Legal

Acquisition

A process of buying one company by another.

Adjustment

to change something slightly, especially to make it more correct, effective, or suitable

Administration order

A decision of the court of justice that formally opens an administration process of an insolvent company.

Asset

Something valuable that can be used to pay for the debts.

Audit

an official inspection of the company's accounts

Auditor

someone whose job is to carry out an official examination of the accounts of a business and to produce a report

Bail

money paid for releasing someone from prison

Bail out

help somebody with problems especially financial

Balance sheet

a statement that shows the value of a company's assets and its debts

Bankruptcy code

american set of rules for dealing with bankruptcy

Bankruptcy court

a special court that deals with situations in which a business or a person becomes unable to pay their debts, and is officially bankrupt

Board of directors

group of people elected for governing a company or organization

Capital reserve

an amount of money that a company or organization keeps in a special account for future needs

Catch someone unawares

to surprise someone

Chairman

person in charge of a meeting of the board

Collapse

to fall down suddenly because of pressure or having no strength or support

Collateral

An item of value that is pledged to guarantee repayment of a loan

Commencement

Synonym – beginning, start

Compensation

Money given to someone in order to make up for a loss, a damage etc...

Consumer price index

A list of the prices of some ordinary goods and services which shows how much these prices change each month

Credit rating

A tool that banks and financial service providers use to assess how likely you are to be able to honour your debt

Creditor

it is a person or a company to whom money is owed to

Debt relief

when bank or a government tells a person, a company, or a government that they do not have to pay back the money they owe

Debtor

Someone who owes money; sometimes called "borrower".

Deduction

It is an amount of money calculated and subtracted from a total.

Default on payment

Failure to make a loan payment or other monetary obligation at a proper time.

Deterioration

It is a constant process of becoming worse

Dissolution

the last stage of liquidation, the process by which a company (or part of a company) is brought to and end.

Dissolve

to end an official organization or a legal arrangement

Distraint

to take and sell property from someone who owes you money in order to pay back their debt

Downturn

a decline in economic or business activity

Draw on

start using a supply of something

Due diligence

Action which is reasonable to be taken in order to secure their property or any other asset.

Expenditure

the amount of money spent

foreclosure

is a legal process in which a lender takes back property that was bought with borrowed money because the money was not being paid back as agreed

Go under

fail financially and stop operating

Going into administration

process, in which your company is being taken under the management of a court appointed

administrator

who must be a licensed insolvency practitioner

Invoice finance

general term used to describe the process of selling invoices for a percentage of their value.

inheritable

capable of being transmitted by heredity from one generation to a later one

Insolvency

dition in which a company doesn't have enough money to pay debts, buy goods etc.

Insurance

It is an agreement with a company to provide compensation for specified loss.

Intangible assets

something valuable that a company has that is not material, such as a good reputation

Knock-down price

A price that is very low; very cheap.

Lease

To make a legal agreement by which money is paid for using a building, a vehicle, land, or a piece of equipment for a stated period of time.

Lender

institution or a person that lends money

Lessee

person who pays to use property owned by someone else

Liability

something that you owe to somebody, i.e. a mortgage, loan payment credit/store cards.

Liquidation

the process of closing a business, so that its assets can be sold to pay its debts

Liquidator

A person in charge of closing a company.

loophole

It is a small mistake in legal system or in an agreement. People exploit loopholes in order to do something that would be otherwise illegal.

Management

Managpeople who are in control of a company or an organizationement

Moratorium

legally authorized period of delay in the performance of a legal obligation or the payment of a debt

Non-core activities

activity which is not the main revenue source of the business

Outstanding debt

a debt that has not yet been repaid in full

over-reliance

too much dependence on something

Overwhelmingly

absolutely, definitely or extraordinarily

Payable

required or able to be paid.

Petition

to make an appeal to an authority

Preferential creditor

Is an individual or organization that has priority in being paid the money it is owed if the debtor declares bankruptcy

Principle

An idea which is used as a basis for a system of belief.

Proceeds

Cash received from a sale or a particular activity, after all expenses and taxes are deducted.

Reassemble

to rebuild something; to bring something together by joining its parts

Reliance

it means trust or dependence.

Repayment

the act of repaying someone or something

Reservations

Having second thoughts. Having doubts

Residual assets

assets after all secured obligations have been paid. (assets that remain after sufficient assets are dedicated to meet all senior debt holders' claims in full).

Restructure

to change the organisation of something

Risk management

process of identifying threats and taking actions to counter those threats

ruling

It is an official decision or statement made by a judge or court

Scope

the relevant area of something

Secured creditor

an organization that has lent money under an agreement that they can take particular assets from the borrower if the money is not paid back

Severance

Money paid for the last time by employer to an employee whose job is going to an end.; a termination of something, for example dissolution of an employment contract.

Statutory accounts

set of financial reports prepared at the end of each financial year

Strike off

is a process by which a company is removed from the register and dissolved

Student loan

Special type of loan, which helps students with paying up for their tuition, books and supplies, and living expenses and other fees.

Subsidiary

a company that is owned by a larger company

surplus

It is an amount that is more than is needed

Takeover

term used to define taking control by using force

Timber

trees that are grown so that the wood from them can be used for building

to assess

-to judge something based on a certain set of information; to estimate

to go under

to go into liquidation; to stop operating (as a company);

To sell off

a sale of a business, particular assets, etc. at a low price to encourage someone to buy it; or a sale of an investment, such as shares in a company, that causes its value to fall

Trademark

symbol placed by a producer on the goods made by it, referring to the producer, composed of words, drawings or numbers, etc.

Trustee

is a person appointed to represent the debtor's estate in a bankruptcy proceeding.

Unawares

suddenly and unexpectedly without any warning

Venture

a new activity, usually in business, that involves risk or uncertainty

Ward off

to prevent someone or something from happening or affecting someone

Warehouse

commercial building of company used for storing things before they are sold or used

Winding- up

Closing a business, investment. Liquidation of a company

Withhold

to keep something back, suppress or hide

Working capital

The money needed to run a business from day to day

Write off

To officially say, that someone doesn't have to pay an amount of money they owe