This is the difference between sales and cost of sales. The cost of sales includes financing and marketing costs. Profit on sales thus equals the net profit on the turnover.

The difference between gross profit and incidental expenses. Usually depreciation and financial cost (interest) are debited to gross profit to arrive at the net profit known as profit before taxes (PBT).

Reducing the expected future cash inflows from an investment to their present value by applying a discount rate equal to the desired rate of return; if the NPV is positive the investment clears the test.

The difference between the sum of revenues and income and expenses and losses. Net loss arises when total expenses, including accruals, exceed total income including accruals. The net loss is shown on the asset side of the balance sheet being a reduction from the shareholder’s capital.

Cash at bank and in hand and cash equivalents; e.g. investments held as current assets less bank overdrafts and other debts repayable within a year of the accounting date.

Net income is the difference between the total of all revenues and the total of all debits to profits and loss. This is calculated in mercantile form of accounting, by including all accrued incomes and accrued expenses.

Current assets minus current liabilities. Net current Assets also called Net working capital, is counted for bank financing.

The difference between the historical cost of an asset and the total depreciation or other provision for any reduction in value. This is also called ‘Net Block’, which is the depreciated value of fixed assets, shown in the Balance Sheet.

It is equal to current assets + fixed assets – external liabilities. Net assets of an organization can be easily calculated from the balance sheet of the organization by applying the above formula.

The difference between the book value of all the assets of an organization and its liabilities, including the loan capital. In balance sheet terms, total assets always equal total liability. However, when a unit is wound up the valuations may show an excess of the realizable value of assets over the liabilities of the concern of Vice Versa.

The method of nurturing beneficial contacts for getting a job or gaining business advancement. This is a coinage to replicate the nature of a net which owes the strength to its links.

A sort of structure where one organization plays the role of a lead organization and makes a network of many other external organizations whose services the lead organization utilizes.

1) A method used in planning projects. In it a diagram is produced showing the logical sequence of activities and resources and the connection between them. The aim is to utilize the resources most effectively. 2) A quantitative technique for the control of projects.

1) A number of radio and television stations linked together so that they may broadcast a particular programme simultaneously. 2) A group of people from different organizations who confer among themselves regularly to pool job tips, business contacts and other knowledge for the benefit of each member.

A system comprising several keyboards and screens with one or more central processing units, and allowing several users at once to draw on the same data –or , alternatively, to use a different program at each terminal.

The effective profit, the actual gain after working expenses are paid.

A value reduced by all relevant deductions. Investments are made and expenses incurred for returns; when the gross returns exceed the investment and expenses, the difference is the Net.

Favoritism shown to friends and relatives in conferring offices. The word is derived from ‘Nephew’, which has been enlarged by usage to include all kith and kin.

The act of conferring with others with a view to reach an agreement. This is usually done by two parties directly or through a middle man acting as negotiator, mediator, adjudicator or arbitrator.

To hold conversation to reach an agreement. Usually such discussion or conversation is aimed at settlement of a disputed interest and reach a compromise which is reasonable and fair to both parties.