Debenture

A fixed-interest long-term method of raising finance, which usually uses property or land as collateral.

Debit Card

A plastic card that alllows the holder to pay for goods electronically.  Unlike a credit card the funds are taken out of your bank account.

Debtors

People or firms who owe money to a business

Decision Tree

A method of choosing the best option using a visual diagram and probability.

Deductions

Money taken out of your Gross pay such as income tax, National Insurance.

Deed of Partnership

A legally binding agreement drawn up to outline how a partnership will be run.

Delayering

Where layers of hierarchy are removed from the structure of an organisation, in order to make it flatter.

Delegation

Where a manager gives a subordinate the authority to do a job without being supervised.

Delivery Note

A document that requires a signature confirming that delivery has been made.

Demand

The wish to possess a good, or obtain a service

Demand Curve

A graphical representation of demand, which outlines the inverse relationship between price and quantity.

Demand-pull Inflation

A general and sustained increase in prices caused by too much demand in the economy.

Demerger

Where a firm splits into two or more parts.

Democratic Leader

A manager who is willing to  listen and consider the views of people in their department, and act upon the wishes of the majority.

 Demographics

Statisical analysis of the population

Department of Trade and Industry (DTI)

Government department responsible for overseeing policies relating to industry, e.g. regional policy.

Depreciation

The reduction in value of fixed assets (machinery, vehicles) belonging to a firm.

Deregulation

Where the government relaxes or removes the rules and regulations that apply to businesses.

Deskilling

Where the need for human skill is removed from a job.

Desk Research

Also known as secondary research, this involves using existing information as part of market research.

Direct Cost

Any cost that can clearly be attributed to the production of an item.

Direct Marketing

Activities that involve communicating with the consumer in order to encourage them to buy, e.g. direct mail.

Direct Tax

A tax paid directly to the government, or it's representatives.

Diseconomies of Scale

When costs start to increase because a firm is too large.  Problems may occur with the management, organsiation and communications, so the firm becomes inefficient.

Dismissal

This is when a person is sacked, due to incompetence or breaches of discipline such as theft.

Disposable Income

The money that you have left after all deductions.

Distribution Channel

The method used to move a product from the manufacturer to the end consumer.

Diversification

Where a business moves into a new market in order to reduce risk.

Dividend

A payment made to shareholders out of the profits that a firm makes, in return for their investment in the company.

Divorce of Ownership & Control

Refers mainly to PLCs where managers run the business on behalf of the shareholders who own it.

Dog

A product which has low market share in a market that has little or low growth, according to the Boston Matrix.

Downsizing

Where a business deliberately reduces it's size.

Drawings

The money taken out of an unincorporated firm, to represent the owner(s) salary.