tangible asset: An asset that has physical properties, such as equipment, real estate, cash, etc.
tax deduction: An expense incurred by a taxpayer. It is subtracted from gross income and will result in lower overall taxable income and the amount of tax paid. For example, a donation made to a charitable organization.
tax deferred: Income that is not taxed until a later time.
tax exemption: An exemption from all or certain taxes of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead foregone. This usually applies to charitable organizations.
tenant improvements (TI): Improvements made to an office, industrial or retail space according to the needs of a new client.
title: A legal document which establishes the right to possession of property.
trust law: An arrangement whereby money or property is owned and managed by one person or group of persons, for the benefit of someone else.
underwriting: To insure against losses or guarantee a purchase. Also, the determination of the risks associated with a specific loan.
up sell: To suggest higher priced merchandise to someone who is considering making a purchase. For example, a salesperson would try to upsell a client from a one product to the full set of products.
value added tax (VAT): A tax that is placed on an item at each stage of manufacture and distribution.
variable costs: Costs that change with the activity of doing business. Variable costs include the cost of labor, materials, etc.
venture capital: Also referred to as speculative or risk capital, venture capital is money for innovative or new commercial ventures.
voluntary association: A group of individuals who voluntarily enter into an agreement to form a body to accomplish a purpose.
voting stock: Stocks that come with the right to vote when electing a firm's directors. While most common stock is voting stock, preferred stock is generally nonvoting stock.
waybill: A document which gives information on a shipment of goods.
wire transfer: An electronic order between banks to credit or debit accounts.
workers' compensation: A law that governs payments made to employees injured or killed in the line of work. The amount awarded for workers' compensation depends on a particular state's law.
working capital: Cash that can be used to pay bills for a company.
write off: To reduce the value of an asset to zero. Also, to deduct some amount from income tax.
zero-base budgeting: A government or corporate practice that justifies the overall or individual budget items, instead of dealing just with the proposed budget changes. Also, a method of setting a budget that doesn't rely on the previous year's budget due to changed circumstances. Zero-based budgets demand that each item and expense is justified.
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