Business dictionary

The phenomenon of a general increase in the prices of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of the currency. When inflation is high, money loses its value, and consumers need more money to purchase the same goods and services. The main factors affecting inflation include demand and supply of goods, production costs, policies of the central banking system, and international economic conditions

The process by which a privately-held company offers its shares to the public for the first time. This allows the company to raise capital from a wider range of investors and transition from being privately owned to publicly traded on a stock exchange. An IPO typically involves the issuance of new shares, enabling the company to fund growth initiatives, pay off existing debts, or pursue other corporate objectives. It also provides liquidity to early investors, allowing them to sell their shares in the open market.

The legal rights granted to individuals or organizations over the creations of their mind. These rights allow creators to protect their inventions, designs, trademarks, brand names, literary works, and artistic expressions. Intellectual property ensures that creators can control the use and distribution of their work, encouraging innovation and creativity by granting them exclusive rights for a certain period.

The rate calculated on the original principal amount of a loan, without taking into account the interest that has been added to the principal over time. It does not include compound interest (the process of adding interest to the principal and recalculating interest).

The process of recording, counting, and assessing the assets, liabilities, and other items of a company, country, or organization at a specific point in time. Inventory is used to gather accurate and up-to-date data regarding the financial status and valuation of assets.

A document issued by a supplier or service provider to a customer, detailing the goods or services provided, their quantities, prices, and applicable taxes (e.g., VAT). It serves as proof of the transaction and is required for accounting and tax purposes. An invoice is also used to manage payments and monitor the financial transactions between the supplier and the customer.

Μeasurable values used to evaluate the performance of a company, project, or process in relation to set objectives. KPIs help in decision-making and strategic management by providing insights into the effectiveness of activities and alignment with business goals.

An agreement in which a business or individual (lessee) acquires the right to use an asset, such as equipment or real estate, without actually owning it. Instead, the lessee makes periodic payments (rentals) to the lessor for the use of the asset over a specified term. At the end of the agreement, the lessee typically has the option to purchase the asset for a predetermined amount.

Α document issued by a bank or a financial institution that guarantees the fulfillment of a financial obligation by an individual or organization to a third party. It is commonly used in agreements and contracts as a form of security, ensuring that the guarantor will cover a financial obligation in case the principal debtor defaults. Guarantee letters are frequently used in public works contracts, business agreements, and international trade transactions.

The financial obligations or debts that a business or organization has incurred, which must be settled in the future. This term includes the total of the company’s financial and legal commitments, such as loans, supplier payments, taxes, compensation, and other debts that require repayment.