The document defines and explains various business and economic terms over 3 sentences or less each, including: give way, mortgage, open account, pet of the market, premium, patent, promissory note, nature of business, sleeping partner, scheduled banks, voucher, upset price, value payable post, volume of business, balance of trade, trademark, laissez faire, royalty, rebate, reaction to/from, shade, slump, spurts/rallies, rings and pools, suborned note, square deal, trade association, inflation, invoice, lien, deflation, debenture, easing, e-commerce, entrepreneur, freight, foreign exchange, foreign trade, home trade, good

1. 1.GIVE WAY
Give Way Means A Situation In Which The Prices Of Goods Decreases Or Fall In Market.
2.MORTGAGE
Mortgage Means An Agreement Where On Lends The Money On The Security Of Property.
3.OPEN ACCCOUNT
Open Account Means That Account Which Has An Outstanding Balance.The Balance May Be Debit Or
Credit.
4.PET OF THE MARKET
Means That In The Market There Is Particular Section Which Monopolizes Business And Receives
Good Price Of Commodity.
5.PREMIUM
An Amount Of Money Paid At Regular Times To Insurance Company Is Known As Premium.
Premium Also Means Extra Sum Of Money Which Is Paid In Addition To Normal
Cost Of Something And It Is Actually At Higher Price Than The Usual.
6.PATENT
Patent Means A Very Special Exclusive Right Which Allows Someone To Use Any Invested,Discovered
Or Porduced Objects.
7.PROMISSORY NOTE(PRO NOTE)
A Promissory Note Is A Written Promise By One Party To Make A Payment Of Money At A Date In The
Future.
Or
The Promissory Note Is A Legal Document That Is Signed By A Borrower Who Promises To Pay A Debt
In The Form And Manner As Described In The Note.
8.NATURE OF BUSINESS
The Nature Of Business Is A Phrase Referring To The Overall Purpose And Existence Of A Company
Within A Market Sector Or Industry.
9.SLEEPING PARTNER
A Partner Who Contributes Capital But Does Not Participate In The Management Of The Business Is
Called A Sleeping Partner.
10.SCHEDULED BANKS
Scheduled Bank Means That Bank Which Is Included In The Schedule Of Of The Central Bank Of A
Country After Fulfilling Certain Conditions.
11.VOUCHER
Voucher Means A Document Showing That Money Has Been Paid.It Serves The Purpose Of Receipt Which
Shows The Payment Of Money.
12.UPSET PRICE
Upset Price Is The Minimum Price Set For Property Offered At Auction Or Public Sale.
13.VALUE PAYABLE POST
Value Payable Post Means A System Of Postal Servies Under Which Postal Parcel Given To Addressee
Only When He Pays The Value Of Parcel.
14.VOLUME OF BUSINESS
Volume Of Business Means The Amount Of Business Conducted In A Market During A Specific Period.
DULL : When Small Business Is Done It Is Called Dull.Stagnant,Uncertain Etc.
BRISK: When The Business Is Heavy It Is Called Brisk,Broad Scale Etc.
15.BALANCE OF TRADE / TRADE BALANCE
The Balance Of Trade Is The Difference Between A Country's Exports And Imports Of Goods.

2. 16.TRADE MARK
A Symbol, Word, Or Words Legally Registered Or Established By Use As Representing A Company Or
Product Is Called Trade Mark.
17.LAISSEZ FAIRE
A Policy Of Minimum Governmental Interference In The Economic Affairs Of Individuals And Society
Is Called Laissez Faire.
18.ROYALTY
A Royalty Is Compensation Paid In Exchange For The Use Of Intellectual Property Or Natural
Resources.
Or
Royalty Refers To A Contractual Payment By A Person For The Use Of Assets Belonging To Another
Person.
19.REBATE
Rebate Means Deduction Or Discount From The Amount Which Is To Be Paid.
Or
A Rebate Is A Sum Of Money That Is Credited Or Returned To A Customer On Completion Of A Transaction.
20.REACTIO TO / REACTION FROM
REACTION TO : Reaction To Means Increase In Prices From The Lowest Rate.It Is Upward Movement Of
Price.
REACTION FROM : Reactio From Means Decrease In The Price From The Highest Rate.It Is Fall In
Price.It Is Downward Movment Of Price.
21.SHADE
Shade Means Little Rise And Fall In Prices And The Margin Is Narrow.It Is Fluctuation In The
Prices.The Situation Remains For A Shorter Period Of Time.
22.SLUMP
Slump Means That Situation Of Business When Prices Fall Rapidly And Busines Becomes Limited.
23.SPURTS/RALLIES
A Situation In Which The Prices Suddenly Rise By A Good Margin. This Movment Is Called
Spurts/Rallies.
24.RINGS AND POOLS
Rings And Pools Are Tow Organizations Of Dealers In The Market
Rings Keeps Down The Supplies Of Particular Product So That Prices Mat Rise And Thus Rings May Get
Handsome Profit.
On The Other Hand Pools Aim At Eliminating Competition By Agreeing To
Divide The Output Among Themselves.
Subornded Note
25.SUBORNED NOTE
Suborned Note Means A Situation In Which The Tendency Of The Market Is Downward.
26.SQUARE DEAL
Square Deals Means That Situation In Which The Bulls Sell The Commodity And The Bears Purchase It
To Settle The Business Accounts.
27.TRADE ASSOCIATION
An Association Of Tradesmen, Businessmen, Or Manufacturers In A Particular Trade Or Industry For
The Protection And Advancement Of Their Common Interests Is Called Trade Association.
28.INFLATION
ACCORDING TO MEYER
“An Increase In The Prices That Occurs After Full Employment Has Been Attained.”

3. ACCORDING TO ACKELY
“A Persistent And Appreciable Rise In The General Level Or Average Of Prices.”
ACCORDING TO CROWTHER
“In The State Of Inflation The Prices Are Rising I. E., The Value Of Money Is Falling.”
ACCORDING TO COULBOURN
“In Inflation, Too Much Money Chases Too Few Goods.”
29.INVOICE
Invoice Means A Detailed Statement Which Gives Full Particulars Of The Goods Showing Quantity,
Quality And Prices.
30.LIEN
Lien Means A Right To Keep Property Belonging To Another Person Until A Debt Is Paid.
31.DEFLATION
When The Prices Of Goods And Services Decrease Across The Entire Economy, Increasing The Purchasing
Power Of Consumers Is Called Deflation.
32.DEBENTURE
The Word ‘Debenture’ Itself Is A Derivation Of The Latin Word ‘Debere’ Which Means To Borrow Or Loan.
Debentures Are Written Instruments Of Debt That Companies Issue Under Their Common Seal. They Are
Similar To A Loan Certificate.
33.EASING
Easing Is Typical Term Showing Gradual Decline In Prices.
34.E COMMERCE
E-Commerce (Electronic Commerce) Is The Buying And Selling Of Goods And Services, Or The Transmitting
Of Funds Or Data, Over An Electronic Network, Primarily The Internet.
35.ENTREPRENEUR
An Entrepreneur Is An Individual Who Creates A New Business, Bearing Most Of The Risks And Enjoying
Most Of The Rewards. The Process Of Setting Up A Business Is Known As Entrepreneurship. The Entrepreneur
Is Commonly Seen As An Innovator, A Source Of New Ideas, Goods, Services, And Business/Or Procedures.
Or
Entrepreneur Means That Person Who Organizes And Conducts The Business.
36.FREIGHT
Freight Means Charges Which Are To Be Paid For Carrying Goods By Se Or By Railway.
37.FOREIGN EXCHANGE
The Exchange Of One Currency For Another Or The Conversion Of One Currency Into An Other Is Known As
Foreign Exchange.
38.FOREIGN TRADE
Foreign Trade Is The Exchange Of Capital, Goods, And Services Across International Borders Or
Territories.
39.HOME TRADE
Domestic Trade, Also Known As Internal Trade Or Home Trade, Is The Exchange Of Domestic Goods Within
The Boundaries Of A Country.
40.GOODWILL
Goodwill Refers To The Value A Company Gets From Its Brand, Customer Base And Reputation Associated
With Its Intellectual Property. Goodwill Is A Long-Term Assets That Generates Value For A Company Over
A Number Of Years.
41.GROSS PROFIT
Gross Profit Is The Profit Of A Company After Deducting From Its Turnover All The Costs Incurred In
Producing A Product Or Providing A Service.

4. Formula
Sales – Cost Of Goods Sold = Gross Profit
42.DIRECT TAX
Direct Tax Is A Broad Category That Includes Property Tax, Income Tax, Capital Gains Tax, And Other
Taxes Paid Directly To The Government.
43.DEPRECIATION
The Term Depreciation Refers To An Accounting Method Used To Allocate The Cost Of A Tangible Or
Physical Asset Over Its Useful Life.
44.DEVALUATION
The Reduction Of A Currency’s Value In Relation To Other Currencies Is Known As Devaluation.
45.DULL
Dull Means That Position Of Market In Which Little Business Is Done During A Specific Period. It Is
Also Called Stagnant Position Of Market.
46.DAYS OF GRACE
Days Of Grace Means That Days Which Are Allowed For Paying The Bill After Due Date.
47.COPYRIGHT
Copyright Is The Exclusive Right That The Owner Of An Intellectual Property Has.It Protects The
Creator's Work From Unauthorized Duplication Or Use.
48.CHAMBER OF COMMERCE
A Local Association To Promote And Protect The Interests Of The Business Community In A Particular
Place.
Or
A Chamber Of Commerce Is An Association Or Network Of Businesspeople Designed To Promote And Protect
The Interests Of Its Members.
49.CASH ON DELIVERY
Cash On Delivery Refers To An Arrangement In Which Payment For A Purchase Is Made Directly By The
Purchaser To The Person Who Delivers The Item.
50.CAPITAL GAIN
Capital Gains Are The Profits That Are Realized By Selling An Investment, Such As Stocks, Bonds, Or
Real Estate.
51.MARKET
A Set Up Where Two Or More Parties Engage In Exchange Of Goods,Services And Information Is Called A
Market.Ideally A Market Is A Place Where Two Or More Parties Are Involved In Buying And Selling.The
Two Parties Involved In A Transaction Are Called Seller And Buyer.
52.ARBITRAGE
The Method On The Stock Exchange Of Buying Something In One Place And Selling It In Another Place At
The Same Time,In Order To Make A Profit From The Difference In Price In The Two Places Is Called
Arbitrage Operationsor Simply Arbitrage.
53.ARRIVALS
A Market Usually Opens Transaction With Stock In Hand(Brought From The Previous Day Of Business).During
The Course Of The Business Period, The Day Or Week, Fresh Stocks Are Bought To The Market. This Is
Known As Arrivals. It Refers Only To Fresh Addition To The Total Supply Of Commodity In The Market.
54.SPECULATION
Speculation Is The Act Of Making Very Risky Investments In The Hope Of Large Gains.For Example
Investing In Shares,Debentures Etc In Hope Of High Profit.
Or

5. Speculation Involves Trading A Financial Instrument Involving High Risk, In Expectation Of Significant
Returns.
55.MARKET VALUE
Generally Market Value Is The Price At Which A Product Or Service Could Be Sold In A Competitive,Open
Market But In Business Market Value Means The Price At Which A Security Is Trading And Could Presumably
Be Purchased Or Sold.
For Example If Abc Limited Has 50,000 Shares In The Market,And Each Share Is Priced At Rs.25 Its
Market Value Would Be 1,25,000 (50,000 X 25).
56.MARKET PRICE
The Market Price Is The Current Price At Which A Good Or Service Can Be Purchased Or Sold.
The Market Price Of An Asset Or Service Is Determined By The Forces Of Supply And Demand The Price At
Which Quantity Supplied Equals Quantity Demanded Is The Market Price.
57.COST PRICE
The Amount Of Money That Is Spent To Produce Goods Or Services Before Any Profit Is Added For The
Manufacturer Or Producer, Or The Price That A Store, Etc. Pays For Goods That It Is Going To Sell.Cost
Price Should Be Less Than Selling Price(Price At Which It Is Sold) To Have Profit.
58.CLOSING PRICE
The Closing Price Is Referred To The Price Of A Stock At The End Of The Trading Hours.
Or
The Price Of A Security At The End Of The Day's Business In A Financial Market.
59.STREET PRICE
The Activities Of Buying And Selling Of Securities Generally Continues Outside The House (Stock
Exchange) Even After The Fixed Hours. The Price At Which The Securities Are Thus Bought And Sold
Conveniently Termed As “Street Price”.
60.CONSIGNMENT
Consignment Refers To A Trade Agreement Where A Third Party, Or Consignee, Sells Goods Or Products
On Behalf Of Another Business Or Individual.