Tamil Nadu HSE Second Year Commerce key terms

The process of planning, organising, directing, and controlling resources to achieve stated goals efficiently and effectively.

Fundamental rules or guidelines that managers can apply to improve organisational performance and achieve objectives.

Breaking down a complex task into smaller specialised tasks assigned to different individuals to improve efficiency and productivity.

A principle stating that each employee should receive orders from only one superior to avoid confusion and conflict.

The sum of external and internal factors that influence the operation and decision-making of a business organisation.

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats related to a business venture.

A business owned and operated by a single individual who bears all risks and receives all profits.

A business relationship between two or more persons who agree to share profits and losses of a business carried on by all or any of them acting for all.

An artificial legal entity created by law, having a separate legal identity from its owners and perpetual succession.

A marketplace where buyers and sellers trade financial assets such as stocks, bonds, currencies, and derivatives.

A segment of the financial market where short-term debt instruments with maturities of one year or less are traded.

A financial market where long-term securities such as stocks and bonds are bought and sold to raise long-term funds.

An organised market where securities issued by companies and governments are bought and sold under established rules and regulations.

The Securities and Exchange Board of India, a statutory regulator established to protect investors and regulate the securities market.

The mix of debt and equity used by a company to finance its assets and operations.

The funds required for day-to-day operations, calculated as current assets minus current liabilities.

The process of planning, organising, directing, and controlling financial activities such as procurement and utilisation of funds.

A technique of analysing financial statements by computing and interpreting relationships between different financial figures.

A financial metric that measures a company's ability to meet its short-term obligations using its current assets.

A financial metric used to assess a company's ability to generate earnings relative to its revenue, assets, or equity.

The book of original entry in which all business transactions are recorded chronologically with debit and credit aspects.

A book containing accounts to which transactions are posted from the journal, showing the balance of each account.

A statement listing the balances of all ledger accounts to verify that total debits equal total credits.

Financial statements prepared at the end of an accounting period, including trading account, profit and loss account, and balance sheet.

A written agreement among partners that outlines the terms of partnership, including profit-sharing ratio, capital contributions, and duties.

The process of recording, classifying, analysing, and allocating costs associated with producing goods or services.

A statement that presents the detailed cost breakdown of a product or service, including prime cost, works cost, and total cost.

A costing technique that considers only variable costs for decision-making, treating fixed costs as period costs.

The process of identifying opportunities, mobilising resources, and taking risks to create and manage a new business venture.

An independently owned and operated enterprise that is limited in size and revenue, often managed by its owner.

The application of moral principles and standards to business activities, decisions, and relationships with stakeholders.

Laws and measures designed to safeguard consumers against unfair trade practices and ensure their rights are upheld.

The set of controllable elements-product, price, place, and promotion-that a firm blends to achieve its marketing objectives.

The process of dividing a broad market into smaller groups of consumers with similar needs, characteristics, or behaviours.

The art and skill of persuading customers to purchase a product or service through effective communication and relationship building.

The legal entitlements of consumers, including the right to safety, information, choice, redressal, and consumer education.

The level of sales at which total revenue equals total costs, resulting in neither profit nor loss.

A liquidity ratio calculated as current assets divided by current liabilities, indicating short-term financial strength.