Business Dictionary

1. Communism

Economic and social system in which all (or nearly all) property and resources are
collectively owned by a classless society and not by individual citizens. It
envisages common ownership of all land and capital.
Usage Example:
The employees felt like they were experiencing communism -- everyone at the company
received the same pay regardless of their ability, how much they produced, or how hard
they worked.
2. Hypothesis
A supposition or explanation (theory) that is provisionally accepted in order to interpret
certain events or phenomena, and to provide guidance for further investigation. A
hypothesis may be proven correct or wrong, and must be capable of refutation. If it
remains unrefuted by facts, it is said to be verified or corroborated.
Statistics: An assumption about certain characteristics of a population. If it
specifies values for every parameter of a population, it is called a simple hypothesis; if
not, a composite hypothesis. If it attempts to nullify the difference between
two sample means (by suggesting that the difference is of no statistical significance), it is
called a null hypothesis.
Usage Example:
The first step to improving an outcome is to form a testable hypothesis of how the
outcome is affected; for example, a gardener forms a hypothesis that their tomatoes will
grow better with more compost.

3. Independent variable
A factor or phenomenon that causes or influences another associated factor or
phenomenon called a dependent variable. For example, income is an
independent variable because it causes and influences another variable, consumption.
Usage Example:
Working in a garden, the amount of compost used in an area is a controlled
or independent variable, and the resulting plant growth is an outcome or dependent
variable.
4. Autonomy
Human resource management: A degree or level of freedom and discretion allowed to
an employee over his or her job. As a general rule, jobs with high degree of autonomy
engender a sense of responsibility and greater job satisfaction in the employee(s). Not
every employee, however, prefers a job with high degree of responsibility.
Usage Example:
Some employees resent frequent interference and micromanagement by their superiors,
preferring autonomy in their work, while others fail to thrive without constant
supervision.
5. Inflation
A sustained, rapid increase in prices, as measured by some broad index (such
as consumer price Index) over months or years, and mirrored in the correspondingly
decreasing purchasing power of the currency. It has its worst effect on the fixed-wage
earners, and is a disincentive to save.
Usage Example:
In the 1970's, inflation was very high and consumers suffered because the prices of
necessary commodities like food, gasoline and homewares increased rapidly from year to
year.

6. Propaganda
In general, a message designed to persuade its intended audience to think and behave in a
certain manner. Thus advertising is commercial propaganda. In specific, institutionalized
and systematic spreading of information and/or disinformation, usually to promote a
narrow political or religious viewpoint.
Usage Example:
There is so much propaganda in our society telling us what to do and say and buy, I really
hate it all so very much and want to live in the woods.
7. Constitution
Fundamental and
entrenched
rules
governing
the conduct of
establishing
its concept, character and structure. It is usually a short document, general in nature and
embodying the aspirations and values of its writers and subjects.
Usage Example:
There are many rules or laws that pertain to a society, but none of them can ever overrule
the ones that are clearly stated in that country's constitution.
8. Cloud computing
Process where a task is solved by using a wide variety of technologies, including
computers, networks, servers, and the Internet. Cloud computing is very similar to grid
computing, however usually is differentiated from grid computing due to its use of
Internet tools.
Usage Example:
I work for an internet start up company in Silicon Valley, where we frequently use cloud
computing to store and access files over the internet.

9. Theory

A set of assumptions, propositions, or accepted facts that attempts to provide a plausible

or rational explanation of cause-and-effect (causal) relationships among a group of
observed phenomenon. The word's origin (from the Greek thors, a spectator), stresses
the fact that all theories are mental models of the perceived reality.
Usage Example:
I heard a theory that beauty marks on your skin are actually wounds from your past lives,
that each mark stands for the part of your body where you were injured, ill, or killed in a
previous life.
10. Bibliography
List of books or articles related by way of authorship or subject, and sometimes
annotated. Large bibliographies may be published as books in their own right.
Usage Example:
Please make sure that you cite all of the references that you used in a bibliography at the
end of your essay.
11. Proxy
Written authorization from an absent member (or a shareholder, called the 'principal') that
confers a limited power of attorney on another person, member, or management of the
firm (called 'agent' or 'proxy') to vote on behalf of, and in accordance with the directions
of, the principal.
Usage Example:
Her stockbroker held her proxy, because Marcie felt far too busy to vote on corporate
matters even though she owned many shares of Exxon.
12. Paradigm
Intellectual perception or view, accepted by an individual or a society as a clear
example, model, or pattern of how things work in the world.
Usage Example:
The paradigm for declaring war on another country shifted from one of offense which
was to gain territory to one of prevention of another war.

13. Trust

Legal Entity created by a party (the trustor) through which a second party (the trustee)
holds the right to manage the trustor's assets or property for the benefit of a third party
(the beneficiary).
Usage Example:
If you are wondering how she is able to travel so much and work so little at such a young
age, it is because her parents set up a trust that provides for most of her living expenses.

14. Resolution
Formal authorization or expression of an action, decision, intention, opinion, transaction,
etc. Proposition put before a meeting of stockholders (shareholders) or the directors of a
firm for discussion,approval or adoption.
Usage Example:
When the company's profitability decreased steadily over a five year period, the
shareholders passed a resolution to decrease executive salaries as a way to reduce
expenses.

15. Culture
Broadly, social heritage of a group (organized community or society). It is a pattern of
responses discovered, developed, or invented during the group's history
of handling problems which arise from interactions among its members, and between
them and their environment.
Usage Example:
While we all come from different ethnic backgrounds, our goal is to build a cooperative
and harmonious work culture so that everyone can feel comfortable here.

16. Character

1. Computing: letter, number, punctuation mark, other mark or symbol, and 'space'
any element of a given character set.
2. Banking: One of the five key factors (see five C's of credit) considered in evaluation of
a loan application is the applicant's credit history and reputation in the community.
3. Law: reputation of a person, entity, or witness.
4. HR: Sum total of a person's behavioral
Usage Example:
There are only ten number characters available on a computer, but there are over a
hundred non-number characters available to users.
17. Arbitrary
1. Based on individual discretion, not on an objective criteria.
2. Based on bias or prejudice, not on fact or reason.
Usage Example:
His decision to fire Jane and not Hue was very arbitrary, as both had done outstanding
work at the company and both had always treated him with great respect.

18. Precedent
Common-law doctrine under which past decisions of a court are cited as an authority to
decide a substantially similar current case. Under the English legal maxim of stare
decisis (Latin for, to stand by things decided) the previous decisions (precedents) of
an appellate court are binding on the same and lower courts within its jurisdiction.
Usage Example:
Unfortunately, the company's first chief executive set a bad precedent for his successors
by embezzling funds, abusing employees, and crashing his company car.

19. Gross Income

The amount by which sales revenue exceeds production costs (cost of sales).
Though operating income gives a more accurate picture of a company's profitability,
gross income provides a top-line view of a company's production or (in case of a
merchant) sales related cost structure.
Usage Example:
The company's gross income grew considerably this year because our sales showed
dramatic improvement while our production costs did not increase.

20. Stereotype
1. General: (1) Erroneous, relatively fixed, simplistic, and mostly
negative generalization (based commonly on bigotry, ignorance, and prejudice) held to be
true about certain individuals or groups. (2) Lacking individuality or originality, stale.
2. Printing: metal printing plate cast from a paper matrix for use on letter presses. Stereotype
is Greek for, solid; hence, fixed or unchangeable.
Usage Example:
Shawn was disappointed with his classmates and their attitude towards him, as they believed
he would not be a good academic partner due to stereotypes about his race.