NATURE OF BUSINES

Customers:, also referred to as consumers, are individuals or entities that purchase goods or services to
satisfy their needs or desires.

factors of production: refer to the resources used in the production process to create goods and
services.

Enterprise: can also refer to an entrepreneurial endeavor or initiative undertaken with creativity,
innovation, and risk-taking to pursue opportunities and create value.

"Adding value" is a concept commonly used in business to describe the process of increasing the worth
or utility of a product or service in the eyes of the customer.

Branding is a strategic process used by businesses to create a unique identity, image, and perception for
their products, services, or company as a whole.

MNCs:are companies that operate and conduct business activities in multiple countries around the
world.

intrapreneur is an individual within a company who takes on entrepreneurial roles and responsibilities to
develop innovative ideas, products, or services within the organizational context

A business plan is a comprehensive document that outlines the goals, strategies, operations, and
financial forecasts of a business venture.

Private Limited Company: A type of business entity in which the liability of the shareholders is limited to
the amount of capital they have invested. These companies cannot offer shares to the general public and
have restrictions on the transfer of shares.

Initial Public Offering (IPO): The process through which a privately held company offers its shares to the
public for the first time. This allows the company to raise capital by selling ownership stakes to investors
in exchange for shares.

Public Limited Company: A type of business entity in which the shares are publicly traded on a stock
exchange, and ownership is open to the general public. These companies have more regulatory
requirements and reporting obligations compared to private limited companies.

Share Capital: The total value of funds raised by a company through the issuance of shares. It represents
the equity portion of the company's capital structure and is used for various purposes, including
investments, debt repayment, and expansion.

The Memorandum of Association (MOA) is a legal document that serves as one of the foundational
documents for the establishment of a company.

Debts: Amounts owed by the company to external parties, such as banks, creditors, or bondholders.
Debt repayment is often a priority for companies to maintain financial stability and credibility.

Registered Companies: Businesses that have completed the legal registration process and obtained
official recognition from the government or relevant authorities. Registration provides legal status and
certain benefits, such as limited liability protection and access to government services.

The Articles of Association is a document that sets out the rules and regulations for the internal
management and operation of a company

Sole Traders and Partnerships: Forms of business ownership where the business is owned and operated
by a single individual (sole trader) or by multiple individuals who share profits and liabilities
(partnership). These forms of business ownership are common among small enterprises and professional
services firms.

A cooperative, often referred to as a co-op, is a type of business organization owned and operated by its
members for their mutual benefit.

Corporate objevtives Corporate objectives refer to the specific, measurable goals that an organization
sets at the highest level to guide its overall direction and decision-making

Primary Sector: Involves the extraction and production of raw materials from the natural environment,
such as agriculture, forestry, fishing, mining, and extraction of natural resources.

Secondary Sector: Encompasses activities related to processing, manufacturing, and transforming raw
materials obtained from the primary sector into finished goods or products, such as automobile
manufacturing, textile production, and food processing.

Tertiary Sector: Includes economic activities that provide services to businesses and consumers, focusing
on offering intangible goods and services rather than tangible goods produced in the primary and
secondary sectors, such as retail, healthcare, education, and transportation.

Quaternary Sector: Comprises knowledge-based services, information technology, research and

development, education, and information processing, involving the creation, dissemination, and
application of knowledge and information, such as research and development, software development,
and data analysis.

Sole traders, also known as sole proprietors, are individuals who own and operate their own businesses
independently.

"Unlimited liability" refers to the legal obligation of business owners to be personally liable for all debts
and obligations of their business.

Partnerships are business structures in which two or more individuals share ownership, responsibilities,
profits, and liabilities.

"Limited liability" is a legal concept that limits the financial liability of owners or shareholders in a
business to the amount they have invested in the company.

"Shares" refer to units of ownership in a company. When individuals or entities purchase shares of a
company, they become shareholders or stockholders, which means they own a portion of that company.

Shareholders are individuals or entities that own shares or stock in a corporation, entitling them to
certain rights and benefits associated with ownership.

Franchise: A business arrangement in which a franchiser grants a franchisee the right to use its
trademark, business model, and operating systems in exchange for fees and royalties.

Franchiser: The company or individual that grants the franchise rights to another party (the franchisee)
in order to replicate its business model and expand its brand presence.

Franchisee: The individual or entity that purchases the rights to operate a business using the franchiser's
brand, trademarks, and business model under the terms of a franchise agreement.

Franchise Agreement: A legal contract between the franchiser and the franchisee that outlines the terms
and conditions of the franchise relationship, including the rights, obligations, fees, royalties, and
operating requirements.

A joint venture (JV) is a business arrangement in which two or more parties, typically companies or
individuals, collaborate to undertake a specific project or business activity.

Social enterprises are businesses that prioritize social or environmental goals alongside generating profit.

Revenue: refers to the total income generated by a business from its normal activities, such as sales of
goods or services, rental income, or interest earned on investments.

Capital employed refers to the total amount of capital invested in a business, including both equity and
debt.

Market capitalization, often referred to as "market cap," is a measure of the total value of a publicly
traded company's outstanding shares of stock.

Market share refers to the portion of total sales or revenue within a specific industry that a company
captures.

Business Growth: The process of increasing a company's sales, revenue, profits, market share, or other
key performance indicators over time.
Organic (Internal) Growth: Business growth that occurs through the company's own internal efforts, such
as increasing sales, expanding into new markets, developing new products or services, and improving
operational efficiency without relying on mergers or acquisitions.

External Growth: Business growth achieved through mergers, acquisitions, takeovers, or strategic
partnerships with other companies.

Mergers: Mergers occur when two or more companies combine to form a new entity, typically with the
goal of achieving economies of scale, expanding market presence, or gaining competitive advantages.

Takeovers: Takeovers refer to the acquisition of a company by another company against its will, often
through purchasing a majority of its shares on the open market or through a hostile bid

Horizontal Integration: Horizontal integration refers to a business strategy in which a company expands
its operations by acquiring or merging with competitors that operate in the same industry and produce
similar products or service

Forward Vertical Integration: Forward vertical integration occurs when a company expands its operations
by acquiring or merging with businesses involved in downstream activities of its supply chain.

Backward Vertical Integration: Backward vertical integration involves a company expanding its operations
by acquiring or merging with businesses involved in upstream activities of its supply chain.

Conglomerate Integration: Conglomerate integration refers to a business strategy in which a company

expands its operations by diversifying into unrelated industries or business lines that are not directly
related to its core operations

Synergy refers to the combined or cooperative effect produced by the interaction of multiple elements,
components, or individuals that results in an outcome greater than the sum of their individual
contributions.

Strategic alliances are cooperative agreements or partnerships between two or more companies or
organizations to pursue mutual goals or objectives.

Business objectives are specific, measurable, and achievable goals that a company sets to guide its
actions and strategies towards achieving its overall mission and vision.

Corporate Social Responsibility (CSR) refers to a company's commitment to conducting its business
operations in an ethical and responsible manner while considering the interests of various stakeholders,
including employees, customers, communities, and the environment

Pressure groups, also known as interest groups or lobby groups, are organizations formed by individuals
or entities to advocate for specific causes, interests, or issues.

Business aims refer to the broad, overarching goals or objectives that a company sets to guide its
activities and direction.
A mission statement is a concise statement that articulates the purpose, values, and core objectives of a
company or organization.

"Targets" typically refer to specific, measurable goals or objectives that a company sets to achieve within
a defined period

A budget is a financial plan that outlines expected revenues and expenses over a specific period, typically
one year.

An ethical code, also known as a code of ethics or a code of conduct, is a set of principles, values, and
standards that guide the behavior and decisions of individuals or organizations in their interactions with
others.

HUMAN RESOURCE MANAGEMENT

Human Resource Management : It refers to the strategic approach to managing people within an
organization to maximize their effectiveness and contribution towards achieving the organization's
objectives.

Workforce planning is the process of analyzing the current and future workforce needs of an
organization to ensure that it has the right people with the right skills in the right positions at the right
time.

A workforce audit is a systematic evaluation or assessment of an organization's current workforce to

gather data and insights regarding its composition, skills, capabilities, and performance.

Labour turnover, also known as employee turnover, refers to the rate at which employees leave a
company and are replaced by new hires.

Recruitment: Recruitment refers to the process of attracting, sourcing, and identifying qualified
candidates for job vacancies within an organization.

Selection: Selection is the process of evaluating and choosing the most suitable candidates from the pool
of applicants identified during the recruitment process.

Recruitment agencies, also known as staffing firms or employment agencies, are organizations that
specialize in matching job seekers with job opportunities provided by client companies.

A job description is a formal document that outlines the duties, responsibilities, qualifications, and
requirements of a specific job role within an organization.

A person specification is a document that outlines the skills, qualifications, experience, attributes, and
personal qualities required for a specific job role within an organization.

application form:An application form is a document used by employers to collect standardized

information from job candidates during the recruitment process.
CV (Curriculum Vitae): A CV, short for curriculum vitae, is a comprehensive document that provides an
overview of a person's academic and professional achievements, qualifications, skills, and experiences.

Résumé: A résumé is a concise document that summarizes a person's relevant work experience, skills,
qualifications, and achievements, typically tailored to a specific job application or industry.

References: References are individuals who can provide information about a job candidate's character,
work ethic, skills, qualifications, and suitability for a particular job.

Assessment centers are a comprehensive method used by organizations to evaluate the skills,
competencies, and suitability of candidates for employment, promotion, or development purposes.

Employment contracts:Employment contracts are legally binding agreements between employers and
employees that outline the terms and conditions of employment.

Redundancy, in the context of employment, refers to the situation where an employee's position is
terminated because the job they were performing is no longer required by the employer.

Dismissal, in the context of employment, refers to the termination of an employee's contract or

employment relationship by the employer.

Employee Morale: Employee morale refers to the overall satisfaction, motivation, and emotional well-
being of employees within an organization.

Employee Welfare: Employee welfare refers to the well-being, health, safety, and general welfare of
employees in the workplace.

Work-life balance refers to the equilibrium or harmony between the demands of work and personal life.
It involves effectively managing and allocating time, energy, and attention to fulfill responsibilities and
commitments in both domains without sacrificing one for the other.

Equality: Equality refers to ensuring that everyone has equal opportunities and rights, regardless of their
differences. It involves treating all individuals fairly and impartially, without discrimination or prejudice

Diversity: Diversity refers to the presence of a variety of different people, backgrounds, perspectives, and
characteristics within a group, organization, or society.

Training refers to the process of developing employees' knowledge, skills, and competencies to improve
their performance, productivity, and effectiveness in their roles.

Induction training, also known as orientation or onboarding, refers to the process of introducing newly
hired employees to the organization, its culture, policies, procedures, and work environment.

On-the-job training (OJT) refers to a method of training where employees learn and acquire new skills,
knowledge, and competencies while actively performing their job duties within the workplace.

Off-the-job training refers to training activities that take place outside of the usual work environment,
typically away from the workplace.

Multiskilling refers to the practice of equipping employees with a diverse set of skills and competencies
beyond their primary job responsibilities.

Employee appraisal, also known as performance appraisal or performance evaluation, is a systematic

process used by organizations to assess and evaluate the job performance of their employees.

Industrial action refers to collective actions taken by employees or labor unions to protest against
workplace issues, negotiate better working conditions, or address grievances.

Collective bargaining is a process whereby representatives of workers (often labor unions) negotiate with
employers or employer organizations to reach agreements on terms and conditions of employment.

Trade union recognition refers to the official acknowledgment by an employer or employer organization
of a trade union as the legitimate representative of a group of workers for the purpose of collective
bargaining and negotiation of terms and conditions of employment.

Piece rate is a method of wage payment where employees are compensated based on the number of
units or pieces of work they produce or complete.

Self-actualization is a term introduced by psychologist Abraham Maslow in his hierarchy of needs theory,
which posits that human beings have a hierarchy of needs that must be fulfilled in a specific order. Self-
actualization represents the highest level of psychological development and fulfillment, where
individuals strive to realize their full potential, achieve personal growth, and pursue meaningful goals
and aspirations.

Motivators, in the context of psychology and organizational behavior, are factors or stimuli that drive
individuals to take action, pursue goals, and achieve desired outcomes

A time-based wage rate, also known as an hourly wage rate, is a method of wage payment where
employees are compensated based on the amount of time they spend working.

Commission refers to a form of compensation often used in sales-based roles, where employees earn a
percentage of the sales revenue they generate or a fixed amount for each sale they make.

A bonus is an additional payment or reward given to employees, typically as a form of incentive or

recognition for achieving specific goals, exceeding performance targets, or contributing to the success of
the organization.

Performance-related pay (PRP) is a compensation system in which employees' pay is directly linked to
their performance or contribution to the organization.

Profit-sharing is a compensation arrangement in which a portion of a company's profits is distributed

among its employees.

Share-ownership schemes, also known as employee share ownership plans or stock ownership plans, are
programs implemented by companies to allow their employees to own shares of the company's stock.

Fringe benefits, also known as employee benefits or perks, are non-monetary forms of compensation
provided by employers to employees in addition to their regular wages or salaries.

Job rotation is a human resource management strategy where employees are moved between different
roles or positions within an organization on a regular basis.

Job enlargement is a human resource management strategy that involves expanding the scope of an
employee's responsibilities within their current role or position.

Job enrichment is a human resource management strategy aimed at enhancing job satisfaction,
motivation, and engagement by adding greater depth and complexity to an employee's role.

job redesign:Job redesign is a systematic approach to restructuring or reorganizing jobs within an

organization to improve efficiency, productivity, and employee satisfaction.

Employee promotion refers to the advancement of an employee to a higher position or rank within an
organization, typically accompanied by increased responsibilities, authority, and compensation.

Employee status refers to the classification or designation of individuals within an organization based on
their relationship with the employer and their rights and responsibilities.

Employee participation refers to the involvement of employees in decision-making processes, problem-

solving, and contributing ideas and suggestions to improve organizational performance and
effectiveness.

Teamworking, also known as teamwork, refers to the collaborative effort of individuals working together
towards a common goal or objective

Empowerment refers to the process of enabling individuals or groups to gain control over their own lives,
make decisions, take action, and achieve their goals.

A quality circle (QC) is a small group of employees within an organization who voluntarily come together
to identify, analyze, and solve work-related problems or improve processes and quality standards.

Management typically refers to the process of coordinating and overseeing the activities of an
organization or a group of people to achieve specific goals efficiently and effectively.

Autocratic management is a style of leadership where the manager or leader makes decisions without
much input or consultation from subordinates.

Democratic management:Democratic management, also known as participative management or

participative leadership, is a style of management where decision-making authority is shared among the
members of a group or team

. Paternalistic management is a leadership style where the manager assumes a paternal role towards
their employees. In this approach, the manager makes decisions for the team while also taking care of
their well-being.

Laissez-faire management is a leadership style where leaders give employees significant freedom in how
they accomplish tasks and make decisions.

Theory X is a concept in management theory proposed by Douglas McGregor in the 1960s. It represents
a pessimistic view of human nature and behavior in the workplace. According to Theory X, people
inherently dislike work and will avoid it whenever possible. As a result, they must be coerced, controlled,
directed, or threatened with punishment to achieve organizational goals.

Theory Y is a concept in management theory introduced by Douglas McGregor as a contrast to Theory X.

It represents a more optimistic view of human nature and behavior in the workplace. According to
Theory Y, people are inherently motivated and enjoy the opportunity to be creative, self-directed, and
contribute to organizational goals.

MARKETING
Marketing encompasses a broad range of activities aimed at promoting products, services, or ideas to
target audiences with the goal of generating interest, creating demand, and ultimately driving sales or
achieving other desired outcomes.

Corporate objectives are the specific goals that an organization sets for itself to guide its strategic
direction and decision-making processes.

At its core, a marketing strategy is a comprehensive plan or approach designed to achieve specific
marketing objectives and goals within a certain timeframe"

A market segment refers to a group of consumers within a larger market who share similar
characteristics or needs that distinguish them from other groups"

industrial market An industrial market, also known as a business-to-business (B2B) market, refers
to a segment of the economy where organizations purchase goods, services, or raw materials to use in
their own production processes or operations, rather than for personal consumption

consumer market A consumer market, also known as a business-to-consumer (B2C) market, refers
to the segment of the economy where individuals or households purchase goods and services for
personal consumption rather than for resale or further production
customer orientation Customer orientation, also known as customer-centricity or customer focus, is a
business approach that prioritizes understanding and meeting the needs, preferences, and expectations
of customers.

Product orientation "

Product orientation, also known as production orientation, is a business approach that emphasizes the
quality, features, and functionality of a company's products or services rather than focusing on customer
needs or market demands."
Market size: refers to the total value, volume,
or quantity of a specific market or industry, typically measured in terms of sales revenue, units sold, or
other relevant metrics.

market growth ;Market growth refers to the rate at which the total market size (in terms of sales
revenue, units sold, or other relevant metrics) is expanding over a specific period of time.

brand leader : A brand leader, in the context of marketing and branding, refers to a company or product
that holds the dominant position within its industry or market segment in terms of brand awareness,
market share, customer loyalty, and overall influence.

mass marketing :Mass marketing refers to the strategy of targeting a broad and undifferentiated
audience with standardized marketing messages and offerings.

niche marketing:Niche marketing refers to the strategy of targeting a specific and well-defined segment
of the market that has distinct needs, preferences, and characteristics.

Market segmentation is a strategic marketing process that involves dividing a larger and heterogeneous
market into smaller, more homogenous segments based on specific criteria

A consumer profile, also known as a customer profile or buyer persona, is a detailed description of a
typical or ideal customer for a product or service

customer relationship marketing: Customer relationship marketing (CRM) is a strategic approach that
focuses on building and maintaining long-term relationships with customers to foster loyalty,

Secondary research: also known as desk research or literature review, involves the collection and analysis
of existing data, information, and materials that have been previously gathered by others.

Primary research: refers to the process of gathering firsthand data or information directly from the
source.

qualitative data:Qualitative data refers to non-numerical information that is descriptive in nature and
cannot be quantified.

Quantitative data:Quantitative data refers to numerical information or data that can be measured and
expressed using numbers.

Sampling: refers to the process of selecting a subset of individuals, items, or elements from a larger
population for the purpose of studying or analyzing them.

marketing mix:The marketing mix, often referred to as the 4Ps, is a strategic framework used by
businesses to define and implement their marketing strategy.

A brand is more than just a logo or a product; it encompasses the entire perception and reputation of a
company, product, service, or person in the minds of consumers.

Intangible attributes refer to characteristics or qualities of a product, service, brand, or entity that cannot
be physically touched or measured.

Tangible attributes are the physical, measurable features or characteristics of a product, service, or
object that can be perceived through the senses.

New product development (NPD) refers to the process of conceptualizing, designing, and bringing a new
product or service to market.

A Unique Selling Proposition (USP): also known as a Unique Selling Point, is a distinctive feature or
characteristic of a product, service, or brand that sets it apart from competitors in the marketplace

Product differentiation refers to the strategy that companies use to distinguish their products or services
from those of competitors in the marketplace.

Product positioning refers to the strategic process of defining and establishing how a product or brand is
perceived by consumers relative to competitors in the marketplace.

Product portfolio analysis is a strategic management tool used by companies to evaluate and manage
their portfolio of products or services

The product lifecycle is a concept that describes the stages a product goes through from its introduction
to the market until its eventual decline and discontinuation.

Consumer durables refer to goods that are purchased for long-term use and provide utility over an
extended period of time

Boston matrix:The Boston Matrix, also known as the Boston Consulting Group (BCG) Matrix, is a strategic
management tool used to analyze a company's portfolio of products or business units

Competitive pricing is a pricing strategy in which a company sets its prices based on the prices of its
competitors.

Price discrimination: is a pricing strategy where a seller charges different prices for the same product or
service to different customers or groups of customers, based on various factors such as their willingness
to pay, demographics, location, or purchasing behavior.
Dynamic pricing, also known as demand-based pricing or surge pricing, is a pricing strategy where
businesses adjust the price of a product or service in real-time based on various factors such as demand,
supply, competitor pricing, time of day, customer demographics, and other market conditions.

Penetration pricing is a pricing strategy in which a company sets a relatively low initial price for a new
product or service to gain market share quickly.

Market skimming, also known as price skimming, is a pricing strategy where a company sets a
relatively high initial price for a new product or service with the intention of maximizing profits before
gradually lowering prices to attract more price-sensitive customers

OPERATIONS
inventory management: Inventory management is the process of overseeing and controlling the
ordering, storage, tracking, and utilization of goods and materials within a business or organization.

Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal
order quantity that minimizes total inventory costs.

Buffer inventories: Buffer inventories, also known as safety stock or buffer stock, are additional
quantities of inventory held by a company beyond what is needed for immediate demand.

The maximum inventory level, also known as the maximum stock level or maximum inventory threshold,
refers to the highest quantity of inventory that a company is willing or able to hold at any given time.

The reorder quantity, also known as the reorder point, is the predetermined quantity of a product that a
business decides to order when the inventory level drops to a certain point

Lead time refers to the duration between placing an order for goods or materials and receiving them. It
encompasses the time taken for order processing, production (if applicable), shipping, and delivery.

The reorder level, also known as the reorder point, is the inventory level at which a new order should be
placed to replenish stock before it runs out.

The supply chain refers to the network of organizations, people, activities, information, and resources
involved in the production and distribution of goods or services from the initial raw materials stage to
the final consumer.

Supply chain management (SCM) is the process of overseeing and optimizing all the activities involved in
sourcing, procurement, production, and logistics to ensure efficient operations and meet customer
demands effectively.
Just-in-Time (JIT) inventory management is a strategy aimed at reducing inventory carrying costs by
having materials arrive just as they are needed for production, minimizing excess inventory.

Maximum capacity" typically refers to the highest level of output or performance that a system,
organization, or individual can sustain under specific conditions.

excess capacity:"Excess capacity" refers to the situation where the actual production or output of a
system, facility, or organization is lower than its maximum capacity. In other words, it's the difference
between what a system is capable of producing or handling and what it actually produces or handles.

Rationalisation:"Rationalization" refers to the process of making a system, organization, or operation

more efficient, cost-effective, or streamlined.

capacity shortage:A "capacity shortage" occurs when the available resources, such as production
facilities, equipment, or personnel, are insufficient to meet the demand or required level of output.

Outsourcing is the practice of contracting out certain business functions or processes to external parties
rather than handling them internally within the organization

Business Process Outsourcing (BPO) is a strategic practice in which a company contracts the
responsibilities and operations of specific business processes to a third-party service provider

FINANCE
Start-up capital: refers to the funds required to establish a new business or venture.

Working capital refers to the capital or funds that a company uses to manage its day-to-day operations
effectively.

Long-term finance refers to funding obtained by a company for periods longer than one year to finance
its capital expenditures, expansion plans, or other projects that require significant investment.

Short-term finance refers to funds that a company borrows or raises for a relatively brief period, usually
less than a year, to meet its short-term financial obligations or to finance short-term operational needs.

Administration in business refers to the management and coordination of various activities and
resources within an organization to achieve its goals effectively and efficiently.

Bankruptcy is a legal process that individuals or businesses can initiate when they are unable to repay
their debts.

Liquidation, in a financial context, refers to the process of converting assets into cash or cash
equivalents

Capital expenditure (CapEx) refers to funds spent by a company to acquire, upgrade, or maintain
physical assets such as property, equipment, buildings, or technology with the purpose of generating
income or providing long-term benefits to the business.

Revenue expenditure refers to the funds a company spends on day-to-day operating expenses
necessary to maintain its ongoing business activities and generate revenue

Retained earnings: represent the accumulated profits or net income of a company that have been
retained and reinvested in the business rather than distributed to shareholders as dividends.

A bank overdraft occurs when an account holder withdraws more money from their bank account than
what is available in the account balance. In essence, it's a form of short-term borrowing from the
bank.

Debt factoring, also known as invoice factoring or accounts receivable factoring, is a financial
arrangement where a business sells its accounts receivable (invoices) to a third-party financial
institution, called a factor, at a discount

Hire purchase is a financial arrangement where a buyer acquires an asset by paying an initial
installment followed by regular installments over a specified period

Leasing is a contractual arrangement where a lessee (user) pays the lessor (owner) for the use of an
asset over a specified period.

Long-term loans refer to borrowings with repayment terms extending beyond one year.

Share capital, also known as equity capital or stock capital, refers to the funds raised by a company
through the issuance of shares or ownership interests to shareholders.

Business mortgages, also known as commercial mortgages, are loans secured by commercial real
estate properties.

Venture capital (VC) refers to a type of financing provided by investors, known as venture capitalists,
to startup companies and small businesses that are deemed to have high growth potential or are in
their early stages of development.

Debentures are debt instruments issued by companies or governments to raise capital. When an entity
issues debentures, it is essentially borrowing money from investors in exchange for a promise to repay
the principal amount along with interest at a specified future date.

Collateral security refers to assets or property provided by a borrower to a lender as a form of security
or guarantee for a loan or credit facility.

Microfinance refers to financial services, such as small loans, savings accounts, insurance, and other
financial products, provided to low-income individuals or communities who traditionally have limited
access to traditional banking services

Crowdfunding is a method of raising funds for a project, venture, or cause by collecting small
contributions from a large number of people, typically via the internet.
"Insolvent" is a term used to describe a situation in which an individual, company, or organization is
unable to pay off their debts or liabilities with their current assets.

Cash flow forecasts are financial tools used by businesses and individuals to estimate the amount of
cash that will flow in and out of their accounts over a specific period, typically on a monthly or
quarterly basis.

Cash inflows refer to the money that enters a business, organization, or individual's accounts over a
specific period.

Cash outflows represent the expenditures or payments made by a business, organization, or individual
over a specific period

Credit control refers to the practices and procedures implemented by businesses to manage the
extension of credit to customers and ensure timely payment of outstanding invoices.

Bad debt refers to money that is owed to a creditor but is unlikely to be collected. It typically arises
when a debtor fails to fulfill their financial obligation to repay a loan or debt.

Overtrading, also known as overtrading syndrome or overtrading risk, is a financial phenomenon that
occurs when a business expands its operations too rapidly without having sufficient resources or
capital to support the growth

monthly net cash flow’.Monthly net cash flow refers to the amount of cash generated or consumed by
a business or individual during a specific month after accounting for all incoming and outgoing cash
transactions.

Closing cash balance refers to the amount of cash remaining in a business or individual's accounts at
the end of a specific period, such as a day, week, month, or accounting period.

Budgeting is the process of creating a plan to manage your finances effectively. It involves estimating
your income and expenses over a certain period (usually monthly or annually) and allocating funds
accordingly to meet your financial goals.

A budget holder refers to an individual or entity responsible for managing and overseeing a specific
budget within an organization.

variance analysis: is a financial management tool used to compare actual financial results to budgeted or
expected results.

Delegated budgets refer to the practice of assigning specific budgetary responsibilities to various levels
of management within an organization.

Incremental budgeting is a budgeting method where the budget for the upcoming period is based on the
expenses and revenues of the current or previous period, with adjustments made for any anticipated
changes
Zero-based budgeting (ZBB) is a budgeting approach where all expenses must be justified for each new
period, regardless of whether they are carried forward from the previous period.

A favorable variance, also known as a positive variance, occurs when the actual performance of a
particular metric or activity exceeds the planned or budgeted performance

Flexible budgeting is a budgeting technique that adjusts the original static budget based on actual
activity levels.

An adverse variance, also known as a negative variance, occurs when the actual performance of a
particular metric or activity falls short of the planned or budgeted performance.