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| Absolute Advantage |
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| The situation in which a country has a monopolistic advantage |
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| Accounting |
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| The process of measuring, interpreting and communicating financial information to enable others both internal and external to make informed decisions |
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| Accounting Equation |
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| The concept upon which financial accounting is based: Assets (value of things owned) + Liabilities (Monies owing ) = Owners Equity (Amounts claimable by the owners) |
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| Accounting Process |
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| The procedural cycle used by accountants to convert individual transactions into accounting statements |
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| Accounts Receivable |
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| Sales to customers on credit, which have not yet been paid. See also Debtors |
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| Acid Test Ratio |
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| 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 |
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| Activity Based Costs |
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| 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. |
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| Activity Ratio |
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| A financial ratio which measures the effectiveness of a firm’s use of resources |
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| Adaptability |
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| 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. |
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| Advertising |
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| The broadcast or distribution of information through any media aimed at creating awareness and exposure to a product or service. |
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| Advocacy Advertising |
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| Advertising that supports a specific viewpoint on a public issue and designed to influence public opinion and any legislative processes |
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| Affirmative Action |
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| Programmes that are set up by businesses, which are centred around equal opportunities with regard to jobs for women, ethnic and minority groups |
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| Agency Agreement |
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| A legal relationship between two parties who agree that one of them will act as a representative of another. |
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| Agent |
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| The name of the person who is nominated to act as the representative of the other in an agency agreement |
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| Agent Wholesaler |
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| An independent wholesaler who takes possession of goods for sale but does not hold legal title to them until sold |
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| Analog Computer |
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| A computer that uses continuous data such as pressure, temperature or voltage in scientific and engineering applications |
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| Analytical System |
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| A system in which a raw material is reduced to its component parts in order to extract one or more products |
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| Appellant |
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| A party in a lawsuit (Plaintiff or Defendant) who makes an appeal to a higher court to review a case |
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| Appellate Courts |
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| Courts that hear appeals from the general trial courts |
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| Apprenticeship Training |
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| An employee-training programme designed to transfer skills and knowledge from a mentor through application and hands on experience |
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| Arbitration |
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| The process of bringing an impartial third party, called an arbitrator, into a dispute, to render a binding and legally enforceable decision |
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| Arithmetic Logic Unit |
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| A section of a computer where all the calculations takes place |
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| Array |
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| 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 |
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| Artificial Intelligence |
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| 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 |
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| Assembly Line |
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| 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. |
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| Assessment Centre |
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| 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 |
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| Asset Management |
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| A system used by a company for managing its assets; these may include physical assets as well as intellectual property |
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| Assets |
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| The range of items both tangible and intangible that are considered to have value in and are owned by the business. |
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| Atmospherics |
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| The image, amenities and impression of a retail environment that influence shoppers’ behaviour |
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| Authority |
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| The power to act and make decisions in performing duties and carrying out assignments |
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| Autocratic |
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| A style of leadership where the leader makes unilateral decisions without consulting others |
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| Automatic Teller Machine (ATM) |
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| 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. |
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| Automation |
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| The performance of activities or processes using machinery that require little or no human intervention |
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