Commerce- Important Words

Bankrupt

when a business, or person, is unable to pay her or his debts

Commisson

the percentage of a sales price recieved by a salesperson for her or his services

Credit Bureau

an organisation that keeps on file the credit records of consumers

Creditor

a person who is owned money

Debtor

a person who owes money

Default Notice

a document from a lender stating that a person has failed to carry out the terms of the contract

Dividend

sum payable as profit for shares

Equalities

represent a small slice of the ownership (a share) of a company

Fee

money paid to others for their services

Fixed Expenses

expenses that are the same amount every time

Garnisheed

a certain amount of money can be taken out of the borrower's wages

Guarantor

someone who guarantees to pay back the money if the borrower does not

Impulse Buying

buying something without giving much thought as to whether you really need it

Income

money recieved on a regular basis from work, property, business or welfare payments

Interest

a payment made for the use of money that has been borrowed

Investment

putting money into something in order to make a profit

Net Income

the amount a person has left after income tax in deducted

Overtime

time during which work is done outside regular working hours. Such time is usually paid at higher rates

Premium

the cost of an insurance policy

Profit

what remains after all the business expenses are deducted from the sales revenue

Rent

regular payment made by a tenant to an owner for the use of the owner's building or land

Repossession

to take back goods bought on credit of replayments have not been made

Royalty

a sum paid to authors, musicians. ect. as a percentage of the proceeds from their work

Salary

a fixed amount of money paid on a regular basis (usually fornightly or monthly) to a permanent employee of an organisation

Secured Loan

something deposited as a guarantee to fulfil the payment of a loan

Superannuation

a way of saving money so an employee has some money left in retirement. The employer makes set payments into a superannuation fund, which the employee cannot touch until she or he reaches a certain age.

Unsecured Loan

nothing is deposited as a guarantee to fulfil the payment of the loan

Variable Expenses

expenses that change over time

Wage

money received by the workers, usually on a weekly basis, for services they provide to an emplorer