Search: A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z   Absolute Advantage The situation in which a country has a monopolistic advantage   Accounting The process of measuring, interpreting and communicating financial information to enable others both internal and external to make informed decisions   Accounting Equation The concept upon which financial accounting is based: Assets (value of things owned) + Liabilities (Monies owing ) = Owners Equity (Amounts claimable by the owners)   Accounting Process The procedural cycle used by accountants to convert individual transactions into accounting statements   Accounts Receivable Sales to customers on credit, which have not yet been paid. See also Debtors   Acid Test Ratio A financial ratio, which measures the ability of a firm to meet its current short-term debt. Quick Assets (Debtors, Stock etc) / Current Liabilities (Creditors less than 1 year) The higher the figure for the acid test is, the less likely is a company to suffer rapid decline and possible failure with or without sound managerial skills. This cannot be deduced simply from the sets of figures themselves, hence the need for the Acid test for analytical comfort. An acid test ratio of 2.5:1 is generally considered to be comfortable   Activity Based Costs A method of costing to apportion costs better by breaking them down into cost drivers, ie. the cost of products based on the underlying drivers. An example would be in customer service where a cost driver might be the cost of communications with the customer; in the costing process this cost would be apportioned on the basis of the expected level of communication with the customer.   Activity Ratio A financial ratio which measures the effectiveness of a firm’s use of resources   Adaptability The ability of a business, as a manufacturer or as a service provider, to adjust the products being provided to the market, within the lead times dictated by the shifts that are current in that market. In fact, the measurement of this attribute of a company is complex and includes factors like decision-making, process capability, supply chain performance, as well as the ability of the Board to respond.   Advertising The broadcast or distribution of information through any media aimed at creating awareness and exposure to a product or service.   Advocacy Advertising Advertising that supports a specific viewpoint on a public issue and designed to influence public opinion and any legislative processes   Affirmative Action Programmes that are set up by businesses, which are centred around equal opportunities with regard to jobs for women, ethnic and minority groups   Agency Agreement A legal relationship between two parties who agree that one of them will act as a representative of another.   Agent The name of the person who is nominated to act as the representative of the other in an agency agreement   Agent Wholesaler An independent wholesaler who takes possession of goods for sale but does not hold legal title to them until sold   Analog Computer A computer that uses continuous data such as pressure, temperature or voltage in scientific and engineering applications   Analytical System A system in which a raw material is reduced to its component parts in order to extract one or more products   Appellant A party in a lawsuit (Plaintiff or Defendant) who makes an appeal to a higher court to review a case   Appellate Courts Courts that hear appeals from the general trial courts   Apprenticeship Training An employee-training programme designed to transfer skills and knowledge from a mentor through application and hands on experience   Arbitration The process of bringing an impartial third party, called an arbitrator, into a dispute, to render a binding and legally enforceable decision   Arithmetic Logic Unit A section of a computer where all the calculations takes place   Array A categorised list of items in ascending or descending order which can be used as a data source for processing further information or as a source of general information itself   Artificial Intelligence A branch of computer science devoted to the study of computers to solve problems though innovation, abstract reasoning, imagination and common sense, which are currently solved by humans   Assembly Line The process of placing products on a conveying system, which facilitates the manufacture of a product as it passes through several workstations. The process intervention may be automated or manually applied by process workers.   Assessment Centre A testing centre for job applicants who have usually been short-listed for a job position designed to determine the best applicant and facilitate decision-making through simulation techniques. See also Psychometrics   Asset Management A system used by a company for managing its assets; these may include physical assets as well as intellectual property   Assets The range of items both tangible and intangible that are considered to have value in and are owned by the business.   Atmospherics The image, amenities and impression of a retail environment that influence shoppers’ behaviour   Authority The power to act and make decisions in performing duties and carrying out assignments   Autocratic A style of leadership where the leader makes unilateral decisions without consulting others   Automatic Teller Machine (ATM) An electronic banking device with 24 hours access availability, which allows bank account holders to make cash deposits, withdrawals and transfers through the use if a credit or debit card.   Automation The performance of activities or processes using machinery that require little or no human intervention   Balance of Payments The net flow of money into or out of a country which influences the balance of trade and is affected by additional factors such as military expenditure, overseas investment and foreign aid   Balance of Trade The flow of money coming in and going out of a country through importing and exporting of products and services   Balance Sheet A statement of the financial position of a company at a given date   Bankruptcy A legal condition of an individual whereby the person is unable to fulfil the payment obligations of his or her debtors.   Base Rate The rate of interest set by the Bank of England, which is used as a base parameter for rates charged by commercial banks for short-term loans to major business firms with high credit standing. See also Prime Interest Rate.   Batch Processing A method of collecting and scheduling data for computer processing over a given time period   Bears Investors who expect the stocks and share prices to decline and sell the securities in expectation of declining market prices. See also Bulls   Bill of Materials A detailed listing of parts and materials needed to produce a product or service   Binary Arithmetic A method of counting using the digits 0 and 1   Binary Number Zero (0) or 1   Bit A binary digit 0 or 1. See also Byte   Blue-Collar The term used to operative employees in a manufacturing organisation   Board of Directors The governing authority of the company or institution elected by its members or shareholders   Bond A certificate of indebtedness sold to raise long-term funds for corporations or government agencies   Bonus An addition to a salary based on a scheme of reward for excellent performance   Book Value The purchase cost or value of an asset less its depreciation   Bottom Line The overall profit or loss of a company   Boycott An attempt to keep people from purchasing goods and services from a company   Brand A name, term, sign, symbol, design or some combination used to identify a company’s products or service and differentiate it from competitors’ similar products   Brand Name A part of the brand which consists of words and letters which, make up the name of a company’s product or service that differentiates it from competitors’ similar products   Brand Preference The stage of brand loyalty at which the consumer will be loyal to the brand as long as the brand is available   Brand Recognition The stage of brand loyalty at which the consumer becomes familiar with the product or service offering   Breach of Contract Violation of a valid contract by a party or parties the contract   Breakeven Analysis The method of determining the breakeven point, which identifies the sufficient sales level required to cover the fixed and variable cost outlays of the company at a certain price point   Breakeven Point The sales level at which the amount of revenue generated is sufficient to cover the fixed and variable cost outlays of the company at a certain price point   Budget The financial blue print of a company for a future time period that reflects expected sales revenues, cash flows, operating costs and profits; and used as a planning and monitoring tool   Bulls Investors who expect stock and share prices to rise and buy securities in anticipation of increased market prices – see also Bears   Burglary Insurance Insurance coverage for losses of property incurred by thieves using forced entry or other forcible means   Business An enterprise primarily structured for profit, but includes non-profit institutions that provide goods and services to an economic system fulfilling the needs of a market   Business Critical Mass A measure of the size that a business needs to attain in order to achieve financial stability in its current market. Once at this level, the business will have developed sufficient market share and acceptance to be resilient to unforeseen normal market fluctuations.   Business Interruption Insurance A type of insurance designed to cover losses resulting from temporary closure of the business as a result of fire or other specified property damage; typically purchased as an additional provision to normal fire insurance   Business Law The aspects of law that most directly and specifically influence and regulate the management of various types of business activities   Business Resilience A measure of the capability of the company to survive financially under conditions brought about by market forces which create the need for the business to remodel restructure or reassess its strategies   Buyer’s Market A market condition characterised by an adequate or excess supply of a particular good or service   Byte A character of data made up of bits to form an alpha or numeric character. See also Bit   Callable Bonds Bonds that have provisions, which allow the issuing company to redeem them prior to maturity usually at a premium. See also Bonds   Canned Sales Presentation A stereotyped sales talk designed to provide all the information that a prospect needs to make a sales decision. See also Prospect   Capability Chain A measure of the capability of the supply network, as identified by the client company, to respond to shifts in the market that is being supplied.   Capital The necessary funds required to finance the operation of a business   Capital Items Those items purchased with capital funds that are required by a company to manufacture or produce a product or service. The items are usual designated to be over a certain value for accounting purposes and are generally identified as having some long term application and value   Capitalism The economic system founded on the principle that competition among business institutions best serves the needs of society   Cartel A conglomeration of business institutions designed to control the markets in which they participate so that they maintain a monopolistic position. Illegal in some countries.   Cash Surrender Value The savings portion of a life insurance policy that can be borrowed by the policyholder at low interest rates or paid to the policyholder upon termination of a policy   Census A primary data survey in which all possible data sources are contacted   Central Processing Unit (CPU) The heart of a computer system, which contains the memory storage, arithmetic logic unit and the control unit   Centralisation The style of business management whereby many activities arew coordinated and managed from a central point eg Head Office. Branches are not given powers to manage or control certain activities   Certified Management Accountant (CMA) An accountant who has met specific educational and professional requirements and has passed appropriate examinations laid down by an authorised examining institution allowing him or her to perform management accounting activities for business organisations, but not the public   Certified Public Accountant (CPA) An accountant who has met specific educational and professional requirements and has passed appropriate examinations laid down by an authorised examining institution allowing him to carry out accountancy work for the public and business organisations   Chain Cell A measure of the extent to which business cell teams or units have developed in the network of supply.   Chain Information Transfer The extent to which information is disseminated and shared between members of the same supply network.   Chain Product Development The mechanism, and its level of maturity, for product development through the supply network to provide a response to the market.   Chain Quality A measure of the ability of the supply network to control quality attributes relating to product, service, timing, contingencies, tolerances, and market response.   Closed Loop The measure of controls at business, process and manufacturing environment that operate with feedback systems to ensure planned activities are achievable.   Closed Shop A place of employment in which management cannot hire non-union workers   Coaching A management development programme designed to transfer the skills and develop experience from a mentor   Collective Bargaining A process of negotiation between management and union representatives for the purpose of arriving at a mutually acceptable wage level and conditions for employees   Commercial Bank A profit making business which holds deposits of individuals and businesses in the form of cheque or savings accounts and uses those funds to make loans to other businesses and individuals   Commercial Finance Company A financial institution that supplies short-term funds to business borrowers who pledge security against non-payment in the form of tangible items such as debtors, stock, property, machinery etc.   Commercial Paper A short-term note issued by a major corporation with high credit standing and backed solely by the reputation of the issuing firm   Common Carrier A transportation company that performs logistical services for a business or individual but has limited liability regarding the value of the goods carried   Common Law The body of law arising out of judicial decisions related to the unwritten law which operates throughout England and inherited by other countries   Common Market A basic format for economic integration that maintains a customs union and seeks uniformity and consistency across the government trade rules of its members   Common Stock Stocks or shares whereby the owners have only a residual claim to the firm’s assets, after preferential stockholders and creditors have been paid, but who have voting rights in the corporation   Communism An economic theory developed by Karl Marx under which private property is eliminated and goods are owned in common   Comparative Advantage A country’s ability to supply a good or service more efficiently and at a lower cost than other goods and services   Competition The race for supremacy among businesses who share the same market with similar products   Compressed Workweek A work-scheduling practice where workers work the specified number hours across a period of less than a week   Compulsory Arbitration A arbitration process which union and management are summoned to a compulsory meeting often required by a third party   Computer Chip A small electronic component, which maintains microscopic integrated circuitry and provides processing logic for the transmission of data   Computer Program A set of instructions that tells the computer what is to be done, how and when to do it and the sequence of steps it must take   Computer Programmer A specialist who writes the computer programs which are based on an analysis of the problem, a breakdown of its component parts and an outline of the steps to be taken to provide a solution   Conceptual Skills The ability of a person to view a situation as unified whole whilst understanding its component parts and how they interact and integrate with each other   Concurrency A measure of the ability of the organisation, and its supply network where appropriate, to perform tasks at the same time in the development of products and services that are being brought to the market, eg. the ability to develop a product, its packaging, and its marketing programme at the same time.   Conglomerate A corporation, which has grown through merger or acquisition of other corporations, and which are unrelated in their strategies and types of business   Consent Order An order under which an accused firm agrees voluntarily to cease conduct, which the Government considers or alleges to be inappropriate   Consideration The value or benefit that each party renders to the other to satisfy a contractual condition to make to valid and enforceable   Consumer Behaviour The acts of individuals who acquire and use goods and services in an economic system   Consumer Finance Company A financial institution that supplies short-term finance to borrowers for the acquisition of consumer goods. Sometimes security may be required and pledged in the form og tangible items that are owned by the person requiring the funds   Consumer Goods Products and services acquired but the ultimate consumer or4 end user for their own use   Consumer Price Index A government measurement of a “basket of goods” designed to represent the average price changes for selected products and services from month to month which are used as economic indicators of the shifts that occur in an economic system   Contingency A provision made during a planning process to estimate or accommodate unforeseen events and expenditure. Used in budgeting and forecasting and especially in the development on new products and services   Continuous Process A manufacturing operation in which long production runs turn out finished products over a specified period of time   Contract A legally enforceable agreement between two or more parties regarding a specific act or thing   Contract Carrier A transportation company that carries goods for hire and reward by individual contract or agreement and not for the general public. Their services tend to meet the special needs of customers   Contract Law The Legal foundation on which normal business dealings are made   Control Focus The focus applied by management in a particular area to ensure that objectives are met eg Quality Assurance methods   Control Unit The part of a computer responsible for directing the sequence of operations, interpreting coded instructions and guiding the computer   Controlling A management function involved with evaluating the performance of an organisation to determine whether or not it is accomplishing its objectives   Convenience Goods Products that consumers seek to purchase frequently, immediately and with minimum effort   Convertible Bonds Bonds that offer the option of being converted in to a specific number of ordinary shares or common stock   Cooling-Off Period A specified period in a contractual agreement which allows the one or both parties to withdraw from the contract without any recourse or claim against the other   Cooperative An organisation whose owners band together to operate collectively all or part of their company or industry   Cooperative Advertising A sharing of advertising costs for a product or service or range of products between the manufacturer and/or wholesaler and retailer   Copyright The protection of an individual’s exclusive right to materials such as books, photos, works of art, songs   Corporate Advertising The promotion of a concept, idea, philosophy, or the good will of an industry, business enterprise or government entity   Corporation An association of persons created by statute as a legal entity with authority to act and have liability separate and apart from its owners   Correlation Analysis A statistical technical used to measure the relationship between two or more variables which can be positive, negative or non-existent   Costing The ability of the organisation to identify the costs of its business activities.   Countertrade Used in international bartering agreements, which requires the seller to reciprocate a purchase with the buyer   Coupons A type of sales promotion that uses advertising inserts or package inclusions that are redeemable for cash and offer purchase discounts   Craft Union A labour union consisting of skilled workers in a specific craft or trade   Creative Selling A persuasive type of promotional presentation used when the benefits of the product are not readily apparent and/or its purchase requires the analysis of alternatives   Credit A bookkeeping entry which records the decrease in an asset or an increase of a liability, or an increase in owner’s equity   Credit Card A small plastic card used in place of cash to acquire goods and services from a seller whereby the Bank who issues the card allows the buyer an extended period of time in which to pay for the goods   Credit Insurance Insurance designed to protect lenders against losses caused by the insolvency of customers to whom credit has been extended   Credit Union A member-owned financial cooperative that pays interest to member depositors, offers share draft accounts, offers short-term loans and some mortgage loans to its members   Critical Path The sequence of operations in a PERT of GANTT chart, which requires the longest time for completion. If a task on the critical path is delayed then the completion time of the whole project is also delayed   Currency A tangible component of money supply (coins and paper) which enable transactions to take place   Current Assets Items of value specified on a balance sheet that can or will be converted into cash within one year. eg cash, stock, debtors   Current Liabilities Claims by creditors that are usually paid within one year   Current Ratio A financial ratio that measures the company’s ability to pay its current debts as they mature. Calculation: Current Assets / Current Liabilities. A ratio of .75 would be in the danger zone. Ideally the ratio should be 1 to 1.5 or higher   Cyclical Trend Variations in sales or other business activities during the various stages of the business cycle   Cyclical Unemployment People out of work because of reduced levels of economic activity   Damages Financial payments for loss and related suffering awarded by the Courts following legal action   Debenture A bond backed by the reputation of the issuing corporation rather than by specific pledges of assets   Debit Bookkeeping entry recording an increase of an asset, a decrease of a liability or a decrease of owner’s equity   Debit Card A coded plastic access card that allows the cardholder to make electronic transactions such as payments or transfer and includes withdrawals of cash from Automatic Teller Machines and other authorised retailers   Debt Capital Funds obtained by borrowing   Debt Ratio A financial ratio designed to measure the extent to which an organisation relies on debt financing in its operations   Debt to Owner’s Equity Ratio A financial ratio that measures the extent to which a company’s operations are financed by borrowed funds. Calculation: Total liabilities / Owners Equity   Decentralisation A management policy or practice, which empowers a team or subordinates to exercise powers to conduct certain activities   Decision Making The process of choosing between two or more alternatives by recognising the problem, identifying and evaluating alternatives, selecting and implementing the best alternative and evaluating the effectiveness of the decision at a stage when the action of the decision has taken effect   Delegation The act of assigning a manager’s duties to subordinates OR a group of people attending a conference or seminar for a particular purpose.   Demand A schedule that shows what consumers will buy ar various price levels See Also Supply   Demand Curve A schedule of amounts of a good or service that will be demanded at different price levels. See Law of Supply and Demand   Democratic Leader A Leader who involves subordinates in making decisions   Departmentalisation The sub division of work activities into work units within an organisation. Other forms extend to customer, geographic, process and product departmentalisation   Depreciation A non-cash expense related to the writing down of a long-term asset to its current book value over the years in which it is used to generate revenue for a business   Deregulation The move to eliminate legal restraints on competition in various industries often currently dominated by monopolies   Devaluation The reduction in value of a country’s currency in relation to gold or some other form of base commodity   Digital Computer A computer commonly used in day-to-day operation of business that provides the means to collect and store and store data and carry out computations on the data. Use of these in home situation is now a world wide phenomenon   Directing Part of the management cycle of guiding and motivating subordinates to accomplish the objectives of an organisation   Disability Income Insurance Health insurance designed to protect the insured from loss of income whilst disabled as a result of an accident or illness   Distribution Channel A marketing term that defines the “channel” or route that a product or service will take from the producer to the consumer   Distribution Strategy A marketing term used when determining the requirements for the physical distribution og goods and services, the channels to be used, the need for others in the chain of supply ie middlemen, range of products know as the marketing mix, pricing and methods of promotion   Distribution Warehouse A place of storage for products for a short period of time from which deliveries are coordinated to organisations in the supply chain and includes the end user if appropriate   Diversity A measure of the breadth and scope products and services being provided by a business, made at the strategic business unit level.   Dividend A payment made to shareholders by a Board of Directors following the declaration of profits made by a company   Domestic Corporation A firm that operates within the country or state in which it is incorporated   Dow-Jones Averages Stocks and shares averages based on the market prices of selected industrial sectors to provide a general measure of market activity over a given time period   Dumping Selling goods abroad at a price lower than that charged within the domestic market   Earnings per Share A financial ratio that identifies the amount of profit earned by a company for each outstanding share. Calculation: Net Income after tax / Number of Ordinary shares outstanding   Electronic Funds Transfer (EFT) A computerised method of transfer funds between banks and authorise merchants for making purchases, payment of payments, cash withdrawals, payments of wages and salaries etc..   Embargo A complete ban on certain imported or exported products   Employer’s Association A group of employees, which allow them to make broad representation thorough an elected spokesperson in dealing with disputes with management and industrial unions   Endorsement A procedure that renders commercial paper transferable when the payee signs the back of the negotiable instrument   Endowment Insurance Insurance, which provides both protection and savings for the individual who pays premiums and builds up a cash surrender value in the policy at a predetermined maturity date. Sometime used as a hedge against fluctuating interest rates on mortgages   Endowment Policy A type of insurance policy that provides coverage for specified period after which the face value, with any bonuses, are refunded to the policy holder   Engineering The art or science of making practical application of the knowledge associated with the pure sciences ie physics, chemistry, biology etc.. or the action or work of the profession of an engineer   Entrepreneur A person who pioneers the establishment of a business and takes all the risks of failure to gain success   Entrepreneurship The taking of risks to set up and operate a business   Environmental Impact Study (EIS) A process of research and analysis resulting in a report that determines the impact of a development project of any kind against a predetermined range of specified criteria   Equal Opportunity Commission A body set up by government to increase job opportunities for women and minorities and to assist in ending discrimination based on race, colour, religion, sex or national origin in any personnel action   Equilibrium Price The price that exists in the market place for a particular good or service which is determined by the intersection of the supply and demand curves   Equities Claims against the assets of a business   Equity Capital Funds provided by the owners of a business when establishing the business, the retention of future profits, other stakeholders such as investors and venture capitalist   Equity Funds Funds obtained by selling shares in a business, reinvesting company earnings or additional contributions made by the owners of the business   Exchange The process by which two or more parties give something of value to one another to satisfy each others needs, objectives or requirements   Exchange Control The allocation, restriction or expansion of foreign currency according to existing national policy   Exchange Rate The rate at which a country’s currency can be exchanged for other currencies or gold   Exclusive Distribution The strategy of giving a retailer or wholesaler the exclusive right to sell a particular product or service in a specific geographical area   Expense Items Consumable items used in the day-to-day running of a business and usually consumed within one year of their purchase   Exporting The act of selling domestic goods to another country   Express Warranties Warranties that have specific representations made by the seller regarding the goods   External Data Data that is generated outside of the company   Factoring A financial institution that purchase at a discount the debtors of a business   Fidelity Bonds Bonds that protect employers from the dishonesty of its employees   Finance The business function of effectively obtaining and using funds in a business   Financial Director A manager who develops and implements a company’s financial plan and determines the most appropriate sources and used of funds   Fire Insurance Insurance coverage for losses due to fire and with extended coverage – inclement weather, hail, water and smoke damage   Fixed Assets Those assets that are relatively permanent and are used in the operation of the business for more than one year. The total value of these items is shown on company’s balance sheet   Fixed Costs Those costs that remain stable regardless of the level of production or sales achieved   Flexitime A work-scheduling system that allows employees to set their own working hours within a specified bandwidth within the organisation   Floating Exchange Rate An exchange rate that varies according to market conditions   Flowchart A logical schematic that show the module components or procedural steps in a system, to solve a problem or achieve an objective   Foreign Corporation A corporation which carries on business in another country or state in which it was originally incorporated   Franchise Agreement A contractual arrangement between a franchisor and a franchisee which lays down the rules upon which the product or service must be marketed and the associated administrative procedures   Franchisee The purchaser of a business system from a franchisor which represents a replicated version of a proven and successful business, for a fee and provides in return a royalty, percentage of turnover, commissions or a combination   Franchisor The owner or supplier of a franchise which typically provides building plans, site selection research, managerial and accounting procedures and other services to assist the franchisee who receives payment in the form of a flat fee on acquisition, a royalty, percentage of turnover, commissions or a combination   Free Trade A basic format for economic integration within which participants agree to allow trading among themselves without any tariffs or trade restrictions   Free-Rein Leader A leader who leaves most of the decisions to their subordinates   Freight Forwarder A common carrier that purchases bulk space from other carriers by lease or contract and resells this space to small volume shippers. The forwarder picks up, loads and delivers the merchandise and takes care of the billing   Frequency Distribution The common practice of grouping data in a listing or graph to show the number of times each item appears in the data   Fringe Benefits Employee benefits in addition to normal wages and salaries such as pensions, health and life insurance, sick leave, company car and other allowances   Functional Departmentalisation A organisation structure base on functional divisions ie Production, finance, marketing, human resources etc..   Functional Organisation A transitional form of organisation based on a direct low of authority for each work activity or function   GANTT Chart A project management methodology used to determine the required time for the length of a project along with task identification and the resources required to complete the task on time and budget. See also PERT   GATT General Agreement on Tariffs & Trade An international trade accord that has sponsored a series of negotiations on tariffs and trade   Gearing A financial ratio also known as Capital Gearing; represents the ratio of a company’s debt capital to its equity capital, ie. It represents a view of how heavily in debt the company is. The appropriate ratio varies according to industry sector and current economic perception.   General Expenses Those expenses that are incurred in the overall running of the business that are not generally related to costs acquisition, production or the sale of the company’s products or services   Generations Evolutionary stages in the development of computers   Generic Product A product without a brand name that sells at a discounted price. Generally has plain packaging and minimal labelling and little, if any advertising but still must meet specified standards. eg Pharmaceuticals   Geographic Departmentalisation An organisation structured by geographical regions   Government Bonds Bonds issued by a government   Grapevine The informal network of communication found in most organisations   Grievance A complaint by an employee or a union that management is in violation of a specified contract or arrangement   Gross National Product (GNP) The sum of all goods and service in an economy produced during a year   Group Life Assurance Life assurance for company employees; typically underwritten by a single master policy   Health Insurance Insurance designed to cover losses due to sickness and accident   Horizontal Merger A merger of organisations in the same industry   Hospital Insurance Health insurance designed to pay for the cost of hospitalisation   Human Relations A study of how organisations manage and interact with their employees in attempting to improve employee and organisational effectiveness   Human Relations Skills The ability of managers to work with and through people in communicating, leading and motivating workers to accomplish assigned objectives   Human Resource Forecast A forecast to determine the quantity, quality and skills of personnel over a future period   Human Resource Management The process of acquiring, training, developing, motivating and appraising a sufficient quantity of employees to perform necessary activities in conjunction with a conducive environment that will promote maximum effectiveness   Human Resource Planning The identification of a comprehensive strategy to meet the future human resource needs of an organisation   Implied Warranties Those Warranties legally imposed on a seller and generally automatically effective unless disclaimed by the seller in writing   Import Quotas Limitations on the number of products in certain categories that can be imported, with the objective of protecting domestic industries and preserving foreign exchange   Importing The buying of foreign goods and raw materials   Incentive Compensation Rewarding an employee for exceptional performance in addition to normal salary and wages   Incentives The level to which individuals are incentivised in the organisation, and the methods and systems employed to achieve this, relative to what competitors are doing.   Income Statement The financial statement of an organisation that reflects the revenues, expenses and profits over a period of time   Index Number A statistical tool for measuring the changes that take place in business activity and other variables   Industrial Distributors Wholesalers of industrial goods   Industrial Estate A planned site location specially designated and zoned for business use. Particular categories of business may be specified eg Light industry   Industrial Revolution The shift to a factory system of production which occurred in England around 1750   Industrial Standards The degree to which industrial standards, that are relevant to the sector, are used within the organisation, their relevance and the level of compliance with them.   Industrial Union A labour union consisting of all or most of the workers in a given industry, regardless of occupations or skill levels   Inflation An economic situation in which there are rising prices or decreased purchasing power of a nation’s currency   Informal Organisation A self-grouping of employees in an organisation who communicate through informal channels   Informative Advertising An advertising approach intended to build initial demand for a product in the introductory phase of the product’s life cycle   Injunction A court order prohibiting or restrain some practice   Innovation The ability of an organisation to motivate, facilitate and capitalise on creativity and innovation.   Inspection and Testing The methodologies used to ensure that items purchased and received or processed during manufacture meet the predetermined specifications   Institutional Investor An organisation such as an insurance company, pension fund, mutual fund, university, or bank which invests its own funds or funds it holds in trust for others   Instrumentation Measurement devices used in the production process   Insurable Interest An insurance concept wherein the policyholder must stand to suffer loss, financial or otherwise due to fire, accident, death or lawsuit   Insurable Risk The requirements that a risk must meet in order for the insurance to provide protection against its occurrence   Insurance The process by which an insurance company for a fee (premium) agrees to pay another firm or individual (insured) a sum of money stated in a written contract (policy) if a loss occurs   Insurance Company A business that provides protection for individual and business policyholders in return for payment of premiums which in turn uses these premiums to make long term loans to corporations, provides commercial real estate mortgages and purchases government bonds   Intangible Assets Items of value such as copyrights, patents, goodwill, intellectual property and trademarks that have no physical or tangible properties   Integrated Circuit A network of transistors, connecting circuits and other electronic components etched on a single silicon chip   Intellectual Assets The level of knowledge, skills and capability and the level of development that an organisation vests in its people   Intensive Distribution A strategy used to achieve saturation market coverage by placing a product in nearly every available outlet. It requires maximum distribution effort and usually involves low-priced convenience goods such as impulse counter items   Interlocking Directorates Identical or overlapping Boards of Directors for competitive companies   Intermittent Process A manufacturing process where the production runs are short and the machines are shut down frequently or changed in order to produce different products   Internal Data Data generated within an organisation. See also External data   International Monetary Fund (IMF) A fund established to lend foreign exchange to countries that require assistance in conducting international trade   International Union A national union with membership in a foreign country   Inventory Control The balancing of the need to maintain stock on hand to meet demand with the costs involved in carrying the stock.   Inventory Turnover Ratio A productivity ratio that measures the number of times the average volume of stock held moves through the business. Calculation: Cost of Goods Sold / Average amount of Inventory   Investment The purchase of stocks and shares with the hope of getting satisfactory dividends and interest as payment for the risk taken   Investment Banker A financial middleman who specialises in selling new issues of stocks, shares and bonds for businesses and government units. Also known as an underwriter   Job Analysis A systematic detailed study of jobs based on identification and examination of job characteristics and the requirements of the person assigned to the job   Job Description A document specifying the objectives of the job, the work to be performed including duties and responsibilities   Job Enlargement The increase in the number of tasks performed by a worker in order to make the job more psychologically rewarding. It may or may not lead to job enrichment   Job Enrichment The redesign of work to give workers more authority to plan their work and to decide how it is to be accomplished and allowing to learn related skills or to trade jobs with others   Job Evaluation A method of determining wage levels for different jobs by comparing each job on the bases of skill requirements, education requirements, responsibilities and physical attributes   Job Order A specific set of instructions, which detail the requirements to produce a good for a customer or for stock   Job Rotation A management development programme that familiarises employees with the various operations of the company and the contributions of each department through temporary assignments or periods in each department   Job Sharing The division of one job assignment or role between two or more persons   Job Specification A written description of the skills and qualifications required for a worker to be eligible for employment for a particular job   Joint Venture A partnership in which two or more people form a temporary business for a specific undertaking   Journal An accounting list of transactions, which describe each transaction in chronological order:   Judiciary The branch of government charged with deciding disputes among parties through the application of laws   Jurisdiction The limitations or boundaries in which a business may be carried out eg Franchise; or the scope of power of a government to exercise its laws   Key Man Insurance Life insurance designed to compensate the organisation for the loss of the services of an executive or key an and to cover the costs of recruiting and training a successor   Key Performance Measure A measure that enables the company to determine the progress toward a business objective. It is generally applied as a program of measures and requires a methodology to cover the scope of activity and the techniques for gathering and processing data   Labour All individuals who work for a business   Labour Union A group of workers who have banded together to achieve common goals, particularly in regard to wage levels and working conditions   Law Standards set by government and society in the form of written legislation or unwritten customs and traditions   Law of Supply and Demand An economic law stating that market price is determined by the intersection of the supply and demand curves   Layoff Temporary separation due to business slowdown   Leadership The act of motivating or causing others to perform activities to achieve specified objectives   Leadership Style The way in which a leader uses power in order to lead others   Ledger A specialized accounting book containing details of items such as cash, purchases. Sales, inventory etc.   Legal Capacity The ability of a party to enter into a legal agreement   Leverage A technique to increase the rate of return on investment through the use of borrowed funds   Liabilities Amounts listed in the balance sheet which represent payments outstanding to creditors both short and long term   Limited Partnership A partnership comprising one or more general partners and one or more limited partners, who liability is limited to the amount of capital contributed to the partnership   Line Manager An operations manager exercising mainline authority in areas such as production, marketing and finance   Line of Credit An agreement between a commercial bank and a business organisation that states the amount of unsecured short-term credit the bank will make available to the borrower if approved   Line Organisation An organisation structure of direct flow of authority from the chief executive to subordinates   Liquidity The condition of a business with regard to the amount of working capital and its ability to convert assets into cash to meet short-term obligations within normal credit limits   Liquidity Ratio A financial ratio, which represents the ratio of assets that may be easily exchanged for money to the total assets to determine its ability to meet its short-term obligations. The higher the percentage, the more flexible the organisation is to absorb and implement change and to survive adverse conditions. Calculation: Current Assets / Current Liabilities   Local Union A branch of a national union representing its members in a specific area   Lockout A management method to bring pressure on union members by closing the business   Long-Term Liabilities Those liabilities in the balance sheet, of which payment arrangements extend beyond one year.   Mainframe Computer Early style of computer, which processes massive amounts of data and provides large storage capacity. Given way to Distributed Processing, Networks and Servers   Maintenance Factors Job-related factors such as wages, conditions and job security that must be present in order to prevent worker dissatisfaction but which are not strong motivational factors in them selves.   Make-or-Buy Decision A fundamental management decision of whether or not to manufacture a product, material or component or purchase it from an outside supplier   Management The achievement of organisational objectives through people and other resources   Management by Objectives (MBO) A programmes designed to improve employee’s motivation through participation in setting their own goals and knowing in advance the bases of evaluation   Management Development Programs Employee training programmes designed to improve the skills and broaden the knowledge of present managers as well as facilitating the growth of those with management potential   Management Information Systems (MIS) An organised method of providing past, present and projected information on internal operations and external intelligence for use in management decision making   Management Reporting Information that is reported to management within the organisation, which may include financial data as well as other performance indicators and the strategic implications compared to projected objectives.   Margin Trading Securities purchases in which a portion of the funds is borrowed from the brokerage firm   Market A system comprising people with the authority, financial ability and willingness to purchase goods and services   Market Lead Times Those lead times that are considered to be normal for the sector.   Market Order An Investor request for stock or share purchase be made at the current market price   Market Research The study of marketing problems and opportunities which contributes to the formulation of strategies to achieve market objectives   Market segmentation The process of dividing a total market into several homogeneous groups   Market share The percentage of a market controlled by a particular company, industry, product or service   Market Value The price at which a security is currently selling   Marketing Concept A business philosophy, which advocates that all activities and functions in an organisation be directed toward the identification and satisfaction of customers needs and wants   Marketing Mix The combination of a company’s product, pricing, distribution, and promotional strategies focused on selected consumer segments   Markup The amount added to cost for profit and expenses not previously considered from which the total forms the selling price   Markup Percentage Markup / Selling Price expressed as a percentage   Mass Production The manufacture of products in large quantities as a result of the standardisation, specialised labour, mechanisation and automation   Materials Handing The moving of items within a company’s warehouse, factory or other stores   Materials Management A measure of the effectiveness and relevance of the management of the flow of materials and information through the immediate supply network. This may include purchasing, stock control, stores management, operations planning and control and physical distribution management.   Materials Requirements Planning (MRP) A computer-based production panning system for ensuring that certain parts and materials are available at the right time and place and in the correct quantities. MRPII is a more sophisticated version   Matrix Organisation An organisation structure in which specialists from different parts of the organisation are brought together to work on specific projects, usually used in conjunction with a line and staff structure where projects are led by a sponsor or project manager   Maturity The stage of the business in its evolutionary cycle   Maturity Date The date specified on a security when the principal must be repaid   Mean (Average) A statistical measure calculated by adding together all the observations then dividing by the number of observations   Mechanisation The use of a machine for work previously performed by humans   Median The middle score in a distribution of observations   Mediation The process of introducing an impartial third party, called a mediator, to make recommendations for the settlement of union-management differences. Used also in domestic environments to settle many forms of dispute   Medium of Exchange A monetary function, which facilitates exchange eliminating the need for a barter system   Memory Unit A part of a computer that stores information   Merchant Wholesaler An independent wholesaler who takes legal title to goods   Merger The joining of two or more businesses whereby the obligations are amalgamated for joint purpose   Metric System A standard of weights and measures based on a decimal system and its multiples   Microcomputer A personal computer, laptop or desktop, which provides storage, calculation and design and entertainment facilities for home and business use   Microprocessor One or more computer chips containing the basic arithmetic logic and storage elements needed for processing   Middle Management A level of management, which maintains closer observation of operational aspects of running a business and participates in the formulation of strategic plans and budgets   Middlemen Persons or firms, including wholesales and retailers, who operate between the producer and the consumer   Minicomputer An intermediate computer, which is less in capacity to a mainframe computer   Missionary Selling An indirect from of selling in which the representative markets the goodwill of a company and/or provides technical or operational assistance to the customer   Mixed Economy An economic system having a mix of government ownership and private enterprise   Mode The most frequently occurring value in a series of observations   Modelling The process of simulating of new or existing activities or processes using complex software and parameters to determine future viability to facilitate decision-making and maximising economies of introduction   Money Anything generally accepted as a means of paying for goods and services   Monopoly A market situation in which there are no direct competitors   Morale The mental attitude of employees toward their company and their job   Mortality Table A table, based on past experience, which is used to predict the number of persons in each age category who will die n a given year   Motivational factors Job-centred characteristics, such as the work itself, recognition, responsibility, advancement and growth potential, which are key sources of employee motivation   Motive An inner state that directs and individual toward the goal of satisfying a felt need   Motor Vehicle Insurance Insurance cover for a motor vehicle which covers losses such as theft, malicious damage, or collision which result in claims for damage to the person, vehicle or property of others involved in an accident   Multi Tasking Comparative measures within sector for multi tasking in the organisation that are industry specific.   Multi-National Corporation A corporation that operates production and marketing facilities on an international basis and considers the world its market   Municipal Bonds Debt issues of a state or political subdivision such as county, city, town, village   Mutual Funds Financial organisations that pool investment money from purchasers of their securities and use the money to acquire a diversified portfolio of securities   Mutual Insurance Company An insurance company owned by its policyholders   Narrowcasting Advertising on selected cable TV channels aimed at a particular audience   National Industry Policy A central economic plan structured by the government in collaboration with economic advisers and key business leaders   National Union A labour union comprising a series of local unions set up to serve a particular industrial sector   Natural Resources Everything useful as a productive input in its natural state including land, crops, minerals and forest products   Negligence A tort based on careless rather than intentional behaviour that causes injury to another person   Negotiable Instrument A form of commercial paper, which is transferable among individuals and businesses   Net Income Actual profit or loss incurred over a period of time, determined by subtracting all expenses from revenues   Objective A goal or guidepost used by management to define the standards that an organisation sets as being achievable and should accomplish over a period of time. Typical areas where objectives are identified include customer service, output levels of production, amount of sales for a month, year etc..   Observation Method A method of collecting primary data that involves direct studies of actually viewing and observing the actions of respondents either directly or mechanical devices   Oligopoly A market, which is controlled by only a few sellers   Online Processing A method of scheduling computer processing in which data are entered and processed when received   On-the-job Training An employee training programme in which the worker learns job task under the guidance of a more experienced employee   Open Corporation A large corporation in which ownership is widely diversified   Open Loop The controls in a business, where no feedback system is in place that could be used to monitor the achievability of planned activities.   Open Market Operation A reserve banking system of controlling the money supply through the purchase and sale of government bonds   Operating Expenses All business costs other than the cost of goods sold and associated freight charges   Order Processing The sales function of receiving and handling an order. The condition of whether an order is considered processed will vary from business to business   Organisation A structured group of people working together to achieve a set of planned objectives   Organisation Chart The pictorial map which outlines the functionality of the business and the positions to whom authority and responsibility is designated   Organisational Structure The type of structure used to determine the lines of command and responsibility in the business   Organising The means by which management blends human and material resources through the design of a formal structure of tasks and authority   Output The results of processing input data for any process, computerised, mechanical or human   Outside Directors Members of a Board of Directors of a business who are not employed by the business   Owner’s Equity Claims that proprietors, partners or shareholders have against the assets of a firm or the excess of all assets over liabilities   Par Value The original value of stocks and shares printed on stock and share certificates   Parent Company A corporation that owns all or the majority of the shares in another company called a subsidiary   Parkinson’s Law A theory which states that work expands to fill the time available   Partnership An association of two or more persons who operate a business as co-owners by a voluntary agreement, one which is often verbal but ought to formalised by a legal document   Patent A guarantee to inventors of exclusive rights to their inventions for a specified period, subject to acceptance by the controlling patent office   Penetration Price Strategy A strategy of pricing a new product relatively low compared to similar goods on the basis that it would secure a wider market acceptance that will eventually allow the company to raise the price   Pension Fund A pool of money set up by a company, union or non-profit organisation for the retirement income needs of its employees or members   Performance Appraisal The process of defining acceptable performance level of employees and comparing actual and desired performance in order to make object decisions about additional training needs, compensation, promotion, transfers or terminations   Perpetual Inventory A continuously updated list of inventory   Personal Selling A promotional presentation made on a person-to-person basis with a potential buyer   Physical Distribution The actual movement of goods from producer to user covering such activities as transportation, warehousing and materials handling. More commonly known as logistics   Physiological Needs The primary needs of food, shelter and clothing that are present in all humans that must be satisfied before higher-order needs can be considered. The first stage in Maslow's Heirarchy of Needs.   Picketing Workers who march or demonstrate at the entrance of an employer’s place of business in protest against some management practice   Piece Work Employee remuneration based on the amount of output that a worker produces   Planning A management function concerned with anticipating the future and determining the best courses of action to achieve organisational objectives over a future period   Planning Horizons The distance into the future up to which business plans can be made with confidence in the assumptions and forecasts   Point-of-Sale Advertising (POS) A type of sales promotion that displays and demonstrates an item at a time and place close to where the actual purchase decision is made   Point-of-Sale Terminal (EPOS) A device at the point of sale which is linked to a central computer that when activated allows funds to be electronically transferred from the buyer’s account to that of the seller. Modern devices provide additional management functions for store management   Positioning A promotional strategy that concentrates on a specific market segment rather on broad appeal; often used for products that are not leaders in their particular field   Posting The process of transferring journal entries to specific ledger accounts. This is phased out in favour of online processing   Power The ability of one person to influence the behaviour of another   Pre-emptive Right The right of current shareholders to purchase a proportionate share of new issues   Preferred Stocks and Shares Those owners who receive preference in the payment of dividends and have the first claim to the corporation’s assets after all debts have been paid but who usually do not have any voting rights in the corporation   Premiums A type of sales promotion that offers small gifts to the consumer in return for buying a product   Price The exchange value of a good or service   Price Lining A price offering of merchandise at a limited number of prices instead of pricing each item individually   Price-Earnings Ratio A financial ratio. Calculation: Current Market Price / Annual Earnings   Primary Boycott A boycott in which union members are told not to patronise a specific firm   Primary Data Data gathered for the first time during a research study   Primary Market A market in which new issues of securities are sold for the first time to the public   Prime Interest Rate The rate of interest set by the Reserve Bank, which is used as a base parameter for rates charged by commercial banks for short-term loans to major business firms with high credit standing. See also Base Rate.   Private Accountant An accountant employed by government or private enterprise other than a public accounting firm, to perform the duties of an accountant for the enterprise for whom he is employed   Private Brand A product that carries the retailer’s label instead of the manufacturer’s; often known as house, distributor or retailer brand   Private Carrier A company that carries its own goods and property in its own vehicles   Private Enterprise System An economic system in which success or failure is determined by well business organisations match and counter the offerings of competition in a market place   Private Property Property that can be owned, used, bought, sold and bequeathed under the private enterprise system   Probability Sample A representative group selected in a random way so that every member of the population has an equal chance for inclusion in a research study   Problem Identification The ability of the organisation to identify problems and to differentiate them between symptoms and causes.   Problem Solving The use of various techniques to solve problems in a business. See Decision-Making   Procedural Systems The systems that are in place to manage procedures to ensure that they performed effectively and efficiently   Procedures A set of instruction which guide the worker to perform a particular activity or process   Process A systematic series of actions directed toward to some end to convert the input data or components to a state for another process of the finished good for the end user   Process Capability The ability of the organisation to employ adequate process methods and techniques to ensure competitive production of goods or services.   Process Departmentalisation Departmentalisation based on the type of activities performed   Process Engineering This is about how engineering gets done in the organisation, eg. is it breakdown maintenance, is it planned preventive maintenance (if so, to what degree), is it predictive engineering (including such things as total predictive maintenance), or is it intelligent asset management where engineering focus is in products to market rather than the performance of standard machines and processes.   Process Focus The part of the business process that the management concentrates upon, in terms of controlling the business, eg. does management focus on the ability for repetitive supply to the market, or does it focus on the ability of the business to adapt to shifting market positions knowing that the repetitive capability of the company is systematised.   Process Layout A manufacturing facility design that accommodates a variety of non-standard products in relatively small batches   Process Machines Any device electronic, mechanical used in the processing of input data or material, which facilitates an output state to a predetermined specification   Procurement The act of acquiring goods, components, raw materials and consumable items which enable the business to function. A procurement strategy will be part of the overall planning strategy for the business   Product A bundle of physical, service and symbolic attributes designed to satisfy the needs and wants of consumers   Product Advertising The non-personal selling of a good or service   Product Departmentalisation Departmentalisation based on the products that the business organisation supplies   Product Layout A manufacturing facility design that accommodates only a few products in relatively large quantities   Product Liability An area of tort law developed by both statutory and case law to hold businesses liable for negligence in the design, manufacture, sale and use of products   Product Liability Insurance Insurance protection for businesses against claims for damages resulting from the use of the company’s products   Product Life Cycle A series of stages in the life of all successful products comprising, introduction, growth, maturity and decline   Product Spread A measure of product variance and product groupings, in comparison to market requirements determined by the amount of variety in existence in the market place   Product Strategy An area of marketing that deals with products and services, packaging, design, trademarks, warranties, product life cycles and new product development   Production The use of people and machinery to convert materials, components and other resources into finished products or services   Production / Operations Management Management of the use of people and machinery in converting raw materials, components and other resources into finished products   Production Control A defined set of procedures for coordinating people, material and machinery in the production of goods and services for maximum efficiency and effectiveness   Production Era The early part of the twentieth century when business managers focused mainly on production. Methods pioneered by Fred Winslow Taylor   Production Modelling Techniques, which are used to simulate different aspects of production to minimise the cost of failure and assess the viability of producing a particular good or service   Production Planning The phase of production control that determines the amount of resources needed to produce a certain amount of goods or services   Productivity A measure of the efficiency of production as it relates to the amount of goods and services that a worker can produce over a give time period   Profit The difference between gross revenues and all other expenses   Profit Maximisation A pricing strategy whereby management sets increasing levels of profitability as its objectives   Profit Sharing A type of incentive compensation programme in which a percentage of company profits are distributed to employees involved in producing the profits   Profitability Ratio A financial ratio designed to measure the overall profitability of the firm. Comprises a series of ratios including Gross profit margin (%), Net profit margin (%), Return on Assets (%) and Return on Equity (%)   Program Evaluation & Review Technique (PERT) A project management and scheduling technique for minimizing production delays by coordinating all aspects of the production task into smaller components and managing required resources. See also GANTT   Promissory Note A traditional bank loan for which the borrower signs a note stating the terms of the loan, including its date of repayment and interest rate   Promotion The upward movement in an organisation to a position of greater authority, responsibility and a higher salary   Promotional Contests Sales promotion activities that offer cash or merchandise as prizes and are useful in getting consumers to consider new products   Promotional Mix A firm’s combination of the 3 elements of promotional strategy comprising advertising, personal selling and sales promotion   Promotional Strategy A part of marketing decision-making that involves blending personal selling, advertising and sales promotional tools to produce effective communication between the form and the market place   Property Something which people have the unrestricted right of possession   Prospect A potential customer   Prospecting The task of identifying potential customers   Protective Tariffs Tariffs designed to raise the price of imported goods and services to the level of those produced domestically   Proxy An authority given by a shareholder or member of a committee to someone else to vote as instructed at the formal meeting. Often give to the chairman   Pubic Liability Insurance Insurance protection for businesses and individuals against claims caused by injuries to others or damage to the property of others   Public Accountant An independent professional who provides accounting services for other businesses and individuals   Public Insurance Company A government agency designed to provide specialised insurance protection to businesses and individuals   Public Ownership The ownership and operation of an organisation by a government unit or its agency on behalf of the population served by that unit   Pulling Strategy A promotional strategy utilising advertising and sales promotion appeals to generate consumer demand for a product as a means of exerting pressure on channel members to handle the product   Pure Competition A situation in which the firms in an industry are so small that none of them can individually influence the price charged in the market place   Pure Risk The type of risk involving only the chance of loss   Pushing Strategy A sales oriented promotional strategy designed to motivate middlemen to push the product on to their customers   Qualifying A function of a sales presentation that enables a sales person to identify those prospects with the financial capability and authority to buy   Quality Circle A voluntary group of 7 – 10 people from the same work area who meet on a regular basis to define, analyse and solve quality and related problems within their area   Quality Control The measurement of the production of products and services against established standards. Often applied at the end of a series of processes. See Quality Assurance   Quality Insurance The measurement of the production of products and services against established standards at predetermined stages of production so that deficiencies are located and remedied at the earliest opportunity and downtime in the subsequent processes is minimised   Quality Management System A formally structured set of policies and procedures designed ensure that products and services are produced consistently   Rack Jobber A full function merchant wholesaler who sets up and services a particular section of a retail store like magazines and dedicated supermarket space   Real Gross National Product Inflation-discounted gross national product   Real Time A computer processing state whereby the transaction acceptance is said to immediately update other associated files thus providing information in the most current state possible   Regulated Industries Industries in which competition is either limited or eliminated altogether and close government control is substituted for the market controls of free competition   Reminder-Oriented Advertising An advertising approach that attempt s to keep a product’s name at the forefront to remind customers of the importance or a concept or institution   Remote Terminal A computer terminal, which is in operation some considerable distance from the main central computer or server   Reserve Requirement The percentage of a banks cheque and savings accounts that must be kept in the bank or at the local central bank to ensure that a balance is maintained between customers funds paid in and loans paid out and that any extraordinary circumstances do not unduly impact on the parties   Responsibility The obligation of a subordinate to perform assigned duties   Retailers Persons or businesses who sell products to individuals for their own use or consumption rather than for re-sale   Return on Equity A financial ratio that measures company profitability by comparing net income and total owner’s equity to assess the returns that owners are receiving for their overall investment. Calculation: Profit After Tax / Total Equity   Return on Sales A financial ratio that measures company profitability by comparing net Income and net sales. Calculation: Profit After Tax / Total Sales   Revaluation An upward adjustment ion the value of a country’s currency   Revenue Tariffs Tariffs designed to raise funds for the government   Revenues Funds received by a business from the sale of products and services, sales of assets, interest receipts, dividends, royalties and rent   Revolving Credit Agreement A guaranteed line of credit   Right-to-Work Laws State laws that prohibit compulsory union membership   Risk Uncertainty about loss or injury   Risk Management The process and techniques that attempt to measure, assess and forecast the amount of risk that maybe incurred on a particular project based on a set of predetermines assumptions and to identify the risk as a percentage in relation to the risk being high or low or certain or uncertain   Robbery Insurance Insurance coverage for losses due to the unlawful taking of property from another person by force or by threat of force   Robotics Programmable machines used in the mass production of products that can perform numerous manipulations of materials and tools   Round Lots Quantities of 100 shares of stock purchased or sold   Routing A phase of production control that determines the sequence of work throughout a production facility   Salary Employee compensation calculated on a weekly, monthly or annual basis   Sales Branches Manufacturer-owned wholesaling operations that stock the items they distribute and process orders from their inventory; often specialise in large volume complex, perishable or highly competitive products   Sales Law An offspring of contract law involving the sales of goods and services and the methods of payment   Sales Maximisation A strategy under which management sets an acceptable minimum level of profitability and then tries to maximise sales   Sales Office A manufacturer-owned office for sales people that provide close contacts for potential purchasers   Sales Promotion A form of promotion other than advertising and personal selling that increases sales through one-time selling efforts such as displays, shows, exhibitions and demonstrations   Sample A representative group from which data are collected   Samples A type of sales promotion that uses distribution of free product as gifts to gain public acceptance and future sales of the product   Scheduling A phase of production control involved in the development of timetables that specify how long each operation in the production process will take   Scrambled Merchandising The practice of retailers who carry dissimilar product lines in order to appeal to customers seeking a one-stop shop   Seasonal Trend Variations in sales or other business activities that occur during the year   Seasonal Unemployment People who are currently unemployed because of seasonal hiring practices within their industry   Secondary Boycott A boycott or work stoppage intended to force an employer to cease dealing in the product of another firm involved in a labour dispute   Secondary Data Previously published information, which is used in course of carrying out research   Secondary Market A market in which previously issued stocks, shares and bonds are bought and sold   Secular Trend The general long-term growth or decline of specific firms, industries or the nation as a whole which may extend over several business cycles   Secured Bond A bond, which is backed by a pledge of specific assets   Securities Stocks, shares and bonds that represent obligations on the part of the issuers to provide purchasers with an expected or stated return on funds invested   Selective Distribution A degree of market coverage somewhere between intensive and exclusive distribution, which occurs when a limited number of retailers are selected to distribute a company’ s range of products   Seller’s Market A market situation which characterised by shortages   Selling Expenses Expenses incurred in the marketing and distribution of products and services   Seniority The length of time an employee has worked at a company or in a particular job or department   Separation Employee departure or movement resulting from terminations, resignations, retirements and layoffs   Serial Bonds A large number of bonds that are issued at the same time but mature at different times   Services Intangible tasks which satisfy consumer and industrial needs when efficiently developed and distributed to chosen market segments   Shop Steward A representative of a local union responsible for representing employees on a day-to-day basis within a company   Shopping Goods Products purchased only after the consumer has compared competing goods in competing stores on bases of price, quality, style, colour, service and delivery   Single Payment Policy A variation of whole life insurance that consists of a large premium paid in a lump sum at the time the insurance is purchased   Sinking Funds Bonds Bonds whose issuing corporation makes annual deposits of funds for use in redeeming them when they mature   Skimming Price Strategy A strategy of setting the price of a new product relatively high compared to similar goods and then gradually lowering it   Small Business A business that is independently owned and operated and is not dominant in its field.   Small Business Service (SBS) A government initiative designed to serve the needs of small business through a variety of sub initiatives applied according to economic need and geographical location   Smokestack Industry A factory based business   Social Responsibility Management’s consideration of the social effects as well as the economic effects of its decisions   Software Logical sets of instructions know as a program that are written in a variety of specialised languages that instruct a computer what to do   Sole Proprietorship The ownership and usually the operation of a business by a single individual   Span of Management The optimum number of subordinates that a manager can effectively supervise   Specialisation The division of work into components that permit a focused and concentrated approach to be taken when performing the task   Speciality Goods Products that are particularly required by a purchaser who is willing to make a special effort to obtain them and is familiar with the item sought   Specialty Advertising A type of sales promotion that consists of giving away items of nominal value branded with the donor company’s name   Speculation The purchase of stocks and shares in anticipation of making a large profit over the short-term   Speculative Risk The risk associated with certainty, uncertainty, profit or loss when evaluating a project or any aspect of it, or investment   Staff Manager A manager who provides information, advice or technical assistance to line managers   Staff to Line A Measure which compares the number of staff to the number of operatives compared to similar businesses in the same or competing sector   Standardisation The unification of products and services that have interchangeable parts   Statistics The collection, analysis, interpretation and presentation and information in numerical or graphical form   Statutory Law The written law that include the treaties laid promulgated by government institutions such as central, regional, local and other ordinances for town and cities   Stock Exchange The central institution where stocks, shares and bonds are bought and sold   Stock Insurance Company An insurance company operated for profit   Stock Turnover A productivity ratio, which describes the number of times the average inventory is sold annually. Calculation: Sales or Cost f Goods Sold / Average Inventory   Stockbroker The intermediary who buys and sells securities for clients   Stockholder The people who acquire shares, which allow them certain rights over the ownership of a corporation   Stocks Share of ownership in a corporation   Storage Warehouse A place that stores products for a relatively long period of time. Often used for seasonal products   Strategic Administration The taking of action to ensure strategic performance. Includes staffing, compensation, communication, motivation, managing the board of directors and organising the top management team   Strategic Business Unit (SBU) Any business, or part of a business, having its own balance sheet but, often, treating its parent as a bank.   Strategic Control The process of monitoring the outcome of strategic plans and feeding this information back to management   Strategic Implementation The process of putting a strategy into operation throughout an organisation with the help of middle management and operating staff   Strategic Leadership The process of monitoring the resources in the organisation allocated to achieve strategic goals   Strategic Management The process of aligning the internal capability of an organisation with the external demands of its environment including the need to allocate human and material resources effectively   Strategic Planning The documentation process which outiline the major objectives of an organisation and the adoption of courses of action and the allocation of resources required to achieve the objectives   Strategic Thinking The continuous process of managing strategy consistent with strategic goals and cultural values of the organisation. Strategic planning and strategic management for the basis of strategic thinking   Strike Employees’ temporary work stoppage brought about by the failure to resolve a dispute between unions and management   Strikebreaker A non-union worker hired to replace a striking worker   Structural Employment People who lack the necessary skills for employment or those whose skills are no longer demanded by a particular industry   Subsidiary A corporation with all or the majority of its shares owned by another corporation   Supervisory Management The third level of management including people who are directly responsible for assigning workers to specific jobs and evaluating performance   Supply A schedule of what sellers will offer in the market at various price levels   Supply Chain The network of suppliers who supply all items which contribute to bringing a product to market in a business. It includes capital items, raw materials and consumable operating items such as stationery, etc…   Supply Chain Performance The ability of the supply chain to meet demand such as the availability of raw materials.   Supply Curve A schedule of amounts of a good or service that will be offered in a market at certain prices   Surety Bonds Bonds that protect people or companies against losses resulting from the non-performance of a contract   Surgical & Medical Payments Insurance Health insurance designed to pay for the costs of surgery, fees for medical specialists such as anaesthetists and physicians in after care and recovery   Survey Method A method of acquiring primary data in which a researcher asks respondents questions to ascertain attitudes, motives and opinions   Synthetic System A system that combines a number of raw materials or components into a finished product or changes raw materials into completely different finished products   System An entity that maintains its existence and functions as a whole through the interaction of its parts   Tactical Planning Planning which focuses on short-term implementation of current activities and the allocation of all associated resources   Talent to System The level to which individual talent of professionally qualified personnel have released their core knowledge for incorporation into knowledge based systems and made available to all. The knowledge-based systems, it should be noted, are not all computer driven. The core measures are about the degree to which process, manufacturing or service talent is systematised within the organisation.   Tangible Personal Property The ownership of physical items of any kind   Target Market A group of consumers towards which a firm directs its marketing effort   Target Return A pricing strategy whereby the desired profitability is stated in terms of particular goals, such as a 10% return on sales or investment   Tariffs Taxes levied by the government on imported goods and services   Tax Indexation The adjustment of income tax brackets according to inflation   Taxes Monetary assessments in various forms both direct and indirect, which are levied by the government as a means of collecting revenue   Technical Skills The ability of a person to understand and used technical skills, knowledge and tools of a specific discipline or department   Technology A branch of knowledge that deals with science and engineering as it applies to industry and the applied sciences   Technology Compression The reduction of the number of engineering and value added points through the supply chain over a period of time, which shifts the point of dominance in the chain. This has a tendency to change the nature of the supply chain and, in most cases, it will change the way, in which products are sold.   Technology Transfer The provision of technical knowledge, processes and know-how to other nations, industries, corporations   Term Insurance Insurance coverage protecting the individual for a specified number of years with no redemption value at the end of that period   Termination Permanent separation resulting from poor job performance, repeated violations of work rules and policies, excessive absenteeism, misconduct, redundancy or closure of facilities   Tertiary Industries Industries that generally belong to an economy’s service sector   Test Marketing A stage in the new product development process where the product is sold in a limited area and evaluated for market reaction to the satisfaction of customer needs   Theft Insurance Insurance coverage for losses due to the unlawful taking of property   Throughput Accounting A management accounting technique to measure the costs of processes as the costs build up to a full cost at the completion of the product or service. Provides a better understanding of where costs occur and how they build up in the working of the business   Ticker Tapes Large elongated screens that electronically display the transactions in the major stock exchanges around the world and over the counter transactions   Time Deposit A technical name for savings accounts that permit a financial institution to require prior withdrawal notice or to assess an early withdrawal penalty   Time series (Trend) Analysis A statistical technique used in identifying and interpreting changes in business activity over time in order to serve as a basis for forecasting future business activity   Time Sharing The linking of several computer users of remote terminals to a central computer or server   Time Wage Employee compensation relating to the amount spent on the job   Title Insurance Insurance protection for real estate purchasers against losses that might be incurred because of a defect in the title to a property   Top Management The highest level of management composed of the chief executive or managing director who works in collaboration with other key executives to develop the long term strategies for the organisation and who interact with government institutions and other external market associates   Tort A civil wrongdoing inflicted on another person or property   Trade Credit The short-term source of funds for making purchases on credit or open account   Trade Show A type of sales promotion that uses exhibitions designed to promote products or services to retailers, wholesalers, international buyers and other resellers in the distribution channel   Trademark A brand that has been given exclusive legal protection including the pictorial design and the brand name or logo device   Trading Stamps A type of sales promotion that offers stamps that are redeemable for additional merchandise   Transfer The horizontal movement of an employee within an organisation to another position, which attracts a similar salary   Transistor A tiny device used to amplify current, which replace the vacuum tubes in computers and now superseded by the integrated circuit. Making them more reliable, faster, less heat generation and more economical to mass produce   Transitional Systems Systems that have been put in place specifically to assist the organisation to achieve transition from one business evolutionary period to another.   Treasury Bills Short-term borrowings issued frequently by a government on a competitive bid basis which are virtually risk-free and very easy to resell   Trial Court A court of law with general jurisdiction operating at government level   Tying Contract A contract that requires a person who wishes to be the e