Business dictionary

The failure of an individual or company to meet its financial obligations on time, as agreed in a contract or agreement. In the case of debt, default occurs when a payment is overdue beyond the agreed-upon date, and without a valid legal excuse, usually resulting in additional legal or financial penalties.

The quantity of goods or services that consumers are willing and able to purchase at specific prices, at a given point in time. Demand is influenced by various factors, such as the price of the product, consumers’ income, preferences, and the prices of substitute or complementary goods. The law of demand states that, generally, when the price of a good increases, the demand for it decreases, and conversely, when the price decreases, the demand increases.

Funds held in a bank account that can be accessed or withdrawn by the account holder at any time without prior notice or restrictions. These types of accounts are typically used for day-to-day transactions and provide easy access to funds. Demand deposits are often not subject to any fixed term and allow for an unlimited number of withdrawals or transfers. Typically, they do not earn significant interest, or they offer very low interest rates compared to other types of deposits.

State subsidies provided to businesses with a minimal impact on competition within the European Union’s internal market. These aids do not require prior approval from the EU Competition Commission, unless the total amount given to a business exceeds a set limit over a three-year period. Such subsidies are considered non-harmful to competition and commercial activity within the EU.

The gradual reduction in the value of a tangible asset over time, due to factors such as wear and tear, age, or obsolescence. For example, machinery, buildings, and vehicles lose value over their useful life. Depreciation is accounted for as an expense on a company’s income statement and is used to allocate the cost of an asset over its useful life.

Financial instruments that derive their value from an underlying asset, such as stocks, commodities, currencies, or indices. Common types of derivatives include futures, options, and swaps. The derivatives market is a financial market where derivative products are traded. It allows investors to hedge risks, speculate, or secure future prices on various assets.

The process of integrating digital technology into all areas of a business, changing how the business operates and delivers value to customers. This transformation involves adopting new technologies, like cloud computing, data analytics, artificial intelligence, and automation, to improve efficiency, streamline processes, and enhance customer experiences.

A payment made by a company to its shareholders, typically as a portion of its net earnings. The dividend represents a return on investment for shareholders and can be paid in cash or in the form of additional shares. The amount of the dividend is determined by the company’s policy and financial health. Dividends are often used as a way for a company to share its profits with its investors.

A unique, human-readable address used to identify a website on the internet. It acts as a “home address” for websites, allowing users to easily find them without needing to remember a numerical IP address. Domain names consist of a name (like “example”) and a suffix or extension (like “.com” or “.org”) to represent the type of website or organization

Τhe process of thoroughly investigating or auditing a potential investment, business, or transaction before making a final decision. This involves collecting and analyzing key information about the financial, legal, operational, and strategic aspects of the entity or project in question to ensure that there are no hidden risks, liabilities, or other issues that could negatively affect the outcome of the transaction.