Business dictionary

The debts and obligations of a business or organization. This includes any payments owed to third parties, such as loans, debts to suppliers, outstanding taxes, and other financial obligations. Liabilities are a key component of a company’s balance sheet and indicate how much the business owes to its creditors.

A technique to assess the environmental impacts of a product throughout its entire life cycle, from raw material extraction to disposal.

A business structure consisting of two types of partners: general partners and limited partners. General partners have unlimited personal liability for the company’s debts, while limited partners are only liable for the amount of capital they have invested in the business. This structure is typically used when investors want to contribute capital without taking on full responsibility for the liabilities of the business.

The process through which a business or organization converts its assets into cash in order to settle its liabilities. Liquidation typically occurs when a company is unable to meet its obligations or when it decides to cease operations. The goal is to pay off creditors and distribute any remaining funds to shareholders or stakeholders.

The stage at which an asset, investment, or financial instrument reaches its full value or the point at which it is due for repayment or fulfillment. In finance, it is often used to describe the date when a bond, loan, or other debt instrument must be repaid in full. It also refers to the phase of business or product development where it has achieved a stable and sustainable growth rate, usually after a period of early stage development and expansion.

Fewer than 250 employees and annual turnover below €50 million or balance sheet below €43 million.

The process where two or more companies combine to form a new legal entity or when one existing company absorbs the others. Mergers can be strategic, aimed at increasing financial strength, optimizing resources, or expanding market share.

A hybrid form of funding that combines elements of debt and equity financing. It is typically used to finance the expansion of existing companies and sits between traditional debt (like bank loans) and equity in the capital structure. Mezzanine financing often involves subordinated debt or preferred equity, which means it is repaid only after senior debts are settled in the event of liquidation. Investors in mezzanine financing may receive interest payments and have the option to convert their investment into an ownership stake in the company, making it a flexible but higher-risk form of capital.

Fewer than 50 employees and an annual turnover or balance sheet below €10 million.

A type of business with less than 10 employees and an annual turnover (the amount of money taken in a particular period) or balance sheet (a statement of a company’s assets and liabilities) below €2 million.