accruing
(of sums of money or benefits) be received by someone in regular or increasing amounts over time; accumulate or receive (such payments or benefits)

adjudicated
to settle a dispute by judicial decision

articles of incorporation
an application for the incorporation of a business in addition to also acting as a document that sets out the basic rules for the corporation

assign
to transfer rights or property to another person

assignment of book debts
an assignment of the right to collect accounts receivables; this type of assignment is frequently taken by lenders as security for indebtedness, and is not enforced unless the assignor falls into arrears

audit
a formal examination of an organization’s records or financial situation bank reconciliation: a procedure in which a business accounts for discrepancies between its financial records and that of its bank for a specific period of time

bankrupt
a person or business who has ceased to meet financial obligations as they arise, and who has declared bankruptcy through a licensed trustee

bankruptcy
a process by which the assets of a debtor who can no longer meet financial obligations are divided amongst the creditors

beneficiary
a person designated to receive a gift or some benefit

bequeath
to leave a gift to a designated party after your death

bonded
insurance coverage that protects against financial loss incurred by a company due to the negligence of its employees

breach of contract
failure to perform an obligation owed to another under a contract

builder's lien
a claim that protects the rights of workers, contractors, and suppliers against the property upon which work is done or materials supplied

bylaws
rules enforced only within the jurisdiction of the municipality that established them

Canadian Charter of Rights and Freedoms
the part of the Canadian Constitution that protects individuals from infringements of their rights and freedoms by government action

capital
money and other things of value used to start a business or to sustain its operation

certificate of incorporation
a legal document granting permission by a government to form a corporation

certification
official recognition of a union by a Labour Relations Board as the bargaining agent for a group of employees

chattel
any form of tangible property, excluding land or buildings; also referred to as personal property

closed corporation
a corporation whose stock is not available for sale to the general public

codify
the systematic arrangement of laws

collateral
something of value that can be used to secure a loan

collective agreement
an agreement made between an employer and a union certified as the bargaining agent of employees; it contains the terms and conditions under which work is to be performed and sets out the rights and duties of all parties to the agreement

collective bargaining
labour negotiations between the employer and a union representing employees commissioned: chosen to carry out a specific task

commissioned
something that you authorized to be done for compensation

contract
an agreement between two or more people that is recognized by the law as binding

cooling off period
a period of time given to allow a buyer the opportunity to cancel a contract with a door-to-door salesperson; in Alberta this period is ten days

copyright
the right of ownership of an original literacy, artistic, dramatic or musical work and the control over the right to copy it

corporation
a business that can be owned by any number of people; degree of ownership is dependent on number of shares held

creditor
a person or company to whom a debt is owing

damages
an amount of money awarded to compensate for a loss or injury

debt financing
borrowing money in the form of a loan to meet the financial needs of a business

debt load
total amount of money owing

debtor
a person who owes a debt, especially money

disclaimer clause
in contracts (most notably consumer contracts for the purchase and sale of goods) a clause that has been inserted into the contract designed to protect one of the parties (usually the seller) from liability arising from specified defects or failures

dissolution
refers to the ending of a business enterprise

dividends
the amount paid to a stockholder from corporation profits

domestic
pertaining to Canada

dumping
the selling of imported goods at below domestic market cost

entrepreneur
a person who organizes, manages, and assumes the risks of a business

equity financing
a contribution of money or property made to a business by the owner or others in exchange for a right of ownership

exemption clause
another term used for a disclaimer clause

fiduciary duty
a special duty of loyalty that increases in direct proportion to the position of trust a person occupies

financial position
a list of an individual’s assets and debts

firm
a partnership of two or more persons not recognized as a legal identity distinct from the members composing it

franchise
an exclusive right to sell a product or a service in a certain location

franchisee
the person or organization granted a franchise

franchisor
the person or organization granting the franchise

frustrated contract
a contract under which performance is rendered impossible due to unexpected circumstances beyond a person’s control

gratuities
something given beyond the agreed upon price

GST
goods and services tax imposed by the federal government on many consumer and business purchases; currently set at seven per cent

home-based operation
a small business whose operation is conducted out of the business owner’s home

industrial design
an exclusive right to original ornamental designs, shapes, configurations or patterns

infringement
the unlawful interference with the legal rights of another

insolvency
unable to pay debts as they come due during the normal course of business

layperson
a person who is not an expert in a particular field

leasee
a tenant

leasor
a landlord

lien
a claim placed upon real or personal property until a debt is paid or work completed

limited liability
investors are responsible for a business’ losses and debts only to the extent of their ownership

lobbying
to promote a project or secure the passage of legislation by influencing public officials

mediator
a person appointed to help conflicting parties come to a mutual agreement

monopoly
the exclusive right of possession and control

municipalities
the province is divided into political units usually possessing limited powers of self-government

non-debt financing
another term for equity financing

NSF cheques
non-sufficient funds in a bank account to cover cheques drawn on that account

open corporation
a corporation whose stock is available to anyone wishing to buy it

operating loan
a loan used to finance the day-to-day operations of a business

overhead costs
expenses that will be incurred regardless of the level of work actually done

parameters
limits, boundaries

partnership
an association of two or more people to operate a business and share profits and losses

patent
the exclusive right to make and sell an invention

payment in kind
something given, other than money, to pay an obligation; this will take the form of goods or services in lieu of cash

personal property
anything capable of being owned that is not real property

precedents
something done or said that may serve as example to justify succeeding acts of the same or similar nature

premiums
regularly scheduled payments made to keep an insurance policy in effect

principal
the person for whom an agent has authority to act, establishing legal rights and obligations between the principal and third parties

profit
a profit is made when revenues are greater than expenses

rapport
a relationship characterized by harmony and accord

redress
compensation for a wrong or loss

resources
things that have value (for example, furniture, equipment, buildings)

scrutiny
to look at or study closely

sole proprietorship
a business owned by one person

statutory holidays
days off with pay mandated by government

tariffs
duties (taxes) imposed by a government on imported or exported goods;  they are designed to equalize the prices of imported and domestically produced goods, to ensure fair pricing

trade mark
a word, symbol, or design, or a combination of these used to distinguish the goods or services of one party from those of another

unenforceable contract
a valid contract that is not enforceable by the courts because the requirements for enforceability, that has been imposed by legislation, has not been met

unlimited liability
the state of being responsible for all debts of a business

venture capital
money invested into a business




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