A to F
Absolute Assignment for Consideration
A technical phrase referring to the transfer of an unlimited interest in property, such as an insurance policy, in exchange for something of value; typically cash or debt instruments.
Abstract
A floating lien. An abstract is a filing that allows an individual or company to place lenders or appropriate concerns on notice that a debt is due but has not been satisfied.
Account
A compilation of all claims, invoices, and payments incurred by a particular debtor for merchandise sold or for services rendered in the ordinary course of business.
Accounts Payable
Amounts owed on an open account to creditors for goods and services.
Accounts Receivable
Claims against debtors for merchandise sold or for services rendered in the ordinary course of business. The debts appear on the books of the seller as receivables and on the books of the purchaser as payables.
Accounts Receivable Aging Report
A business report showing how long accounts receivable from each customer have been outstanding. It indicates the receivables that are current and the amounts outstanding for 30 days, 60 days, and so forth
Accounts Receivable Financing
Obtaining a loan by pledging accounts receivable to a bank or other lending/financing institution as collateral security for the loan.
Accrual Accounting
An accounting method whereby income and expense items are recognized as they are earned or incurred even though they may not have been received or actually paid in cash. The opposite of cash basis accounting.
Advance Factoring
The factor will pay for the accounts receivable in advance of receiving payment from the customer
Advance Format
In international factoring wherein the factor makes cash available to the client immediately after the client has shipped the goods and assigned the sale.
Absolute advantage
Occurs when a country uses the same level of resources to produce more goods than another country
Accounting
The recording, analysis and reporting of financial transactions of a business
Accounts payable
Money owed by a company for goods and services purchased on credit from vendors
Accounts receivable
Money owed by customers for goods or services purchased on an open account
Accrued interest
Interest that has accumulated and is added to a loan
Adjustable rate mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically based on a preselected index
Advertising
Placement of announcements and persuasive messages (in time or space) communicated through media or nonmedia forms; used to inform or persuade members of a target market or audience about a good, service, organization or idea
Advertising campaign
Series of coordinated advertising vehicles in various media, scheduled for a certain time period, and related byh verbal and/or visual themes or common objectives
Advertising strategy
An overview of the competitive frame target market and message to be used in an advertising campaign
Affiliate marketing
An on-line marketing strategy that shares revenue between on-line advertisers/merchants and on-line publishers/salespeople; compensation is usually based on performance (sales, clicks, registrations)
Agents
Intermediaries who negotiate the purchase or sale of goods for their clients, but who do not take title to the goods
Amortization
Payment of a debt that allows the borrower to reduce debt through regular payments over a certain period of time
Annual Percentage Rate (APR)
An interest rate that reflects the cost of a loan as a yearly rate
Appreciate
To increase in value or price
Asset
Everything owned that has value, including tangible items
Audit
An examination and verification of a business's accounting records and procedures by a trained accountant or CPA (certified public accountant)
Awareness
First stage in the process of learning about a new good or service that the consumer has gotten information about but not yet formed an opinion on
Back Order
An item not currently in stock but to be sold or delivered when it becomes available
Balance of trade
The difference between a country’s total imports and exports
Balance sheet
A summary of a company’s financial condition at a specific period of time; indicates the company’s assets, liabilities and net worth
Bankruptcy
A legal process in which a company (or person) owes more than its assets and is relieved from payment of debts by transferring those assets to a trustee
Banner ad
A graphical Internet advertising tool; users click on the graphic to be directed to another Web site
Behavioral analysis
An evaluation and control method used to monitor sales force performance; involves evaluating the behavior of salespeople and sales performance
Benchmark
Something that serves as the standard to which all other items can be measured or compared
Beneficiary
A person who is designated to receive benefits, profits or advantages
Beta
A measure of an asset’s risk in relation to the market
Bill of lading
A contract between shipper and carrier, detailing what is being shipped, how it is being shipped, and terms of delivery
Bill of materials
Document used by a company to authorize a set of purchases to be made or to be taken from inventory to fufill an order
Blended payment
A loan payment consisting of principle interest, that is the same amount every month
Blog
An Internet communication that combines a diary,column, and dircectory; short articles and on various subjects with links to other resources: updaded often
Blue-Chip Stocks
Common stock of well-know companies with a history of growth and dividend payments
Board of directors
Individuals elected by shareholders; responsible for managing the president and high-level managers
Body copy
The section of a print ad that contains text and more detailed information than the headlines and subheads
Bond
A government- or corporation-issued certificate of debt guaranteeing payment of the original investment plus interest by a certain future date
Bond mutual fund
Investment company that invests its shareholders' monies in bonds
Book value
Total assests minus intangible assests and liabilities; can be more or less than market value
Bottom line
An accounting term for net profit or loss
Brand
A mark, symbol, word or combinaton that separates one company's product from another's
Brand awareness
Having knowledge that a brand exists; considered first step in the sale proccess
Brand category
Generic clssification of goods or services; like goods or services are in the same brand category
Brand extension
Addition of a new product to an already established line of products under the same brand name; new product benefits from the older products' established reputation
Brand loyalty
Loyalty a consumer has to a specific brand over a period of time
Branding
A method of identifying products and differentiating them from competing products
Break-Even point
The level of sales where revenue equals total costs; can also be expressed in terms of units of product
Budget deficit
Point at which spending exceeds revenues
Business cycle
Period of time composed of a buisness upswing or expansion, peak, downturn, trough and reovery
Business plan
A document fully describing and anaylizing a particular business; provides complete, detailed information about short-and long-term plans
Bylaws
A set of regulations used by an organization to conduct its business
Call feature
A feature that gives the right to the issuer to repurchase a bond before maturity
Call to action
Statement normally found at the end of a commercial message that encourages the consumer to act
Cannibalization
Reduction in the sales volume, sales revenue or market share of one product as a result of the introduction of a new product by the same producer
Capital budget
Allocated amount of funds to be used on purchasing assets such as machinery, building, equiptment, computers, etc., that are needed for longer than one year
Capital gain
Profit from the sale of an investment; the price received from the sale of an investment minus the price paid
Capitalism
Economic system based on private ownership of businesses
Carrying cost
Expense of keeping inventory on hand
Cash cow
Good or service that generates a steady and predictable income
Cash flow statement
Financial statement that shows when cash flows are received and disbursed by a business
Category killer
A destination store, normally large, that concentrates on one catergory, enabling it to carry a broad assortment and deep selection at a low price
Certificate of deposit (CD)
A document written by a financial institution that shows a deposit with the issuer's promise to return the deposit plus earnings at a certain interest rate within a period of time
Channel of distribution
Route a product follows to link producer to end consumer
Chapter 7
Part of U.S Bankruptcy Code that deals with liquidations of a company's assests
Chapter 11
Chapter in the U.S Bankruptcy Code that allows a business, an individual or a partnership to declare bankruptcy and postpone debt payments while the reorganization takes place
Charter
Document issued to incorporate a business; details important aspects of the corporation
Circulation
Number of copies distributed of a print advertisement
Click-through rate (CTR)
Number of clicks-through per ad impression (refers to on-line ads)
Co-branding
Pairing of two or more brands on a single good or service
Cold call
Unscheduled contact by phone or in person between seller and prospective customer
Commercial bank
Financial institiution that raises funds by collecting deposits from businesses and consumers; makes loans to businesses and consumers; purchases corporate and government bonds
Commercial paper
Short-term unsecured note (2 to 270 days) issued by companies with good credit standings
Commissions
Compensation for meeting specific sales objectives
Commodity
Bulk goods, such as wheat or metal, that investors buy or sell usually via futures contracts
Common stock
Type of security that gives partial ownership in a company; has a vote in electing board of directors; entitles the holders to share a company's success through dividends and/or capital appreciation
Communism
Economic system in which government owns and operates all business
Comparative advertising
Persuading an audience to purchase a specific product by showing a brand's superiority in comparison with competing brands
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