Knowledge

Glossary

The terms we use on our service pages, explained briefly. Where a definition carries a rule from legislation, the source is given.

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Schule d.o.o. Podgorica · Content and sources checked on 9 November 2026.

01Area

Schule Kapital

Business plan: A document describing the business, the market, the investment and the financial projections, together with the assumptions behind them. A lender reads it to see whether the project can repay debt from its own cash flow.
Credit file: The set of documents that goes with a loan application: legal status, financial statements, projections, collateral and guarantees, information on customers and suppliers. The list is set by the bank receiving the application.
Cash flow projection: A plan of cash coming in and going out by period, usually by month. It shows whether the company will have cash for its obligations at every point, which profit in the income statement does not show on its own.
Cost-benefit analysis (CBA): A comparison of all the costs and benefits of a project, including economic and social benefits that do not pass through the investor's accounts, expressed in money through indicators such as net present value and internal rate of return.
Information memorandum: A document for serious buyers or investors when a company is sold: the business, market, finances, team and offer. It is shared after a non-disclosure agreement (NDA) is signed.
Mezzanine finance: Financing that sits between debt and equity: it is repaid after bank loans but before the owners. For that reason it usually carries a higher interest rate or a right to equity.
Asset deal or share deal: Two ways to buy a business. In an asset deal the buyer takes only selected assets, without inherited liabilities. In a share deal the buyer takes over the whole legal entity with all its assets and liabilities, including any that are not yet known.
Interim finance director: A finance director engaged for a fixed period to take a company through a transition (generational change, acquisition, crisis, fast growth), with the powers the company grants in writing.

02Area

AI integration

AI literacy (Article 4 of the AI Act): Article 4 of Regulation (EU) 2024/1689: providers and deployers of AI systems take measures to support the development of AI literacy of the staff dealing with AI systems on their behalf, taking into account knowledge, experience, training and the context of use. It does not require a guaranteed level of literacy for each individual.Source: Regulation (EU) 2024/1689 (AI Act), Article 4 (AI Act Service Desk, European Commission)
Workflow automation: Connecting tools so that repetitive steps, such as moving data from an email to the customer database or from a form to a spreadsheet, run without manual work under predefined rules.

03Area

Financial advisory

Due diligence: A review of a company or asset before a purchase, investment or loan: finances, taxes, contracts, legal and other risks. The result is a report on open issues that the buyer uses to decide whether, and on what terms, to proceed.
Review of an expert report: An independent check of another party's report or opinion: its assumptions, calculation errors and departures from methodological standards. The result is a set of written, numbered comments.
EBITDA normalization: EBITDA is earnings before interest, taxes, depreciation and amortization. Normalization removes one-off and unusual items so that the recurring earnings of the business become visible. Years and companies are compared on that basis.
Working capital: The funds a company ties up in day-to-day operations: inventory and receivables, less amounts owed to suppliers. It shows how much cash the business keeps in circulation and how much it needs to grow.
Direct loss and lost profit: The two parts of a damages claim. Direct loss is the reduction of existing assets; lost profit is the profit that could reasonably have been expected but was not earned because of the harmful event.
DCF model (discounted cash flow): A valuation method in which expected future cash flows are brought to present value using a discount rate that reflects risk. It is used for the value of a business and for calculating future lost profit.
Benford's law: A statistical regularity: in many real-world data sets, small leading digits occur more often than large ones, with 1 the most frequent. A departure from the expected distribution is not proof of fraud, but it shows where to look more closely.
Chain of custody: A record of who collected, held and handled a piece of evidence, when and how, from collection to use. Without an unbroken chain it is harder to show that digital or physical evidence was not altered.
Voidable transactions: Transactions made by a debtor before insolvency that harm creditors, for example transferring assets to a related party below value or paying one creditor at the expense of the others. Such transactions can be challenged in insolvency.
Pre-insolvency: Settling debts with creditors before insolvency proceedings open, usually through a reorganization plan adopted by the creditors (rescheduling, write-off, debt-to-equity conversion). The exact procedure and its name depend on national law.
Settlement and mediation: A settlement is an agreement by which the parties resolve a dispute without a judgment, each giving up something. Mediation is a process in which a neutral mediator helps the parties reach such an agreement.
Transfer pricing: Prices in transactions between related parties, such as a parent and its subsidiary. The principle is that they match what independent parties would agree. Rules, thresholds and deadlines for Montenegro, with sources, are kept on transferne-cijene.me.transferne-cijene.me

04Area

EU funds

Eligible costs: The costs a grant can cover: actually incurred by the beneficiary and necessary for the project activities, under the rules of the call and the grant agreement. Any other costs are borne by the beneficiary.Source: European Commission, EU budget: Grants and procurement
Co-financing (own contribution): The share of eligible costs that the grant does not cover and the beneficiary pays. EU grants as a rule require co-financing; the maximum funding rate is set by the programme, call or work programme, not by the beneficiary.Source: European Commission, EU budget: Grants and procurement
Consortium and coordinator: A consortium is a group of organizations, often from several countries, that apply for and carry out a project together. The coordinator (lead partner) submits the application and deals with the funding body on behalf of all partners.
Work package: A unit of a project with its objective, activities, deliverables, deadlines and responsible partner. An EU project application splits the work into work packages, and the budget follows that split.
Funding & Tenders Portal: The European Commission portal where calls of EU programmes such as Horizon Europe are published and through which applications are submitted.

05Area

China bridge

Joint venture (JV): A business or company in which two or more partners share ownership, management, profit and risk under an agreement that also governs exit.
WFOE: A wholly foreign-owned enterprise in China; one of the forms a foreign investor can use to enter the Chinese market, alongside a representative office and a joint venture.

06Area

Schule Family Office

Family office: Organized management of one family's assets and obligations (companies, real estate, loans, succession) through a single overview and one coordinator for banks, accountants and lawyers.