Business dictionary

A financial metric that measures a company’s operating performance by focusing on its core earnings before deducting expenses related to interest, taxes, depreciation, and amortization. EBITDA is used to evaluate profitability by isolating the company’s operational efficiency and cash-generating ability. It is especially useful for comparing businesses in the same industry, as it removes the effects of financing and accounting decisions.

The phenomenon where the average cost of producing a good or service decreases as the volume of production increases. This occurs because larger production volumes allow for the spreading of fixed costs over more units, reducing the cost per unit. In practice, economies of scale arise from improvements in productivity, the use of technology, and exploiting size advantages to reduce overall expenses.

The benefits that humans receive from ecosystems, such as clean water, pollination, and climate regulation.

A political or economic restriction or prohibition on trade with a particular country or group of countries. It is often imposed by governments or international organizations as a form of pressure to compel a government or group to change policies or behavior. Embargoes may involve the prohibition of goods, services, or financial transactions and are commonly applied in situations involving violations of international laws or human rights.

A mechanism provided by a country’s central bank to offer temporary liquidity support to commercial banks that are unable to access regular funding due to extraordinary financial conditions. In the Eurozone, ELA is provided by national central banks in cooperation with the European Central Bank (ECB) and is used when a bank faces urgent liquidity needs but does not meet the ECB’s criteria for borrowing. The ELA aims to stabilize the banking system and prevent financial contagion during crises.

The release of greenhouse gases and pollutants into the atmosphere.

The goal of reducing the amount of energy required to provide the same level of energy service.

An integrated management system that organizations use to manage and automate core business processes across various departments. This includes finance, human resources, manufacturing, supply chain, services, procurement, and others. ERP systems centralize data and provide a comprehensive view of business operations, facilitating better decision-making and operational efficiency.

A business unable to halt its loss-making trajectory through its own financial resources or through resources obtained from its owners/shareholders and creditors. Without external state intervention, it will face almost certain financial collapse in the short to medium term. roubled businesses are excluded from programs providing state support to businesses in the form of grants, loans, interest subsidies, etc., whether financed by the NSRF (National Strategic Reference Framework), national funds, or other sources. Key indicators that characterize a business as troubled include:

Participation in bankruptcy proceedings.
Receipt of rescue aid where the loan or guarantee has not yet been repaid.
Receipt of restructuring aid and current involvement in a restructuring plan.
Loss of over half of the company’s capital due to accumulated losses.”

A process to evaluate the potential environmental impacts of a proposed project or action.