Business Glossary - I


Incubator - A facility designed to encourage entrepreneurship and minimize obstacles to new business formation and growth, particularly for high technology firms, by housing a number of fledgling enterprises that share an array of services. These shared services may

Independent And Qualified Public Accountants - Public accountants are independent when neither they nor any of their family have a material, direct or indirect financial interest in the borrower other than as an accountant. They are qualified, unless there is contrary evidence, when they are either (1

Independent Contractor - someone who is self-employed.

Individual Retirement Account (Ira) - A retirement investing tool for employed individuals that allows an annual contribution of 100% of earned income up to a maximum of $2,000. Some or all of the contribution may be deductible from current taxes, depending on the individual’s adjusted gross

Industrial Revenue Bond (Irb) - A tax-exempt bond issued by a state or local government agency to finance industrial or commercial projects that serve a public good. The bond usually is not backed by the full faith and credit of the government that issues it, but is repaid solely from t

Innovation - Introduction of a new idea into the marketplace in the form of a new product or service, or an improvement in organization or process.

Insolvency - The inability of a borrower to meet financial obligations as they mature, or having insufficient assets to pay legal debts.

Interest - An amount paid a lender for the use of funds.

Intermediary Organization - Organizations that play a fundamental role in encouraging, promoting, and facilitating business-to-business linkages and mentor-protTgT partnerships. These can include both non-profit and for-profit organizations: chambers of commerce; trade associations;

Inverse Order Of Maturity - When payments are received from borrowers that are larger than the authorized repayment schedules the overpayment is credited to the final installments of the principal which reduces the maturity of the loan and does not affect the original repayment sche

Investment Banking - Businesses specializing in the formation of capital. This is done by outright purchase and sale of securities offered by the issuer, standby underwriting or “best efforts selling.”

Invitation For Bids - Formal solicitations for offerings, to perform procurements by competitive bids when the specifications describe the requirements of the government clearly, accurately, and completely; but avoiding unnecessarily restrictive specifications or requirements