually plural]) a
supply of something that a country or an organization
can use when they need to. The company has steadily
drained its cash reserves.
resolution /ˌrezəˈluːʃ(ə)n/ (noun [uncountable]) the action
of solving a problem or dealing with a disagreement in a
satisfactory way. We’re hoping for a satisfactory resolution
to the disagreement.
resolve /rɪˈzɒlv/ (verb [transitive]) to solve a problem,
or to find a satisfactory way of dealing with a
disagreement. The crisis was resolved by negotiation.
respond /rɪˈspɒnd/ (verb [intransitive]) to react to
something by taking a particular course of action.
They failed to respond to changes in the market and their
business went under.
restore /rɪˈstɔː(r)/ (verb [transitive]) to cause a particular
situation to exist again, especially a positive one.
We hope to restore confidence in our product with a new
advertising campaign.
GLOSSARY (A–Z) 10
 CORPORATE FINANCE

retailer /ˈriːˌteɪlə(r)/ (noun [countable]) a person or service /ˈsɜː(r)vɪs/ (verb [transitive]) to pay interest on
company that sells goods directly to the public for their money that you have borrowed from someone. He was
own use. He works for one of the biggest online clothing using all his income to service his debts and so was unable
retailers. to save any money.
retain /rɪˈteɪn/ (verb [transitive]) to keep someone or settle /ˈset(ə)l/ (verb [transitive]) to pay all the money that
something. We’re trying to recruit and retain skilled staff.
you owe to a particular person or company. He has 30
retained earnings /rɪˌteɪnd ˈɜː(r)nɪŋz/ (noun [plural]) days to settle his bill.
share /ʃeə(r)/ (noun [countable]) one of the equal parts
another term for retained profit. I would like to refer you
to the entry for retained earnings on the spreadsheet. of a company that you can buy as a way of investing
retained profit /rɪˌteɪnd ˈprɒfɪt/ (noun [uncountable]) the money. The scheme allows employees to buy shares in the
money that a company makes that it keeps instead company.
of paying it to shareholders. We can invest some of our shareholder /ˈʃeə(r)ˌhəʊldə(r)/ (noun [countable])
retained profit in the new equipment. someone who owns shares in a company. Our first
return on equity /rɪˌtɜː(r)n ɒn ˈekwəti/ (noun [countable]) loyalty has to be to our shareholders.
a method of seeing how profitable a company is by shareholders’ equity /ˈʃeə(r)həʊldə(r)z ˌekwəti/ (noun
calculating how much money the company makes [uncountable]) the difference between the money and
compared with how much money shareholders have assets that a company has and the money that it owes.
invested in it. Can you explain why we are seeing such a This company has been in negative shareholders’ equity for
fall in our return on equity? the last three quarters.
revenue /ˈrevənjuː/ (noun [countable/uncountable]) shipment /ˈʃɪpmənt/ (noun [countable]) an amount of
income from business activities or taxes. The magazine goods carried on a ship, plane, train or truck. The spider
had been losing advertising revenue for months. was found in a shipment of bananas.
review /rɪˈvjuː/ (verb [transitive]) to study or examine shop front /ˈʃɒp ˌfrʌnt/ (noun [countable]) the outside
a situation, policy or idea again in order to decide part of a shop that is on the street, where the main
whether it is suitable or satisfactory. I suggested that entrance is. If we make our shop fronts more attractive, we
they review their forecasting processes. can attract more customers.
rhetorical /rɪˈtɒrɪk(ə)l/ (adjective) relating to a style of
shortage /ˈʃɔː(r)tɪdʒ/ (noun [countable/uncountable]) a
speaking or writing that is effective or intended to lack of something that you need or want. Refugees are
influence people. His speech was full of rhetorical devices,
facing serious food and fuel shortages.
and was very effective. shortfall /ˈʃɔː(r)tˌfɔːl/ (noun [countable]) a lack of
root /ruːt/ (noun [countable]) a basic cause or idea. We needsomething that you need or want, or the amount that
to get to the root of the problem. you lack. We’ve seen a sudden shortfall in the supply of
rush hour /ˈrʌʃ ˌaʊə(r)/ (noun [countable/uncountable]) skilled labour.
the time of day when there are a lot of cars on the road significant /sɪɡˈnɪfɪkənt/ (adjective) very large or
because most people are travelling to or from work. I noticeable. Profits have been severely affected by this
left work early in order to avoid rush hour. significant increase in costs.
sacrifice /ˈsækrɪfaɪs/ (verb [transitive]) to give up significantly /sɪɡˈnɪfɪkəntli/ (adverb) by a large amount, or
something important or valuable so that you or other in a way that is very noticeable. As an organization, we’ve
people can do or have something else. Would you sacrifice grown significantly.
some of your salary for more holiday time? sizeable /ˈsaɪzəb(ə)l/ (adjective) fairly large. He earns a
sales ledger /ˈseɪlz ˌledʒə(r)/ (noun [countable]) a record sizeable income from his consultancy work.
of a company’s sales, which they’ve received the money small talk /ˈsmɔːl ˌtɔːk/ (noun [uncountable]) informal
for and which they are still waiting for payment for. We conversation about things that are not important.
use the sales ledger to keep track of debtors. Whilst we waited for the others, we made a bit of small talk.
scope /skəʊp/ (noun [uncountable]) the things that a smoothly /ˈsmuːðli/ (adverb) without difficulty, problems
particular activity, organization, subject, etc deals with.or delays. For work to flow smoothly, proper preparations
What is the scope of the project? must be made.
seasonal /ˈsiːz(ə)nəl/ (adjective) relating to the seasons or
solely /ˈsəʊlli/ (adverb) involving nothing except the
the time of the year. These seasonal variations mean that person or thing mentioned. They were interested solely in
we need to have a flexible workforce. schemes that would make a lot of money.
segregation /ˌseɡrɪˈɡeɪʃ(ə)n/ (noun [uncountable]) the solvency ratio /ˈsɒlvənsi ˌreɪʃiəʊ/ (noun [uncountable]) a
process of dividing something up. The segregation of ratio that is calculated by dividing income by liabilities
tasks makes it much clearer who is responsible for what. to measure whether a company has enough money to
sensitive /ˈsensətɪv/ (adjective) needing to be dealt with pay its debts. This solvency ratio is so low that I’m not sure
carefully. I’m afraid that I need to ask you a few sensitive
we’ll be able to pay what we owe.
questions. solvent /ˈsɒlv(ə)nt/ (adjective) if you are solvent, you have
enough money to pay your bills and other debts. It’s
only thanks to some clever manoeuvring that she has been
able to keep the company solvent.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017 GLOSSARY (A–Z) 11

source /sɔː(r)s/ (noun [countable]) a person, place or thing
that provides something that you need or want. This
segment of the market is our main source of income.
specialize /ˈspeʃəlaɪz/ (verb [intransitive]) to concentrate
your attention and effort on a particular activity,
product, etc. He works for a travel company that
specializes in European tours.
specify /ˈspesɪfaɪ/ (verb [transitive]) to say exactly what
the details of something are. The documentation specifies
the date of delivery.
spend /spend/ (noun [uncountable]) the amount of
money that a company or organization spends on
something. The average spend on higher education was
£55 per head.
stabilize /ˈsteɪbəlaɪz/ (verb [intransitive]) to reach a
state where there are no longer any major changes or
problems. Oil prices have stabilized for now.
stable /ˈsteɪb(ə)l/ (adjective) not changing frequently and
not likely to suddenly become worse. People have become
accustomed to a stable economic situation.
stake /steɪk/ (noun [countable]) the part of a business that
you own because you have invested money in it. They
took a 40% stake in the company last year.
static /ˈstætɪk/ (adjective) if something is static, it does
not move or change. Costs have remained static for longer
than we had expected.
steady /ˈstedi/ (adjective) slowly and gradually continuing
to change, move or happen. The company hopes to see a
steady increase in car sales this year.
stock /stɒk/ (noun [uncountable]) the goods that a
company has available for sale or distribution. Our stock
levels are running dangerously low.
stock exchange /ˈstɒk ɪksˌtʃeɪndʒ/ (noun [countable]) a
place where people buy and sell shares in companies.
The company is listed on the stock exchange.
straightforward /ˌstreɪtˈfɔː(r)wə(r)d/ (adjective) not
complicated or difficult to understand. It’s a fairly
straightforward process.
strain /streɪn/ (noun [countable/uncountable]) pressure
caused by a difficult situation. This move will put a great
strain on our finances.
strategy /ˈstrætədʒi/ (noun [countable]) a plan or method
for achieving something, especially over a long period
of time. The countries hope to devise a common strategy to
provide aid.
strategy map /ˈstrætədʒi ˌmæp/ (noun [countable]) a
diagram which shows the goals and priorities that a
company intends to pursue. We need to be referring
back to the strategy map throughout the decision-making
process.
streamline /ˈstriːmˌlaɪn/ (verb [transitive]) to improve a
business, organization, process, etc by making it more
modern or simple. They need to streamline their
decision-making processes.
struggle /ˈstrʌɡ(ə)l/ (verb [intransitive]) to try hard to
do something that you find very difficult. She was
struggling to cope with the demands of her work.
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
CORPORATE FINANCE
superior /sʊˈpɪəriə(r)/ (noun [countable]) someone who is
senior to you in an organization or job. Your immediate
superior holds the position directly above yours. I will
need to talk to my superiors about this.
supplier /səˈplaɪə(r)/ (noun [countable]) a company,
organization or country that supplies or sells a product
or a service. Colombia is our main supplier of coffee beans.
supplies /səˈplaɪz/ (noun [plural]) things such as food,
medicine and equipment that you need to live or to
perform a particular activity. We need a more reliable
source for our supplies.
surplus /ˈsɜː(r)pləs/ (noun [countable/uncountable])
an amount of money or goods that is left because a
country or business has more than it needs. Congress is
debating whether to spend the budget surplus.
suspend /səˈspend/ (verb [transitive] [often passive])
to officially remove the authority or effectiveness of
something for a time. Our licence to trade has been
suspended until they have completed their investigation.
sustain /səˈsteɪn/ (verb [transitive]) to provide the
conditions in which something can happen or exist.
Analysts believe present economic growth can be sustained
without inflation.
sustainability /səˌsteɪnəˈbɪləti/ (noun [uncountable]) the
ability to continue for a long time at the same level. I’m
not sure about the sustainability of this approach.
sustainable /səˈsteɪnəb(ə)l/ (adjective) capable of
continuing for a long time at the same level. We have to
find a way to achieve sustainable economic growth.
sustained /səˈsteɪnd/ (adjective) continuing at the same
level or rate for a long time. We’re experiencing a period of
sustained economic growth.
switch /swɪtʃ/ (verb [intransitive/transitive]) to change
from one thing to another, or to make something do
this. Then he switched sides and turned against his former
allies.
tax relief /ˈtæks rɪˌliːf/ (noun [uncountable]) a reduction
in tax that you are allowed for a particular reason. We
wouldn’t survive without this tax relief.
terms /tɜː(r)mz/ (noun [plural]) the conditions of a legal,
business or financial agreement. He had little choice but
to accept their terms.
tighten the budget /ˌtaɪt(ə)n ðə ˈbʌdʒɪt/ (phrase) to reduce
the amount of money available to spend on something.
Given the increases in costs, we’re going to have to tighten
the budgets across all the departments.
time frame /ˈtaɪm ˌfreɪm/ (noun [countable]) the period of
time during which something happens or must happen.
What is the time frame for this part of the project?
timescale /ˈtaɪmˌskeɪl/ (noun [countable]) the period of
time when something happens or is done. With this
timescale, we just don’t have any time for mistakes.
tough /tʌf/ (adjective) difficult. Many companies are facing
tough competition.
track record /ˌtræk ˈrekɔː(r)d/ (noun [countable]) your
reputation, based on the things that you have done. This
company has a long track record of providing poor customer
service.
GLOSSARY (A–Z) 12

transaction /trænˈzækʃ(ə)n/ (noun [countable]) the action
or process of buying or selling something. She had been
involved in several suspicious transactions.
transfer /ˈtrænsfɜː(r)/ (noun [countable]) the act of
sending something from one person, organization, etc
to another. The transfer has gone through, so the money is
now in my account.
turnover /ˈtɜː(r)nˌəʊvə(r)/ (noun [countable/uncountable])
the rate at which people leave a place and new people
arrive. Efficiency is being impacted by the high turnover of
personnel.
turnover /ˈtɜː(r)nˌəʊvə(r)/ (noun [countable/uncountable])
the value of the goods and services that a company sells
in a particular period of time. He runs a company with an
annual turnover of over £150 million.
unbiased /ʌnˈbaɪəst/ (adjective) fair in the way that you
describe or treat a situation. We were grateful for her
unbiased report of the situation.
undergo /ˌʌndə(r)ˈɡəʊ/ (verb [transitive]) to experience
something, especially something that is unpleasant but
necessary. We have been undergoing an external review of
our compliance processes.
undertake /ˌʌndə(r)ˈteɪk/ (verb [transitive]) to take
responsibility for doing something and do it. We will be
undertaking a review of all internal processes.
unforeseen /ˌʌnfɔː(r)ˈsiːn/ (adjective) an unforeseen
situation, especially a problem, is one that you did not
expect. We’re facing an unforeseen crisis.
unpredictable /ˌʌnprɪˈdɪktəb(ə)l/ (adjective) changing
often, in a way that is impossible to prepare for. The
stock market is always unpredictable.
update /ʌpˈdeɪt/ (verb [intransitive/transitive]) to add the
most recent information to something such as a book,
document or list. I’m going to update my report in the light
of the information that Steve has provided.
utility /juːˈtɪləti/ (noun [countable] [usually plural]) a
public service such as gas, water or electricity that is
used by everyone. We’ll have to stop production if our
utilities are disconnected.
values /ˈvæljuːz/ (noun [plural]) the principles and
beliefs that influence the behaviour and way of life of
a particular group or community. To its opponents in
the developing world, globalization is seen as an attack on
traditional cultural values.
variance /ˈveəriəns/ (noun [countable]) a difference. There
are a number of variances between the two sets of data.
variance analysis /ˈveəriəns əˌnæləsɪs/ (noun
[uncountable]) the comparison of the forecast and the
real results. The variance analysis suggests that we need to
improve our forecasting.
vary /ˈveəri/ (verb [intransitive]) to be different in
different situations. Prices for most of the materials we
use don’t vary much over time.
VAT /ˌviː eɪ ˈtiː/ or /væt/ (noun [uncountable]) value
added tax: a tax on goods and services. Do these prices
include VAT?
In Company 3.0 ESP Corporate Finance © Macmillan Publishers Limited 2017
CORPORATE FINANCE
vendor invoice /ˌvendə(r) ˈɪnvɔɪs/ (noun [countable])
the term used by the company that bought goods
or services to refer to the bill they receive from the
company that sold them the goods or services. Could you
enter these vendor invoices into the system, please?
venture /ˈventʃə(r)/ (noun [countable]) a new business or
activity. So far, it’s been a very profitable venture.
volatile /ˈvɒlətaɪl/ (adjective) a volatile situation can
suddenly change or become more dangerous. The
political situation was becoming more volatile.
volatility /ˌvɒləˈtɪləti/ (noun [uncountable]) the state of
changing suddenly or becoming more dangerous. We’ve
seen a great deal of volatility in the stock exchange since the
announcement.
waive /weɪv/ (verb [transitive]) to choose to officially
ignore a rule, right or claim. We’ve waived the sign-on fee
for all new members.
willing /ˈwɪlɪŋ/ (adjective) if you are willing to do
something, you do it when someone asks you,
sometimes when you do not want to. I wasn’t willing to
accept every item on the list.
withdrawal /wɪðˈdrɔːəl/ (noun [countable/uncountable])
the process of taking an amount of money out of your
bank account, or the amount of money that you take
out. There are a number of large withdrawals that can’t be
accounted for.
workforce /ˈwɜː(r)kˌfɔː(r)s/ (noun [singular]) the total
number of people who work in a particular company,
industry or area. If they don’t start treating their
workforce better, they are going to see a lot of people
leaving.
working capital /ˈwɜː(r)kɪŋ ˌkæpɪt(ə)l/ (noun
[uncountable]) the money that a business has available
for immediate use. Do we have enough working capital?
worsen /ˈwɜː(r)s(ə)n/ (verb [intransitive/transitive]) to
become worse, or to make something worse. Relations
between the departments have worsened in recent weeks.
GLOSSARY (A–Z) 13