Business dictionary

Αn asset pledged by a borrower to secure a loan or credit. If the borrower defaults on the loan, the lender has the right to seize the collateral to recover the amount owed. Common types of collateral include real estate, vehicles, and other valuable assets. The value of the collateral typically needs to match or exceed the value of the loan to mitigate risk for the lender.

An asset pledged by a borrower to a lender as security for a loan. If the borrower defaults on the loan, the lender has the right to seize and sell the collateral (such as real estate, vehicles, or other valuables) to recover the owed amount. This process helps protect the lender from the risk of non-payment of the loan.

The act or process of purchasing goods or services from a supplier or intermediary, who receives a fee for the sale. The commission can relate to either the purchase of products or the provision of services on behalf of another, typically within a commercial or professional context. It generally involves earning a profit or a percentage of the value of goods or services transacted.

Basic goods or raw materials that are typically used in commerce and are interchangeable with other goods of the same type. These can include natural resources such as oil, gold, and agricultural products like wheat or coffee. Commodities are often traded on specialized exchanges, and their prices are determined by supply and demand factors in the global market.

The interest rate applied to both the original principal and any accumulated interest. This method of interest calculation allows investments or loans to grow at an increasing rate over time, as interest is periodically added to the principal, resulting in “interest on interest.”

A form of short-term debt that converts into equity, typically in conjunction with a future financing round. It allows startups to raise funds without immediately setting a valuation.

Small text files stored on a user’s device by a web browser when they visit a website. They are used to remember information about the user’s visit, such as login details, preferences, and shopping cart contents. Cookies help improve the user experience by enabling websites to recognize returning visitors and provide a more personalized browsing experience. There are different types of cookies, including session cookies (which are temporary and expire once the browser is closed) and persistent cookies (which remain on the device for a set period or until deleted).

Protection of original works of authorship, such as literary, artistic, musical, and digital creations, provides exclusive rights to the creator for reproduction, distribution, and performance of the work. These rights typically last for the creator’s lifetime plus 70 years. Such protection is fundamental for creators to control and profit from their creations.

The framework of rules, practices, and processes by which a firm is directed and controlled.

The practice of integrating social and environmental concerns into business operations.