Encyclopedia General Business Management by Jonas Lindblom

Encyclopedia General Business Terms (1296 Terms) A to Z

Management Topic

Keyword

Definition

General Absolute Advantage Business Terms

An absolute advantage exists when a nation or economic region is able to produce a good or service more efficiently (using the same amount of resources) than a second nation or region.

General Accelerated Tariff Business Terms Elimination

An increased rate of reduction of import duties at a faster rate than what was originally planned or decided upon.

General Account Business Terms

A record of a business transaction. When you buy something on credit, the company you are dealing with sets up an "account". This means it sets up a record of what you buy and what you pay. You will do the same thing with any customers to whom you extend credit.

General Account payee only Business Terms

Words often written on crossed cheques, which direct the bank to pay the cheque only to the bank account of the payee.

General Accountant Business Terms

A qualified person who is skilled at managing and analysing business financial records.

General Accounting Exposure Changes in a corporation's financial statements as a result of changes in currency values. Also known as translation exposure. Business Terms

General Accounts payable Business Terms

Is money you owe to suppliers and other business creditors as a result of purchases of stock and other expenses such as overheads and taxes.

General Accounts receivable Business Terms

A record of what is owed to you. All of the credit "accounts" - the record of what each customer owes you - taken together are your "accounts receivable".

Page 1 of 149

Encyclopedia General Business Terms (1296 Terms)

General Accrual-based Business Terms accounting

Standard business accounting, which assumes there will be Accounts payable (Bills to be paid as part of the normal course of business) and/or sales on credit (Sales made on account; shipments against invoices to be paid later) , as opposed to CashBasis only. For example, most businesses have regular bills such as rent, utilities, and often inventory purchase which are not paid for at the exact moment of purchase, but are invoiced. Most businesses will also not be able to collect on all of their sales immediately in cash, but must bill the purchaser or wait for payment on at least some percentage of their sales (the exact percentage varies by industry).

General Accumulated Business Terms depreciation

Total accumulated depreciation reduces the formal accounting value (called book value) of assets. Each month’s accumulated balance is the same as last month’s balance plus this month’s depreciation. Business Plan Pro shows accumulated depreciation in the Balance Sheet.

General Acid test Business Terms

Short-term assets minus accounts receivable and inventory, divided by short-term liabilities. This is a test of a company’s ability to meet its immediate cash requirements. It is one of the more common business ratios used by financial analysts.

General Acquisition costs Business Terms

The incremental costs involved in obtaining a new customer.

General In an acquisition of assets, one firm acquires the assets of another company. None of the liabilities supporting those asset are Acquisition of Assets transferred to the purchaser. Business Terms

General Acquisition of Stock Business Terms

General Acquisition Premium In a merger or acquisition, the difference between the purchase price and the preacquisition value of the target firm. Business Terms

General Acquisitions Business Terms

In an acquisition of stock, one firm buys the equity interest of another firm.

In relation to the GST, acquisitions include the things you buy (goods, services and anything else) for your business. They also include many other transactions, such as obtaining advice or information, taking out a lease of business premises or hiring business equipment.

Page 2 of 149

Encyclopedia General Business Terms (1296 Terms)

General Active Fund Business Terms Management

An investment approach that actively shifts funds either between asset classes (asset allocation) or between individual securities (security selection).

General Active Income Business Terms

In the U.S. tax code, income from an active business as opposed to passive investment income.

General Activity Based Business Terms Costing (ABC)

An accounting method that allocates costs to specific products or services or activities such as production, delivery or maintenance based on breakdowns of cost drivers.

General Actuary Business Terms

A mathematician whose work is mainly concerned with insurance and finance.

General Ad valorem Business Terms

According to value. Applied to customs duty, it means a percentage charge on the value, rather than the weight or quantity of goods.

General Ad Valorem Tariff Business Terms

A tariff assessed as a percentage of the value of an import.

General Adaptive firm Business Terms

An organization that is able to respond to and address changes in their market, their environment, and/or their industry to better position themselves for survival and profitability.

General Adjusted Present Business Terms Value

A valuation method that separately identifies the value of an unlevered project from the value of financing side effects.

General Advance Payment Business Terms

Trading method in which the buyer pays for the goods before they are sent out , method is used when buyer is of unknown credit worthiness.

Page 3 of 149

Encyclopedia General Business Terms (1296 Terms)

General Adventure Business Terms

It is also called "marine adventure." It is a term of art in the marine insurance business. All insured cargo owners and every shipper on that vessel are part of the adventure.

General Adventure capital Business Terms

Capital needed in the earliest stages of the venture’s creation before the product or service is available to be provided. (As mentioned in Entrepreneurship for the ’90’s by Baty.)

General Advertising Business Terms opportunity

A product or service may generate additional revenue through advertising if there is benefit from creating additional awareness, communicating differentiating attributes, hidden qualities or benefits. Optimizing the opportunity may involve leveraging strong emotional buying motives and potential benefits.

General Advising Bank Business Terms

Bank, usually in the country of the seller, whose primary function is to authenticate the letter of credit and advise it to the seller.

General Advisory Capacity Business Terms

Used to indicate that a shipper's agent or representative is not empowered to make definitive changes or adjustments without approval of the group or individual represented.

General Affidavit Business Terms

a declaration in writing on oath, made before a person legally qualified for the purpose.

African General The ABD Group is 1 of 4 major regional developmental banks currently operating in the global economy; it is headquartered in Developmental Bank Abidjan, Cote d'Ivoire. Business Terms Group (ABD Group)

General African Union (AU) Business Terms

African, Caribbean, The African, Caribbean and Pacific Group of States (ACP) is an organisation created by the Georgetown Agreement in 1975. It General and Pacific Countries is composed of African, Caribbean and Pacific States signatories to the Georgetown Agreement or the Partnership Agreement Business Terms between the ACP and the European Union, officially called the (ACP)

The African Union is an organization for regional, social and economic cooperation. It consists of 53 member nations in Africa and was derived from the OAU (Organisation of African Unity). Its goal is to unify Africa and promote peace, security, and stability on the continent through social and economic cooperation.

Page 4 of 149

Encyclopedia General Business Terms (1296 Terms)

General Agency Costs Business Terms

The costs incurred to ensure that agents and managers act in the best interest of the principal. For example, reward to managers as a percentage of profit.

General Agent Business Terms

A business entity that negotiates, purchases, and/or sells, but does not take title to the goods.

General Aggregate Demand Business Terms

The total demand of all potential buyers of a commodity or service. Includes all individuals and organizations that have the ability, willingness, and authority to purchase such products.

Agreement on General Textiles and Clothing Business Terms (ATC)

The Agreement on Textiles and Clothing (ATC) and all restrictions thereunder terminated on January 1, 2005. The expiry of the ten-year transition period of ATC implementation means that trade in textile and clothing products is no longer subject to quotas under a special regime outside normal WTO/GATT rules but is now governed by the general rules and disciplines embodied in the multilateral trading system.

General Air Waybill Business Terms

A nonnegotiable instrument of domestic and international air transport that functions as a bill of lading.

General All-in-cost Business Terms

The percentage cost of a financing alternative, including any bank fees or placement fees.

General Allocational Efficiency The efficiency with which a market channels capital toward its most productive uses. Business Terms

General Allocation-of-Income In the U.S. tax code, these rules define how income and deductions are to be allocated between domestic-source and foreignsource income. Business Terms Rules

General Allowance Business Terms

An amount paid or credited by sellers to the buyers on products due to one or more reasons that did not meet buyers' specifications such as late shipment and faulty packaging.

Page 5 of 149

Encyclopedia General Business Terms (1296 Terms)

General Alternative Tariff Business Terms

A tariff that has two or more rates for the same product, trading to and from the same points, with the authority to use one that produces the lowest charge.

General American Option Business Terms

An option that can be exercised anytime until expiration (contrast with European option).

General American Shares Business Terms

Shares of a foreign corporation issued directly to U.S. investors through a transfer agent in accordance with SEC regulations.

General American Terms Business Terms

A foreign exchange quotation that states the U.S. dollar price per foreign currency unit (contrast with European terms).

General Amortise Business Terms

the gradual process of writing off the cost of an asset, or paying off a liability by means of a sinking fund, over a period of time.

General Andean Community Business Terms (CAN)

The Andean Community or Comunidad Andina de Naciones in Spanish (CAN) is made up of Bolivia, Colombia, Ecuador, Peru and Venezuela. It is a series of bodies and institutions that work to bring Andean subregional integration, promote external projection, and reinforce the actions connected with the process.

General Andean Pact Business Terms

A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia.

General Annuity Business Terms

A level stream of equal dollar payments that lasts for a fixed time. An example of an annuity is the coupon part of a bond with level annual payments.

General Annuity Factor Business Terms

The term used to calculate the present value of the stream of level payments for a fixed period.

Page 6 of 149

Encyclopedia General Business Terms (1296 Terms)

General Anti-dumping Laws Business Terms

Laws that are enacted to prevent dumping - offering prices in the overseas market that is lower than that at which a product is sold in its home domestic market.

General Appellate Body (AB) Business Terms

The Appellate Body is a World Trade Organization (WTO) entity, which was established in 1995 under Article 7 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). Its purpose is to hear appeals and reports issued by panels in disputes between WTO members. It is composed of a standing body of 7 people and has the power to uphold, modify, or reverse the legal findings and conclusions of a panel. These rulings must be accepted by the parties of the dispute. The Appellate Body has its seat in Geneva, Switzerland.

General Appreciation Business Terms

An increase in a currency value relative to another currency in a floating exchange rate system.

General Arab Maghreb Union A regional alliance seeking economic and political unity in Northern Africa. Members are Algeria, Libya, Mauritania, Morocco, and Tunisia. Business Terms (AMU)

General Arbitrage Business Terms

The process of purchasing and selling the identical products, such as foreign exchange, stocks, bonds and other commodities, in several markets intending to make profit from the difference in price. Arbitrage is generally seen as a "risk-less" transaction.

General Arbitrage Pricing Business Terms Theory (APT)

APT is a theory used in finance to find the prices of assets and is typically used in stock pricing.

General The basic document of a registered company defining its internal organisation. It is one of two fundamental documents on articles of association which the registration of a company is based. See memorandum of association. Business Terms

General Asian Development Business Terms Bank (ADB)

The Asian Development Bank (ADB) is a multilateral development financial institution owned by 67 members (48 from the region and 19 from other parts of the globe). Its goal is to improve the welfare of the people in Asia and the Pacific. ADB is headquartered in Manila, Philippines. It is one of four major development banks around the world.

Page 7 of 149

Encyclopedia General Business Terms (1296 Terms)

Asia-Pacific General Economic Business Terms Cooperation (APEC)

A forum designed to promote economic growth, cooperation, and integration among member nations. APEC has also worked to reduce tariffs and other trade barriers across the Asia-Pacific region. Its vision is based on the "Bogor Goals" adopted in the 1994 meeting in Bogor, Indonesia. There are 21 member economies including: Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam.

General Ask Rates Business Terms

The rate at which a market maker is willing to sell the quoted asset. Also known as offer rates.

General Asset Business Terms

Anything of worth that is owned. The assets of a business are money in the bank, accounts receivable, securities held in the name of the business, property or buildings, equipment, fixtures, merchandise for sale or being made, supplies and all things of value that the business owns.

General Asset Allocation Business Terms Policy

The target weights given to various asset classes in an investment portfolio.

General Asset turnover Business Terms

Sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

General Assets Business Terms

Property that a business owns, including cash and receivables, inventory, etc. Assets are any possessions that have value in an exchange. The more formal definition is the entire property of a person, association, corporation, or estate applicable or subject to the payment of debts. What most people understand as business assets are cash and investments, accounts receivable, inventory, office equipment, plant and equipment, etc. Assets can be long-term or short-term, and the distinction between these two categories might be whether they last three years, five years, 10 years, or whatever; normally the accountants decide for each company and whatâ&#x20AC;&#x2122;s important is consistency. The government also has a say in defining assets, because it has to do with tax treatment; when you buy a piece of equipment, if you call that purchase an expense then you can deduct it from taxable income. If you call it an asset you canâ&#x20AC;&#x2122;t deduct it, but you can list it on your financial statement among the assets. The tax code controls how businesses decide to categorize spendings into assets or expenses.

General Assets In Place Business Terms

Those assets in which the firm has already invested (Compare to growth options).

Page 8 of 149

Encyclopedia General Business Terms (1296 Terms)

Association of General Southeast Asian Business Terms Nations (ASEAN)

An economic and geopolitical affiliation formed in 1967 that includes Singapore, Brunei Darussalam, Malaysia, Thailand, the Philippines, Indonesia, Myanmar (Burma), Laos, Cambodia, and Vietnam.

General Attachment Business Terms

Legal seizure of a property or a person before the judgment is made, in order to secure compensation if awarded. The prosecutor can request the court to issue an order to seize a property.

General At-the-money Option An option with an exercise price that is equal to the current value of the underlying asset. Business Terms

General Audit Business Terms

detailed checking of the financial records of a business by an independent qualified person (auditor) in order to verify their correctness or to detect errors or fraud.

General Australian Business Business Terms Number (ABN)

An identifier for dealings with the Australian Taxation Office and for future dealings with other government departments and agencies.

General Autarky Business Terms

In models of international trade, a situation in which there is no cross-border trade.

General Authorised capital Business Terms

The total amount of capital which a company, by its memorandum of association, is authorised to offer for subscription. See also, paid up capital.

General Aval Business Terms

A guarantee of the buyer's credit provided by the guarantor, unless the buyer is of unquestioned financial standing. The aval is an endorsement note as opposed to a guarantee agreement.

General Avalisation Business Terms

Payment undertaking given by a bank in respect of a bill of exchange drawn.

Page 9 of 149

Encyclopedia General Business Terms (1296 Terms)

General Average Accounting Business Terms Return (AAR)

The average project earnings after taxes and depreciation divided by the average book value of the investment during its life.

General Award Business Terms

An agreement having the force of law, which sets out working conditions and wages for certain types of employment.

General back end (websites) Business Terms

Front end and back end describe program interfaces relative to the user. The front end, here, is the appearance of your website. It is the graphic design and HTML portion â&#x20AC;&#x201D; some people call this the user interface or UI. In contrast, the portion of the application you or your developers work with is the back-end. The back end handles the dynamic parts of the site, such as a newsletter, an administration page, a registration database, a contact page or more complicated Web applications. Your back end interfaces with your UI and makes your website work.

General Back Order Business Terms

A customer order for materials, goods in process, or finished goods that is not currently in stock but is to be sold or delivered when it becomes available.

General Backward Innovation Building a more basic version of an existing product for a lesser-developed market. Business Terms

General Bad debts Business Terms

Money owed to you that you can't collect

General Balance Business Terms

The amount of money remaining in an account. The total of your money in the bank after accounting for all transactions (deposits and withdrawals) is called a "balance".

General The International Monetary Fundâ&#x20AC;&#x2122;s accounting system that tracks the flow of goods, services, and capital in and out of each Balance of Payments country. Business Terms

Page 10 of 149

Encyclopedia General Business Terms (1296 Terms)

General Balance of Trade Business Terms

The difference between a country’s total imports and exports over a set period.

General Balance sheet Business Terms

An important business document that shows what a business owns and owes as of the date shown. Essentially a "balance sheet" is a list of business assets and their cost on one side and a list of liabilities and owners' equity (investment in the business) on the other side with the amount for each. The liabilities include all that the business owes.

General Balanced Economy Business Terms

In national finances, it is when exports are equal to imports.

General Bank draft Business Terms

A written instruction to a bank’s agent to pay a sum of money to the person specified on the draft. A safe and convenient way of remitting money overseas.

General Bank for International An international organization, which promotes international monetary and financial cooperation among nations by fostering the cooperation of world central banks. Business Terms Settlements ((BIS))

General Bank reconciliation Business Terms

A comparison between the bank’s record of transactions and the record of the firm’s cash book. After taking into account such items as unpresented cheques and bank charges etc., the two records should show an identical balance.

General Bank Release Business Terms

A document issued by a bank authorizing the delivery of goods.

Bank-based General Corporate Business Terms Governance System

A system of corporate governance in which the supervisory board is dominated by bankers and other corporate insiders.

General Banker's Acceptance A time draft drawn on and accepted by a commercial bank. Business Terms Page 11 of 149

Encyclopedia General Business Terms (1296 Terms)

General Banker's Draft Business Terms

A payment instrument used to make international payments.

General Bankrupt Business Terms

A debtor, who has volunteered or been forced to appear before a Bankruptcy Court and has been judged insolvent, because s/he has insufficient assets to meet the demands of all creditors.

General Bargain Purchase Business Terms Option

A lease provision allowing the lessee, to purchase the equipment for a price predetermined at lease inception, which is substantially lower than the expected fair market value at the date the option can be exercised.

General Barter Business Terms

Trade in which merchandise is exchanged directly for others without use of money or the involvement of a 3rd party.

General Basel Convention Business Terms

An international treaty concerned with restricting the movement of hazardous wastes between countries, especially from developed to underdeveloped countries.

General Basic IRR Rule Business Terms

Accept the project if the (Internal Rate of Return) IRR is greater than the discount rate; reject the project if IRR is less than the discount rate.

General Basis Business Terms

The simple difference between 2 nominal interest rates.

General Basis Point Business Terms

Equal to 1/100 of 1 percent.

General Basis Risk Business Terms

The risk of unexpected change in the relationship between futures and spot prices.

Page 12 of 149

Encyclopedia General Business Terms (1296 Terms)

General Basis Swap Business Terms

A floating-for-floating interest rate swap that pairs two floating rate instruments at different maturities (such as 6-month LIBOR versus 30-day U.S. T-bills).

General Bearer Bonds Business Terms

Bonds that can be redeemed by the holder. The convention in most West European countries is to issue bonds in registered form (contrast with registered bonds).

General Benchmarking Business Terms

A systematic procedure of comparing a companyâ&#x20AC;&#x2122;s practices against the best practice and modifying actual knowledge to achieve superior performance.

General Beneficiary Business Terms

A party who receives a legal benefit.

General Beta Business Terms

A measure of an assetâ&#x20AC;&#x2122;s sensitivity to changes in the market portfolio (in the Capital Asset Pricing Model) or to a factor (in the APT). The beta of an asset j is computed as bj = rj,k (sj/sk), where k represents a market factor (such as returns to the market portfolio in the CAPM).

General Bid Bond Business Terms

A type of bond which guarantees the fulfillment of an offer or bid if it is accepted.

General Bid Rate Business Terms

The rate at which a market maker is willing to buy the quoted asset.

General Bid-offer Spread Business Terms

The difference between the interest rate at which the bank borrows money and lends money.

General Bilateral Investment Business Terms Treaty (BIT)

A treaty between two countries to ensure that investments between the two countries receive the same treatment as domestic or other international investments.

Page 13 of 149

Encyclopedia General Business Terms (1296 Terms)

General Bilateral Trade Business Terms Agreement

A commercial agreement between two countries, often detailing what specific quantities of what specific goods can be exchanged.

General Bill of Lading (BOL) Business Terms

A document that establishes the terms and conditions of a contract between a shipper and a shipping company under which freight is to be moved between specified points for a specified charge.

General Bill of sale Business Terms

A document under seal, which formally transfers ownership of property specified in the document from the borrower to the lender, until such time as the debt has been paid in full.

General Blank Endorsement Business Terms

The method whereby a bill of lading is made into a freely negotiable document of title.

General Blanket Bond Business Terms

A bond that coves a group of people, articles or properties.

General Blanket Contracts Business Terms

A long-term contract in which the supplier promises to re-supply the buyers as needed at agreed-upon prices over the contracting time.

General Blanket Rate Business Terms

A rate that is applied broadly over different articles or entities.

General Blockade Business Terms

The act of seizing commercial exchange with a particular country. Such act is common during wartime.

General Blocked Funds Business Terms

Cash flows generated by a foreign project that cannot be immediately repatriated to the parent firm because of capital flow restrictions imposed by the host government.

Page 14 of 149

Encyclopedia General Business Terms (1296 Terms)

General Bogor Goals Business Terms

The Bogor Goals were created by the Asia Pacific Economic Cooperation (APEC) in Bogor, Indonesia in 1994, with the intention of increasing economic unity among Asian Pacific nations by increasing trade. The goals are to have free trade and investment in developed nations by 2010 and in developing nations by 2020.

General Bona fide Business Terms

In good faith, honestly, without fraud, collusion or participation in wrong doing.

General Bond Business Terms

Payment by a tenant to a landlord before the tenant takes over the premises and from which the landlord may be able to deduct arrears of rent or the cost of rectifying damage.

General Bond Equivalent Business Terms Yield

A bond quotation convention based on a 365-day year and semiannual coupons (contrast with effective annual yield).

General Bond of Indemnity Business Terms

An agreement relieving the party to whom the bond is issued of responsibility in a situation in which the party would normally be liable.

General Bonded Exchange Business Terms

Foreign exchange that cannot be freely converted into other currencies.

General Bookkeeping Business Terms

The process of recording business transactions in the accounting records

General Brand Business Terms

A name, term, sign, symbol, design, or a combination of all used to uniquely identify a producerâ&#x20AC;&#x2122;s goods and services and differentiate them from competitors.

General Brand equity Business Terms

The added value a brand name identity brings to a product or service beyond the functional benefits provided.

Page 15 of 149

Encyclopedia General Business Terms (1296 Terms)

General Brand extension Business Terms strategy

The practice of using a current brand name to enter a new or different product class.

General Brand recognition Business Terms

Positions customerâ&#x20AC;&#x2122;s relative perceptions of one brand to other competitive alternatives.

General Analysis of the level of sales at which a project would make zero profit. The term can also be used for sales of financial Break-even Analysis instruments. Business Terms

General Break-even point Business Terms

The point at which volume of sales is enough to cover all costs.

General Bretton Woods Business Terms Agreement

An agreement made near the end of World War II to promote exchange rate stability and facilitate the international flow of currencies.

General Bretton Woods Business Terms Conference

An international conference held in 1944 at Bretton Woods, New Hampshire. The conference established the International Monetary Fund and the World Bank.

General Bridging loan Business Terms

A loan to provide short-term finance, usually to buy property or land, where the loan is to be cleared by longer-term borrowing, or the sale of assets.

General Broker Business Terms

An intermediary that serves as a go-between for the buyer or seller.

General Budget Business Terms

An estimate of expenses and revenue required.

Page 16 of 149

Encyclopedia General Business Terms (1296 Terms)

General Buffer Stock Business Terms

Goods set aside and reserved for sale specifically to balance out the market in the case of a shortage of that good. In the case of a surplus, more off the good would be bought and set aside.

General Bundling Business Terms

The practice of marketing two or more product or service items in a single package with one price.

General Burden rate Business Terms

Refers to personnel burden, the sum of employer costs over and above salaries (including employer taxes, benefits, etc.). Business Plan Pro uses an assumed burden rate to calculate these extra personnel costs. The rate assumption is in the general assumptions table, as a percentage. Business Plan Pro applies this percentage to the straight wages and salaries. For example, if wages and salaries amount to $10,000 and the burden rate is 15%, then the personnel burden is $1,500, which is 15% of $10,000. The personnel burden is an operating expense, so it belongs with other expenses in the Profit and Loss table. It is also a personnel cost, so it also shows in the Personnel Plan table.

General Business Activity Business Terms Statement

A single form used to report business tax entitlements and obligations, including the amount of GST payable and your input tax credits.

General Business mission Business Terms

A brief description of an organization’s purpose with reference to its customers, products or services, markets, philosophy, and technology.

General Business name Business Terms

The name of a business officially listed in the state or territory Register of Business Names.

General Business plan Business Terms

The written document that details a proposed or existing venture. It seeks to capture the vision, current status, expected needs, defined markets, and projected results of the business. A business plan “tells the entrepreneur’s story” by describing the purpose, basis, reason and future of the venture.

General Buy-sell agreement Business Terms

An agreement designed to address situations in which one or more of the entrepreneurs wants to sell their interest in the venture.

Page 17 of 149

Encyclopedia General Business Terms (1296 Terms)

General Cannibalization Business Terms

The undesirable tradeoff where sales of a new product or service decrease sales from existing products or services and minimize or detract from the total revenue contribution of the organization.

General Cap Business Terms

In banking and finance, when the interest on borrowed funds is tied to the market rate, an upper limit or a cap can be negotiated and agreed upon, so that even when the market rate is higher than the stated level, no premium will be paid.

General Capital Business Terms

The total owned and borrowed funds in a business.

General Capital Account Business Terms

A measure of change in cross-border ownership of long-term financial assets, including financial securities and real estate.

General Capital Asset Pricing An asset pricing model that relates the required return on an asset to its systematic risk. Business Terms Model (CAPM)

General Capital assets Business Terms

Long-term assets, also known as Plant and Equipment, or fixed assets. These terms are interchangeable. Assets are generally divided into short-term and long-term assets, the distinction depending on how long they last. Usually the difference between short term and long term is a matter of accounting and financial policy. Five years is probably the most frequent division point, meaning that assets that depreciate over more than five years are long-term assets. Ten years and three years are also common. Business Plan Pro sets a starting value for capital assets in either the Start-up or the Past Performance table, depending of course on the nature of the company, whether it is start-up or ongoing. In the start-up table, the capital assets are called “.” In the Past Performance table, they are labeled “Capital Assets.” As the plan unfolds into months and year, depreciation decreases the net value of capital assets, and capital expenditure increases total assets. Depreciation appears in the Profit and Loss table, because it is an expense. Capital expenditure appears in the Cash Flow table, because it isn’t an expense. Amounts typed into the Capital Expenditure row of the cash flow will increase the Capital Assets total in the Balance Sheet Table.

General Capital Budgeting Business Terms

Planning and managing expenditures for long-lived assets.

Page 18 of 149

Encyclopedia General Business Terms (1296 Terms)

General Capital expenditure Business Terms

Spending on capital assets (also called plant and equipment, or fixed assets, or long-term assets). Business Plan Pro tracks capital expenditure in the Cash Flow table, because purchasing or selling assets affects cash flow, and the Balance Sheet table, but doesn’t affect profit or loss. A positive amount typed into the Capital Expenditure row in the Cash Flow table will result in an increase in Capital Assetes in the Balance Sheet, and a negative amount will result in a decrease in Capital Assets.

General Capital Formation Business Terms

The process of increasing the amount of capital goods - also called capital stock - in a country.

General Capital Gain Business Terms

The positive change in the value of an asset, a negative capital gain is a capital loss.

General Capital Goods Business Terms

Manufactured goods that are used for production, such as machine tools.

General Capital input Business Terms

This could also be called investment, or new investment. It is new money being invested in the business, not as loans or repayment of loans, but as money invested in ownership. This is also money at risk. It will grow in value if the business prospers, and decline in value if the business declines. This is closely related to the concept of paid-in capital, on the Balance Sheet table. Paid-in capital is the amount of money actually invested in the business as money, checks written by investors. Paid-in capital increases only when there is new investment. It is different from retained earnings. Business Plan Pro sets the initial amount of Paid-in Capital as an input into either the Start-up table (for start-up companies) or the Past Performance table (for ongoing companies.) After either of those initial entries, only New Investment Received (called “capital input” in earlier versions), in the Cash Flow table, increases Paid-in Capital. An entry as New Investment Received will increase your cash, and will also increase the total amount of paid-in capital. The amounts planned should be typed into the New Investment Received row of the Cash Flow table, and they will automatically increase Paid-in Capital in the Balance Sheet table.

General Capital Market Line Business Terms

The line between the risk-free asset and the market portfolio that represents the mean-variance efficient set of investment opportunities in the CAPM.

General Capital Markets Business Terms

Markets for financial assets and liabilities with maturity greater than one year, i.e. long-term loanable funds, including long-term government and corporate bonds, preferred stock, and common stock.

Page 19 of 149

Encyclopedia General Business Terms (1296 Terms)

General Capital Rationing Business Terms

The case where funds are limited to a fixed dollar amount and must be allocated among the competing projects.

General Capital requirement Business Terms

A list of expenses that must be met to establish a business. Even before a business is started, the owner should start keeping records.

General Capital Structure Business Terms

The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm. Also known as financial structure.

General Capitalism Business Terms

An economic system that is based on private ownership; economic development is proportionate to and dependent upon the accumulation and reinvestment of profits.

Caribbean General Community and Business Terms Common Market (CARICOM)

CARICOM consists of Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent & The Grenadines, Suriname, and Trinidad & Tobago. Its purpose is to provide a continued economic linkage after the dissolution of the West Indies Federation for English-speaking countries in the Caribbean.

General Carrier Business Terms

An individual or entity that transports persons or goods for compensation under the contract of carriage.

General Cartage Business Terms

The delivery of goods with short distance.

General Cartel Business Terms

An agreement among, or an organization of, suppliers of a product to limit production in order to minimize competition and maximize market power.

General Cash Business Terms

Cash normally means bills and coins, as in paying in cash. However, the term is used in a business plan to represent the bank balance, or checking account balance. Business Plan Pro builds its financial analysis around cash and cash flow used in this second sense, as the balance of the checking account in the bank, plus other liquid securities used to bolster the checking account.

Page 20 of 149

Encyclopedia General Business Terms (1296 Terms)

General Cash Against Business Terms Documents (CAD)

Payment for goods where a commission house or other intermediary transfers title documents to the buyer upon payment in cash.

General Cash basis Business Terms

An accounting system that doesnt use the standard accrual accounting. It records only cash receipts and cash spending, without assuming sales on credit (Sales made on account; shipments against invoices to be paid later) or Accounts payable (Bills to be paid as part of the normal course of business).

General Cash book Business Terms

A record of cash payments and receipts, showing these under various categories.

General Cash Cover Business Terms

In a letter of credit transaction, money deposited by the applicant with the issuing bank.

General Cash discount Business Terms

A deduction that is given for prompt payment of a bill.

General Cash Flow Business Terms

Cash generated by the firm and paid to creditors and shareholders. It can be classified as (1) cash flow from operations, (2) cash flow from changes in fixed assets, and (3) cash flow from changes in net working capital.

General Cash flow budget Business Terms

A budget that provides an overview of cash inflows and outflows during a specified period of time. This is often called the cash flow, or the cash budget. Just as cash flow is one of the most critical elements of business, the cash flow projection or table is one of the most critical elements of a business plan.

General Cash flow statement Business Terms

One of the three main financial statements (along with Income Statement and Balance Sheet), the Cash Flow shows actual cash inflows and outflows of the business over a specified period of time. The Cash Flow Statement reconciles the Income Statement (Profit and Loss) with the Balance Sheet.

General Cash in Advance Business Terms (CIA)

Payment for goods in which the price is paid in full before the shipment is made. This type of payment is usually only made for very small shipments or when goods are made to order.

Page 21 of 149

Encyclopedia General Business Terms (1296 Terms)

General Cash receipts Business Terms

The money received by a business from customers

General Cash sales Business Terms

Sales made in cash, or with credit cards, or by check. The opposite of sales on credit (Sales made on account; shipments against invoices to be paid later).

General Cash spending Business Terms

Money a business spends when it pays obligations immediately instead of letting them wait for a few days first.

General Cash With Order Business Terms (CWO)

Payment for goods in which the price is paid at the time the order is placed.

General Caveat emptor Business Terms

Let the buyer beware. The condition of sale is that the purchase is at the buyer’s risk.

Central America Free General CAFTA-DR is an extensive trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Trade Agreement Honduras, Nicaragua, and the United States. Business Terms (CAFTA-DR)

General Central Bank Business Terms

General Central driving forces opportunities, and resources. The model then evaluates these areas regarding the “fits and gaps” that indicate correlating strengths or weaknesses for the venture. The CDF model also considers industry and market information in the overall Business Terms model

The sole institution of a nation that has the authority to issue banknotes and set monetary and credit policies. It manages the rate of exchange of the nation's currency and determines the internal and external monetary stability of the currency. An entrepreneurial based model that considers the positives and negatives of three areas of the venture; founder(s),

analysis.

General Centrally Planned Business Terms Economy

An economy in which the government, rather than free-market activity, controls the allocation of resources.

Page 22 of 149

Encyclopedia General Business Terms (1296 Terms)

General Certificate of Business Terms Acceptance

Certificate of General Documents that may be asked for by the importer and/or the authorities of the importing country, as evidence of quality or Analysis/Certificate of conformity to specifications. Business Terms Inspection

General Certificate of Business Terms Manufacture

A statement that is usually notarized in which the producer of goods certifies that the goods have been produced and are now available to the buyer.

General Certificate of Origin Business Terms

Documents that may be asked for by the authorities of the importing country, as evidence of the country of manufacture of the goods.

General Certificate of Product A document required by certain foreign countries for tariff purpose, certifying the country of origin of specified goods. Business Terms Origin

General Change in Net Business Terms Working Capital

Difference between net working capital from one period to another.

General Channel conflicts Business Terms

A situation where one or more channel members believe another channel member is engaged in behavior that is preventing it from achieving its goals. Channel conflict most often relates to pricing issues.

General Channels of Business Terms distribution

The system where customers are provided access to an organizationâ&#x20AC;&#x2122;s products or services.

General Characteristic Line Business Terms

The line relating the expected return on a security to different returns on the market.

Term used in leasing. A document whereby the lessee acknowledges that the equipment to be leased has been delivered, is acceptable, and has been manufactured or constructed according to specifications.

Page 23 of 149

Encyclopedia General Business Terms (1296 Terms)

General Chattel Business Terms

An item of movable personal property

General Chill a Sale Business Terms

The collusion of buyers or bidders in a sale to check competition in order to obtain goods or properties below fair value.

General Civil Law Business Terms

A body of law created by the legislation of a state or nation, and based upon written statutes, for its own regulation.

Civil Society General Organizations Business Terms (CSOs)

Non-governmental and non-profit groups that work to improve society and the human condition.

General Clean Bill of Lading Business Terms

A receipt for goods issued by a carrier that indicates that the goods were received in apparently good order and without damage.

General Clean Collection Business Terms

Collection in which only the financial document is sent through the banks.

General Clearance Business Terms

The completion of customs entry requirements that results in the release of goods to the importer.

General Clearing Business Terms

The settlement of a transaction, often involving exchange of payments and/or documentation.

Clearing House General Interbank Payments Business Terms System (CHIPS )

Financial network through which banks in the United States conduct their financial transactions.

Page 24 of 149

Encyclopedia General Business Terms (1296 Terms)

General Click-through rate Business Terms

A way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a Web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%.

General Closed-end Fund Business Terms

A mutual fund in which the amount of funds under management is fixed and ownership in the funds is bought and sold in the market like a depository receipt.

General Closed-end Business Terms Transaction

A credit transaction in which the time for repayment and amount are fixed.

General Co-branding Business Terms

The pairing of two manufactureâ&#x20AC;&#x2122;s brand names on a single product or service.

General Codex Business Terms

Codex Alimentarius Commission (a world food standards body)

General Collar Business Terms

An agreement that fixes the interest rate between a lower and upper boundary, regardless of the market rate.

General Collateral Business Terms

security provided by a borrower to cover the possibility that the loan will not be repaid.

General Collecting Bank Business Terms

The bank that acts as the agent of the seller to collect payment(s) from the buyer and then transfer the payment(s) to the remitting bank (seller's bank).

General Collection days Business Terms

Collection days is supposed to represent the average number of days business waits, on average, between delivering an invoice and receiving payment. The formula for calculating collection days is: =(Accounts_receivable_balance*360)/(Sales_on_credit*12) See Collection period, below.

Page 25 of 149

Encyclopedia General Business Terms (1296 Terms)

General Collection Order Business Terms

In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.

General Collection period Business Terms (days)

The average number of days that pass between delivering an invoice and receiving the money. The formula is: =(Accounts_receivable_balance*360)/(Sales_on_credit*12)

General Collective Mark Business Terms

A trademark or service mark for a cooperative, association or a collective group to indicate membership in this collective group.

General Collectivist Society Business Terms

A society in which people feel more comfortable thinking and acting in groups.

General Collusion Business Terms

An agreement (usually secret ) among mostly oligopolistic competing firms in an industry to control the market, raise the market price, and otherwise act like a monopoly.

General Command Economy Business Terms

An economy based on government ownership and/or control of society's resources; during the 20th century, the dominant form of command economy was communism.

General Commercial Bank Business Terms

A bank whose primary function is to accept demand deposits (which can be withdrawn upon depositories' demand), and grant short-term and long-term loans.

General Commercial Credit Business Terms

A letter of credit that assures the seller that buyer will pay for the goods being sold. Such letter is usually issued by a bank upon client's request.

General Commercial Business Terms Document

General term for documents describing various aspects of a transaction, e.g. commercial invoice, transport document, insurance document, certificate of origin, certificate of inspection, etc.

Page 26 of 149

Encyclopedia General Business Terms (1296 Terms)

General Commingling Business Terms

Method of packing a shipment in which various goods subject to differing duties are grouped together. Because of this, the value of each type of item is difficult to determine.

General Commission Business Terms

In business, a commission is the compensation paid to the person or entity based on the sale of a product; commonly calculated on a percentage basis. The most frequent commission formula is gross margin multiplied by the commissions percentage. To handle commissions with Business Plan Pro, use the spreadsheet programming capabilities to make one row of operating expenses depend on sales, or gross margin.

General An assumed percentage used to calculate commissions expense as the product of commission percent multiplied by sales, Commission percent gross margin, or related sales items. Business Terms

General Commodity Price Business Terms Risk

The risk of unexpected changes in a commodity price, such as the price of oil.

General Commodity Swap Business Terms

A swap in which the (often notional) principal amount on at least one side of the swap is a commodity such as oil or gold.

General Common Carrier Business Terms

An organization that transports persons or goods for a fee.

General Common Law Business Terms

The body of law based on customs, usages, and court decisions rather than statutory laws.

General Common Market Business Terms

A common market is a group of countries that have common external tariffs against non-member nations. It may also allow labor mobility as well as common economic policies. For example, the European Union (EU).

Common Market for An organization of states that intends to promote the development of the resources of its members, COMESA forms a major General Eastern and Southern trading block of 20 nations: Angola, Burundi, Comoros, D.R. Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Business Terms Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. Africa (COMESA) Page 27 of 149

Encyclopedia General Business Terms (1296 Terms)

General Commonwealth Business Terms

An association of independent states that promotes cooperation, consultation, and mutual assistance among members. However, such association has no treaty or constitution. For example, the British Commonwealth.

General Community Interest Business Terms Company (CIC)

(U.K.): A CIC is a new type of limited company in the United Kingdom, designed for social enterprises that want to use their profits and assets for the public good. CICs will be easy to set up, with all the flexibility and certainty of the company form, but with some special features to ensure they are working for the benefit of the community. This is achieved by a “community interest test” and “asset lock”, which ensure that the CIC is established for community purposes and the assets and profits are dedicated to these purposes. Registration of a company as a CIC has to be approved by the Regulator who also has a continuing monitoring and enforcement role.

General Company Business Terms

A business owned by a group of people called shareholders, which has its own legal identity separate from its owners.

General Comparative Business Terms Advantage

A comparative advantage exists when a nation or economic region is able to produce a product at a lower opportunity cost compared to another nation or region. The rule of economics that states that each country should specialize in producing those goods that it is able to produce relatively most efficiently.

General Compensatory Trade The sale of goods or services that is paid for by bartering other goods or services. Business Terms

General Competitive Business Terms advantage

General Assessing and analyzing the comparative strengths and weaknesses of competitors; may include their current and potential Competitive analysis product and service development and marketing strategies. Business Terms

General Competitive entry Business Terms wedges

The strategic development where customers will choose a firm’s product or service over its competitors based on significantly more favorable perceptions or offerings.

Strategic competitive advantages and justification for entering an established market or activity that provides recognizable and known value. The four competitive entry wedges include: 1) New product or service 2) Parallel Competition 3) Franchise Entry 4) Twists

Page 28 of 149

Encyclopedia General Business Terms (1296 Terms)

General Complementary Business Terms Imports

The imports of goods or services that the importing country does not possess or produce.

General Completed store Business Terms transactions

A conversion value measuring the number of purchases made on the website.

General Compliant Business Terms Documents

Documents presented under a letter of credit that comply with all its terms and conditions. The banks are only obliged to pay the beneficiary if documents are totally compliant.

General Compound Interest Business Terms

Interest that is earned both on the initial principal and on interest earned on the initial principal in previous periods. The interest earned in one period becomes in effect part of the principal in a following period.

General Compound Rate Business Terms

A rate that has both a specific rate as well as an ad valorem rate.

General Compound Value Business Terms

Value of a sum after investing it over more than one period. Also called future value.

General Compounding Business Terms

Process of reinvesting each interest payment to earn more interest. Compounding is based on the idea that interest itself becomes principal and therefore also earns interest in subsequent periods.

General Concentrated target Business Terms marketing

A process that occurs when a single target market segment is pursued.

General Confirming Bank Business Terms

Bank that adds its payment undertaking to a letter of credit.

Page 29 of 149

Encyclopedia General Business Terms (1296 Terms)

General Consignee Business Terms

Party to whom goods are to be delivered.

General Consignment Business Terms

Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the consignee sells the merchandise of the account of the consignor, while the consignor retains title to the goods until the consignee sells them. The consignee sells merchandise for commissions and remits the net proceeds to the consignor.

General Consignor Business Terms

A consignor is an individual entity, partnership or a company that ships its goods to another party to be taken care of. A consignor is usually an exporter.

General Consolidated Income The sum of income across all of the multinational corporationâ&#x20AC;&#x2122;s domestic and foreign subsidiaries. Business Terms

General Consolidation Business Terms

A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company. The term can also be used for shipping, in which a freight consolidator combines shipments of cargo that are less than truckload (LTL) in order to reduce shipping rates.

General Consular Statement Business Terms

A document required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of shipment. Certified by a consular official of the foreign country, it is used by the country's officials to verify the value, quantity, and nature of the shipment.

General Consulate Business Terms

The diplomatic building located in a foreign country that represents the commercial interests of the home country.

General Consumer Goods Business Terms

Goods produced for individuals rather than for manufacturing purposes.

General Consumer price index A measure of the aggregate rise or fall in prices of commonly used goods and services, published by the Commonwealth Government as a basis, among other things, for deciding what overall increases should be made to wages and salaries. Business Terms (CPI) Page 30 of 149

Encyclopedia General Business Terms (1296 Terms)

General Contango Business Terms

The amount the buyer pays the seller to delay the transaction of a security, especially when the future price of the security is above the expected future spot price. The opposite is called backwardation.

General Contingency Business Terms Insurance

Contingency insurance protects the exporter in any situation in which exporter responsibility relied on the buyer to insure, but sustained a loss because of inadequate coverage from that source. It will cover situations in which the FOB endorsement would have otherwise served had that been in force.

General Contingent claim Business Terms

Claim whose value is directly dependent on, or is contingent on, the value of its underlying assets. For example, the debt and equity securities issued by a firm derive their value from the total value of the firm.

General Contingent liability Business Terms

A liability which will only arise upon the happening of a certain event, for example, the guarantor of a loan being asked to honour the guarantee if the borrower defaults.

General Continuous Business Terms Compounding

Interest compounded continuously, every instant, rather than at fixed intervals.

General Continuous Quotation A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares. Business Terms System

General Contract Business Terms

A legally binding agreement between two or more parties.

General Contract Business Terms Manufacturing

A firm allowing another firm to manufacture a pre-specified product.

Page 31 of 149

Encyclopedia General Business Terms (1296 Terms)

General Contribution margin Business Terms

Contribution can have different meanings in different context. When contribution is applied to a product or product line, it means the difference between total sales revenue and total variable costs, or, on a per-unit basis, the difference between unit selling and the unit variable cost and may be expressed in percentage terms (contribution margin) or dollar terms (contribution per unit). Contribution is also frequently expressed as contribution margin for a whole company or across a group or product line, in which case it can be taken as gross margin less sales and marketing expenses. For example, Marketing Plan Pro produces a table named Contribution Margin that shows sales, cost of sales, gross margin, sales and marketing expenses, and contribution margin. The contribution is gross margin less sales and marketing expenses.

General Controllable Business Terms expenses

Those expenses that can be controlled or restrained by the businessperson.

General Controlled Foreign Business Terms Corporation (CFC)

In the U.S. tax code, a foreign corporation owned more than 50 percent either in terms of market value or voting power.

Convention on the CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement General International Trade in between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten Business Terms Endangered Species their survival. (CITES)

General Conversion rate Business Terms

The percentage of unique website visitors who take a desired action upon visiting the website. The desired action may be submitting a sales lead, making a purchase, viewing a key page of the site, downloading a file, or some other measurable action.

General Convertible Bonds Business Terms

Bonds sold with a conversion feature that allows the holder to convert the bond into common stock on or prior to a conversion date and at a prespecified conversion price.

General Convertible Currency A currency that can be traded for other currencies at will. Business Terms

General Convex Tax Business Terms Schedule

A tax schedule in which the effective tax rate is greater at high levels of taxable income than at low levels of taxable income. Such a schedule results in progressive taxation.

Page 32 of 149

Encyclopedia General Business Terms (1296 Terms)

The Cooperation Council for the Arab States of the Gulf (GCC) was established on May 25, 1981. It joined the 6 states of the United Arab Emirates, State of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar and State of Kuwait. The framework's focus is on acheiving a state of unity in all fields among its member states. It also stresses a furthering of relations and cooperation among member states and provides a platform to address security and economic development chanllenges.

Cooperation Council General for the Arab States of Business Terms the Gulf (GCC)

General The rules and regulations that all applicant countries to the European Union must meet, and to which all EU member nations Copenhagen Criteria must maintain. Business Terms

General Copyright Business Terms

A type of property right which protects the expression of ideas such as literary or dramatic works, television productions, drawings etc., from being used for commercial gain without permission of the copyright owner. Registration is not a prerequisite for protection.

General Core marketing Business Terms strategy

A statement that communicates the predominant reason to buy to a specific target market.

General Corporate Culture Business Terms

The set of values, beliefs, relationships between individuals and functions that guide the decisions of a company to achieve its objectives.

General Corporate Business Terms Governance

The way in which major stakeholders exert control over the modern corporation.

General Corporate Social The responsibilities that corporations (including MNCs) have to workers and their families, to consumers, to investors, and to Business Terms Responsibility (CSR) the natural environment.

Page 33 of 149

Encyclopedia General Business Terms (1296 Terms)

General Corporation Business Terms

Corporations are either the standard C corporation or the small business S corporation. The C corporation is the classic legal entity of the vast majority of successful companies in the United States. Most lawyers would agree that the C corporation is the structure that provides the best shielding from personal liability for owners, and provides the best non-tax benefits to owers. This is a separate legal entity, different from its owners, which pays its own taxes. Most lawyers would also probably agree that for a company that has ambitions of raising major investment capital and eventually going public, the C corporation is the standard form of legal entity. The S corporation is used for family companies and smaller ownership groups. The clearest distinction from C is that the S corporation’s profits or losses go straight through to the S corporation’s owners, without being taxed separately first. In practical terms, this means that the owners of the corporation can take their profits home without first paying the corporation’s separate tax on profits, so those profits are taxed once for the S owner, and twice for the C owner. In practical terms the C corporation doesn’t send its profits home to its owners as much as the S corporation does, because it usually has different goals and objectives. It often wants to grow and go public, or it already is public. In most states an S corporation is owned by a limited number (25 is a common maximum) of private owners, and corporations can’t hold stock in S corporations, just invidivuals. Corporations can switch from C to S and back again, but not often. The IRS has strict rules for when and how those switches are made. You’ll almost always want to have your CPA and in some cases your attorney guide you through the legal requirements for switching.

General Correlation Business Terms

A measure of the covariability of two assets that is scaled for the standard deviations of the assets (rAB = sAB / sAsB such that -1 < rAB < +1).

General Correspondent Bank A bank that, in its own country, handles the business of a foreign bank. Business Terms

General Corridor Principal Business Terms

The principal where an entrepreneurial venture may find that it has significantly changed it’s focus from the initial concept of the venture as it has continually responded and adapted to it’s market and the desire to optimize profitability potential.

General Co-signers Business Terms

People whom together share responsibility on behalf of a business by jointly signing documents or cheques.

Page 34 of 149

Encyclopedia General Business Terms (1296 Terms)

General Cost and Freight Business Terms

General The required return on the company's common stock in capital markets. It is also called the equity holders' required rate of Cost of Equity Capital return because it is what equity holders can expect to obtain in the capital market. It is a cost from the firm's perspective. Business Terms

A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price.

General Cost of Goods Sold Business Terms (COGS)

The cost of goods sold is traditionally the costs of materials and production of the goods a business sells. For a manufacturing company this is materials, labor, and factory overhead. For a retail shop it would be what it pays to buy the goods that it sells to its customers. For service businesses, that don’t sell goods, the same concept is normally called “cost of sales,” which shouldn’t be confused with “sales and marketing expenses.” The cost of sales in this case is directly analogous to cost of goods sold. For a consulting company, for example, the cost of sales would be the compensation paid to the consultants plus

General Cottage Industry Business Terms

An industry comprised of a labor force that produces goods for sale at home, often with their own equipment.

General Counter Credit Business Terms

Another name for back-to-back letter of credit.

General Countertrade Business Terms

The sale of goods or services that are paid for in whole or part by the transfer of goods or services from a foreign country.

General Duties levied on an imported good that has been unfairly subsidized by a foreign government. Imposing duties on the good is Countervailing Duties meant to raise the product's price to a "fair market value". Business Terms

General Country Risk Business Terms

The political and financial risks of conducting business in a particular foreign country.

General Coupon Business Terms

The stated interest on a debt instrument.

Page 35 of 149

Encyclopedia General Business Terms (1296 Terms)

General Coupon Swap Business Terms

A fixed-for-floating interest rate swap.

General Courtage Business Terms

A European term for brokerage fee.

General Covariance Business Terms

A measure of the covariability of two assets (sAB = sAsB rAB).

General Cover Note Business Terms

Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.

General Cover note Business Terms

A temporary certificate of insurance issued by an insurance company to give immediate insurance cover until a formal document is prepared and issued.

General Credit Business Terms

An entry made on the right hand side of an account and indicating a gain to a liability, ownerâ&#x20AC;&#x2122;s equity or revenue account.

General Credit application Business Terms

A form to be completed by an applicant for a credit account, giving sufficient details to allow the seller to establish the applicantâ&#x20AC;&#x2122;s creditworthiness.

General Credit control Business Terms

Any policy designed to increase or decrease credit.

General Credit limit Business Terms

The upper limit of credit that a business will allow a customer to have.

Page 36 of 149

Encyclopedia General Business Terms (1296 Terms)

General Credit Risk Insurance Insurance that covers the risk of nonpayment for delivered goods. Business Terms

General Creditor Business Terms

A person or business to whom money is owed.

General Creeping Business Terms Nationalization

The succession of small but important changes in a firm's condition or standing that bring it slowly under national control.

General Cross elasticity of Business Terms demand

The change in the quantity demanded of one product or service impacting the change in demand for another product or service.

General Crossed cheque Business Terms

A cheque across which two parallel lines have been drawn. The effect of crossing a cheque is to direct your bank to pay the cheque only through another bank account.

General Cross-hedge Business Terms

A futures hedge using a currency that is different from, but closely related to, the currency of the underlying exposure.

General Culture Business Terms

Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions.

Cumulative General Translation Business Terms Adjustment (CTA)

An equity account under FAS #52 that accumulates gains or losses caused by translation accounting adjustments.

General Currency Coupon Business Terms Swap

A fixed-for-floating rate nonamortizing currency swap traded primarily through international commercial banks.

Page 37 of 149

Encyclopedia General Business Terms (1296 Terms)

General Currency CrossBusiness Terms hedge

A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated.

General Currency of Business Terms Reference

The currency that is being bought or sold. It is most convenient to place the currency of reference in the denominator of a foreign exchange quote.

General Currency Option Business Terms

A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date. The option writer (seller) holds the obligation to fulfill the other side of the contract.

General Currency Risk Business Terms

The risk of unexpected changes in foreign currency exchange rates. Also known as foreign exchange risk.

General Currency Swap Business Terms

A contractual agreement to exchange a principal amount of two different currencies and, after a prearranged length of time, to give back the original principal. Interest payments in each currency are also typically swapped during the life of the agreement.

General Current Account Business Terms

A measure of a countryâ&#x20AC;&#x2122;s international trade in goods and services.

General Current Account Business Terms Balance

A broad measure of import-export activity that includes services, travel and tourism, transportation, investment income and interest, gifts, and grants along with the trade balance on goods.

General Current assets Business Terms

Includes cash, short-term deposits, customersâ&#x20AC;&#x2122; accounts, stock (includes work in progress, raw materials and finished goods), that will be converted into cash during the normal course of business, within a year.

General Current debt Business Terms

Short-term debt, short-term liabilities.

Page 38 of 149

Encyclopedia General Business Terms (1296 Terms)

General Current liabilities Business Terms

General Current Rate Method monetary liabilities at current exchange rates. FSA #52 places any imbalance into an equity account called the â&#x20AC;&#x153;cumulative Business Terms translation adjustment.â&#x20AC;?

General A person or firm obtains the license from the treasury department of its Country when required, and help clients (importers) to Customhouse Broker enter and declare goods through customs. Business Terms

General Customs Business Terms

The authorities designated to collect duties levied by a country on imports and exports.

General Customs Union Business Terms

A form of regional economic integration group that eliminates tariffs among member nations and establishes common external tariffs.

General Dealing Desk Business Terms

The desk at an international bank that trades spot and forward foreign exchange. Also known as trading desk.

General Debenture Business Terms

A fixed interest investment in a company, which has priority for interest payments, generally redeemable after the lapse of a specified time

General Debit Business Terms

To debit is to place an entry on the left-hand side of an account. A debit in a liability account makes it smaller. A debit in an asset account makes it larger.

General Debt Business Terms

That which is owed. If you borrow money, buy something on credit or receive more money on an account than is owed, you have a "debt.

Short-term debts such as bank overdraft, creditors and provisions set aside to pay taxation and other commitments (for example, holiday or long service leave) and expected to come due within one year of the Balance Sheet.

A translation accounting method, such as FAS #52 in the United States, that translates monetary and real assets and

Page 39 of 149

Encyclopedia General Business Terms (1296 Terms)

General Debt and equity Business Terms

The sum of liabilities and capital. This should always be equal to total assets.

General Debt Capacity Business Terms

The amount of debt that a firm chooses to borrow to support a project.

General Debt capital Business Terms

Money from external sources used to finance a business. See also equity capital.

General Debt-for-equity Swap A swap agreement to exchange equity (debt) returns for debt (equity) returns over a prearranged length of time. Business Terms

General Debtor Business Terms

A person or business who owes money

General Debtor Nation Business Terms

A nation that is owed less in foreign currency than it owes other nations.

General Decision Trees Business Terms

A graphical analysis of sequential decisions and the likely outcomes of those decisions.

General Default Business Terms

To fail to meet an obligation when due, such as paying a debt.

General Deferred Payment Business Terms Credit

A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter.

Page 40 of 149

Encyclopedia General Business Terms (1296 Terms)

General Del Credere Risk Business Terms

Situation created when a sales agent sells on credit and there is a chance that the buyer either does not want to or does not have the money to pay.

General Deliverable Business Terms Instrument

The asset underlying a derivative security. For a currency option, the deliverable instrument is determined by the options exchange and is either spot currency or an equivalent value in futures contracts.

General Delta-hedge Business Terms

A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from, but preferably close to, the maturity of the underlying exposure.

General Demand Business Terms

An order to comply with an obligation. In business, paying on "demand" means that the obligation must be satisfied immediately when requested.

General Demand Business Terms Management

A business process with the intention to coordinate and influence all sources of demand for a firmâ&#x20AC;&#x2122;s products.

Department for General Department for International Development (UK) International Business Terms Development (DFID)

General Department of Business Terms Commerce (DOC)

Department of Commerce (USA)

General Depository Receipt Business Terms

A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee.

General Depreciation Business Terms

1) The expense against earnings to write-off purchase price of an asset over its useful life. 2) A decrease in a currency value relative to another currency in a floating exchange rate system.

Page 41 of 149

Encyclopedia General Business Terms (1296 Terms)

General Gradual reduction of the value of a fixed asset and gradual application of this cost to the expenses of a business over the Depreciation expense useful life of the asset. Business Terms

General Depreciation Business Terms schedule

A table showing depreciable assets, the year each was purchased, its cost, the percentage by which it is depreciated each year and written down current value.

General Derivative Security Business Terms

A financial security whose price is derived from the price of another asset. The value of a derivative is determined by the fluctuations in the asset.

General Devaluation Business Terms

A decrease in a currency value relative to another currency in a fixed exchange rate system. The purpose of devaluation typically is to increase export and decrease import in order to correct a balance of payment deficit.

General Developed Countries The richer more industrialized countries in the world. Business Terms

General Developing Country Business Terms

A country that is in the process of becoming industrialized. Average national income must be below $9,265 for a country to be classified as a developing country. A developing country typically lacks industrialization, infrastructure, high literacy rate and advanced living standards.

General Difference Check Business Terms

The difference in interest payments that is exchanged between two swap counterparties.

General Differentiated target Business Terms marketing

A process that occurs when an organization simultaneously pursues several different market segments, usually with a different strategy for each.

General Differentiation Business Terms

An approach to create a competitive advantage based on obtaining a significant value difference that customers will appreciate and be willing to pay for, and which ideally will increase their loyalty as a result.

Page 42 of 149

Encyclopedia General Business Terms (1296 Terms)

General Digital Divide Business Terms

The digital divide refers to the widening technological gap between the richer and the poorer countries of the world.

General Direct cost of sales Business Terms

A shortcut for cost of goods sold: traditionally, the costs of materials and production of the goods a business sells, or the costs of fulfilling a service for a service business.

General Direct costs Business Terms

the costs incurred, in addition to fixed costs, as a result of manufacturing a product or providing a service. Direct costs are made up of direct material, direct labour and direct manufacturing or servicing costs.

General Direct Costs of Business Terms Financial Distress

Costs of financial distress that are directly incurred during bankruptcy or liquidation proceedings.

General Direct Exporting Business Terms

Marketer takes direct responsibility for its products abroad by selling them directly to foreign customers or through local representatives in foreign markets.

General Direct Financing Business Terms Lease

A non-leveraged lease by a lessor in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.

General A form of direct marketing that involves sending information through a mail process, physical or electronic, to potential Direct mail marketing customers. Business Terms

General Direct marketing Business Terms

Any method of distribution that gives the customer access to an organizationâ&#x20AC;&#x2122;s products and services without intermediaries; also, any communication from the producer that communicates with a target market to generate a revenue producing response.

General Direct Product Business Terms Profitability

Measuring the direct costs associated with handling a product from the warehouse until a customer buys from the retail store.

Page 43 of 149

Encyclopedia General Business Terms (1296 Terms)

General Direct Terms Business Terms

The price of a unit of foreign currency in domestic currency terms, such as $.6548/DM for a U.S. resident (contrast with indirect quote).

General Directorâ&#x20AC;&#x2122;s guarantee Business Terms

a personal guarantee given by a director of a company that s/he will be personally responsible for a debt or other liability of the company. Usually requested in credit applications, leases, loans and hire purchase agreements.

General Directory Business Terms

A computer term related to the operating system on IBM and compatible computers. Disk storage space is divided into directories.

General Disbursements Business Terms

Funds paid out of a business in settlement of obligations.

General Discount Business Terms

If a bond is selling below its face value, it is said to sell at a discount.

General Discounted Cash Business Terms Flow

A valuation methodology that discounts expected future cash flows at a discount rate appropriate for the risk, currency, and maturity of the cash flows.

General The length of time needed to recoup the present value of an investment; sometimes used when investing in locations with high Discounted Payback country risk. Business Terms

General Discounted Payback An investment decision rule in which the cash flows are discounted at an interest rate and the payback rule is applied on these discounted cash flows. Business Terms Period Rule

General Discounting Business Terms

Calculating the present value of a future amount. The process is the opposite of compounding.

Page 44 of 149

Encyclopedia General Business Terms (1296 Terms)

General Discretionary Business Terms Reserves

General Discriminatory Pricing The practice that selling a product or service at different prices that do not reflect a proportional difference in costs. Business Terms

General Dishonoured Business Terms

The word used to describe a cheque, which the bank will not pay, because the customer’s account lacks sufficient funds.

General Dispatch Business Terms

An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter party.

General Dispute Settlement Business Terms Body (DSB)

Dispute Settlement Body is a part of the World Trade Organization (WTO) that settles trade disputes between governments.

General Dispute Settlement The Dispute Settlement Understanding (DSU) of the World Trade Organization (WTO) was one of the key outcomes of the Business Terms Understanding (DSU) Uruguay Round of multilateral trade negotiations.

General Distinctive Business Terms competency

An organization’s strengths or qualities including skills, technologies, or resources that distinguish it from competitors to provide superior and unique customer value and, hopefully, is difficult to imitate.

General Distributor Business Terms

A foreign agent who sells for a supplier directly and maintains an inventory of the supplier’s product.

General Diversifiable Risk Business Terms

A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk.

Balance sheet accounts that are used in some countries to temporarily store earnings from the current year or the recent past.

Page 45 of 149

Encyclopedia General Business Terms (1296 Terms)

General Diversification Business Terms

A product-market strategy that involves the development or acquisition of offerings new to the organization and/or the introduction of those offerings to the target markets not previously served by the organization.

General Diversionary Business Terms Dumping

The sale of foreign products at less than fair value to a 3rd country where the products are further processed and sold to another country.

General Dividends Business Terms

Money distributed to the owners of a business as profits.

General Dock Receipt Business Terms

A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse.

General Dock Statement Business Terms

A receipt issued by an ocean carrier to acknowledge the receipt of a shipment at the carrier's dock or warehouse facilities.

General Doing Business As Business Terms (DBA)

DBA stands for “Doing Business As,” which is a company name, also commonly called a “Fictitious business name.” When a sole proprietor operates a company using any name except his or her own given name, then the DBA or ficticious business name registration establishes the legal ownership to satisfy banks, local authorities, and customers. So when you start the Acme Restaurant, unless you are named Acme, you need your DBA to open a bank account in that name, pay employees, and do business. You can usually obtain this registration through the county government, and the cost is no more than a small registration fee plus a required newspaper ad, for a total of less than $100 in most states.

General Domestic Bonds Business Terms

Bonds issued and traded within the internal market of a single country and denominated in the currency of that country.

Domestic General International Sales Business Terms Corporation

In the U.S. tax code, a specialized sales corporation whose income is lumped into the same income basket as a foreign sales corporation.

Page 46 of 149

Encyclopedia General Business Terms (1296 Terms)

General Domestic Liquidity Business Terms

The aggregate of money supply, quasi-money or savings and time deposits, and deposit substitutes.

General Downstream Business Terms Dumping

A type of dumping in which the primary producer first sells its product to another domestic producer at below fair value or cost. The second producer then furthur processes the product and exports it to another country at a lower than normal cost.

General Draft Business Terms

A means of payment whereby a drawer (the importer) instructs a drawee (either the importer or its commercial bank) to pay the payee (the exporter). Also known as trade bill or bill of exchange.

General Drawer Business Terms

The person who writes a cheque in payment for goods or services.

General Drawings Business Terms

Withdrawals of assets (usually cash) from a business by a sole proprietor or a partner.

General Dual distribution Business Terms

The practice of simultaneously distributing products or services through two or more marketing channels that may or may not compete for similar buyers.

General Dual Pricing Business Terms

The practice of selling identical products in different markets for different prices.

General Dumping Business Terms

Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment, that is, selling the product at less than fair value. Dumping is an illegal trade practice.

General Dumping Margin Business Terms

The difference between the fair value of a product and the amount for which it is available in the case of dumping.

Page 47 of 149

Encyclopedia General Business Terms (1296 Terms)

General Duty Business Terms

A tax imposed on imports by the customs authority of a country.

General Early adopters Business Terms

One type of adopter in Everett Rogers’ diffusion of innovations framework that describes buyers that follow “innovators” rather than be the first to purchase.

General Early majority Business Terms

One type of adopter in Everett Rogers’ diffusion of innovations framework that describes those interested in new technology that wait to purchase until these innovations are proven to perform to the expected standard.

General Earnings Business Terms

Also called income or profits, earnings are the famous “bottom line”: sales less costs of sales and expenses.

Earnings Before General Interest and Taxes Business Terms (EBIT)

Earnings before interest and taxes.

Earnings Before Interest Taxes General Depreciation and Business Terms Amortization (EBITDA)

Earnings Before Interest, Taxes, Depreciation and Amortization: equal to the Gross Margin (The difference between total sales revenue and total direct cost of sales) minus Total Operating Expenses (Tax-deductible expenses incurred in conducting normal business operations, such as wages and salaries, rent, etc.) , plus any Depreciation (The loss of value of assets over time) and amortization. This is similar to Earnings Before Interest and Taxes (EBIT). The difference between the two is that EBIT subtracts all expenses, including depreciation, as an expense, and EBITDA subtracts all expenses except depreciation and amortization.

General Earnings Response Business Terms Coefficient

The relation of stock returns to earnings surprises around the time of corporate earnings announcements.

General Easement Business Terms

A right held by one party to make use of the land of another.

Page 48 of 149

Encyclopedia General Business Terms (1296 Terms)

General East African Business Terms Community (EAC)

The East African Community (EAC) is a regional organization composed of the Republics of Kenya, Uganda and the United Republic of Tanzania. The EAC provides a forum for cooperation on a broad range of topics including: trade, science and technology, wildlife management, investments and industrial development, and foreign affairs. The 3 East African countries encompass a population of 82 million and covers an area of 1.8 million square kilometers.

General Eclectic Paradigm Business Terms

A theory of the multinational firm that posits three types of advantages benefiting the multinational corporation: ownershipspecific, location-specific, and market internalization advantages.

Economic Community General A regional group consisting of fifteen West African nations. It is a free trade area for agricultural products and raw materials, of West African and a preferential trade area for various industrial products. Business Terms States (ECOWAS)

General Economic Exposure Business Terms

Change in the value of a corporationâ&#x20AC;&#x2122;s assets or liabilities as a result of changes in currency values.

General Economic Freedom Business Terms

Economic freedom occurs when individuals and businesses make most of the economic decisions in an economy.

General Economic Integration The integration of commercial and financial activities among countries through the abolishment of economic discrimination. Business Terms

General Economic Union Business Terms

A group that combines the economic characteristics of a common market with some degree of harmonization of macroeconomic policies, such as monetary and fiscal policies.

General Economic Value Business Terms Added

A method of performance evaluation that adjusts accounting performance with a charge reflecting investorsâ&#x20AC;&#x2122; required return on investment.

Page 49 of 149

Encyclopedia General Business Terms (1296 Terms)

General Economies of Scale Business Terms

General Economies of Vertical Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace. Business Terms Integration

General Effective Annual Business Terms Interest Rate

General Calculated as (1+i/n)n, where i is the stated annual interest rate and n is the number of compounding periods per year Effective Annual Yield (contrast with bond equivalent yield and money market yield). Business Terms

General Effective demand Business Terms

When prospective buyers have the willingness and ability to purchase an organizationâ&#x20AC;&#x2122;s offerings.

General Effective Exchange Business Terms Rate

Spot exchange rates that are actually paid or received by the general public, including taxes on any transactions as well as bank commissions.

General Effective tax rate Business Terms

The effective tax rate is a comparison of final tax payments compared to actual profits. Usually the effective tax rate is somewhat less than the nominal tax rate because of deductions, credits, etc.

General Efficient Frontier Business Terms

The mean-variance efficient portion of the investment opportunity set.

General Efficient Market Business Terms

A market in which prices reflect all relevant information.

Achieving lower average cost per unit through a larger scale of production. This is achieved by spreading fixed cost over a greater amount of production.

The interest rate as if it were compounded once per time period rather than several times per period.

Page 50 of 149

Encyclopedia General Business Terms (1296 Terms)

General Embargo Business Terms

A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country. Embargoes are typically placed in time of war.

General Emerging Market Business Terms

An emerging market has a very high growth rate, which yields enormous market potential. It is distinguished by the recent progress it has made in economic liberalization.

General Emerging Stock Business Terms Markets

The stock markets of emerging economies. These markets typically have higher expected returns than established markets but also higher risk.

General Employment Rate Business Terms

The ratio, in percent, of the number of employed persons to total labor force.

General Endogenous Business Terms Uncertainty

Price or input cost uncertainty that is within the control of the firm, such as when the act of investing reveals information about price or input cost.

General Engagement Business Terms

The assumption of payment responsibility in respect of a letter of credit, e.g.

General Entity Business Terms

An individual (sole trader), partnership, a body corporate, a corporation, an incorporated association or body of persons, a trust or superannuation fund.

General Entrepreneur Business Terms

Someone who starts a new business venture; someone who recognizes and pursues opportunities others may not see as clearly, and finds the resources necessary to accomplish his or her goals.

General Entrepreneur In Heat can support and inadvertently may diminish the focus and effectiveness of the activities supporting the ventureâ&#x20AC;&#x2122;s primary Business Terms (EIH) revenue streams.

Entrepreneur in Heat describes an entrepreneur that continues to develop new products and services beyond what the venture

Page 51 of 149

Encyclopedia General Business Terms (1296 Terms)

General Equity Business Terms

Business ownership; capital. Equity can be calculated as the difference between assets and liabilities.

General Equity capital Business Terms

Money provided by the business owner/s to finance the business.

General Equity financing Business Terms

The sales of some portion of ownership in a venture to gain additional capital for start-up.

General Equity-linked Business Terms Eurobonds

A Eurobond with a convertibility option or warrant attached.

General Erosion Business Terms

Cash-flow amount transferred to a new project from customers and sales of other products of the firm.

General Euro Business Terms

The single currency of the European Economic and Monetary Union (EMU) introduced in January 1999 and became the official currency of EMU member countries on January 1, 2002. EMU members are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Greece, Slovenia, and Spain.

General Eurobond Business Terms

A bond that is denominated in a currency other than that of the country of issue.

General Eurocurrencies Business Terms

Deposits and loans denominated in one currency and traded in a market outside the borders of the country issuing that currency (e.g., Eurodollars).

General Eurocurrency Market A money market for currencies held in the form of deposits in countries other than that where the currency is issued. Business Terms Page 52 of 149

Encyclopedia General Business Terms (1296 Terms)

General Eurodollars Business Terms

Dollar-denominated deposits held in a country other than the United States.

General European Article Business Terms Number (EAN)

A standard international numbering code system that is used primarily in retail applications. It is also compatible with the U.S. UPC (Universal Product Code).

European Bank for General Reconstruction and One of four major regional development banks currently operating in the global economy. Business Terms Development (EBRD)

General European Central Business Terms Bank (ECB)

European Committee An organization composed of the national standards organizations of 30 European countries. The European Committee for General Standardization, or CEN, seeks to promote the European economy in the global market by providing an efficient and for Standardization Business Terms standardized infrastructure for trade. (CEN)

General European Currency Business Terms Unit (ECU)

A trade-weighted basket of currencies in the European Exchange Rate Mechanism (ERM) of the European Union.

European Exchange General Rate Mechanism Business Terms (ERM)

The exchange rate system used by countries in the European Union in which exchange rates are pegged within bands around an ERM central value.

General European Free Trade Liechtenstein, Norway and Switzerland promoting free trade and economic integration. There are 3 main branches of the Business Terms Association (EFTA) EFTA: the EFTA Secretariat, Surveillance Authority and EFTA Court. Its function is to create a free trade area among its

The central bank for European Union (EU). It sets monetary policy for member countries.

The European Free Trade Association (EFTA) is an international organization established in 1960. It is composed by Iceland,

Member States.

General European Monetary Business Terms System (EMS)

An exchange rate system based on cooperation between European Union central banks.

Page 53 of 149

Encyclopedia General Business Terms (1296 Terms)

General European Option Business Terms

An option that can be exercised only at expiration (contrast with American option).

General European Terms Business Terms

A foreign exchange quotation that states the foreign currency price of one U.S. dollar (contrast with American terms).

General European Union (EU) An intergovernmental organization which coordinates foreign, economic, and judicial policy among its 27 member nations. Business Terms

General Evaluating ideas and The process of considering ideas versus opportunities, and then screening those opportunities using objective criteria as well as personal criteria. Business Terms opportunities

General Everett Rogers Business Terms

Author who studied and published work on the diffusion of innovation.

General Exaction Business Terms

Demanding or imposing various fees from a position of authority.

General Excess Business Terms

In an insurance policy, excess clauses specify that the policyholder will be responsible for a portion of claims under certain conditions.

General Exchange Rate Business Terms

The price of one currency in terms of another, i.e. the number of units of one currency that may be exchanged for one unit of another currency.

General Exchange Risk Business Terms

The risk that losses may result from the changes in the relative values of different currencies.

Page 54 of 149

Encyclopedia General Business Terms (1296 Terms)

General Excise tax Business Terms

General Exclusive distribution A distribution strategy whereby a producer sells its products or services in only one retail outlet in a specific geographical area. Business Terms

General Exercise Price Business Terms

The price at which an option can be exercised (also called the striking price).

General EXIMBANK Business Terms

Export-Import Bank of the United States. Provides guarantees of working capital loans for U.S. exporters, guarantees the repayment of loans or makes loans to foreign purchasers of U.S. goods and services, and provides credit insurance against non-payment by foreign buyers for political or commercial risk. Currently, the Bank is focusing on critical areas such as emphasizing exports to developing countries, aggressively countering trade subsidies of other governments, stimulating small business transactions, promoting the export of environmentally beneficial goods and services, and expanding project finance capabilities. Ex-Im Bank is not an aid or development agency, but a government held corporation, managed by a Board of Directors.

General Exogenous Business Terms Uncertainty

Price or input cost uncertainty that is outside the control of the firm.

General Expenses Business Terms

costs incurred by a business in earning income, for example, rent, advertising, wages etc.

General Experience curve Business Terms

A visual representation, often based on a function of time, from exposure to a process that offers greater information and results in enhanced efficiency and operations advantage.

General Expiry Date Business Terms

The date when a letter of credit is no longer valid - i.e. the date beyond which it cannot be used.

A tax on the consumption of certain goods either made in or imported into a country.

Page 55 of 149

Encyclopedia General Business Terms (1296 Terms)

General Explicit Tax Business Terms

A tax that is explicitly collected by a government; includes income, withholding, property, sales, and value-added taxes and tariffs.

General Export Business Terms

Any resource, intermediate good, or final good or service that producers in one country sell to buyers in another country.

General Export Administration EAR carry both civil and criminal penalties. The EAR are available by subscription from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20401 (tel no: 202-275 2091). Business Terms Regulations (EAR)

General Export Broker Business Terms

An individual or firm that helps to locate and introduce buyers and seller in international business for a commission but does not take part in actual sales transaction.

General Export Credit Business Terms Insurance

Insurance provided to exporters in order to protect them against commercial and political risks.

General Export Financing Business Terms Interest

In the U.S. tax code, interest income derived from goods manufactured in the United States and sold outside the United States as long as not more than 50 percent of the value is imported into the United States.

General Export License Business Terms

A general export license covers the exportation of goods not restricted under the terms of a validated export license. No formal application or written authorization is needed to ship exports under a general export license.

General Export Restraints Business Terms

Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets, usually as a follow-up to formal or informal agreements reached with importing countries.

General Export Subsidies Business Terms

Any form of government payment that helps an exporter or manufacturing company to lower its export costs.

Page 56 of 149

Encyclopedia General Business Terms (1296 Terms)

General Export Trading Business Terms Company (ETC)

A company that facilitates the export of goods and services. An ETC can either act as the export department for producers or take title to the product and export for its own account.

General Expropriation Business Terms

A specific type of political risk in which a government seizes foreign assets.

General External Market Business Terms

A market for financial securities that are placed outside the borders of the country issuing that currency.

General Extraterritoriality Business Terms

A government practice which applies its laws outside its territorial boundaries.

General Face Value Business Terms

The value of a bond that appears on its face. Also referred to as par value or principal.

General Factor Model Business Terms

A model that assumes a linear relation between an asset's expected return and one or more systematic risk factors.

General Factoring Business Terms

Sale of an accounts receivable balance to buyers (factors) that are willing and able to bear the costs and risks of credit and collections.

General Failure rule, common Entrepreneurial ventures most often fail due to one or more of these four issues: 1) Inadequate sales (39%) 2) Competitive weaknesses (21%) 3) Excessive operating expenses (11%) 4) Uncollected receivables (9%). Business Terms causes

General Fast Track Business Terms Negotiating

Authority provided by the U.S. Congress to the Executive Branch to negotiate amendment-proof trade agreements.

Page 57 of 149

Encyclopedia General Business Terms (1296 Terms)

General Fatal 2% rule Business Terms

The concept that if a venture can just get â&#x20AC;&#x153;2%â&#x20AC;? of total market share it will be successful. This percentage can be unattainable based on the approach, limited resources, and/or structure of the industry.

General Feasibility study Business Terms

An examination of a particular project or business to assess its chances of operating successfully, before committing large amounts of money to it.

Features, General Advantages and Business Terms Benefits Analysis (FAB)

A FAB analysis explores the features, advantages, and benefits of a product or service offering. Marketing plans need to understand these concepts in order to develop effective marketing programs.

General Federal Trade Business Terms Commision (FTC)

The FTC is an indepedent US government agency established in 1914 by Woodrow Wilson. Its main goals are consumer protection and prevention of trust formation.

General Fidelity guarantee Business Terms insurance

Insurance against losses resulting from the dishonesty of employee/s.

General Fighting brand Business Terms strategy

Adding a new brand to confront competitive brands in an established product category.

General Finance Business Terms

Money resources

General Financial Contagion Business Terms

The spread of a financial crisis from one country or region to other countries or regions.

General Financial Engineering The process of innovation by which new financial products are created. Business Terms Page 58 of 149

Encyclopedia General Business Terms (1296 Terms)

General Financial Innovation Business Terms

The process of designing new financial products, such as exotic currency options and swaps.

General Financial Market Business Terms

The market for the exchange of credit and capital in an economy. It consists of the money market and the capital market.

General Financial Policy Business Terms

The corporationâ&#x20AC;&#x2122;s choices regarding the debt-equity mix, currencies of denomination, maturity structure, method of financing investment projects, and hedging decisions with a goal of maximizing the value of the firm to some set of stakeholders.

General Financial Price Risk Business Terms

The risk of unexpected changes in a financial price, including currency (foreign exchange) risk, interest rate risk, and commodity price risk.

General Financial Risk Business Terms

Financial risk refers to unexpected events in a countryâ&#x20AC;&#x2122;s financial, economic, or business life.

General Financial Service Business Terms Income

In the U.S. tax code, income derived from financial services such as banking, insurance, leasing, financial service management fees, and swap income.

General Financial statements Formal reports prepared from accounting records describing the financial position and performance of the business. Business Terms

General Financial Strategy Business Terms

The way in which the firm pursues its financial objectives.

General Financial Structure Business Terms

The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm. Also known as capital structure.

Page 59 of 149

Encyclopedia General Business Terms (1296 Terms)

General Financial year Business Terms

An accounting period of 12 months, often coincident, for convenience, with the fiscal year (1 July to 30 June).

General Financing Business Terms

Obtaining money resources. Businesses usually have to obtain finance at some time, either to go into business or expand operations.

General First mover Business Terms

A company that attempts to gain an unchallengeable, privileged market position by being the first to establish itself in a given market.

General First mover Business Terms advantage

Key first mover advantages include: 1) Reputation effect 2) Experience curve 3) Customer commitment and loyalty.

General First-to-market Business Terms Advantage

Also know as "first-mover advantage." The idea of first-mover advantage is that the initial occupant of a strategic position or niche (market segment) gains access to resources and capabilities that a follower cannot match.

General Fiscal year Business Terms

Standard accounting practice allows the accounting year to begin in any month. Fiscal years are numbered according to the year in which they end. For example, a fiscal year ending in February of 1992 is Fiscal 1992, even though most of the year takes place in 1991.

General Five forces model Business Terms

Porterâ&#x20AC;&#x2122;s model that considers these forces as they impact and industry and the overall competitive climate: 1) Risk of entry by potential competitors 2) Bargaining power of suppliers 3) Bargaining power of buyers 4) Threat of substitute products 5) Rivalry among established firms.

General Fixed assets Business Terms

The land, buildings, vehicles, materials and equipment owned by a business, which are used to earn revenue rather than being for sale.

General Fixed Cost Business Terms

A cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on the amount of goods or services produced during the period.

Page 60 of 149

Encyclopedia General Business Terms (1296 Terms)

General Fixed Exchange Rate An exchange rate system in which governments stand ready to buy and sell currency at official exchange rates. Fluctuations of this currency are not possible. Business Terms System

General Fixed Forward Business Terms Contract

Currency is bought or sold at a given future date.

General Fixed liabilities Business Terms

Debts; money that must be paid. Usually, debt on terms of longer than five years are fixed liabilities. (Also called Long-term Liabilities.) Fixed Liabilities, in contrast to Floating Liabilities, are secured by assets with a stable value, such as a building or a piece of equipment.

General Flight of Capital Business Terms

The movement of capital from one place to another in order to avoid loss or increase gain.

General Floating Currency Business Terms System

An exchange rate system under which a government is not obligated to declare that its currency is convertible into a fixed amount of another currency.

General Floating Exchange Business Terms Rate

An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities.

General Floating liabilities Business Terms

Debts; money that must be paid. Floating Liabilities, in contrast to Fixed Liabilities, are secured by assets with a constantly changing value, such as a companyâ&#x20AC;&#x2122;s Accounts Receivable (debtors). These are usually short-term loans.

General Floor Business Terms

In banking and finance, a floor can be negotiated and agreed upon when the interest rate is dependent on the market interest rate.

General FOB Endorsement Business Terms

Used with FOB (Free on Board), FAS, C&F, or CFR (but not CIF) quotations, FOB sales endorsement to an open marine policy can cover transit risk from the point of origin until title transfers. In these instances, the exporter relies on the importer to insure.

Page 61 of 149

Encyclopedia General Business Terms (1296 Terms)

General Focus group Business Terms

General Food and Drug approved by the FDA and be released to the market, they must undergo extensive laboratory testing within the pharmaceutical Business Terms Administration (FDA) company. The company must then file a formal and thorough application for approval with the FDA.

General Force Majeure Business Terms

The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as Acts of God or war.

General Foreign Aid Business Terms

A grant of money, technical assistance, capital equipment, or other assistance typically extended by richer nations to poorer nations.

General Foreign Base Business Terms Company Income

In the U.S. tax code, a category of Subpart F income that includes foreign holding company income and foreign base company sales and service income.

General Foreign Bonds Business Terms

Bonds that are issued in a domestic market by a foreign borrower, denominated in domestic currency, marketed to domestic residents, and regulated by the domestic authorities.

General Foreign Bottom Business Terms

An ocean vessel built or registered in a foreign country.

General Foreign Branch Business Terms

A foreign affiliate that is legally a part of the parent firm. In the U.S. tax code, foreign branch income is taxed as it is earned in the foreign country.

General Foreign Debt Business Terms

Money owed by a nation to foreign investors, banks, or governments.

Small groups of people, usually between 9 and 12 in number, representing target audiences, that are brought together to discuss a topic that will offer insight for product development and/or marketing efforts.

A United States agency which has power to set standards for food, drugs, cosmetics, and devices. Before new drugs can be

Page 62 of 149

Encyclopedia General Business Terms (1296 Terms)

General Foreign Direct Business Terms Investment (FDI)

The act of building productive capacity directly in a foreign country.

General Foreign Equity Business Terms Requirements

Investment rules that limit foreign ownership to a minority holding in a company.

General Foreign Exchange Business Terms

Currency of another country, or a financial instrument that facilitates payment from one currency to another.

General Foreign Exchange Business Terms Broker

Brokers serving as matchmakers in the foreign exchange market that do not put their own money at risk.

General Foreign Exchange Business Terms Dealer

A financial institution making a market in foreign exchange.

General Foreign Exchange Business Terms Markets

Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economy.

General Foreign Exchange Business Terms Rate

The price of one nation's currency in terms of another nation's currency. The foreign exchange rate is specified as the amount of one currency that can be traded per unit of another.

General Foreign Exchange Business Terms Risk

The risk of unexpected changes in foreign currency exchange rates. Also known as currency risk.

General Foreign Remittances The transfer across national boundaries of any kind of funds. Business Terms Page 63 of 149

Encyclopedia General Business Terms (1296 Terms)

General Foreign Sales Business Terms Corporation (FSC)

In the U.S. tax code, a specialized sales corporation whose income is lumped into the same income basket as that of a domestic international sales corporation.

General Foreign Tax Credit Business Terms (FTC)

In the U.S. tax code, a credit against domestic U.S. income taxes up to the amount of foreign taxes paid on foreign-source income.

General Foreign Trade Zone Business Terms

A physical area in which the government allows firms to delay or avoid paying tariffs on imports.

General Foreign-source Business Terms Income

Income earned from foreign operations.

General Forfaiting Business Terms

A form of factoring in which large, medium- to long-term receivables are sold to buyers (forfaiters) that are willing and able to bear the costs and risks of credit and collections.

General Forms of market Business Terms research

Market research can be casual, affordable, and effective for the entrepreneur. Jay Conrad Levinson provides examples of this form of market research approach in â&#x20AC;&#x153;Guerrilla Marketing Attack.â&#x20AC;?

General Forward Contract Business Terms

A commitment to exchange a specified amount of one currency for a specified amount of another currency on a specified future date.

General Forward Discount Business Terms

A currency whose nominal value in the forward market is lower than in the spot market (contrast with forward premium).

General Forward Foreign Business Terms Exchange

An agreement to purchase or sell a defined amount of forward currency in the future at a certain fixed rate.

Page 64 of 149

Encyclopedia General Business Terms (1296 Terms)

General Forward Market Business Terms

A market for forward contracts in which trades are made for future delivery according to an agreed-upon delivery date, exchange rate, and amount.

General Forward Parity Business Terms

When the forward rate is an unbiased predictor of future spot exchange rates.

General Forward Premium Business Terms

A currency whose nominal value in the forward market is higher than in the spot market (contrast with forward discount).

General Foul Bill of Lading Business Terms

A receipt issued by a carrier to the exporter making use of its services which, to reduce the carrier's liability, notes that the goods were in some way damaged, short in quantity, or improperly packaged.

General Franchise Business Terms

A business arrangement in which knowledge, expertise and often a trade mark or trade name are licensed to an operator, generally for an initial fee and a yearly payment.

General An agreement in which a domestic company (the franchiser) licenses its trade name and/or business system to an Franchise Agreement independent company (the franchisee) in a foreign market. Business Terms

General Franchisee Business Terms

The purchaser of a franchise licence who operates one or more outlets of the franchise business.

General Franchising Business Terms

A parent company grants another independent entity the privilege to do business in a pre-specified manner, including manufacturing, selling products, marketing technology and other business approach.

General Franchisor Business Terms

The owner of a franchise system

Page 65 of 149

Encyclopedia General Business Terms (1296 Terms)

General Free Cash Flow Business Terms

Cash flow after all positive-NPV projects have been exhausted in the firmâ&#x20AC;&#x2122;s main line of business.

General Free Market Business Terms

The type of market in which goods and services cross borders freely, unrestrained by tariffs or any other sort of barrier to trade.

General A trade term requiring the seller to deliver goods via a method of transportation designated by the buyer. The seller fulfills its Free On Board (FOB) obligations to deliver when the goods have passed through the seller's ownership and prepared for delivery to the buyer. Business Terms

General Free Port Business Terms

General Free Trade Area of A proposed hemispheric trade zone that would cover all of the countries in North, South, and Latin America. The FTAA is Business Terms the Americas (FTAA) highly controversial.

General Free Trade Zone Business Terms

An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Merchandise may be stored, used or manufactured in the zone and reexported without duties being paid.

Freely Floating General Exchange Rate Business Terms System

An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities.

General Freight Forwarder Business Terms

An independent business that handles export shipment on behalf of the shipper without vested interest in the products. A freight forwarder is a good source of information and assistance on export regulations and documentation, shipping methods, and foreign import regulations.

General Freight Shippers Business Terms

Also know as freight forwarders. Freight shippers are agents used to coordinate the logistics of transportation.

An area such as a port city into which merchandise may legally be moved without payment of duties.

Page 66 of 149

Encyclopedia General Business Terms (1296 Terms)

General Frequency Business Terms Distribution

General Activities which encourage repeat purchasing through a formal program enrollment process to develop loyalty and commitment Frequency marketing from the customer base. Frequency marketing is also referred to as loyalty programs. Business Terms

The organization of data to show how often certain values or ranges of values occur.

General Front end (websites) Business Terms

General Full Payout Lease Business Terms

A lease in which the lessor recovers, through the lease payments, all costs incurred in the lease plus an acceptable rate of return, without any reliance upon the leased equipment's future residual value.

General Full-cost price Business Terms strategies

Costs that consider variable and fixed cost (total cost) in the pricing of a product of service.

General Fundamental Business Terms Analysis

A method of predicting exchange rates using the relationships of exchange rates to fundamental economic variables such as GNP growth, money supply, and trade balances.

General Fusion insurance Business Terms

Covers loss caused by damage to an electric motor by an electric current, and is particularly important for refrigerated stocks.

General Future Value Business Terms

Value of a sum after investing it over multiple periods. Also called compound value.

Page 67 of 149

Encyclopedia General Business Terms (1296 Terms)

General Future value Business Terms projections

General Futures Commission A brokerage house that is authorized by a futures exchange to trade with retail clients. Business Terms Merchant

General Futures Contract Business Terms

A commitment to exchange a specified amount of one currency for a specified amount of another currency at a specified time in the future. Futures contracts are periodically marked-to-market, so that changes in value are settled throughout the life of the contract. Exchange-traded currency futures are marked-to-market on a daily basis.

General G-7 Business Terms

A formal organization of 7 highly industrialized democracies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

General G-8 Business Terms

The G-7 countries plus Russia.

General Gearing Business Terms

The ratio between the businessâ&#x20AC;&#x2122;s debt and equity finance.

General Agreement General on Tariffs and Trade Business Terms (GATT)

A post-World War II agreement designed to promote freer international trade among the nations of the world. The GATT was replaced by the World Trade Organization (WTO) in 1994.

Generalized General Autoregressive Business Terms Conditional Heteroskedasticity

A time series model in which returns at each instant of time are normally distributed but volatility is a function of recent history of the series.

General Generalized System with the Generalized System of Preferences (GSP), developed countries let the manufactured and semi-manufactured goods Business Terms of Preferences (GSP) of eligible developing countries enter with either no duty or a lower rate than is applied to other countries.

The process of projecting the future value of a venture and/or an investment in the venture. It typically considers an expected rate of return, inflation, and the period of time to assess future value.

A program of tariff preferences for designed to encourage the economic growth of certain developing countries. In accordance

Page 68 of 149

Encyclopedia General Business Terms (1296 Terms)

Generally Accepted General Accounting Principles A common set of accounting concepts, standards, and procedures by which financial statements are prepared. Business Terms (GAAP)

General Geocentric Business Terms Multinational

A multinational in which the subsidiaries are neither satellites nor independent city states, but parts of a whole whose focus is on worldwide objectives as well as local objectives, each part making its unique contribution with its unique competence.

General Global Bond Business Terms

A bond that trades in the Eurobond market as well as in one or more national bond markets.

General Global Economy Business Terms

The international network of individuals, businesses, governments, and multilateral organizations which collectively make production and consumption decisions.

General Global Quota Business Terms

An import quota set by a nation which specifies the allowed quantity of a product from all countries.

General Globalization Business Terms

A global movement to increase the flow of goods, services, people, real capital, and money across national borders in order to create a more integrated and interdependent world economy.

General Gold Exchange Business Terms Standard

An exchange rate system used from 1925 to 1931 in which the United States and England were allowed to hold only gold reserves while other nations could hold gold, U.S. dollars, or pounds sterling as reserves.

General Gold Standard Business Terms

An exchange rate system used prior to 1914 in which gold was used to settle national trade balances. Also called the â&#x20AC;&#x153;classical gold standard.â&#x20AC;?

General Goodwill Business Terms

The accounting treatment of an intangible asset such as the takeover premium in a merger or acquisition.

Page 69 of 149

Encyclopedia General Business Terms (1296 Terms)

General Graduation Business Terms

General Gray-market Imports Gray-market imports are parallel distribution of genuine goods by intermediaries other than authorized channel members. Business Terms

General Greenfield Business Terms

A Greenfield Investment is the investment in a manufacturing plant, office, or other physical company-related structure or group of structures in an area where no previous facilities exist.

General Greenmail Business Terms

Buying shares on the open market in the hope that the targetâ&#x20AC;&#x2122;s business partners will buy back the shares at inflated prices.

General Gross Business Terms

The total overall amount. For example, gross profit is the trading profit of a business without any deductions for business expenses.

General Gross Domestic Business Terms Product (GDP)

A measure of the market value of goods and services produced by a nation. Unlike Gross National Product, GDP excludes profits made by domestic firms overseas, as well as the share of reinvested earning in domestic firms' foreign-based operations.

General Gross margin Business Terms

The difference between total sales revenue and total cost of goods sold (also called total cost of sales). This can also be expressed on a per unit basis, as the difference between unit selling price and unit cost of goods sold. Gross margin can be expressed in dollar or percentage terms.

General Gross margin percent providers who can deliver standard gross margins for different types of industries based on SIC (Standard Industry Business Terms Classification) codes that categorize industries.

The point at which a developing country's eligibility for Generalized System of Preferences (GSP) is terminated for the reason of sufficient economic progression.

Gross margin divided by sales, displayed as a percentage. Acceptable levels depend on the nature of the business. There are

Page 70 of 149

Encyclopedia General Business Terms (1296 Terms)

General Gross National Business Terms Income (GNI)

Previously known as Gross National Product, Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries. For example, if a British-owned company operating in another country sends some of their incomes (profits) back to UK, UK’s GNI is enhanced. Similarly, a British production unit of a US company sending profit to the US will affect the British GNI but will not reduce it since it is not included in the first place.

General Gross National Business Terms Product (GNP)

GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens who are working abroad, minus income of non-residents located in that country. It is essentially the measurement of the value of all goods and services produced by a country's citizens regardless of their location. Its difference with Gross Domestic Product (GDP) is that GDP measures the total production within a country regardless of the citizenship of the producer.

General Gross profit Business Terms

The excess of net sales over cost of goods sold usually expressed as a percentage.

General Growing Perpetuity Business Terms

A constant stream of cash flows without end that is expected to rise indefinitely. For example, cash flows to the landlord of an apartment building might be expected to rise a certain percentage each year.

General Growth Options Business Terms

The positive net present value opportunities in which the firm has not yet invested. The value of growth options reflects the time value of the firm’s current investment in real assets as well as the option value of the firm’s potential future investments.

General Growth Stocks Business Terms

Stocks with high price/book or price/earnings ratios. Historically, growth stocks have had lower average returns than value stocks (stocks with low price/book or PE ratios) in a variety of countries.

General GST-free Business Terms

Some supplies are GST-free, which means you do not charge GST for them but you are entitled to claim input tax credits for anything acquired or imported to use in your business.

General Guerrilla marketing Business Terms

Examples of mini, maxi,and non-media tools: Mini: canvassing, personal letters, calls, circulars, brochures, classified ads, Maxi: yellow pages and signs Non-Media: public relations, advertising.

Page 71 of 149

Encyclopedia General Business Terms (1296 Terms)

General Guerrilla marketing Business Terms concept

Effective and pragmatic marketing can be done with limited resources and should focus on meeting the needs of existing customers in everything that is done, while building the base of prospects through creating additional awareness within the market.

General Guerrilla marketing Business Terms investment strategy

This is a inverse approach to traditional marketing budgeting. Levinson states: Invest 10% in the â&#x20AC;&#x153;universeâ&#x20AC;? Invest 30% in you prospects Invest 60% in your customers.

General Guideline Lease Business Terms

A lease written under criteria established by the IRS to determine the availability of tax benefits to the lessor.

General Gulf Cooperation Business Terms Council (GCC)

A council created in 1981 and composed of Saudi Arabia, Bahrain, Oman, Qatar, Kuwait, and the United Arab Emirates. It is a forum to coordinate and integrate economic policies between these six countries, which account for about 40% of oil in the international market.

General Harmonized Tariff Business Terms Schedule (HTS)

A method of classification used by many countries to determine tariffs on imports.

General Harvesting Business Terms

Harvesting is most often referring to selling a business or product line, as when a company sells a product line or division or a family sells a business. Harvesting is also occasionally used to refer to sales of a product or product line towards the end of a product life cycle.

Heavily Indebted General Poor Countries Business Terms Initiative

The HIPC Initiative is a major international response to the burdensome external debt held by the world's poorest, most indebted countries. It originated in 1996 as a joint undertaking of the World Bank and the International Monetary Fund (IMF). Also known as the HIPC Initiative.

General Hedge Business Terms

A position or operation that offsets an underlying exposure. For example, a forward currency hedge uses a forward currency contract to offset the exposure of an underlying position in a foreign currency. Hedges reduce the total variability of the combined position.

General Hedge Funds Business Terms

Private investment partnerships with a general manager and a small number of limited partners.

Page 72 of 149

Encyclopedia General Business Terms (1296 Terms)

General Hedge Portfolio Business Terms

The country-specific hedge portfolio in the International Asset Pricing Model serves as a store of value (like the risk-free asset in the CAPM) as well as a hedge against the currency risk of the market portfolio.

General Hedge Quality Business Terms

Measured by the r-square in a regression of spot rate changes on futures price changes.

General Hedge Ratio Business Terms

The ratio of derivatives contracts to the underlying risk exposure.

General Hedging Business Terms

Reducing the risk of a cash position by using the futures instruments to offset the price movement of the cash asset.

General High-withholding-tax Business Terms Interest Income

In the U.S. tax code, interest income that has been subject to a foreign gross withholding tax of five percent or more.

General Hire purchase Business Terms

System for financing the purchase of plant and equipment, where the ownership is vested with the lender until the final payment is made. The borrower is required to place a deposit and make periodic (usually monthly) repayments at a flat rate of interest.

General Historical Volatility Business Terms

Volatility estimated from a historical time series.

General Holding-period Business Terms Return

The rate of return over a given period.

General Home Asset Bias Business Terms

The tendency of investors to overinvest in assets based in their own country.

Page 73 of 149

Encyclopedia General Business Terms (1296 Terms)

General Homogeneous Business Terms Expectations

Idea that all individuals have the same beliefs concerning future investments, profits, and dividends.

General Hyperinflation Business Terms

An extremely high rate of inflation, often exceeding several hundred or several thousand percent, that causes a country's money to become practically worthless.

General Hysteresis Business Terms

The behavior of firms that fail to enter markets that appear attractive and, once invested, persist in operating at a loss. This behavior is characteristic of situations with high entry and exit costs along with high uncertainty.

General Ideas vs opportunities Ideas are the basis of potential business opportunities. Good ideas do not necessarily represent good opportunities. Business Terms

General Implicit Tax Business Terms

Lower (higher) before-tax required returns on assets that are subject to lower (higher) tax rates.

General Implied Volatility Business Terms

The volatility that is implied by an option value given the other determinants of option value.

General Import Business Terms

Any resource, intermediate good, or final good or service that buyers in one country purchase from sellers in another country.

General Import License Business Terms

A document required and issued by some national government authorizing the importation of goods into their individual countries.

General Impressions Business Terms

An impression occurs each time an advertisement is seen by a potential customer. For example, in online marketing, an impression happens when an advertisement such as a banner ad loads on a userâ&#x20AC;&#x2122;s screen, whether for the first time, when returning to a page, or when the ad cycles through dynamically.

Page 74 of 149

Encyclopedia General Business Terms (1296 Terms)

General Income Business Terms

Money that is being earned by the business.

General Income Baskets Business Terms

In the U.S. tax code, income is allocated to one of a number of separate income categories. Losses in one basket may not be used to offset gains in another basket.

General Income Statement Business Terms

Financial report that summarizes a firm's performance over a specified time period.

General Incremental IRR Business Terms

Internal Rate of Return (IRR) on the incremental investment from choosing a large project instead of a smaller project.

General Indemnity Clause Business Terms

A clause in which the one party indemnifies the other. In leasing, generally a clause whereby the lessee indemnifies the lessor from loss of tax benefits.

General Indemnity insurance Business Terms

Risk protection for actions for which a business is liable. Insurance that a business carries to cover the possibility of loss from lawsuits in the event the business or its agents were found at fault when an action occurred.

General Independent Project Business Terms

A project whose acceptance or rejection is independent of the acceptance or rejection of other projects.

General Index Futures Business Terms

A futures contract that allows investors to buy or sell an index (such as a foreign stock index) in the futures market.

General Index Options Business Terms

A call or put option contract on an index (such as a foreign stock market index).

Page 75 of 149

Encyclopedia General Business Terms (1296 Terms)

General Index Swap Business Terms

A swap of a market index for some other asset (such as a stock-for-stock or debt-for-stock swap).

General Indication Pricing Business Terms Schedule

A schedule of rates for an interest rate or currency swap.

General Indirect Costs of Business Terms Financial Distress

Costs of financial distress that are indirectly incurred prior to formal bankruptcy or liquidation.

General Indirect Customers Business Terms

The end-users (e.g., consumers) of the products and services purchased from the wholesalers, retailers, and consignees - the direct customers of the seller.

Indirect General Diversification Business Terms Benefits

Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment.

General Indirect Exporting Business Terms

Export products to foreign markets by using an intermediary, usually export trading company based in the exporter’s country.

General Indirect Terms Business Terms

The price of a unit of domestic currency in foreign currency terms such as DM1.5272/$ for a U.S. resident (contrast with direct terms).

General induction training Business Terms

Training for new employees regarding conditions of service, physical layout of the workplace, safety rules, local conventions and customs and supervisory procedures.

General Infant Industry Business Terms Argument

The infant industry argument is a rationale for the “temporary protection” of a new industry or firm in order to help it become established domestically and later become competitive worldwide. These protections consist of tariff and non-tariff barriers to imports, preventing global competition from entering the market.

Page 76 of 149

Encyclopedia General Business Terms (1296 Terms)

General Inflation Rate Business Terms

The general increase in the price level herein measured by the growth rate in the GNP Implicit Price Index or the general price deflator.

General Informational Business Terms Efficiency

Whether or not market prices reflect information and thus the true (or intrinsic) value of the underlying asset.

General Initial Public Offering A corporation’s initial efforts of raising capital through the sale of securities on the public stock market. Business Terms (IPO)

Innovation: General evolutionary or Business Terms revolutionary

The determination if an innovation is a “new and improved” concept taken to the next level (evolutionary), or the rare innovation that revolutionizes a technology or concept to the product or services.

General Innovators Business Terms

One type of adopter in Everett Rogers’ diffusion of innovations framework describing the first group to purchase a new product or service.

General Input tax credits Business Terms

You are entitled to an input tax credit for the GST included in the price you pay for an acquisition or the GST paid for an importation if it is for use in your enterprise.

General Input taxed Business Terms

Some supplies are input taxed, which means you do not charge GST for them but neither are you entitled to input tax credits for anything acquired or imported to make the supply.

General Intangible assets Business Terms

Those assets of a business, which cannot be assigned a firm, fixed value, such as leases, franchises, goodwill and patent rights.

General Integrated Financial Business Terms Market

A market in which there are no barriers to financial flows and purchasing power parity holds across equivalent assets.

Page 77 of 149

Encyclopedia General Business Terms (1296 Terms)

General Integrated marketing The practice of blending different elements of the communication mix in mutually reinforcing ways. Business Terms communications

General Intellectual Property Business Terms

Material or communicable result in forms of discoveries, inventions, designs and literary and art works of scientific, humanistic, literary, and artistic endeavor. It includes, but is not limited to, works in the form of scientific discoveries and inventions, designs, patents, trademarks, books, monographs, papers, paintings, drawings and sculpture, performances, computer software, and lecture and conference presentations.

General Intellectual Property Business Terms Rights

Patents, copyrights, and proprietary technologies and processes that are the basis of the multinational corporationâ&#x20AC;&#x2122;s competitive advantage over local firms.

General A distribution strategy whereby a producer attempts to sell its products or services in as many retail outlets as possible within a Intensive distribution geographical area without exclusivity. Business Terms

General Inter-American Business Terms Development Bank

A regional development bank designed to promote sustainable economic development in the Western Hemisphere. Its headquarters are located in Washington, D.C.

General Interbank Spread Business Terms

The difference between a bankâ&#x20AC;&#x2122;s offer and bid rates for deposits in the Eurocurrency market.

General Interest Business Terms

The cost of borrowing money.

General Interest expense Business Terms

Interest is paid on debts, and interest expense is deducted from profits as expenses. Interest expense is either long-term or short-term interest.

General Interest Rate Risk Business Terms

The risk of unexpected changes in an interest rate.

Page 78 of 149

Encyclopedia General Business Terms (1296 Terms)

General Interest Rate Swap Business Terms

General Inter-firm comparison A comparison between the financial and productive performance of a business with the industry averages. Business Terms

General Intermediated Market A financial market in which a financial institution (usually a commercial bank) stands between borrowers and savers. Business Terms

General Intermodal Business Terms

The use of two or more modes of transportation to complete a cargo move; truck/rail/ship, or truck/air, for example.

General Internal Market Business Terms

A market for financial securities denominated in the currency of a host country and placed within that country.

General Internal Rate of Business Terms Return (IRR)

A discount rate at which the net present value of an investment is zero. The IRR is a method of evaluating capital expenditure proposals.

International General Accounting Business Terms Standards Board (IASB)

The International Accounting Standards Board (IASB) is an independent, privately funded organization that sets international accounting standards. The IASB is committed to developing a single set of high quality, understandable and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements.

General International Asset The international version of the CAPM in which investors in each country share the same consumption basket and purchasing Business Terms Pricing Model (IAPM) power parity holds.

International Bank for General Also called the World Bank, an international organization created at Breton Woods in 1944 to help in the reconstruction and Reconstruction and development of its member nations. Business Terms Development

An agreement to exchange interest payments for a specific period of time on a given principal amount. The most common interest rate swap is a fixed-for-floating coupon swap. The notional principal is typically not exchanged.

Page 79 of 149

Encyclopedia General Business Terms (1296 Terms)

General International Bonds Business Terms

Bonds that are traded outside the country of the issuer. International bonds are either foreign bonds trading in a foreign national market or Eurobonds trading in the international market.

International General Chamber of Business Terms Commerce (ICC)

International non-governmental body concerned with promotion of trade and harmonization of trading practice. Responsible for drafting and publishing.

General International Energy Business Terms Agency (IEA)

The IEA is an autonomous agency linked with the Organization for Economic Cooperation and Development (OECD). It is the authoritative source for energy statistics worldwide and an energy policy advisor for 26 member countries. It was founded during the oil crisis of 1973-74 and was initially focused on coordinating efforts between member countries in times of oil supply emergencies. Since then it has expanded its role to encompass climate change policies, market reform, energy technology collaboration, and outreach to the rest of the world.

General International Labour Business Terms Organization (ILO)

The International Labour Organization is the UN specialized agency which seeks the promotion of social justice and internationally recognized human and labour rights. The ILO formulates international labour standards in the form of conventions and recommendations setting minimum standards of basic labour rights.

General International An international organization designed to promote global economic stability and development. It compiles statistics on crossBusiness Terms Monetary Fund (IMF) border transactions and publishes a monthly summary of each countryâ&#x20AC;&#x2122;s balance of payments.

General International Business Terms Monetary System

International ISO is a worldwide federation of national standardization bodies of more than 140 countries. Established as a non-government General organization in 1947, it develops international standards and publishes them. All branches other than electrical engineering Organization for Business Terms Standardization (ISO) standards are within the scope of ISO.

General Intervention Business Terms

The global network of governmental and commercial institutions within which currency exchange rates are determined.

The efforts undertaken by a country or its central bank to affect the price of the countryâ&#x20AC;&#x2122;s currency on the exchange market. This can be done either through the government buying or selling large quantities of the currency to affect total supply, or by the central bank changing interest rates to affect the cash flow into the country.

Page 80 of 149

Encyclopedia General Business Terms (1296 Terms)

General In-the-money Option An option that has value if exercised immediately. Business Terms

General Intrapreneurship Business Terms

Entrepreneurial-based activities within a corporation that receive organizational support and resources commitments for the purpose of an innovative new business experience within the organization itself.

General Intrinsic Value of an Business Terms Option

The value of an option if exercised immediately.

General Inventory Business Terms

Goods in stock, either finished goods or materials to be used to manufacture goods.

General Inventory turnover Business Terms

Total cost of sales divided by inventory. Usually calculated using the average inventory over an accounting period, not an ending-inventory value.

General Inventory turns Business Terms

Inventory turnover (above). Total cost of sales divided by inventory. Usually calculated using the average inventory over an accounting period, not an ending-inventory value.

General Investment Business Terms

Money used to purchase any capital items for the business and expected to yield an income.

General Investment Business Terms Agreement

An agreement specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project

General Investment Business Terms Opportunity Set

The set of possible investments available to an individual or corporation.

Page 81 of 149

Encyclopedia General Business Terms (1296 Terms)

General Investment Business Terms Philosophy

The investment approach (active or passive) pursued by an investment fund and its managers.

General Invisible Barriers to Business Terms Trade

Government regulations that do not directly restrict trade but have a hindering effect on through the use of excessive and obscure requirements on goods before they can be sold, especially imported goods. While known to local business people, foreign investors are not aware of these conditions, making them â&#x20AC;&#x153;invisible.â&#x20AC;? Labeling requirements or other sorts of measurement or sanitary standards would be an example of this.

General Invoice Business Terms

Document which shows the customer charges for goods delivered or work done.

General Jeito Business Terms

The way of somehow getting things done in Brazil; the jeito can help conquer seemingly insurmountable tasks (Portuguese).

General Jobber Business Terms

An intermediary that buys from producers to sell to retailers and offers various services with that function.

General Joint Venture Business Terms

An agreement of two or more companies to pool their resources to execute a well-defined mission. Resource commitments, responsibilities, and earnings are shared according to a predetermined contractual formula.

General Jurisdiction Business Terms

The right of an authority to apply the law in a given territory.

General Just-in-time (JIT) Business Terms

An organization-wide practice that keeps the inventory to the minimum and provides customers the right goods or service at the right time.

General Kanban System Business Terms

A Japanese just-in-time inventory system that makes use of cards to signal the need for more raw materials or supplies.

Page 82 of 149

Encyclopedia General Business Terms (1296 Terms)

General Keiretsu Business Terms

Collaborative groups of vertically and horizontally integrated firms with extensive share cross-holdings and with a major Japanese bank or corporation at the center.

General Kyoto Protocol Business Terms

A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere.

General Labor Business Terms

The labor costs associated with making goods to be sold. This labor is part of the cost of sales, part of the manufacturing and assembly. The row heading refers to fulfillment costs as well, for service companies.

General Laggards Business Terms

One type of adopter in Everett Rogersâ&#x20AC;&#x2122; diffusion of innovations framework describing the risk adverse group that follows the late majority that is generally not interested in new technology and are the last group of customers to buy.

General Laissez-faire Business Terms

A term associated with the free enterprise economic system which calls for minimal government intervention or regulation, except in maintenance of this economic freedom.

General Landed Cost Business Terms

The quoted or invoiced cost of a commodity, plus any inbound transportation charges.

General Law of One Price Business Terms

The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage. Also known as purchasing price parity (PPP).

General Lay-by Business Terms

An arrangement where the customer in a retail store makes a deposit on an article and pays the amount owing in instalments, while the retailer stores the article until the last payment has been made.

General LDCs Business Terms

Least Developed Countries

Page 83 of 149

Encyclopedia General Business Terms (1296 Terms)

General Lead Manager Business Terms

General Leading and Lagging Reduction of transaction exposure through timing of cash flows within the corporation. Business Terms

General Lease Business Terms

A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate.

General Lease Rate Business Terms

The periodic rental payment to a lessor for the use of assets. Others may define lease rate as the implicit interest rate in minimum lease payments.

General Leasing finance Business Terms

A method of acquiring business equipment without capital outlay. the bank or finance company buys the equipment and leases it to the customer, in return for regular rental payments for the duration of the lease period.

General Less than Truckload Business Terms (LTL)

Refers to shipments of relatively small amounts of freight, typically between 100 and 10,000 pounds. It usually involves slower freight times than full truckload shipping.

General Lessee Business Terms

A person who enters into a lease contract as the user of the land, buildings, plant or equipment.

General Lesser Developed Business Terms Countries

This is a form of categorization in economic growth for the countries that are just beginning to industrialize.

General A letter issued by an importerâ&#x20AC;&#x2122;s bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of Letter of Credit (L/C) lading, inspection and insurance certificates, etc.). Business Terms

The lead investment bank in a syndicate selling a public securities offering.

Page 84 of 149

Encyclopedia General Business Terms (1296 Terms)

General Letter of Intent Business Terms

A document describing the preliminary understanding between parties intending to join together in some sort of action or engage in a contract.

General Leveraged Buy-Out Business Terms (LBO)

A type of purchase of a business that relies heavily on the ventureâ&#x20AC;&#x2122;s cash receipts with expectations of positive cash flow continuing based on historical or other performance indicators.

General Leveraged Lease Business Terms

The lessor provides an equity portion (usually 20 to 40 percent) of the equipment cost and lenders provide the balance on a nonrecourse debt basis.

General Liabilities Business Terms

Debts; money that must be paid. Usually debt on terms of less than five years is called short-term liabilities, and debt for longer than five years in long-term liabilities.

General Liberalization Business Terms

The process by which certain business activities become more market driven.

General License Agreement Business Terms

A sales agreement in which a domestic company (the licensor) allows a foreign company (the licensee) to market its products in a foreign country in return for royalties, fees, or other forms of compensation.

General Licensing Business Terms

One firm gives another firm a permission, which allows the latter to engage in an activity otherwise legally forbidden to it. Such activities usually involve the transfer of intellectual and proprietary knowledge in return for royalty as revenue.

General Life cycle Business Terms

A model depicting the sales volume cycle of a single product, brand, service or a class of products or services over time described in terms of the four phases of introduction, growth, maturity and decline.

General Limited (public) Business Terms company (AUS)

(Australia) A public Limited Company is one where the right to transfer shares and the number of members is not limited. In addition, the company may invite the public to subscribe for its shares and, to deposit money with the company.

Page 85 of 149

Encyclopedia General Business Terms (1296 Terms)

Limited Flexibility General Exchange Rate Business Terms System

The International Monetary Fundâ&#x20AC;&#x2122;s name for an exchange rate system with a managed float.

General Limited Liability Business Terms Company (LLC)

The LLC form is different for different states, with some real advantages in some states that arenâ&#x20AC;&#x2122;t relevant in others. An LLC is usually a lot like an S corporation, a combination of some limitatiuon on legal liability and some favorable tax treatment for profits and transfer of assets. This is a newer form of legal entity, and often harder to establish than a corporation. Why would you establish an LLC instead of a corporation? Thatâ&#x20AC;&#x2122;s a tough legal question, not one we can answer here. In general, the LLC has to be missing two of the four characteristics of a corporation (limited liability, centralized management, continuity of life, and free transferability of ownership interest). Still, with the advisability and advantages varying from state to state, here again, this is a question to take to a good local attorney with small business experience.

Limited liability General partnership (U.S., Business Terms UK, Japan)

A form of business organization combining elements of partnerships and corporations, in which both managing and nonmanaging partners are protected from liability to some degree, and have a different tax liability than in a corporation. Although this form of business is available in the U.S., the UK, and Japan, legal details of forming and operating such a company vary from one country to another, and by state within the U.S.

General Limited partnership Business Terms

A legal partnership where some owners are allowed to assume responsibility only up to the amount invested.

General Liquid Market Business Terms

A market in which traders can buy or sell large quantities of an asset when they want and with low transactions costs.

General Liquidate Business Terms

To settle a debt or to convert to cash. This literally means to do away with.

General Liquidator Business Terms

a qualified person appointed by a court to close down a business that is a proprietary company and realise and distribute its assets in payment of its liabilities.

Page 86 of 149

Encyclopedia General Business Terms (1296 Terms)

General Liquidity Business Terms

The ease with which an asset can be exchanged for another asset of equal value.

General Liquidity ratio Business Terms

A comparison of two accounts in a Balance Sheet, current assets divided by current liabilities.

General Loan Business Terms

Money lent at interest. A lender makes a "loan" with the idea that it will be paid back as agreed and that interest will be paid for the use of the money.

General Loanable funds Business Terms

The pool of funds from which borrowers can attract capital; typically categorized by currency and maturity.

General Location-specific Business Terms advantages

Advantages (natural and created) that are available only or primarily in a single location.

General Lombard Rate Business Terms

The rate of interest changed by the Bundesbank, Germanyâ&#x20AC;&#x2122;s central bank, to loans backed by moveable, easily-sold assets.

General London Interbank Business Terms Offer Rate (LIBOR)

The offer rate that a Euromarket bank demands in order to place a deposit at or make a loan to another Euromarket bank in London.

General Long Position Business Terms

A position in which a particular asset (such as a spot or forward currency) has been purchased.

General Long-term assets Business Terms

Assets like plant and equipment that are depreciated over terms of more than five years, and are likely to last that long, too.

Page 87 of 149

Encyclopedia General Business Terms (1296 Terms)

General Long-term interest Business Terms rate

The interest rate charged on long-term debt.

General Long-term liabilities Business Terms

This is the same as long-term loans. Most companies call a debt long-term when it is on terms of five years or more.

General Loss Business Terms

Loss is an accounting concept, the exact opposite of profit, normally the bottom line of the Income Statement, which is also called Profit or Loss statement. Start with sales, subtract all costs of sales and all expenses, and that produces profit before tax. Subtract tax to get net profit. If the end result is negative, then instead of profit it is called loss.

General Loss of profits Business Terms insurance

Insurance to cover loss of profits incurred by the policyholder in the event of some calamity overtaking the policyholderâ&#x20AC;&#x2122;s business, so that trading has to cease.

General Loyalty programs Business Terms

Activities designed to encourage repeat purchasing through a formal program enrollment process and the distribution of benefits. Loyalty programs may also be referred to as frequency marketing.

General Lump of Labor Business Terms Fallacy

The fallacious argument which, working on the assumption that there is only a fixed amount of work in the world, says that an increasing population will inevitably lead to increasing unemployment. This argument is often used by governments as reasoning behind reducing the workweek to reduce unemployment.

General Maastricht Treaty Business Terms

The treaty, formally known as the Treaty on European Union, signed in 1992, that led to the unification of many European countries. The treaty changed the name of the European Community (EC) to the European Union (EU) and led to the creation of a monetary union with a European Central bank, political and military integration, common foreign policy, and common citizenship among member countries.

General Macro Country Risks Country (or political) risks that affect all foreign firms in a host country. Business Terms

Page 88 of 149

Encyclopedia General Business Terms (1296 Terms)

General Management Business Terms

The role of conducting and supervising a business.

General Management Business Terms Contract

An agreement by which one firm allows another to manage its foreign activities on behalf of it. The managing firm is forbidden to make capital investment or financing decisions.

General Managerial Flexibility Flexibility in the timing and scale of investment provided by a real investment option. Business Terms

General Manifest Business Terms

General An agent who typically operates on an extended contractual basis, often sells in an exclusive territory, offers non-competing Manufacturerâ&#x20AC;&#x2122;s agent but related lines of goods, and has defined authority regarding prices and terms of sale. Business Terms

General Maquiladoras Business Terms

Duty-free assembly plants located mainly in the developing world. Maquiladoras are one type of foreign direct investment.

General Margin Business Terms

The difference between the selling price and the purchase price of an item usually expressed as a percentage of the selling price. Compare mark-up.

General Margin Account Business Terms

An account maintained by an investor with a brokerage firm in which securities may be purchased by borrowing a portion of the purchase price from the brokerage, or may be sold short by borrowing the securities from the brokerage firm.

General Margin Requirement Business Terms

A performance bond paid upon purchase of a futures contract that ensures the exchange clearinghouse against loss.

Document that lists in detail al the bills of lading issued by a carrier of its agent or master (i.e. a detailed summary of the total cargo of a vessel).

Page 89 of 149

Encyclopedia General Business Terms (1296 Terms)

General Market Business Terms

Prospective buyers, individuals or organizations, willing and able to purchase the organizationâ&#x20AC;&#x2122;s potential offering.

General Market Access Business Terms

The extent to which a domestic industry can penetrate a related market in a foreign country. Access can be limited by tariffs or other non-trade barriers.

General Market development Business Terms funds

The monetary resources a company invests to assist channel members increase volume sales of their products or services. Hereafter referred to by the acronym MDF.

General Market development Business Terms strategy

A product-market strategy whereby an organization introduces its offerings to markets other than those it is currently serving. In global marketing, this strategy can be implemented through exportation licensing, join ventures or direct investment.

General Market Economy Business Terms

An economy in which resource allocations, prices and other marketing decisions are primarily determined by the free market.

General Market evolution Business Terms

Changes in primary demand for a product class and changes in technology.

General Market Failure Business Terms

A failure of arms-length markets to efficiently complete the production of a good or service. In the eclectic paradigm, the multinational corporationâ&#x20AC;&#x2122;s market internalization advantages take advantage of market failure.

General Market Internalization Advantages that allow the multinational corporation to internalize or exploit the failure of an arms-length market to efficiently accomplish a task. Business Terms Advantages

General Market Maker Business Terms

A financial institution that quotes bid (buy) and offer (sell) prices.

Page 90 of 149

Encyclopedia General Business Terms (1296 Terms)

General Market Model Business Terms

Also known as the one-factor market model. The empirical version of the security market line: Rj = aj + bjRM + ej.

General Market penetration Business Terms strategy

A product market strategy hereby an organization seeks to gain greater dominance in a market in which it already has an offering. This strategy often focuses on capturing a larger share of an existing market.

Market plan: its General purpose and Business Terms components

Often found within the business plan, the market plan provides details regarding the overall marketing strategy, pricing, sales tactics, service and warranty policies, advertising and promotion and distribution plans for the venture.

General Market Portfolio Business Terms

A portfolio of all assets weighted according to their market values.

General Market redefinition Business Terms

Changes in the offering demanded by buyers or promoted by competitors to enhance its perception and associated sales.

General Market Risk Premium The risk premium on an average stock; (E[RM]-RF). Business Terms

General Market sales potential The maximum level of sales that might be available to all organizations serving a defined market in a specific time period. Business Terms

General The categorization of potential buyers into groups based on common characteristics such as age, gender, income, and Market segmentation geography or other attributes relating to purchase or consumption behavior. Business Terms

General Market share Business Terms

Total sales of an organization divided by the sales of the market they serve.

Page 91 of 149

Encyclopedia General Business Terms (1296 Terms)

General Market Timing Business Terms

An investment strategy of shifting among asset classes in an attempt to anticipate which asset class(es) will appreciate or depreciate during the coming period.

Market-based General Corporate Business Terms Governance System

A system of corporate governance in which the supervisory board represents a dispersed set of largely equity shareholders.

General Marketing Business Terms

The set of planned activities designed to positively influence the perceptions and purchase choices of individuals and organizations.

General Marketing audit Business Terms

A comprehensive and systematic examination of a company’s or business unit’s marketing environment, objectives, strategies, and activities with a view of identifying and understanding problem areas and opportunities, and recommending a plan of action.

General Marketing cost Business Terms analysis

Assigning or allocating costs to a specified marketing activity or entity in a manner that accurately captures the financial contribution of activities or entities to the organization.

General Marketing Mix Business Terms

The set of marketing tools that the firm uses to pursue its marketing objectives in the target market. One of the most popular classifications of marketing mix tools is called the

General Marketing plan Business Terms

A written document containing description and guidelines for an organization’s or a product’s marketing strategies, tactics and programs for offering their products and services over the defined planning period, often one year.

General Marketing strategy Business Terms

A business’ approach to marketing its products/ services expresses in broad terms, which forms the basis for developing a marketing plan.

General Marketing-cost Business Terms analysis

Assigning or allocating costs to a specified marketing activity or entity in a manner that accurately captures the financial contribution of activities or entities to the organization.

Page 92 of 149

Encyclopedia General Business Terms (1296 Terms)

General Marking to Market Business Terms

The process by which changes in the value of futures contracts are settled daily.

General Mark-up Business Terms

The price increase between buying at wholesale and selling at retail often expressed as a percentage of the wholesale or cost price. Compare margin.

General Matchmaker Program or new to the market to meet prescreened business prospects in foreign markets who are interested in their products or Business Terms services.

General Materials Business Terms

Included in the cost of sales. These are materials involved in the assembly or manufacture of goods for sale.

General Maturity Date Business Terms

The date on which the last payment on a bond is due.

General Mean-variance Business Terms Efficient

An asset that has higher mean return at a given level of risk (or lower risk at a given level of return) than other assets.

General Memorandum of Business Terms association

A legal document that lays down the objects of a registered company and details of the regulation of the companyâ&#x20AC;&#x2122;s business dealings. It is one of the two fundamental documents upon which registration of any company is based. See articles of association.

General Merchandising Business Terms

Trading in a range of goods. Promoting the whole range of goods that are sold in a business.

General MERCOSUR Business Terms

The â&#x20AC;&#x153;common market of the South,â&#x20AC;? a customs union which includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela in a regional trade pact that reduces tariffs on intrapact trade by up to 90 percent. Bolivia, Chile, Colombia, Ecuador and Peru are associate members.

A service organized by the United States International Trade Administration, this program aids firms that are new to exporting

Page 93 of 149

Encyclopedia General Business Terms (1296 Terms)

General Merger Business Terms

A form of corporate acquisition in which one firm absorbs another and the assets and liabilities of the two firms are combined.

General Method of Payment Business Terms

The way in which a merger or acquisition is financed.

General Micro Country Risks Business Terms

Country risks that are specific to an industry, company, or project within a host country.

General Microcredit Business Terms

Small loans, perhaps $50 or $100, that are extended to small businesses to finance a business start-up or other business activity.

General Middle Market Business Terms

A market segment generally represented by financing under $2 million. In leasing this sector is dominated by single investor leases.

Miller and General Modiglianiâ&#x20AC;&#x2122;s Business Terms Irrelevance Proposition

If financial markets are perfect, then corporate financial policy (including hedging policy) is irrelevant.

General Mission statement Business Terms

A statement that captures an organizationâ&#x20AC;&#x2122;s purpose, customer orientation and business philosophy.

General Mixed Tariff Business Terms

A combination of specific and ad valorem tariffs.

General Monetary Assets and Assets and liabilities with contractual payoffs. Business Terms Liabilities Page 94 of 149

Encyclopedia General Business Terms (1296 Terms)

General Money Market Hedge A hedge that replicates a currency forward contract through the spot currency and Eurocurrency markets. Business Terms

General Money Market Yield Business Terms

A bond quotation convention based on a 360-day year and semiannual coupons (contrast with bond equivalent yield).

General Money Markets Business Terms

Financial markets for debt securities that pay off in the short term (usually less than one year).

General Money Supply Business Terms

The total amount of currency in circulation and peso deposits subject to check of the monetary system.

General Monopoly Business Terms

Exclusive control or possession by one group of the means of producing or selling goods or services.

More Flexible General Exchange Rate Business Terms System

The International Monetary Fundâ&#x20AC;&#x2122;s name for a floating exchange rate system.

General Mortgagee Business Terms

the organisation or person to whom the property is mortgaged. In the case of a bank loan, the organisation is usually the bank.

General Mortgagor Business Terms

A person who mortgages a property.

General Most Favored Nation A status granted to one country by another; the granting country then accords the recipient's imports and exports the most favorable treatment that it accords any country. Business Terms (MFN) Page 95 of 149

Encyclopedia General Business Terms (1296 Terms)

General Moving weighted Business Terms average

Moving weighted average is a statistical method to forecast the future based on past results. It is a subset of time series analysis. Detailed explanation goes beyond the scope of a glossary of terms, but should be included in any text on forecasting, statistics, or business forecasting.

Multilateral General Environmntal Business Terms Agreements (MEAs)

Environmental agreements negotiated by a number of countries.

Multilateral General Investment Business Terms Guarantee Agency (MIGA)

One of the five institutions comprising the World Bank Group; MIGAâ&#x20AC;&#x2122;s purpose is to help encourage equity investment and other kids of direct investment flow into developing countries.

General Multinational Business Terms Corporation (MNC)

A corporation with operations in more than one country.

General Multinational Netting Business Terms

Elimination of offsetting cash flows within the multinational corporation.

General Multiple-channel Business Terms system

A channel of distribution that uses a combination of direct and indirect channels where the channel members serve different segments.

General Mutually Exclusive Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects. Business Terms Investment Decisions

General National Tax Policy Business Terms

The way in which a nation chooses to allocate the burdens of tax collections across its residents.

General National Treatment Business Terms

A country accords no less favorable treatment to imported goods than it does to domestic goods.

Page 96 of 149

Encyclopedia General Business Terms (1296 Terms)

General Nationalization Business Terms

A process whereby privately owned companies are brought under state ownership and control (contrast with privatization).

General Natural Advantage Business Terms

Theory in economics that certain countries have a competitive advantage in certain products due to their access to specific natural resources, their climactic conditions, or their transportation system.

General Negative gearing Business Terms

Is when an investment is purchased with the assistance of borrowed funds and where the income from that investment (after the deduction of expenses) is less than the interest commitment in the course of a year

General Negative-NPV Tie-in A negative net present value infrastructure development project that a local government requires of a company pursuing a positive-NPV investment project elsewhere in the economy. Business Terms Project

General Net Business Terms

What is left after deducting all charges (see gross).

General Net Asset Value Business Terms (NAV)

The sum of the individual asset values in a closed-end mutual fund. Closed-end funds can sell at substantial premiums or discounts to their net asset values.

General Net cash flow Business Terms

This is the projected change in cash position, an increase or decrease in cash balance.

General Net Currency Business Terms Exposure

Exposure to foreign exchange risk after netting all intracompany cash flows.

General Net Exposed Assets Business Terms

Exposed assets less exposed liabilities. The term is used with market values or, in translation accounting, with book values.

Page 97 of 149

Encyclopedia General Business Terms (1296 Terms)

General Net Monetary Assets Monetary assets less monetary liabilities. Business Terms

General Net Position Business Terms

A currency position after aggregating and canceling all offsetting transactions in each currency, maturity, and security.

General Net Present Value Business Terms (NPV)

The method of discounting future streams of income using an expected rate of return to evaluate the current value of expected earnings. It calculates future value in todayâ&#x20AC;&#x2122;s dollars. NPV may be used to determine the current value of a business being offered for sale or capitalized.

General Net profit Business Terms

The operating income less taxes and interest. The same as earnings, or net income.

General Net profit margin Business Terms before taxes

The remainder after cost of goods sold, other variable costs revenue, or simply, total revenue minus total cost. Net profit margin can be expressed in actual monetary values or percentage terms.

General Net Working Capital Business Terms

Current assets minus current liabilities.

General Net worth Business Terms

This is the same as assets minus liabilities, and the same as total equity. Other short-term assets These might be securities, business equipment, etc.

General New Protectionism Business Terms

Recent efforts to pressure national governments to exercise greater control over foreign trade and foreign direct investment.

General New visitors Business Terms

In online marketing, a website visitor who has not made any previous visits to the site or page in question.

Page 98 of 149

Encyclopedia General Business Terms (1296 Terms)

General New-brand strategy Business Terms

The development of a new brand and often a new offering for a product class that has not been previously served by the organizations.

General Newly Industrializing Business Terms Countries (NIC)

A group of former LDC countries who, due to high levels of economic growth, have grown rapidly in recent years.

General Newsletter Business Terms subscriptions

In online marketing, a conversion value measuring the number of users who voluntarily include themselves in your database and are willing to accept unsolicited email from you.

General New-to-export (NTE) for first time in twenty-four months, or has only exported to because of prior unsolicited orders. Export assistance is available to Business Terms companies with this classification.

General New-to-market (NTM) has not exported to for the past twenty-four months, or has only exported to because of prior unsolicited orders. Assistance is Business Terms available to companies with this classification.

General Niche Business Terms

A small specialised segment of a total market.

General Nominal Cash Flow Business Terms

A cash flow expressed in nominal terms if the actual dollars to be received (or paid out) are given.

General Nominal Interest Rate Interest rate unadjusted for inflation. Business Terms

General Noncash Item Business Terms

The name of the circumstances of a company that either engages in export activities for the first time, engages in exportation

The name of the circumstances under which a company exports to a foreign market in which it has either never exported to,

Expense against revenue that does not directly affect cash flow, such as depreciation and deferred taxes.

Page 99 of 149

Encyclopedia General Business Terms (1296 Terms)

Non-governmental General Organizations Business Terms (NGOs)

Special interest groups that operate in the global community.

General Nonintermediated Business Terms Debt Market

A financial market in which borrowers (governments and large corporations) appeal directly to savers for debt capital through the securities markets without using a financial institution as intermediary.

General An economy in which the government, through the use of central planning, makes most economic decisions to control Non-market Economy economic activity. Business Terms

General Nonmonetary Assets Assets and liabilities with noncontractual payoffs. Business Terms and Liabilities

General Non-tariff Barrier Business Terms

An indirect measure used to discriminate against foreign manufacturers, for example, extensive inspection procedures for foreign imports that create barriers to entering the market.

General Nordic Council Business Terms

A regional alliance established in 1952 between Norway, Sweden, Finland, Denmark, and Iceland that is dedicated to cooperation among the Nordic countries. This has led to a common labor market, social security, and free movement of citizens across borders.

General Normal Distribution Business Terms

Symmetric bell-shaped frequency distribution that can be defined by its mean and standard deviation.

General Normal Trade Business Terms Relations (NTR)

New name for Most Favored Nation (MFN) trading status, in which the country which grants this status accords the recipient's imports and exports the most favorable treatment that it accords any country.

North American Free General NAFTA is a regional trade pact among the United States, Canada, and Mexico. Trade Agreement Business Terms (NAFTA) Page 100 of 149

Encyclopedia General Business Terms (1296 Terms)

General North-south Trade Business Terms

A name for trade between developed (northern) and less developed countries (southern).

General Not Invented Here Business Terms (NIH)

A negative response to innovations and inventions from sources outside the venture’s own research and development activities.

General Not negotiable Business Terms

Words often written on crossed cheques, which do not prevent the cheque from being transferred. See account payee only.

General Notional Principal Business Terms

In a swap agreement, a principal amount that is only “notional” and is not exchanged.

General Obligations incurred Business Terms

Business costs or expenses that need to be paid, but wait for a time as Accounts payable (Bills to be paid as part of the normal course of business) instead of being paid immediately.

General Offer Rates Business Terms

The rate at which a market maker is willing to sell the quoted asset. Also known as ask rates.

General Offering Business Terms

The total benefits or satisfaction provided to target markets by an organization. An offering consists of a tangible product or service plus related services such as installation, repair, warranties or guarantees, packaging, technical support, field support, and other services.

General Offering mix or Business Terms portfolio

The complete array of an organization’s offerings including all products and services.

General Offering Statement Business Terms

In the United States, a shortened registration statement required by the Securities and Exchange Commission on debt issues with less than a 9-month maturity.

Page 101 of 149

Encyclopedia General Business Terms (1296 Terms)

General Official receiver Business Terms

A person appointed to investigate and manage the affairs of a company in receivership

General Official Settlements Business Terms Balance

An overall measure of a countryâ&#x20AC;&#x2122;s private financial and economic transactions with the rest of the world. Also known as overall balance.

General Offshore Financial Business Terms Centers (OFCs)

The many types of financial institutions that operate without financial supervision by governments or other agencies.

General Oligopoly Business Terms

A market dominated by so few sellers that action by any of them will impact both the price of the good and the competitors.

General On-costs Business Terms

(Australia): Labor costs in addition to salaries and wages; that is, payroll tax, workersâ&#x20AC;&#x2122; compensation and other liability insurance, the cost of subsidized services to employees, training costs, etc.

General Open Account Business Terms

The seller delivers the goods to the buyer and then bills the buyer according to the terms of trade.

General Open and Reform Business Terms Policy

An economic policy enacted by the Chinese government combining central planning with market-oriented reforms to increase productivity, living standards, and technological quality without exacerbating inflation, unemployment, and budget deficits, with the goal of moving from a centrally-planned economy to a market-based one.

General Open-end Fund Business Terms

A mutual fund in which the amount of money under management grows/shrinks as investors buy/sell the fund.

General Earnings before interest and depreciation minus taxes. It measures the cash flow generated from operations, not counting Operating Cash Flow capital spending or working capital requirements. Business Terms Page 102 of 149

Encyclopedia General Business Terms (1296 Terms)

General Operating expenses Business Terms

Expenses incurred in conducting normal business operations. Operating expenses may include wages, salaries, administrative and research and development costs, but excludes interest, depreciation, and taxes.

General Operating Exposure Business Terms

Changes in the value of real (nonmonetary) assets or operating cash flows as a result of changes in currency values.

General Operating Leverage Business Terms

The trade-off between fixed and variable costs in the operation of the firm.

General Market efficiency with respect to how large an influence transactions costs and other market frictions have on the operation of Operational Efficiency a market. Business Terms

General Operations control Business Terms

The practice of assessing how well an organization performs marketing activities as it seeks to achieve planned outcomes.

General Opportunities vs. Business Terms ideas

Ideas are the basis of potential business opportunities. Good ideas do not necessarily represent good opportunities (that is, actual business opportunities).

General Opportunity analysis Business Terms

The process of identifying and exploring revenue enhancement or expense reduction situations to better position the organization to realize increased profitability, efficiencies, market potential or other desirable objectives.

General Opportunity cost Business Terms

Resource use options that are given up as a consequence of pursuing one activity among several possibilities. Potential benefits foregone as a result of choosing an alternative course of action.

General Opportunity Set Business Terms

The set of all possible investments.

Page 103 of 149

Encyclopedia General Business Terms (1296 Terms)

General Option Business Terms

an agreement, often for a consideration, which permits the purchase or sale of something within a stipulated time, in accordance with the terms of the agreement. For example, a right by a tenant to take up a further lease of premises, usually under conditions outlined in the original lease.

General Orderly Marketing Business Terms Agreements

Agreements between two or more governments to hold back the growth of trade for certain products by limiting exports and imposing import quotas.

Organization for General Economic A group of 30 countries that meets regularly to discuss global issues and make appropriate economic and social policies. Business Terms Cooperation and Development (OECD)

Organization of General American States Business Terms (OAS)

A regional organization created in 1948 promoting the economic and social development of Latin America. Members include the U.S., Mexico, most of South and Central America, and most of the Caribbean nations.

Organization of General Petroleum Exporting Business Terms Countries (OPEC)

A producer cartel that produces and sells oil.

General Original Equipment Business Terms Manufacturer (OEM)

The process that is facilitated through licensing or other financial arrangements where the initial producer of a product or service enters into an agreement to allow another entity to include, remanufacture, or label products or services under their own name and sell through their distribution channels. It typically results in a “higher volume, lower margin” relationship for the original producer, and offers access to a broader range of products and services the buyer can offer their consumers at more attractive costs.

General Other ST liabilities Business Terms

These are short-term debts that don’t cause interest expenses. For example, they might be loans from founders or accrued taxes (taxes owed, already incurred, but not yet paid).

General Out-of-the-money Business Terms option

An option that has no value if exercised immediately.

Page 104 of 149

Encyclopedia General Business Terms (1296 Terms)

General Outright Quote Business Terms

A quote in which all of the digits of the bid and offer prices are quoted (contrast with points quote).

General Outsourcing Business Terms

A situation in which a firm's functions are performed or provided by a person or group from outside the company.

General Outward Swap Business Terms

Purchasing foreign currency today and reselling it at a forward rate against the domestic currency.

General Overall FTC Business Terms Limitation

In the U.S. tax code, a limitation on the FTC equal to foreign-source income times U.S. tax on worldwide income divided by worldwide income.

General Overdraft Business Terms

A form of loan by which a person with a trading bank current account is given permission to continue making drawings on the account up to an agreed limit, after the balance has been reduced to nil.

General Overhead Business Terms

Expenses which are incurred in producing a commodity or rendering a service, but which cannot conveniently be attributed to individual units of production or service. Examples are heating, lighting etc.

Overseas Private General Investment Business Terms Corporation (OPIC)

A US agency that assists US companies protect their investment against risk in a particular country besides providing other services.

General Ownership-specific Business Terms Advantages

Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology and management, and general organizational abilities, that form the basis for the multinationalâ&#x20AC;&#x2122;s advantage over local firms.

General Packing List Business Terms

Document listing the contents of a consignment of goods. May be called for on a letter of credit.

Page 105 of 149

Encyclopedia General Business Terms (1296 Terms)

General Page views Business Terms

In online marketing, a request for a file whose type is defined as a page in log analysis. This is generally what people mean when they talk about Web page “hits,” but is a more accurate way of tracking this metric because of the way log analysis works. A single page view (one visitor looking at one page) may generate multiple “hits” in log analysis, as all the resources required to view the page (images, .js and .css files) are also requested from the Web server.

General Paid-in capital Business Terms

Real money paid into the company as investments. This is not to be confused with par value of stock, or market value of stock. This is actual money paid into the company as equity investments by owners.

General Paid-up-capital Business Terms

The total capital of a company. It comprises both shares issued for cash or for acquisition of assets and bonus shares.

General Parallel Loan Business Terms

A loan arrangement in which a company borrows in its home currency and then trades this debt for the foreign currency debt of a foreign counterpart.

General Partnership Business Terms

Form of business organization in which two or more co-owners form a business. In a general partnership each partner is liable for the debts of the partnership. Limited partnership permits some partners to have limited liability.

General Passive Income Business Terms

In the U.S. tax code, income (such as investment income) that does not come from active participation in a business.

General Patent Business Terms

A government grant that gives inventors exclusive right of making, using, or selling the invention.

General Pay As You Go Business Terms (PAYG) instalments

are the amounts you pay directly to the Commissioner of Taxation to meet your income tax and other liabilities and are usually paid each quarter.

Page 106 of 149

Encyclopedia General Business Terms (1296 Terms)

General Payables Business Terms

Short for Account Payables; Bills to be paid as part of the normal course of business. This is a standard accounting term, one of the most common liabilities, which normally appears in the Balance Sheet listing of liabilities. Businesses receive goods or services from a supplier, receive an invoice, and until that invoice is paid the amount is recorded as part of â&#x20AC;&#x153;Accounts Payable.â&#x20AC;?

General Payback period Business Terms

The number of years required for an organization to recapture an initial investment. This may apply to an entire business operation or an individual project.

General particular cutoff period are accepted, and all those that pay off in more than the particular cutoff period are rejected. The Payback Period Rule payback period is the number of years required for a firm to recover its initial investment required by a project from the cash Business Terms

An investment decision rule which states that all investment projects that have payback periods equal to or less than a

flow it generates.

General Payee Business Terms

Person to whom money is paid

General Payment days Business Terms

The average number of days that pass between receiving an invoice and paying it. It is not a simple estimate; it is calculated with a financial formula: =(Accounts_payable_balance*360)/(Total entries to accounts payable*12)

General Payment delay Business Terms

The number of days on average a business waits between receiving a bill and paying a bill. Also called payment days.

General Payoff Profile Business Terms

A graph with the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Also used with changes in value (contrast with risk profile).

General Payout Ratio Business Terms

Proportion of net income paid out in cash dividends.

General Payroll Business Terms

Wages, salaries, employee compensation.

Page 107 of 149

Encyclopedia General Business Terms (1296 Terms)

General Payroll burden Business Terms

Payroll burden includes payroll taxes and benefits. It is calculated using a percentage assumption that is applied to payroll. For example, if payroll is $1,000 and the burden rate is 10 percent, the burden is an extra $100. Acceptable payroll burden rates vary by market, by industry, and by company.

General Pegged Exchange Business Terms Rate System

The International Monetary Fundâ&#x20AC;&#x2122;s name for a fixed exchange rate system.

General Penetration pricing Business Terms strategy

Setting a relatively low initial price for a new product or service.

General Pension Liabilities Business Terms

A recognition of future liabilities resulting from pension commitments made by the corporation. Accounting for pension liabilities varies widely by country.

General Perceived risk Business Terms

The extent to which a customer or client is uncertain about the consequences of an action, often relating to purchase decisions.

General Perceptual map Business Terms

A two or three-dimensional illustration of customerâ&#x20AC;&#x2122;s perceptions of competing products comparing select attributes based on market research.

General Perfect Market Business Terms Assumptions

A set of assumptions under which the law of one price holds. These assumptions include frictionless markets, rational investors, and equal access to market prices and information.

General Peril Point Business Terms

The limit beyond which the reduction of tariff protection in a given industry would cause it serious injury.

General Periodic Call Auction A trading system in which stocks are auctioned at intervals throughout the day. Business Terms Page 108 of 149

Encyclopedia General Business Terms (1296 Terms)

General Perpetuity Business Terms

A constant stream of cash flows without end. A British consol is an example.

General Personal assets Business Terms

the money you have in the bank, whatever is owed to you, any securities (shares) that you own, the property you own, whatever part of your home that you own, your furniture and appliances and all the miscellaneous things that you personally own.

General Personal selling Business Terms

The use of face-to-face communication between the seller and buyer.

General Personnel Business Terms

Persons collectively in the employ of a business.

General Petty cash Business Terms

A small amount of money kept for minor purchases for the business, which do not warrant writing a cheque.

General Phytosanitary Business Terms Measure

A piece of legislation, regulation, or procedure with the purpose of preventing the introduction or spread of pests. Phytosanitary procedures often include the performance of inspections, tests, surveillance, or other treatments.

General This is the same as long-term, fixed, or capital assets. These are generally assets that are depreciated over terms of more Plant and equipment than five years, and are likely to last that long, too. Business Terms

General Point of Purchase Business Terms (POP) advertising

A retail in-store presentation that displays product and communicates information to retail consumers at the place of purchase.

General Points Quote Business Terms

An abbreviated form of the outright quote used by traders in the interbank market.

Page 109 of 149

Encyclopedia General Business Terms (1296 Terms)

General Political Risk Business Terms

The risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. Political risk includes both macro and micro risks.

Political, Economic, General and Social Trends Business Terms (PEST) analysis

PEST is a popular framework for situation analysis, looking at political, economic, and social trends. Analyzing these factors can help generate marketing ideas, product ideas, etc.

General Pooling Business Terms

In logistics, pooling is when a group of carriers agree to share freight, customers, and revenues or profits. In the U.S. it is outlawed by the Interstate Commerce Act.

General Portfolio Business Terms

Combined holding of more than one stock, bond, real estate asset, or other asset by an investor.

General Positioning Business Terms

Orchestrating an organizationâ&#x20AC;&#x2122;s offering and image to occupy a unique and valued place in the customerâ&#x20AC;&#x2122;s mind relative to competitive offerings. A product or service can be positioned on the basis of an attribute or benefit, use or application, user, class, price, or quality.

General Posting Business Terms

Making entries in an account system or book from original documents such as invoices and receipts.

General Power Distance Business Terms

The extent to which a society accepts hierarchical differences.

General Power of attorney Business Terms

Power to act on behalf of another person for specified purposes.

General Predatory Pricing Business Terms

It is a form of price discrimination that requires selling below cost with the intention of destroying competition. However, predatory pricing is against the law.

Page 110 of 149

Encyclopedia General Business Terms (1296 Terms)

General Premium Business Terms

If a bond is selling above its face value, it is said to sell at a premium.

General Present Value Business Terms

The value of a future cash stream discounted at the appropriate market interest rate.

General Present Value Factor Factor used to calculate an estimate of the present value of an amount to be received in a future period. Business Terms (PVF)

General Price Elasticity of Business Terms Demand

The sensitivity of quantity sold to a percentage change in price; -%changeQ/%changeP.

General Price Uncertainty Business Terms

Uncertainty regarding the future price of an asset.

General Principal Business Terms

In the case of a loan, refers to the actual amount borrowed and on which interest is paid.

General Private Placement Business Terms

A securities issue privately placed with a small group of investors rather than through a public offering.

General Privately owned Business Terms

1) A company whose shares are not publicly traded on a stock market. Such companies usually have less restrictive reporting requirements than publicly traded companies. 2) A company which is not owned by the government (state owned).

General Privatization Business Terms

A process whereby publicly owned enterprises are sold to private investors (contrast with nationalization).

Page 111 of 149

Encyclopedia General Business Terms (1296 Terms)

General Pro forma income Business Terms statement

A projected Income Statement. Pro forma in this context means projected. An income statement is the same as a profit and loss statement, a financial statement that shows sales, cost of sales, gross margin, operating expenses, and profits.

General Pro Forma Invoice Business Terms

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications.

General Financial statements that project the results of future business operations. Examples include a pro forma balance sheet, a pro Pro forma statements forma income statement, and a pro forma cash flow statement. Business Terms

General Pro rata Business Terms

General Product cycle theory views the products of the successful firm as evolving through 4 stages: (1) infancy, (2) growth, (3) Product Cycle Theory maturity, and (4) decline. Business Terms

General Product definition Business Terms

General Expenses incurred in development of new products (salaries, laboratory equipment, test equipment, prototypes, research and Product development development, etc.). Business Terms

General Product development A product-market strategy whereby an organization creates new offerings for existing markets innovation, product augmentation, or product line extensions. Business Terms strategy

General Product Life Cycle Business Terms (PLC)

In proportion.

A stage in a new product development process in which concepts are translated into actual products for additional testing based on interactions with customers.

The phases of the sales projections or history of a product or service category over time used to assist with marketing mix decisions and strategic options available. The four stages of the product life cycle include introduction, growth, maturity, and decline, and typically follow a predictable pattern based on sales volume over a period of time.

Page 112 of 149

Encyclopedia General Business Terms (1296 Terms)

General Product line Business Terms

General Production The maximum amount of goods (for example, food and clothing) that a country is able to produce given its labor supply. Business Terms Possibilities Schedule

General Production Sharing Business Terms

Production sharing occurs when a producer chooses to make a product in stages - and in different countries - so that the firm can employ the lowest-cost resources in the production process.

General Product-line pricing Business Terms

The setting of prices for all items in a product line involving the lowest-priced product price, the highest price product, and price differentials for all other products in the line.

General Profit Business Terms

Profit is an accounting concept, normally the bottom l;ine of the Income Statement, which is also called Profit or Loss statement. Start with sales, subtract all costs of sales and all expenses, and that produces profit before tax. Subtract tax to get net profit.

General Profit and loss Business Terms statement

Statement of revenue and expenses showing the profit or loss for a certain period of time.

General Profit before interest Business Terms and taxes

This is also called EBIT, for Earnings Before Interest and Taxes. It is gross margin minus operating expenses.

General Profit margin Business Terms

The amount that the price of a product or service is raised above its cost in order to provide a gross profit.

General Profitability Index Business Terms

A method used to evaluate projects. It is the ratio of the present value of expected future cash flows after initial investment divided by the amount of the initial investment.

A group of closely related products with similar attributes or target markets.

Page 113 of 149

Encyclopedia General Business Terms (1296 Terms)

General Pro-forma invoice Business Terms

General Progressive Taxation A convex tax schedule that results in a higher effective tax rate on high income levels than on low-income levels. Business Terms

General Project Financing Business Terms

A way to raise nonrecourse financing for a specific project characterized by the following: (1) the project is a separate legal entity and relies heavily on debt financing and (2) the debt is contractually linked to the cash flow generated by the project.

General Projection Business Terms

A forecast of future trends in the operation of a business.

General Promissory Note Business Terms

Financial document in which the buyer agrees to make payment to the seller at a specified time.

General Promotion Business Terms

A means of increasing the publicâ&#x20AC;&#x2122;s or industryâ&#x20AC;&#x2122;s awareness of a business and its services or goods.

Proprietary (private) (Australia): A Proprietary Limited Company is a private company, in which the right to transfer shares is restricted and the General limited company - pty number of members is limited to no more than fifty. In addition, the company is prohibited from inviting the public to subscribe Business Terms for its shares and, from inviting the public to deposit money with the company. limited

General Proprietary company shareholders to transfer shares. Such a business is a separate legal entity and must use the words Proprietary Limited (Pty Business Terms Ltd) after it name.

General Proprietary Business Terms Knowledge

A document giving all the details of a proposed transaction, but not committing either the sender or recipient until the recipient pays the sender the amount shown. Commonly used by wholesalers for the first transaction with new customers.

A business which is owned by not less than two persons and not more than 50 persons and which restricts the right of the

Private or exclusive knowledge that cannot be legally used or duplicated by competitors.

Page 114 of 149

Encyclopedia General Business Terms (1296 Terms)

General Proprietorship Business Terms

The value of the proprietor’s assets in a business less any external liabilities.

General Prospectus Business Terms

A brochure that describes a mutual fund’s investment objectives, strategies, and position limits.

General Protectionism Business Terms

Protection of local industries through tariffs, quotas, and regulations that discriminate against foreign businesses.

General Psychic Distance Business Terms

The similarities or lack thereof between country markets. This concept takes into account geographic distance, cultural similarities, linguistic aspects, legal systems and methods of conducting business.

General Public Relations (PR) A variety of programs designed to promote and/or protect a company's image or its individual products. Business Terms

General Public Securities Business Terms Offering

A securities issue placed with the public through an investment or commercial bank.

General Publicly traded Business Terms

A company owned by shareholders who are members of the general public and trade shares publicly, as on the stock market.

General Pull communication Business Terms strategy

The practice of creating interest among potential buyers, who then demand the offering from intermediaries, ultimately “pulling” the offering through the channel.

General Pull Strategy Business Terms

In logistics, it is a strategy which uses actual customer demand to determine production and distribution schedules. In marketing, it is using intensive advertising to create customer demand for a product. In either case, the product is “pulled” through the system by the consumer.

Page 115 of 149

Encyclopedia General Business Terms (1296 Terms)

General Purchasing Agent Business Terms

Someone who buys goods in his or her country on behalf of foreign buyers.

General Purchasing Power Business Terms Parity (PPP)

The principle that equivalent assets sell for the same price. Purchasing power parity is a measurement of a currency's value based on the buying power within its own domestic economy.

General Pure Discount Bond Business Terms

Bonds that pay no coupons and only pay back the face value at maturity. Also referred to as zero-coupon bond or a singlepayment bond.

General Push communication distinct target market. The principal emphasis is on personal selling and trade promotions directed toward wholesalers and Business Terms strategy retailers.

General Push Strategy Business Terms

In logistics, it is a strategy which uses forecasts rather than customer demand to determine production and distribution schedules. In marketing, it is a wholesaler using promotion to create demand directly at the consumer level, bypassing retailers. In either case, the product is “pushed” through the system by the manufacturer to the customer.

General Put Option Business Terms

The right to sell the underlying asset at a specified price and on a specified date.

General Put-call Parity Business Terms

The relation of the value of a long call, a short put, the exercise price, and the forward price at expiration; CallTd/f - PutTd/f + Kd/f = FTd/f.

General Quantitive Business Terms Restrictions (QR)

Restrictions on trade, generally in the form of quotas, that limit the quantity o a good or service that can be imported or exported. Another form of quantity restriction is a VER, or Voluntary Export Restraint.

General Questionable costs Business Terms

Costs that may be considered as variable or as fixed costs, depending on the specifics of the situation.

The practice of “pushing” an offering through a marketing channel in a sequential fashion, with each channel focusing on a

Page 116 of 149

Encyclopedia General Business Terms (1296 Terms)

General Quid Pro Quo Business Terms

The English translation is "a favor for a favor"

General Quota Business Terms

The quantity of goods of a specific kind that a country permits to be imported without restriction or imposition of additional duties.

General Random Walk Business Terms

A process in which instantaneous changes in exchange rates are normally distributed with a zero mean and constant variance.

General Rate of stock Business Terms turnover (stock turn)

The ratio of cost of goods sold over average stock (at cost). This indicates how many times, on average, the entire inventory (stock) was sold and replaced during the year.

General Ratio Business Terms

The proportional relationship of one thing to another

Real General Appreciation/Depreci A change in the purchasing power of a currency. Business Terms ation

General Real Cash Flow Business Terms

General A measure of the nominal exchange rate that has been adjusted for inflation differentials since an arbitrarily defined base Real Exchange Rate period. Business Terms

General Real Interest Rate Business Terms

A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given.

Interest rate expressed in terms of real goods; that is, the nominal interest rate minus the expected inflation rate.

Page 117 of 149

Encyclopedia General Business Terms (1296 Terms)

General Real Options Business Terms

An option or option-like feature embedded in a real investment opportunity.

General Realignment Business Terms

The coordinated revaluation and devaluation of the currencies of several countries.

General Receipt Business Terms

A written acknowledgement of having received money or goods specified

General Receivables Business Terms

Short for Account Receivables; Debts owed to your company, usually from sales on credit. Accounts receivable is a business asset, the sum of the money owed to you by customers who haven’t paid. The standard procedure in business-to-business sales is that when goods or services are delivered they come with an invoice, which is to be paid later. Business customers expect to be invoiced and to pay later. The money involved goes onto the seller’s books as accounts receivable, and onto the buyer’s books as accounts payable.

General Receivables turnover Sales on credit for an accounting period divided by the average accounts receivables balance. Business Terms

General Receivership Business Terms

General Reciprocal Marketing A strategic alliance in which two companies agree to comarket each other’s products in their home market. Production rights may or may not be transferred. Business Terms Agreement

General Reconsignment Business Terms

The legal condition a company is placed in when an official receiver is appointed to investigate and manage its affairs.

In shipping, it is the change in either the name of the consignee, the place of delivery, or relinquishment of the shipment by the carrier at the point of origin.

Page 118 of 149

Encyclopedia General Business Terms (1296 Terms)

General Recourse Business Terms

The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse.

General Red Clause Business Terms

A banking term which refers to a special clause in a letter of credit allowing the seller of goods to obtain an unsecured advance from the issuing bank to finance the manufacture or purchase of the goods.

Regional General Development Banks Business Terms (RDBs)

Banks that are owned and operated by member nations; they are designed to extend development loans and provide other assistance to member nations. The world's four regional development banks are the African Development Bank Group, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.

General Regional marketing Business Terms

The practice of using different marketing mixes to accommodate unique preferences and competitive conditions in different geographical areas.

General Registered Bonds Business Terms

Bonds for which each issuer maintains a record of the owners of its bonds. Countries requiring that bonds be issued in registered form include the United States and Japan (contrast with bearer bonds).

General Registration Business Terms Statement

In the United States, a statement filed with the Securities and Exchange Commission on securities issues that discloses relevant information to the public.

General Re-invoicing Centers An offshore financial affiliate that is used to channel funds to and from the multinationalâ&#x20AC;&#x2122;s foreign operations. Business Terms

General Relevant cost Business Terms

Expenditures that are expected to occur in the future as a result of some marketing action and differ among other potential marketing alternatives.

General Remittance Business Terms

The forwarding of funds from one party to another as payment for goods or services.

Page 119 of 149

Encyclopedia General Business Terms (1296 Terms)

General Repatriation Business Terms

The act of remitting cash flows from a foreign affiliate to the parent firm.

General Replevin Business Terms

A legal action which entitles the rightful owner of property that has been wrongfully kept from him or her to recover it.

General Repositioning Business Terms

The process of strategically changing the perceptions surrounding a product or service.

General Rescind Business Terms

To void or cancel a contract.

General Reservation Price Business Terms

The price below (above) which a seller (purchaser) is unwilling to go.

General Residual Value Business Terms

The value of an asset at the conclusion of a lease.

General Resource Business Terms requirements

(Websites): Your resource requirements are the personnel, time, space and equipment necessary to create and maintain your website. Remember that a website is never done; it will always require resources, some of which will be used to periodically create new content.

General Restitution Business Terms

In the case of a breach of contract, restitution is the restoration of the involved parties to their original positions prior to the contract.

General Restrictive Business Terms Endorsement

Endorsement transferring title or right to a named party.

Page 120 of 149

Encyclopedia General Business Terms (1296 Terms)

General Retail Business Terms

To sell directly to the consumer, usually in small quantities in comparison with the total level of sales.

General Retained earnings Business Terms

Earnings (or losses) that have been reinvested into the company, not paid out as dividends to the owners. When retained earnings are negative, the company has accumulated losses.

General Retention Ratio Business Terms

Retained earnings divided by net income.

General Return on assets Business Terms

Net profits divided by total assets. A measure of profitability.

General Return on Equity Business Terms (ROE)

Net income after interest and taxes divided by average common stockholder's equity.

General Return On Business Terms Investment (ROI)

Net profits divided by net worth or total equity; yet another measure of profitability. Also called ROI.

General Return on sales Business Terms

Net profits divided by sales; another measure of profitability.

General Return visitors Business Terms

In online marketing, a website visitor who has made at least one previous visit to the site or page in question.

General Revaluation Business Terms

An increase in a currency value relative to other currencies in a fixed exchange rate system.

Page 121 of 149

Encyclopedia General Business Terms (1296 Terms)

General Rich-gumpert Business Terms evaluation system

A method of analysis that associates a numeric value between 1 and 4 regarding the spectrums of product development and the entrepreneur and management team. For example, the most desirable “4/4″ rating represents a fully developed product with an established market that is supported by a fully staffed and experienced management team.

General Right of assignment Business Terms

in relation to business premises, a right given in the lease agreement for a tenant to assign the lease to another tenant when the business is sold.

General Right of Priority Business Terms

In patent, industrial design and trademark laws, a priority right or right of priority is a time-limited right, triggered by the first filing of an application for a patent, an industrial design or a trademark respectively. The priority right belongs to the applicant or his successor in title and allows him to file a subsequent application for the same invention, design or trademark and benefit, for this subsequent application, from the date of filing of the first application for the examination of certain requirements.

General Rights of Set-off Business Terms

An agreement defining each party’s rights should one party default on its obligation. Rights of set-off were common in parallel loan arrangements.

General Risk Premium Business Terms

The excess return on the risky asset that is the difference between expected return on risky assets and the return of risk-free assets.

General Risk Profile Business Terms

A graph with the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in value (contrast with payoff profile).

General Roll’s Critique Business Terms

The CAPM holds by construction when performance is measured against a mean-variance efficient index. Otherwise, it holds not at all.

General Royalty Business Terms

Payment made for the use of a person or business’s property based on an agreed percentage of the income arising from its use.

Page 122 of 149

Encyclopedia General Business Terms (1296 Terms)

General R-square Business Terms

The percent of the variation in a dependent variable (a y-variable) that is â&#x20AC;&#x153;explained byâ&#x20AC;? variation in an independent variable (an x-variable). Also known as the coefficient of determination.

General Rule #1 Business Terms

Always keep track of your currency units.

General Rule #2 Business Terms

Always think of buying and selling the currency in the denominator of a foreign exchange quote.

General Rules of Origin Business Terms

Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes.

General Safety Stock (SS) Business Terms

The materials in an inventory in anticipation of unforeseen shortages of materials or abnormal demand for the final product.

General sales Business Terms

The total value of goods sold or revenue from services rendered.

General sales break-even Business Terms

The sales volume at which costs are exactly equal to sales. The exact formula is: =Fixed_costs/(1(Unit_Variable_Cost/Unit_Price))

General sales forecast Business Terms

The level of sales a single organization expects to achieve based on a chosen marketing strategy and assumed competitive environment.

General sales on credit Business Terms

Sales made on account; shipments against invoices to be paid later.

Page 123 of 149

Encyclopedia General Business Terms (1296 Terms)

General Scenario Analysis Business Terms

A process of asking “What if?” using scenarios that capture key elements of possible future realities.

General scrambled Business Terms merchandising

The practice by wholesalers and retailers that carry an increasingly wider assortment of merchandise.

General Secured Business Terms

Protected or guaranteed as in the case of a loan where the lender holds the title of some asset until the borrower has repaid the loan in full.

General Security Market Line In the CAPM, the relation between required return and systematic risk (or beta): Rj - RF + bj (E[RM] - RF). Business Terms (SML)

General Security Selection Business Terms

An investment strategy that attempts to identify individual securities that are underpriced relative to other securities in a particular market or industry.

General Seed capital Business Terms

Seed capital is investment contributed at a very early stage of a new venture, usually in relatively small amounts. It comes even before what they call “first round” venture capital.

General Seeking Stability Business Terms Rather Than Risk

An element of the Paris Convention for the Protection of Industrial Property that gives an inventor 12 months from the date of the first application filed in a Paris Convention country in which to file in other Paris Convention countries. This relieves companies of the burden of filing applications in many countries simultaneously. Approximately 100 countries, including the United States, signed the Paris Convention.

General Segmented Market Business Terms

A market that is partially or wholly isolated from other markets by one or more market imperfections.

Page 124 of 149

Encyclopedia General Business Terms (1296 Terms)

General A strategy where a producer sells its products or services in a few exclusively chosen retail outlets in a specific geographical Selective distribution area. Business Terms

General Seller's Market Business Terms

A sellerâ&#x20AC;&#x2122;s market exists when the demand for a good outweighs the supply, and so the economic forces of business cause the goods to be priced at or closer to the vendor's estimate of their value.

General Selling approaches Business Terms

Five potential selling resources based on the sales value and the distribution of the product.

General Semi-strong Form Business Terms Efficient Market

A market in which prices fully reflect all publicly available information.

Senior Corps of General Retired Executives Business Terms (SCORE)

A no-cost consulting and resources service offered through the Small Business Administration.

General Sensitivity Analysis Business Terms

Analysis of the effect on the project when there is some change in critical variables such as sales and costs.

General Separation Principle Business Terms

The principle that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is purely technical problem, and (2) the personal choice of the best mix of the risky portfolio and the risk-free asset.

General Service business Business Terms

A business that deals in service activities such as a retailer, tourism business, banking, education provider, etc

General Set-of-contracts Business Terms Perspective

A view of the corporation as the nexus of a set of legal contracts linking the various stakeholders. Important contracts include those with customers, suppliers, labor, management, debt, and equity.

Page 125 of 149

Encyclopedia General Business Terms (1296 Terms)

General Settlement of Business Terms Disputes

The Settlement of Disputes was a declaration made by the UN stating that any water-based international disagreement must be settled in a peaceful and diplomatic manner.

General Shareholders Business Terms

Individuals or companies that legally own one or more shares of stock in a company.

General Sharpe Index Business Terms

A measure of risk-adjusted investment performance in excess return per unit of total risk: SI = (RP - RF)/(sP).

General Shipper Business Terms

Usually the supplier or owner of commodities shipped.

General Short Position Business Terms

A position in which a particular asset (such as a spot or forward currency) has been sold.

General Short Selling Business Terms

Selling an asset that you do not own, or taking a short position.

General Short-term Business Terms

Normally used to distinguish between short-term and long-term, when referring to assets or liabilities. Definitions vary because different companies and accountants handle this in different ways. Accounts payable is always a short-term liability, and cash, accounts receivable and inventory are always short-term assets. Most companies call any debt of less than five-year terms short-term debt. Assets that depreciate over more than five years (e.g., plant and equipment) are usually long-term assets.

General Short-term assets Business Terms

Cash, securities, bank accounts, accounts receivable, inventory, business equipment, assets that last less than five years or are depreciated over terms of less than five years. Also called Current Assets.

Page 126 of 149

Encyclopedia General Business Terms (1296 Terms)

General Short-term liabilities Business Terms

These are debts with terms of five years or less. These are also called current liabilities, short-term loans, or short-term (current) debts. These may also include short-term debts that donâ&#x20AC;&#x2122;t cause interest expenses. For example, they might be loans from founders or accrued taxes (taxes owed, already incurred, but not yet paid).

General Short-term notes Business Terms

These are the same as short-term loans. These are debts with terms of five years or less.

General Side Effect Business Terms

Any aspect of an investment project that can be valued separately from the project itself.

General Sight Draft Business Terms

A draft that is payable on demand.

General Signaling Business Terms

The use of observable managerial actions in the marketplace as an indication of managementâ&#x20AC;&#x2122;s beliefs concerning the prospects of the company.

General Simple Interest Business Terms

Interest calculated by considering only the original principal amount.

General Simple linear Business Terms regression

A linear correlation that offers a straight-line projection based on the variables considered.

General Situation analysis Business Terms

The assessment of operations to determine the reasons for the gap between what was or is expected, and what has happened or will happen.

General Skimming pricing Business Terms strategy

Setting a relatively high initial price for a new product or service when there is a strong price-perceived quality relationship that targets early adopters that are price insensitive. The price may be lowered over time.

Page 127 of 149

Encyclopedia General Business Terms (1296 Terms)

General Slotting allowances Business Terms

General Small Business An independent agency of the U.S. federal government that aids, counsels, assists, and protects the interests of small Business Terms Administration (SBA) business concerns to preserve free competitive enterprise and to maintain and strengthen the overall economy of the nation.

Small Business General Investment Council Business Terms (SBIC)

A division of the Small Business Administration that offers â&#x20AC;&#x153;venture capital-likeâ&#x20AC;? resources to higher risk businesses seeking capital.

General Smoot Hawley Act Business Terms

Passed in 1930, this protectionist act increased import duties to the highest rate ever imposed by the United States, resulting in the downfall of the world trade system.

General Social Capital Business Terms

Physical or real capital that is owned by the public sector rather than by private firms.

Society for Worldwide General Interbank Financial Network through which international banks conduct their financial transactions. Business Terms Transactions (SWIFT)

General Soft Clause Business Terms

In a letter of credit, a soft clause is a clause which renders it impossible for the beneficiary, or seller, to fulfill the conditions of the letter separately and independently of the purchaser.

General Soft Currency Business Terms

A currency which is not readily accepted in exchange for other currencies or convertible to gold.

General Soft Loan Business Terms

A loan with generous terms such as lower than usual or no interest, and/or a long payback period.

Payments to store chains for acquiring and maintaining shelf space.

Page 128 of 149

Encyclopedia General Business Terms (1296 Terms)

General Sogo Sosha Business Terms

A term referring to general trading companies that import and export merchandise.

General Sole Proprietorship Business Terms

A business owned by a single individual. The sole proprietorship pays no corporate income tax but has unlimited liability for business debts and obligations.

General Sole trader Business Terms

A person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business.

General Solvent Business Terms

The condition of a business when all debts can be paid as they come due.

South Asian General Association for Business Terms Regional Cooperation (SAARC)

The South Asian Association for Regional Cooperation (SAARC) was established on December 8, 1985. Its members states consist of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. Its main areas of cooperation are Agriculture and Rural Development; Health and Population Activities; Women, Youth and Children; Environment and Forestry; Science and Technology and Meteorology; Human Resources Development; and Transport.

Southern African General Customs Union Business Terms (SACU)

Established in 1910, the SACU is the oldest customs union in the world and is composed of South Africa, Swaziland, Botswana, Namibia, and Lesotho. The countries engage in the free exchange of goods across their borders, and a share a common external tariff and excise duties, as well as the revenues generated by them.

Southern African General Development Business Terms Community (SADC)

The Southern African Development Community (SADC) was first established in 1992. It is the successor to the Southern African Development Coordination Conference (SADCC). The Member States are Angola, Botswana, the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe.

General Southern Cone Business Terms

The geographic region including Argentina, Brazil, Chile, Paraguay, and Uruguay.

Page 129 of 149

Encyclopedia General Business Terms (1296 Terms)

General Sovereignty Business Terms

The rights of a country to rule itself, to manage its own affairs, and to jurisdiction over land, airspace, and maritime matters.

General Special Drawing Business Terms Right (SDR)

An international reserve created by the International Monetary Fund and allocated to member countries to supplement foreign exchange reserves.

General Specific Tariff Business Terms

A tariff assessed at a specific amount per unit of weight.

General Spot Exchange-rate Business Terms

Exchange-rate today for settlement in two days.

General Spot Market Business Terms

A market in which trades are made for immediate delivery (within two business days for most spot currencies).

General Stabilization Policies Business Terms

Government policies designed to promote economic growth, steady employment, and stable prices.

General Stakeholders Business Terms

Those with an interest in the firm. A narrow definition includes the corporationâ&#x20AC;&#x2122;s debt and equity holders. A broader definition includes labor, management, and perhaps other interested parties, such as customers, suppliers, and society at large.

General Stamp Tax Business Terms

A tax on a financial transaction.

General Standard Deviation Business Terms

The positive square root of the variance. This is the standard statistical measure of the spread of a sample.

Page 130 of 149

Encyclopedia General Business Terms (1296 Terms)

General Standard Industrial Business Terms Classification (SIC)

A standard numerical code system used by the U.S. government to classify products and services.

General Starting date Business Terms

The starting date for the entire business plan.

General Stated Annual Business Terms Interest Rate

The interest rate expressed as a percentage per annum, by which interest payment is determined.

General Stationary Time Business Terms Series

A time series in which the process generating returns is identical at every instant of time.

General Stock Business Terms

1) Goods on hand, either finished goods or materials to be used to manufacture goods. Also called Inventory. 2) Stock can also refer to privately held or publicly traded shares or securities representing investment in, or partial ownership of, a business. Public trading of such stock occurs on the stock market.

General Stock at valuation Business Terms (SAV)

Stock valued at wholesale or cost price.

General Stock control Business Terms

The method of determining how much stock should be held and how much needs to be reordered and when, with the aim of controlling stock holding costs while maintaining efficient operation of the business.

General Stock Index Futures Business Terms

A futures contract on a stock index.

General Stock Index Swap Business Terms

A swap involving a stock index. The other asset involved in a stock index swap can be another stock index (a stock-for-stock swap), a debt index (a debt-for-stock swap), or any other financial asset or financial price index.

Page 131 of 149

Encyclopedia General Business Terms (1296 Terms)

General Stock Market Business Terms

An institution that facilitates the buying and selling of stocks.

General Stock turnover Business Terms

Total cost of sales divided by inventory (materials or goods on hand). Usually calculated using the average inventory over an accounting period, not an ending-inventory value. Also called Inventory Turnover.

General Strategic Alliance Business Terms

A collaborative agreement between two companies designed to achieve some strategic goal. Strategic alliances include international licensing agreements, management contracts, and joint ventures as special cases.

General Strategic control Business Terms

The practice of assessing the direction of the organization as evidenced by its implicit or explicit goals, objectives, strategies, and capacity to perform in the context of changing environmental and competitive actions.

General Strategic marketing Business Terms management

The planned process of defining the organizationâ&#x20AC;&#x2122;s business, mission, and goals; identifying and framing organizational opportunities; formulating product-market strategies, budgeting marketing, financial, and production resources; developing reformulation.

General Striking Price Business Terms

The price at which an option can be exercised (also called the exercise price).

General Subpart F Income Business Terms

In the U.S. tax code, income from foreign subsidiaries owned more than 10 percent and controlled foreign corporations that is taxed on a pro rata basis as it is earned.

General Subsidiary Business Terms

Any organization controlled by another with more than 50 percent of its whose voting capital held by the latter.

General Subsidized Financing Financing that is provided by a host government and that is issued at a below-market interest rate. Business Terms Page 132 of 149

Encyclopedia General Business Terms (1296 Terms)

General Subsidy Business Terms

Monetary assistance granted by the government to an individual or other entity in support of an activity that is regarded as being in the public interest.

General Subsistence Business Terms Agriculture

Small-scale agriculture designed to meet the consumption needs of individual households.

General Success factors Business Terms

Primary success factors include considerations regarding: 1) The choice of business based on the status of the market 2) Education and experience 3) People and collaboration 4) Creativity and innovation versus business skills and networks 5) Incubation potential 6) Leveraging available resources 7) Management practices

General Success Business Terms requirements

The basic tasks that must be performed by an organization in a market or industry to compete successfully. These are sometimes â&#x20AC;&#x153;key success factors.â&#x20AC;?

General Sunk Cost Business Terms

A cost that has already occurred and cannot be removed. Because sunk costs are in the past, such costs should be ignored when deciding whether to accept or reject a project.

General Supervisory Board Business Terms

The board of directors that represents stakeholders in the governance of the corporation.

General Supplies Business Terms

In relation to the GST, supplies include the goods and services you sell through your enterprise and many other transactions such as providing advice or information, leasing out commercial premises or providing hire equipment.

General Surplus or deficit Business Terms

(Nonprofit): Also called Profit and Loss statement, in for-profit plans. An income statement is a financial statement that shows funding, cost of funding, gross surplus, operating expenses, and surplus or deficit. Gross surplus is funding less cost of funding, and surplus (or deficit) is gross surplus less operating expenses and taxes. The result is surplus if it is positive, deficit if it is negative.

Page 133 of 149

Encyclopedia General Business Terms (1296 Terms)

General Swap Business Terms

An agreement to exchange two liabilities (or assets) and, after a prearranged length of time, to reexchange the liabilities (or assets).

General Swap Book Business Terms

A swap bankâ&#x20AC;&#x2122;s portfolio of swaps, usually arranged by currency and by maturity.

General Swaption Business Terms

A swap with one or more options attached.

General Switching costs Business Terms

The costs incurred in changing from one provider of a product or service to another. Switching costs may be tangible or intangible costs incurred due to the change of this source.

General Switching Options Business Terms

A sequence of options in which exercise of one option creates one or more additional options. Investment-disinvestment, entryexit, expansion-contraction, and suspension-reactivation decisions are examples of switching options.

General SWOT analysis Business Terms

A formal framework of identifying and framing organizational growth opportunities. SWOT is an acronym for an organizationâ&#x20AC;&#x2122;s internal Strengths and Weaknesses and external Opportunities and Threats.

General Syndicate Business Terms

The selling group of investment banks in a public securities offering.

General Synergy Business Terms

In an acquisition or merger, when the value of the combination is greater than the sum of the individual parts: Synergy = VAT (VA + VT).

General Synthetic Forward Business Terms Position

A forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market.

Page 134 of 149

Encyclopedia General Business Terms (1296 Terms)

General Innovation resulting from an intentional and organized process to evaluate opportunities to introduce change, based on a Systematic innovation definition provided by Peter Drucker. The sources of innovation may be internal or external to the enterprise. Business Terms

General Systematic Risk Business Terms

Risk that is common to all assets and cannot be diversified away (measured by beta).

General Tactics Business Terms

A collection of tools, activities and business decisions required to implement a strategy.

General Tangibility Business Terms

Tangible assets are real assets that can be used as collateral to secure debt.

General Tangible asset Business Terms

Something substantial or real that is capable of being given an actual or approximate value.

General Tare Weight Business Terms

The weight of a container and packing materials that excludes the weight of the goods it contains.

General Target market Business Terms

The target market is a defined segment of the market that is the strategic focus of a business or a marketing plan. Normally the members of this segment possess common characteristics and a relative high propensity to purchase a particular product or service. Because of this, the member of this segment represent the greatest potential for sales volume and frequency. The target market is often defined in terms of geographic, demographic, and psychographic characteristics.

General Target marketing Business Terms

The process of marketing to a specific market segment or multiple segments. Differentiated target marketing occurs when an organization simultaneously pursues several different market segments, usually with a different strategy for each. Concentrated target marketing occurs when a single market segment is pursued.

Page 135 of 149

Encyclopedia General Business Terms (1296 Terms)

General Targeted Registered Securities issues sold to “targeted” foreign financial institutions according to U.S. SEC guidelines. These foreign institutions then maintain a secondary market in the foreign market. Business Terms Offerings

General Tariff Anomaly Business Terms

The state of having a tariff on raw materials or semi-processed products be higher than the tariff on the corresponding finished product.

General Tariff Escalation Business Terms

The situation which duties are low or non-existent for raw materials, moderate for semi-manufactured goods and relatively high for finished products.

General Tariff-quota Business Terms

A tariff that is set at a lower rate until a specified quantity (the quota) of goods has been imported, at which point the tariff increases for additional imports.

General Tariffs Business Terms

Taxes on imported goods and services, levied by governments to raise revenues and create barriers to trade.

General Tax Arbitrage Business Terms

Arbitrage using a difference in tax rates or tax systems as the basis for profit.

General Tax Clienteles Business Terms

Clienteles of investors with specific preferences for debt or equity that are driven by differences in investors’ personal tax rates.

General Tax Haven Business Terms

A country or region imposing low or no taxes on foreign source income.

General Tax Haven Affiliate Business Terms

A wholly owned affiliate that is in a low-tax jurisdiction and that is used to channel funds to and from the multinational’s foreign operations. The tax benefits of tax-haven affiliates were largely removed in the United States by the Tax Reform Act of 1986.

Page 136 of 149

Encyclopedia General Business Terms (1296 Terms)

General Tax Holiday Business Terms

A reduced tax rate provided by a government as an inducement to foreign direct investment.

General Tax invoice Business Terms

A document generally issued by the supplier. It shows the price of a supply, indicating whether it includes GST, and may show the amount of GST. It must show other information, including the ABN of the supplier. You must have a tax invoice before you can claim an input tax credit on your activity statement (except for purchases of $50 or less).

General Tax Neutrality Business Terms

Taxes that do not interfere with the natural flow of capital toward its most productive use.

General Items such as tax-loss carryforwards and carrybacks and investment tax credits that shield corporate taxable income from Tax Preference Items taxes. Business Terms

General Tax rate percent Business Terms

An assumed percentage applied against pre-tax income to determine taxes.

General Taxes incurred Business Terms

Taxes owed but not yet paid.

General Technical Analysis Business Terms

Any method of forecasting future exchange rates based on the history of exchange rates.

General Telemarketing Business Terms

A form of direct marketing that uses the telephone to reach potential customers.

General Temporal Method Business Terms

A translation accounting method (such as FAS #8 in the United States) that translates monetary assets and liabilities at current exchange rates and all other balance sheet accounts at historical exchange rates. Also known as monetary/nonmonetary method.

Page 137 of 149

Encyclopedia General Business Terms (1296 Terms)

General Term loan Business Terms

A loan for a fixed period of more than one year and repayable by regular instalments.

General Territorial Tax Business Terms System

A tax system that taxes domestic income but not foreign income. This tax regime is found in Hong Kong, France, Belgium, and the Netherlands.

General The National Trade Business Terms Data Bank (NTDB)

Is the U.S. Government's most comprehensive source of international trade data and export promotion information. Types of information on the NTDB include: international market research, export opportunities; indices of foreign and domestic companies; how-to market guides; reports on demographic, political, and socio-economic conditions for hundreds of countries; and much more.

General Tied Loan Business Terms

A loan issued by a government requiring the borrower to spend the funds in the lending country.

General Time Draft Business Terms

A draft that is payable on a specified future dare.

General Time Value of an Business Terms Option

The difference between the value of an option and the optionâ&#x20AC;&#x2122;s intrinsic value.

General Timing Option Business Terms

The ability of the firm to postpone investment (or disinventment) and to reconsider the decision at a future date.

General Total Quality Business Terms Management (TQM)

An organization-wide approach to continuously improving the overall quality of its process, products, and service.

General Total Risk Business Terms

The sum of systematic and unsystematic risk (measured by the standard deviation or variance of return).

Page 138 of 149

Encyclopedia General Business Terms (1296 Terms)

General Trade Acceptance Business Terms

A time draft that is drawn on and accepted by an importer.

General Trade Balance Business Terms

A countryâ&#x20AC;&#x2122;s net balance (exports minus imports) on merchandise trade.

General Trade Barrier Business Terms

A governmental policy, action, or practice that intentionally interrupts the free flow of goods or services between countries.

General Trade credit Business Terms

An arrangement to buy goods or services on account, that is, without making immediate cash payment.

General Trade Deficit Business Terms

A trade deficit occurs when the value of a country's exports is less than the value of its imports.

General Trade discount Business Terms

An allowance made by a seller to a buyer at the time of purchase, for the deduction of a percentage of the price, provided the payment is made within agreed terms.

General Trade margin Business Terms

The difference between unit sales price and unit cost and each level of a marketing channel usually expressed in percentage terms.

General Trade mark Business Terms

Can be a letter, number, word, phrase, sound, smell, shape, logo, picture, aspect of packaging or any combination of these, which is used to distinguish goods and / or services of one trader from those of another

General Trade Surplus Business Terms

A trade surplus occurs when the value of a country's exports is greater than the value of its imports.

Page 139 of 149

Encyclopedia General Business Terms (1296 Terms)

General Trade-in Allowance Business Terms

Price discount granted for a new item by turning in an old item at the time of purchase.

General Trademark Business Terms

A registration process under which a name, logo, or characteristic can be identified as exclusive.

General Tradeoffs Business Terms

A kind of interaction involving the offsetting of high costs in one section with lower or diminished costs in another.

General Trading Desk Business Terms

The desk at an international bank that trades spot and forward foreign exchange. Also known as dealing desk.

General Trading down Business Terms

The process of reducing the number of features or quality of an offering to realize a lower purchase price.

General Trading up Business Terms

The practice of improving an offering by adding new features and higher quality materials or adding products or services to increase the purchase price.

General Traffic Business Terms

In broad, general terms, the number of visitors and visits a website receives.

General Transaction Exposure Changes in the value of contractual (monetary) cash flows as a result of changes in currency values. Business Terms

General Transaction Business Terms Statement

A document that clearly outlines the terms and conditions agreed upon between an importer and an exporter.

Page 140 of 149

Encyclopedia General Business Terms (1296 Terms)

General Transfer Pricing Business Terms

General Changes in a corporationâ&#x20AC;&#x2122;s financial statements as a result of changes in currency values. Also known as accounting Translation Exposure exposure. Business Terms

General Transparency Business Terms

General Treaty between Spain and Portugal that divided the South American continent (among other lands) between the two countries. Treaty of Tordesillas Ratified in 1494, it originally gave Spain much more land than Portugal. Business Terms

General Trial balance Business Terms

A list of all balances in the ledger at a given time.

General Trustee Business Terms

A bank or trust company that holds title to or a security interest in leased property for the benefit of the lessee, lessor, and/or creditors of the lessor.

General Ttender Business Terms

An offer in writing to carry out work, which has been specified by another person. The offer quotes a fixed price, which will be charged for doing the work.

General Turnkey Contract Business Terms

An agreement in which a contractor is responsible for setting up a facility from start to finish for another firm.

General Tying Arrangement Business Terms

The condition imposed by a seller which obliges a buyer to agree to purchase an additional product (tied product) if they wish to purchase their desired product (tying product).

The price one unit of a company charges to another unit of the same company for goods or services exchanged between the two.

The observed degree of clarity, openness, measurability, and verifiability in a law, regulation, agreement, or trade practice.

Page 141 of 149

Encyclopedia General Business Terms (1296 Terms)

General Umbrella Rate Business Terms

In shipping, the umbrella rate is a rate system designed to protect less competitive carriers by setting artificially high minimum rates.

Unbiased General Expectations Business Terms Hypothesis

The hypothesis that forward exchange rates are unbiased predictors of future spot rates (see forward parity).

General Uncertainty Business Terms Avoidance

The extent to which a society tolerates uncertainty and ambiguity.

General Undercapitalisation Business Terms

Insufficient investment of funds in a business.

General Unemployment Rate The ratio of the total number of unemployed persons to the total number of persons in the labor force. Business Terms

Union Economique et General UEMOA is composed of Bening, Burkina Faso, Cote d'Ivoire, Mali, Guinea-Bissau, Niger, Senegal, and Togo. Its purpose is to Monetaire Ouest unite members through competition in an open market. Business Terms Africaine (UEMOA)

General In online marketing, a website metric tracking the number of uniquely identified clients generating requests on the Web server Unique user sessions (log analysis) or viewing pages (page tagging). A visitor can make multiple visits. Business Terms

General Unit variable cost Business Terms

The specific labor and materials associated with a single unit of goods sold. Does not include general overhead.

Page 142 of 149

Encyclopedia General Business Terms (1296 Terms)

United Nations General Conference on Trade Business Terms and Development (UNCTAD)

UNCTAD was established in 1964 with the goal of promoting sustainable development while integrating developing countries into the world economy. It works to achieve this goal by acting as a forum for intergovernmental deliberations with an aim at consensus building; conducting research, policy analysis, and data collection; and by providing technical assistance tailored to the specific needs of different developing countries.

United Nations Industrial General Development Business Terms Organization (UNIDO)

UNIDO helps developing countries and countries with economies in transition in their fight against marginalization in today's globalized world. It mobilizes knowledge, skills, information, and technology to promote productive employment, a competitive economy, and a sound environment.

General Units break-even Business Terms

The unit sales volume at which the fixed and variable costs are exactly equal to sales. The formula is: UBE=Fixed_costs/(Unit_Price-Unit_Variable_Cost)

General Unlevered Beta Business Terms

The beta (or systematic risk) of a project as if it were financed with 100 percent equity. Also known as systematic business risk.

General Unlevered Cost of Business Terms Equity

The discount rate appropriate for an investment assuming it is financed with 100 percent equity.

General Unpaid expenses Business Terms

Business Plan Pro uses this term to refer to other short-term liabilities in the Start-up table. Normally these would be expenses incurred with credit cards during the start-up phase, such as expenses for office furniture, fixtures, and equipment. Amounts typed into this cell in the Start-up table become the opening balance for Other Short-term Liabilities in the balance sheet. To pay these amounts when due, enter negative dollar amounts into the corresponding row on the Cash Flow table, the one for â&#x20AC;&#x153;other short-term liabilities.â&#x20AC;?

General Unsecured loan Business Terms

A loan that is not backed up by any collateral, such as a home or an automobile offered as security.

General Unsustainable Debt Business Terms

A financial condition in which a country is unable to service its foreign (external) debt without decimating its economy.

Page 143 of 149

Encyclopedia General Business Terms (1296 Terms)

General Unsystematic Risk Business Terms

Risk that is specific to a particular security or country and that can be eliminated through diversification.

General User benefits Business Terms

Understanding and appreciating the base reason an individual purchases a product or service that may not directly correlate with the feature or function of the good or service. These benefits may be intangible.

General User Interface (UI) Business Terms

User Interface. It is the graphic design and appearance of a website, its function as seen and used by the person on the user end, at the website in a browser. The UI of a website is ultimately how it lets users know what it has to offer them. If it lacks an easy navigation scheme users get lost, and never find the information on a site. The full potential of any website is unleashed through the UI.

General User registrations Business Terms

In online marketing, a conversion value measuring the number of website visitors who voluntarily include themselves in your database in order to access the content you provide on your website.

General Usury Business Terms

The practice of charging or paying exorbitant interest on a loan or other transaction. Note: in Islamic societies, charging, or receiving any amount of interest is considered usury.

General Valuation Business Terms

Used as a noun, Valuation is what a business is worth, as in “this company’s valuation is $10 million.” This would mean that a company is valued at $10 million, or worth $10 million. The term is used most often for discussions of sale or purchase of a company; it’s valuation is the price of a share times the number of shares outstanding, and the price of a share is the total valuation divided by the number of shares outstanding. For more business valuation, read more about Business Valuation.

General Value Business Terms

The ratio of perceived benefits compared to price for a product or service.

General Value Chain Business Terms

A value-added process in a firm to transform raw materials and other inputs to finished goods, which creates value to customers.

Page 144 of 149

Encyclopedia General Business Terms (1296 Terms)

General Value Date Business Terms

Date on which a foreign exchange contract is executed, i.e. seller delivers.

General Value Stocks Business Terms

Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or PE ratios) in a variety of countries.

General Value-added Reseller A company that purchases products from a variety of sources to produce a new finished product for sale. Business Terms

General Value-added Tax Business Terms (VAT)

A sales tax collected at each stage of production in proportion to the value added during that stage.

General Variable cost Business Terms

Costs that fluctuate in direct proportion to the volume of units produced. The best and most obvious example are physical costs of goods sold, direct costs, such as materials, products purchased for resale, production costs and overhead, etc. The concept of variable cost is an important component of risk in a company, because generally variable costs are less risky than fixed costs, because variable costs are not incurred unless there are sales and production. See also break-even analysis, fixed costs, contribution.

General Variance Business Terms

A calculation of the difference between plan and actual results, used by analysts to manage and track the impact of planning and budgeting.

General Vendor Business Terms

A seller of goods or of a business.

Page 145 of 149

Encyclopedia General Business Terms (1296 Terms)

General Venture capital Business Terms

Venture capital nowadays is used two ways: first, people often take venture capital as any investment capital obtained through private investment or public investment funds directed to high-risk and high-potential enterprises. Second, within the more informed and sophisticated business circles, venture capital is defined more narrowly as investment money coming from the mainstream venture capital firms, a few hundred major firms, different from investment money from other private investors, angels, etc. For example, the www.bplans.com web tool that recommends investment strategies treats venture capital in this second way, mainstream venture capital investors, as opposed to angel investors, SBIC companies, banks, or friends and family. A venture capitalist is a professional manager of a venture capital fund.

General Venture capitalists Business Terms (VC)

Venture capitalists are thought of in two ways: first, some people think of any wealthy individual who invests in young companies as a venture capitalist. Second, within the more informed investors, analysts, and entrepreneurs, a venture capitalist is a manager of a mainstream venture capital fund.

General Virtual Corporation Business Terms

Partnerships so close those two partners become a single firm for all operational purposes.

General Volume Business Terms

An amount or quantity of business activity.

General Voluntary Export Business Terms Restraint (VER)

One country promises another country to limit its imports; this is often done when the promising country fears increased tariffs or quotas if it does not self-regulate.

General Walk in, walk out Business Terms (WIWO)

An expression normally used in its abbreviated form, regarding a business for sale. It indicates that the business is for sale as a going concern and may be purchased without interruption to trading.

General Warehouse Receipt Business Terms

A receipt issued by a warehouse listing the goods received.

Page 146 of 149

Encyclopedia General Business Terms (1296 Terms)

General Warehouse-toBusiness Terms Warehouse

An insurance policy that covers goods over the entire journey from the seller's to the buyer's premises.

General Warrant Business Terms

An option issued by a company that allows the holder to purchase equity from the company at a predetermined price prior to an expiration date. Warrants are frequently attached to Eurobonds.

General Weak Form Efficient It is a market in which prices fully reflect the information in past prices. Business Terms Market

General Weight Note Business Terms

A document issued by either the exporter or a third party declaring the weight of goods in a consignment.

Weighted Average General Cost of Capital Business Terms (WACC)

A discount rate that reflects the after-tax required returns on debt and equity capital.

West African General Economic and Business Terms Monetary Union (UEMOA)

A regional alliance of Francophone West African countries dedicated to promoting economic integration among the seven member countries. The country members are Benin, Burkina Faso, Cote dâ&#x20AC;&#x2122;Ivoire, Mali, Niger, Senegal, and Togo. They all share a common currency and have a central bank to oversee it.

General Wharfage Charge Business Terms

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

General Wholesale Business Terms

Selling in large quantities to businesses which will then resell to consumers in smaller quantities.

General Withholding Tax Business Terms

A tax on dividend or interest income that is withheld for payment of taxes in a host country. Payment is typically withheld by the financial institution distributing the payment.

Page 147 of 149

Encyclopedia General Business Terms (1296 Terms)

General Without Reserve Business Terms

In shipping this indicates that a shipperâ&#x20AC;&#x2122;s agent has the power to make important decisions abroad without the consent of those the agent represents.

General Workersâ&#x20AC;&#x2122; Business Terms compensation

Money paid to an employee to compensate for injuries received in connection with their work. All employers must insure against claims for this kind of compensation.

General Working Capital Business Terms

An accounting term that indicates the difference between current assets and current liabilities.

General World Bank Business Terms

An international organization created at Breton Woods in 1944 to help in the reconstruction and development of its member nations. Its goal is to improve the quality of life for people in the poorer regions of the world by promoting sustainable economic development. See also International Bank for Reconstruction and Development.

General World Customs simplification and standardization of customs practices. The WCO was established in 1952 as the Customs Co-operation Business Terms Organization (WCO) Council. This name was then changed in 1994 to the World Customs Organization. Today WCO provides regulations and

The WCO is an international organization whose function is the facilitation of trade between member states through the

standards to 169 Customs administrations worldwide.

World Intellectual The World Intellectual Property Organization (WIPO) is an international organization focused on the protection of intellectual General Property Organization property. WIPO administers 23 international treaties and is one of 16 specialized agencies of the Untied Nations. 183 nations Business Terms are part of the WIPO and its headquarters is in Geneva, Switzerland. (WIPO)

General World Trade Business Terms Organization (WTO)

The WTO is a multilateral organization that promotes free and fair trade among the nations of the world. It was created in 1994 by 121 nations at the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The WTO is responsible for implementation and administration of the trade agreement.

General Worldwide Tax Business Terms System

A tax system that taxes worldwide income as it is repatriated to the parent company. It is utilized in Japan, the United Kingdom, and the United States.

Page 148 of 149

Encyclopedia General Business Terms (1296 Terms)

General Writ Business Terms

A judicial order to an officer of the law, such as a judge or a sheriff, to perform or have performed a specified act.

WTO Committee on General Trade and Business Terms Development (CTD)

The WTO Committee on Trade and Development is a forum for discussion on all multi-interest issues of special interest to developing countries.

General Y2K Issues Business Terms

The abbreviation used to refer to the Year 2000 computer problems resulting from the use of two-digit year inputs. Left uncorrected, computers would have recognized the input 00 to mean 1900 and not 2000.

General Yield to Maturity Business Terms

The discount rate that equates the present value of interest payments and redemption value with the present price of the bond.

General Zaibatsu Business Terms

Large family-owned conglomerates that controlled much of the economy of Japan prior to World War II. The four most historically significant zaibatsus, the Big Four, are Mitsubishi, Mitsui, Yasuda, and Sumitomo whose roots date back to the Japanese Edo period.

General Zeitgeist Business Terms

A German expression that can be interpreted to mean â&#x20AC;&#x153;the spirit of time.â&#x20AC;? It indicates the general intellectual state and outlook of an era or generation.

Page 149 of 149