Commercial Definitions

Commercial means 1) related to or used in the buying and selling of goods and services; 2) relating to or based on the amount of profit that something earns; 3) related to the cost, prices, or contractual terms and conditions.

Tax is a compulsory monetary contribution to the government that is based on an income, business profit, occupation, privilege, property, added to the cost of goods or services, etc. The Project related taxes are the various taxes that may be applicable to a specific project or initiative. (e.g., Income Tax; Sales Tax and Value Added Tax (VAT); Property Tax; Excise Tax; Customs Duties and Import Taxes; Employment Taxes; Environmental Taxes; Specialised Industry Taxes; Capital Gains Tax; Incentives and Credits; Local Taxes, etc.)

Economics is the academic study of the production, distribution, and consumption of goods and services that is the analysis of how people use the resources available to them. The two largest branches of economics are microeconomics and macroeconomics.

Economy is 1) a system of trade and industry by the production and consumption of goods and services, and the supply of money; 2) acquiring the necessary resources (finance, staff, buildings, equipment, etc.) to carry out an activity at the least cost.

Finance is the way of the money management that is supplied or used, or handled by a person, company, organisation, or government.

Marketing is the business ideas, brands, design, processes, and activities that involves finding out what customers want, and selling them effectively. The Marketing is measuring effectiveness, market research, learning customers' needs and the psychology of consumer behaviour, and how can add value through marketing activities for a successful business in the long term.

Tax is a compulsory monetary contribution to the government that is based on an income, business profit, occupation, privilege, property, added to the cost of goods or services, etc. The Project related taxes are the various taxes that may be applicable to a specific project or initiative. (e.g., Income Tax; Sales Tax and Value Added Tax (VAT); Property Tax; Excise Tax; Customs Duties and Import Taxes; Employment Taxes; Environmental Taxes; Specialised Industry Taxes; Capital Gains Tax; Incentives and Credits; Local Taxes, etc.)

Tax Planning is the reduction of tax liability by the way of exemptions, deductions and benefits that is a practice of the analysing financial situations based on tax efficiency point of view to invest and utilise the resources optimally. The Tax Planning covers several considerations including timing of income, size, selection of investment, retirement plan, tax filing status, deduction to create, and other expenditures. The Tax Planning objectives are: Reduced tax liability; Productive investment; Growth of economy; Litigation minimisation; Economic stability, etc.

Customs Duty is a tariff or tax imposed on imports or exports of goods and services when they transported across international borders. The purpose of Customs Duty is to protect each country's economy, social, and environmental sustainability by controlling the flow of goods and services.

Double Taxation Treaty (or Agreement) is the reciprocal arrangement between two countries that specifies which country has taxing rights over an individual, if they both have such rights, which one takes priority. The Agreement may set down different rules for different types of income, also agree to exempt some income or gains from tax or allow a set-off of tax paid in one country against tax due in the other.

Duty is 1) an obligatory tasks, conduct, service, or functions; 2) a tax paid to the government, especially on things that is into/ out a country that includes accurately reporting income and capital gains and fulfilling tax obligations associated with trading activities.

Excise is a tax levied on certain goods and commodities produced or sold within a country and on licences granted for certain activities.

Excise Tax is an indirect tax on the sale of a particular good or service that consists of special taxes levied on specific kinds of goods, typically alcoholic beverages, tobacco and fuels.

Export Duty is a tariff or tax imposed on exports of goods and services including other export charges that is payable when the goods leave the economic territory, or the services are delivered. (Refer to the Customs Duty; Import Duty; Export Tax)

Export Tax is a tax on goods or services that becomes payable when the goods leave the economic territory, and now generally levied by raw material producing countries rather than by advanced industrial countries.

Import Duty is a tariff or tax imposed on the import goods and services including other import charges that is payable when the goods enter the economic territory, or the services are provided. (Refer to the Customs Duty; Export Duty)

Indirect Tax is the type of taxes on products, levied on goods and services rather than on income or profits that can be passed to other organisation by increasing the prices of the goods or services. (e.g., customs duty, VAT, etc.)

Investment Tax Credit is a reduction in the income tax on the cost of certain asset purchased or specific type of investment.

Levy is an amount of money (a tax, fee, or fine) to pay to a government or organisation.

Pigouvian Tax is a tax levied on any market activity that generates an environmental externality as an incentive to avert or mitigate such damage.

Poll Tax is a tax levied as specific amounts of money on every liable individual, per adult person, or per household.

Stamp Duty is a tax on transactions that is levied on single property purchases or documents. (Also, called as the Stamp Tax)

Stamp Tax is a tax placed on the legal document upon transfer, or on the transfer of a property. (Also, called as the Stamp Duty)

Tax Allowance is the tax free income that amounts deducted from gross earnings to arrive at taxable income.

Tax Avoidance is an arrangement to minimise tax liability within the law that is generally accomplished by claiming as many deductions and credits as are allowable. However, sometimes the Tax Avoidance is an abuse of the tax system, a deliberate attempt to get out of an obligation to pay tax that serves little or no purpose other than the reduction of a tax bill.

Tax Credit is the reduced tax amount from the tax liability that is based on the reduced actual amount of taxable income or the amount of monetary taxes. (Refer to the Tax Exemption; Tax Deduction)

Tax Deduction is subtracted a portion of taxable income amount that may be excluded from taxation when certain conditions are satisfied. (Refer to the Tax Exemption; Tax Credit)

Tax Evasion is the illegal non-payment or underpayment of tax.

Tax Exemption is an amount of monetary exemption that can be excluded all or partial incomes or profits before the tax is calculated. The Tax Exemption is various in the taxable incomes, and certain individuals and organisations are completely exempt from paying taxes. (Refer to the Tax Deduction; Tax Credit)

Tax on Tax means that a tax to be imposed on the tax accounts.

Tax Relief is a tax incentive system that reduces the amount of tax owed by an individual or business entity. (e.g., married couples and parents)

Taxation is a tax system or process of taxing people or organisation by government.

Taxes are a compulsory contribution, unrequited payments, in cash or in kind paid to the government that is based on the income or cost of goods or services. (e.g., income, sales, property, VAT, etc.)

Value Added Tax (VAT) is an indirect tax on the domestic consumption of goods and services collected in whenever value is added at each stage of the supply chain by the organisation, and which is ultimately charged in full to the final purchasers or end users.

Windfall Tax is an extra tax that a government charges a one-time surtax levied on a company or industry when economic conditions result in large and unexpected profits, especially if they have been helped by economic conditions, most often commodity businesses. The Windfall Tax was introduced by the Labour government of Tony Blair in 1997. (e.g., Inheritance taxes levied on lottery winners)

Annualised Growth Rate (or Annualised rate of change) is the rate of change values that is in the value of an individual investment, portfolio, asset, or cash stream increased for a full year.

Bricks and Clicks (or Clicks and Bricks or Mortar and Clicks) is a combined business model, on-line (internet or web: Click) and off-line (physical store: Brick). On-line business company sells products and services on a Web as well as a physical store.

Bricks and Mortar is a traditional business model, a company possess properties of offices, production facilities and stores.

Chasm is 1) a very large difference between two opinions or groups of people; 2) in the context of economic development and innovation, the chasm is the gap or transition between early adopters of a new technology or product and the broader, mainstream market. Beyond the chasm, the early majority and late majority represent the broader market that needs different approaches and strategies compared to the early adopters.

Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households.

Depreciation is the gradual decrease in the economic value of the tangible asset that is assigned or allocated the asset value over the accounting period. A Depreciation schedule is required in financial modeling to forecast the value of a company’s fixed assets, depreciation expense, and capital expenditures. Depreciation Models are a straight line depreciation and exponential depreciation (or accelerated depreciation) model.

Earnings per Share (EPS) is a company's profit divided by its number of common outstanding shares.

EBIT (Earnings Before Interest and Taxes)

Marketing is the business ideas, brands, design, processes, and activities that involves finding out what customers want, and selling them effectively. The Marketing is measuring effectiveness, market research, learning customers' needs and the psychology of consumer behaviour, and how can add value through marketing activities for a successful business in the long term.

Aggregate Demand (AD) is the total demand for goods and services produced within the economy over a period of time that specifies the amounts of goods and services can be purchased at all possible price levels (market values). The Aggregate Demand is a macroeconomic term describes the relationship between everything bought within a country that is the same thing as everything produced in a country equals the Gross Domestic Product of a country.

Baskets are 1) the term commonly used for the list of goods and services, together with their relative values in programme trading, index fund management, and currency portfolio management. (e.g., OPEC Basket Price); 2) containers used for carrying or storing things.

Bid Rigging is the process in which a number of bidders illegally forms a consortium to fix the winner of the bid that can take many forms, but one frequent form is when competitors agree in advance which firm will win the bid. The Bid Rigging is a fraudulent scheme in the bidding on procurement, project contracts, government construction contracts that is a particular form of collusive price-fixing behaviour by which firms coordinate their bids in an orchestrated act of collusion, or between officials and firms.

Cartel is two or more similar independent companies who enter into agreements to control prices and limit competition of a good in a particular industry. Most jurisdictions consider the Cartel is the anti-competitive behaviour that is distort normal business of a competitive market; redistribute income in society from consumers to powerful vested interests; successful cartels become an easy way to make profit, therefore it may discourage innovation and efficiency gains. A Prosecutor Cartel typically refers to a situation in which multiple prosecutors or legal authorities engage in unlawful or unethical collusion, usually for personal gain, to manipulate the legal system or legal proceedings. Such behaviour is illegal and unethical, as it undermines the principles of justice and the impartiality of the legal system. (e.g., Suppress evidence; Engage in selective prosecution; Influence judges or juries; Manipulate legal processes, etc.)

Fair Value is the price of a good, service, or asset of the potential market that would change hands between a willing buyer and a willing seller. The Fair Value is a way of calculating how much the assets of a business that is worth based on how much would be paid.

Full Cost Pricing is a pricing strategy in which all relevant variable costs and a full share of fixed costs directly attributable to the product that is a practice where the price of a product is calculated by a company on the basis of its direct costs per unit of output plus a markup to cover overhead costs and profits.

Fungible

Asset-Backed Commercial Paper (ABCP) is a type of commercial paper that is a short-term monetary-market debt instrument with a maturity of no more than 270 days. An ABCP is collateralised by other financial assets, usually issued by a large corporation or financial institution to pay for other short-term liabilities. Institutional investors usually purchase such instruments to generate short-term gains, or companies use an asset-backed commercial paper for short-term financing needs.

Accounting Control is the methods or procedures for safeguarding of assets and recording of financial transactions that is the integrity of internal financial information and accuracy of financial reports.

Accounting System is a set of principles, methods and procedures used by organisations for an accurate and timely recording and reporting financial information for management decisions. The Accounting System includes the financial information collecting, interpreting, recording, storing, analysing, and reporting to interested parties including stakeholders, investors, auditors, and tax authorities. A regulatory requires how a particular accounting system is to be maintained. The Accounting System is comprised of manual or computerised records for administering, recording, and reporting on financial transactions.

Amortisation is an accounting term that is the paying off debt with a fixed repayment schedule.

Asset Management is the systematic activities and practices that is the ability of an asset and asset system to perform its required function effectively and efficiently. The Asset Management performs the risks and expenditures over a life cycle period for the purpose of achieving its organisational strategic plan.

Asset Allocation is an investment strategy that is a spread of fund investments among different investment forms.

Asset Integrity is an ability of the asset to perform its required function effectively and efficiently that is properly designed and installed in accordance with specifications and remains fit for purpose.

Financial Asset

Acquisition is an obtaining property (goods and services) through purchase, lease, or transfer, and control by one organisation, in whole or in part, of another firm or business entity.

Administered Price is a price of a good or service fixed by policy makers in order to determine domestic market or producer prices.

Approximation is a quantity (value, amount, number, figure, etc.) of a guess number that is not exact but close.

Arithmetic Growth is a pattern of growth that increases by a constant rate, such as 1, 2, 3, or 1, 3, 5, in each period being analysed. (Refer to the Geometric Growth; Exponential Growth)

Asset-Backed Security (ABS) is a security derived from a pool of underlying assets by which the financial institutions pool multiple loans (e.g., mortgages, credit card debt, student loans, and auto loans) into a single security to be sold to general investors. An ABS is characterised by a diversified risk profile with a securitisation process, and allows the risk of investing in the underlying assets, as each security only contains a fraction of the total pool of underlying assets. An ABS may also be subject to certain risks, such as prepayment risk, interest rate risk, and credit risk.

Asymmetric Information is the situation when one party in an economic transaction possesses more or better information about the product or service involved than the other party. The Asymmetry Information creates an imbalance of power in transactions, which can sometimes cause the transactions to be inefficient, causing market failure in the worst case. There are two types of Asymmetric Information: Adverse Selection (less-informed party making choices that are unfavourable or risky), and Moral Hazard (lead to risky or undesirable behaviour by the less-informed party)

Big Tech refers to the most dominant and largest technology companies in their respective sectors. The Big Tech organisations are: GAFA (Google, Apple, Facebook, Amazon), GAFAM (includes Microsoft), NATU (Netflix, Airbnb, Tesla and Uber), who are the most recent disruptive organisations; In China, BATX (Baidu, Alibaba, Tencent and Xiomi). Their products and services are used globally and have become heavily relied upon by businesses and individuals alike, bringing up privacy, safety and antitrust concerns about their influence and operations, and concerns over monopolistic practices have led to antitrust investigations in the USA and the EU Commission.

Blockchain