Damages Money that must be paid to someone who has suffered financial losses or personal injury.

Database A collection of records stored and organized electronically.

Debenture A formal legal document provided as security for a loan. It has the practical effect of being a “mortgage” on the corporation. Only a corporation can issue a debenture.

Debit An entry on the left side of a balance sheet, indicating an asset or prepaid expense.

Debt Money that must be paid back to someone else, sometimes with interest.

Debt capital Capital invested in a company which does not belong to the company’s owners. Usually consists of long-term loans and preferred shares.

Debt financing Money provided to the business in the form of a loan. Normally repaid with interest.

Debt-to-equity ratio The ratio of long-term debt to owner’s equity. Measures overall profitability.

Debtor One who owes money to someone else.

Deductible 1. In an insurance contract, the amount of the damage insured against that the insured person must pay. 2. In income tax, an amount that can be subtracted from total income in calculating taxable income.

Deductions at source The salary deductions that the employer is required to take out of employees’ paycheques for remittance to Canada Customs and Revenue Agency.

Deemed realization A transfer of assets which is considered by Canada Customs and Revenue Agency a sale though no cash or other consideration may be involved.

Default Failure to pay a debt or meet an obligation in accord with the agreed terms.

Delegation Assigning responsibility and authority to someone else; empowering someone else to do a job.

Demand The combined desire, ability, and willingness on the part of consumers to buy goods or service. Demand is determined by income and by price, which is, in part, determined by supply.

Demand loan A loan that must be repaid whenever the lender chooses.

Demand pull promotion Advertising a product to its final consumers to create a demand that will encourage wholesalers and retailers to supply it.

Demand push promotion Advertising a product to wholesalers and retailers, to encourage them to sell it to the consumer market.

Demographics Statistics based on population-related factors (e.g., density, gender, age, education, etc.).

Depreciation A method of calculating and writing off the costs to a firm of fixed assets, such as machinery, buildings, trucks, and equipment. Investment in such fixed assets, which wear out or become obsolete over
time, is a nominal expense of business.

Direct sales Sales made directly to the consumer without any intermediary such as a retail merchant. Door-to-door or mail order sales are direct sales.

Direct tax A tax paid to the government by the person on whom it is levied. Personal and corporate income tax is a direct tax.

Discharged bankrupt One who has been declared legally bankrupt, and thus has no liability to debtors.

Discounting Lowering a price in return for buying a large volume of goods, paying promptly, etc.

Discretionary income The amount of money people have available to spend after they have purchased the basic necessities of food, shelter, and clothing.

Disposable Income The amount of money people have available to spend after paying taxes.

Distribution network The chain of businesses involved in getting goods from producers to consumers. Includes manufacturers, wholesalers, agents, jobbers, and retailers. Also known as channels of distribution.

Dividend Money paid by a corporation to its shareholders. The shareholders’ return on investment.

Dock and warehouse receipt Domestic Bill of Lading needed for contracting with trucking firm or railroad, to ship goods from the exporter’s loading dock to the destination port.

Domain name The name assigned to an organization or individual that is linked to the Internet.

Double-entry bookkeeping A method of keeping track of the financial state of an organization, which works through recording every transaction twice when posting to a general ledger: as a debit (an asset given up) and as a balancing credit (an asset acquired). When the books are properly kept, they balance; total credits equal total debits.

Drop-shipper An agent wholesaler who takes orders for a manufacturer. The manufacturer invoices the drop-shipper but delivers to the final customer.

Dumping The selling of goods on the international market for less than their price on the domestic market.

Durable goods Goods expected to last more than three years.