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BTO1 Vocab

Bto1 Vocab

by terriehyland7, Aug 2008

Subjects: bto1 vocab

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1233 Cards in this Set

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	360 Degree Appraisal	Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance.
	80/20 Principle	Generally accepted rule that 80 percent of a product's revenues come from 20 percent of its total customers.
	9/11 Generation	People in their formative years at the time of the September 11, 2001, terrorist attacks.
	Accelerated Depreciation Method	Method that produces larger depreciation charges in the early years of an asset’s life and smaller charges in its later years.
	Accepted Check	A check that the drawee bank has signed. This signature is a promise that the bank will pay the check out of its own funds.
	Accessory Equipment	Capital items such as desktop computers and printers that typically cost less and last for shorter periods than installations.
	Accommodation	A style of dealing with conflict involving cooperation on behalf of the other party but not being assertive about one’s own interests.
	Accommodation Party	Someone who does not benefit from an instrument but agrees to guarantee its payment.
	Account	Record within an accounting system in which increases and decreases in a specific asset, liability, equity, revenue, or expense are entered and stored.
	Account Balance	Difference in an account between total debits and total credits (including the beginning balance).
	Account Form Balance Sheet	Balance sheet that lists assets on the left side and liabilities and equity on the right.
	Accounting	Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities.
	Accounting Cycle	Recurring steps performed each accounting period, starting with analyzing transactions and continuing through the post-closing trial balance (or reversing entries).
	Accounting Equation	Equality involving a company’s assets, liabilities, and equity. Assets = Liabilities + Equity Also called Balance Sheet Equation.
	Accounting Information System	People, records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers.
	Accounting Period	Length of time covered by financial statements. Also called Reporting Period.
	Accounting Rate of Return	Rate used to evaluate the acceptability of an investment; equals the after-tax periodic income from a project divided by the average investment in the asset. Also called Rate of Return on Average Investment.
	Accounts Payable	Liability created by buying goods or services on credit; backed by the buyer’s general credit standing.
	Accounts Payable Ledger	Subsidiary ledger listing individual creditor (supplier) accounts.
	Accounts Receivable	Amounts due from customers for credit sales; backed by the customer’s general credit standing.
	Accounts Receivable Ledger	Subsidiary ledger listing individual customer accounts.
	Accounts Receivable Turnover	Measure of both the quality and liquidity of accounts receivable; indicates how often receivables are received and collected during the period; computed by dividing net sales by average accounts receivable.
	Accrual Basis Accounting	Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
	Accrued Expenses	Costs incurred in a period, that are both unpaid and unrecorded; adjusting entries for recording accrued expenses involve increasing expenses and increasing liabilities.
	Accrued Revenues	Revenues earned in a period that are both unrecorded and not yet received in cash (or other assets); adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.
	Accumulated Depreciation	Cumulative sum of all depreciation expense recorded for an asset.
	Acquisition	One firm buying another.
	Activity-Based Budgeting (ABB)	Budget system based on expected activities.
	Ad Hoc Committee	A committee established to handle a specific situation and that dissolves after the task is accomplished.
	Adjudicate	To hold a formal hearing in a disputed matter and issue an official decision.
	Adjusted Trial Balance	List of accounts and balances prepared after adjustments are recorded and posted.
	Adjusting Entry	Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expense or revenue account.
	Administered Marketing System	VMS that achieves channel coordination when a dominant channel member exercises its power.
	Administrative Law	Concerns all agencies, boards, commissions, and other entities created by a federal or state legislature and charged with investigating, regulating, and adjudicating a particular industry or issue.
	Adoption Process	Stages that consumers go through in learning about a new product, trying it, and deciding whether to purchase it again.
	Advantages of Teamwork	Increased competitive advantage, increased productivity, greater creativity and more numerous alternatives for problem solving.
	Adverse Impact	When a seemingly neutral employment practice has a disproportionately negative effect on a protected group.
	Advertising	Paid, non-personal communication through various media about a business firm, not-for-profit organization, product, or idea by a sponsor identified in a message that is intended to inform or persuade members of a particular audience.
	Affective Conflict	Emotional disagreement directed toward other people.
	Affirm	A decision by an appellate court to uphold the judgment of a lower court.
	Affirmative Action	Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.
	Agency Problem	The possibility of conflict of interest between stockholders and management of a firm.
	Aging of Accounts Receivable	Process of classifying accounts receivable by how long they are past due for purposes of estimating uncollectible accounts.
	AIDA Concept	Steps through which an individual reaches a purchase decision: Attention, Interest, Desire, and Action.
	AIO Statements	Items on lifestyle surveys that describe various activities, interest, and opinions of respondents.
	Alderfer’s ERG Theory	A human needs theory developed by Alderfer postulating that people have three basic sets of needs which can operate simultaneously.
	Allowance for Doubtful Accounts	Contra asset account with a balance approximating uncollectible accounts receivable. Also called Allowance for Uncollectible Accounts.
	Allowance Method	Procedure that (a) estimates and matches bad debts expense with its sales for the period and/or (b) reports accounts receivable at estimated realizable value.
	Alternative Dispute Resolution	Any method of resolving a legal conflict other than litigation, such as: negotiation, arbitration, mediation, mini-trials, and summary jury trials.
	Ambush Marketing	Attempt by a firm that is not an official sponsor of an event or activity to link itself to the event or activity.
	Amendment	Any addition to a legal document. The constitutional amendments, the first ten of which are known collectively as the Bill of Rights, secure numerous liberties and protections directly for the people.
	Amortization	Process of allocating the cost of an intangible asset to expense over its estimated useful life.
	Annual Financial Statements	Financial Statements covering a one-year period; often based on a calendar year, but any consecutive 12-month (or 52-week) period is acceptable.
	Annuity	Series of equal payments at equal intervals.
	Answer	The pleading, filed by the defendant in court and served on the plaintiff, which responds to each allegation in the plaintiff’s complaint.
	Antitrust	Laws designed to prevent restraints on trade such as business monopolies.
	Appellant	The party who appeals a lower court decision to a higher court.
	Appellate Court	Any court in a state or federal system that reviews cases that have already been tried.
	Appellee	The party opposing an appeal from a lower court to a higher court.
	Approach	Salesperson's initial contact with a prospective customer.
	Arbitration	The use of a neutral third party to resolve a labor dispute.
	Assessment Center	A managerial performance test in which candidates participate in a variety of exercises and situations.
	Assets	Resources a business owns or controls that are expected to provide current and future benefits to the business.
	Assignee	The party who receives an assignment of contract rights from a party to the contract.
	Assignment	The act by which a party transfers contract rights to a third person.
	Assignor	The party who assigns contract rights to a third person.
	Attachment	A court order seizing property of a party to a civil action, so that there will be sufficient assets available to pay the judgment.
	Authentic Leadership	A style in which the leader is true to himself or herself while leading.
	Autocratic Leadership	Leadership style where others are simply told what to do. "My way or the highway"
	Autonomous Work Groups	Groups that control decisions about and execution of a complete range of tasks.
	Average Tax Rate	Total taxes paid divided by total taxable income.
	Avoidable Expense	Expense (or cost) that is relevant for decision making; expense that is not incurred if a department, product, or service is eliminated.
	Avoidance	A reaction to conflict that involves ignoring the problem by doing nothing at all, or deemphasizing the disagreement.
	Baby Boomers	People born between 1946 and 1965.
	Backward Integration	Process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials.
	Bad Debts	Accounts of customers who do not pay what they have promised to pay; an expense of selling on credit. Also called Uncollectible Accounts.
	Balance Column Account	Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
	Balance Sheet	Financial Statement that lists types and dollar amounts of assets, liabilities, and equity at a specific date.
	Balance Sheet Equation	Equality involving a company’s assets, liabilities, and equity. Assets = Liabilities + Equity Also called Accounting Equation.
	Bank Reconciliation	Report that explains the difference between the book (company) balance of cash and the cash balance reported on the bank statement.
	Bank Statement	Bank report on the depositor's beginning and ending cash balances, and a listing of its changes, for a period.
	Barriers to Entry	Conditions that prevent new companies from entering an industry.
	Batch Processing	Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month.
	Bearer Bonds	Bonds made payable to whoever holds them (the bearer). Also called Unregistered Bonds.
	Behavioral Approach	A leadership perspective that attempts to identify what good leaders do - that is, what behaviors they exhibit.
	Benchmarking	Practice of comparing and analyzing a company financial performance or position with other companies or standards.
	Beta Coefficient	The amount of systematic risk present in a particular risky asset relative to that in an average risky asset.
	Betterments	Expenditures to make a plant asset more efficient or productive. Also called Improvements.
	Bill	A proposed statute that has been submitted for consideration to Congress or a state legislature.
	Bill of Rights	The first ten amendments to the Constitution.
	Bond	Written promise to pay the bond's par (or face) value and interest at a stated contract rate; often issued in denominations of $1,000.
	Bond Certificate	Document containing bond specifics such as issuer's name, bond par value, contract interest rate, and maturity date.
	Bond Indenture	Contract between the bond issuer and the bondholders; identifies the parties' rights and obligations.
	Bonus Pack	Specially packaged item that gives the purchaser a larger quantity at the regular price.
	Bookkeeping	Part of accounting that involves recording transactions and events, either manually or electronically. Also called Recordkeeping.
	Bottom Line	Business jargon referring to the overall profitability of an organization.
	Boundaryless Organization	Organization in which there are no barriers to information flow.
	Bounded Rationality	A less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable.
	Brainstorming	Generating ideas without concern for their feasibility. A process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed.
	Brand	Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from the competition’s.
	Brand Equity	Added value that a respected, well-known brand name gives to a product in the marketplace.
	Brand Extension	Strategy of attaching a popular brand name to a new product in an unrelated product category.
	Brand Insistence	Consumer refusal of alternatives and extensive search for desired merchandise.
	Brand Licensing	Firm’s authorization of other companies to use its brand names.
	Brand Manager	Marketer within an organization who is responsible for a single brand.
	Brand Mark	Symbol or pictorial design that distinguishes a product.
	Brand Name	Part of a brand consisting of words or letters that form a name that identifies and distinguishes a firm’s offerings from those of its competitors.
	Brand Preference	Consumer reliance on previous experiences with a product to choose that product again.
	Brand Recognition	Consumer awareness and identification of a brand.
	Break-even Time (BET)	Time-based measurement used to evaluate the acceptability of an investment; equals the time expected to pass before the present value of the net cash flows from an investment equals its initial cost.
	Bridge Leaders	A leader who bridges conflicting value systems or different cultures.
	Brief	The written legal argument that an attorney files with an appeal court.
	Broadband Technology	Extremely high-speed, always-on internet connection.
	Brokering	One who acts as an agent for another in return for a fee or a commission.
	Budget	Formal statement of future plans, usually expressed in monetary terms.
	Budget Report	Report comparing actual results to planned objectives; sometimes used as a progress report.
	Budgetary Control	Management use of budgets to monitor and control company operations.
	Budgeted Balance Sheet	Accounting report that presents predicted amounts of the company's assets, liabilities, and equity balances as of the end of the budget period.
	Budgeted Income Statement	Accounting report that presents predicted amounts of the company's revenues and expenses for the budget period.
	Budgeting	Process of planning future business actions and expressing them as formal plans.
	Buffering	Creating supplies of excess resources in case of unpredictable needs.
	Burden of Proof	The allocation of which party must prove its case. In a civil case, the plaintiff has the burden of proof to persuade the factfinder of every element of her case. In a criminal case, the government has the burden of proof.
	Bureaucratic Style	A management style characterized by the manager’s reliance on rules, regulations, policies, and procedures to direct subordinates.
	Business	One or more individuals selling products and/or services for profit
	Business Cycle	Pattern of stages in the level of economic activity: Prosperity, Recession, Depression, and Recovery.
	Business Entity Principle	Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
	Business Ethics	The moral principles and standards that guide behavior in the world of business.
	Business Plan	Formal document that outlines a company’s objectives, how they will be met, how the business will obtain financing, and how much money the company expects to earn.
	Business Products	Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.
	Business Segment	Part of a company that can be separately identified by the products or services that it provides or by the geographic markets that it serves. Also called Segment.
	Business Services	Intangible products that firms buy to facilitate their production and operating processes.
	Business Strategy	The major actions by which a business competes in a particular industry or market.
	Business-to-Business (B2B) Marketing	Organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale.
	Business-to-Business (B2B) Product	Product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product.
	Buyer Partnership	Relationship in which a firm purchases goods or services from one or more providers.
	Buyer’s Market	Market in which there are more goods and services than people willing to buy them.
	Buying Center	Participants in an organizational buying action.
	Buzz Marketing	Marketing that gathers volunteers to try products and then relies on them to talk about their experiences with their friends and colleagues.
	Cafeteria Benefit Program	An employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs.
	Callable Bonds	Bonds that give the issuer the option to retire them at a stated amount prior to maturity.
	Canceled Checks	Checks that the bank has paid and deducted from the depositor's account.
	Cannibalization	Loss of sales of an existing product due to competition from a new product in the same line.
	Capital Asset Pricing Model (CAPM)	The equation of the SML showing the relationship between expected return and beta.
	Capital Budgeting	Process of analyzing alternative investments and deciding which assets to acquire or sell.
	Capital Expenditures	Additional costs of plan assets that provide material benefits extending beyond the current period. Also called Balance Sheet Expenditures.
	Capital Expenditures Budget	Plan that lists dollar amounts to be both received from disposal of plant assets and spent to purchase plant assets.
	Capital Leases	Long-term leases in which the lessor transfers substantially all risk and rewards of ownership to the lessee.
	Capital Structure	The mixture of debt and equity maintained by a firm.
	Capitalize	Record the cost as part of a permanent account and allocate it over later periods.
	Captive Brand	National brands that are sold exclusively by a retail chain.
	Cash	Includes currency, coins, and amounts on deposit in bank checking or savings accounts.
	Cash Basis Accounting	Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
	Cash Budget	Plan that shows expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans.
	Cash Disbursements Journal	Special journal normally used to record all payments of cash. Also called Cash Payments Journal.
	Cash Equivalents	Short-term, investment assets that are readily convertible to a known cash amount or sufficiently close to their maturity date (usually within 90 days) so that market value is not sensitive to interest rate changes.
	Cash Flow From Assets	The total of cash flow to creditors and cash flow to stockholders, consisting of the following: operating cash flow, capital spending, and change in net working capital.
	Cash Flow on Total Assets	Ratio of operating cash flows to average total assets; not sensitive to income recognition and measurement; partly reflects earnings quality.
	Cash Flow to Creditors	A firm's interest payments to creditors less net new borrowings.
	Cash Flow to Stockholders	Dividends paid out by a firm less net new equity raised.
	Cash Over and Short	Income statement account used to record cash overages and cash shortages arising from errors in cash receipts or payments.
	Cash Receipts Journal	Special journal normally used to record all receipts of cash.
	Category	Key business unit within diversified firms; also called a strategic business unit (SBU).
	Category Advisor (Category Captain)	Trade industry vendor who develops a comprehensive procurement plan for a retail buyer.
	Category Management	Product management system in which a category manager – with profit and loss responsibility – oversees a product line.
	Cause Marketing	Identification and marketing of a social issue, cause, or idea to selected target markets.
	Caux Principles	Ethical principles established by international executives based in Caux, Switzerland in collaboration with business leaders from Japan, Europe, and the United States.
	Central American Free Trade Agreement-DR (CAFTA-DR)	Trade agreement among the United States, Central American nations, and the Dominican Republic.
	Certainty	The state that exists when decision makers have accurate and comprehensive information.
	Certified Check	A check that the drawee bank has signed. This signature is a promise that the bank will pay the check out of its own funds.
	Challenge for Cause	An attorney’s request, during voir dire, to excuse a prospective juror because of apparent bias.
	Change in Accounting Estimate	Change in an accounting estimate that results from new information, subsequent developments, or improved judgment impacts current and future periods.
	Channel	Medium through which a message is delivered.
	Channel Captain	Dominant and controlling member of a marketing channel.
	Charismatic Leader	A person who is dominant, self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers.
	Chart of Accounts	List of accounts used by a company; includes an identification number for each account.
	Check	Document signed by the depositor instructing the bank to pay a specified amount to a designated recipient.
	Check Register	Another name for a cash disbursements journal when the journal has a column for check numbers.
	Civil Law	The large body of law concerning the rights and duties between parties. It is distinguished from criminal law, which concerns behavior outlawed by a government.
	Class Action	A method of litigation a civil lawsuit in which one or more plaintiffs (or occasionally defendants) seek to represent an entire group of people with similar claims against a common opponent.
	Classified Balance Sheet	Balance sheet that presents assets and liabilities in relevant subgroups, including current and non-current classifications.
	Close Corporation	A corporation with a small number of shareholders. Its stock is not publicly traded.
	Closed Sales Territory	Exclusive geographic selling region of a distributor.
	Closing	Stage of the personal selling process in which the salesperson asks the customer to make a purchase decision.
	Closing Entries	Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, gain, expense, loss, and withdrawal (dividend for a corporation) accounts to the capital account (to retained earnings for a corporation).
	Closing Process	Necessary steps to prepare the accounts for recording the transactions of the next period.
	Coaching	Dialogue with a goal of helping another be more effective and achieve his or her full potential on the job.
	Coalitional Model	Model of organizational decision making in which groups with differing preferences use power and negotiations to influence decisions.
	Code of Ethics	A written system of standards for ethical conduct.
	Cognitive Conflict	Issue-based differences in perspectives or judgments.
	Cohesiveness	The degree to which a group is attractive to its members, members are motivated to remain in the group, and members influence one another.
	Cohort Effect	Tendency of members of a generation to be influenced and bound together by events occurring during their key formative years - roughly age 17 to 22.
	Cold Calling	Contacting a prospect without a prior appointment.
	Collaboration	A style of dealing with conflict emphasizing both cooperation and assertiveness in order to maximize both parties’ satisfaction.
	Collective Bargaining	The process of negotiating a union agreement that covers wages, hours, and working conditions.
	Collective Bargaining Unit	The precisely defined group of employees who are represented by a particular union.
	Columnar Journal	Journal with more than one column.
	Commerce Clause	One of the powers granted by Article I, §8 of the Constitution, it gives Congress exclusive power to regulate international commerce and concurrent power with the states to regulate domestic commerce.
	Commercial Market	Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services.
	Commercial Speech	Communication, such as television advertisements, that has the dominant theme proposing a commercial transaction.
	Commission	Incentive compensation directly related to the sales or profits achieved by a salesperson.
	Common Carriers	Businesses that provide transportation services as for-hire carriers to the general public.
	Common Law	Judge-made law, that is, the body of all decisions made by appellate courts over the years.
	Common Size Financial Statement	Statement that expresses each amount as a percent of a base amount. In the balance sheet, total assets is usually the base and is expressed as 100%. In the income statement, net sales is usually the base.
	Common Stock	Corporation’s basic ownership share. Also called Capital Stock.
	Common-Base Year Statement	A standardized financial statement presenting all items relative to a certain base-year amount.
	Common-Size Statement	A standardized financial statement presenting all items in percentage terms. Balance sheet items are shown as a percentage of assets and income statement items as a percentage of sales.
	Communication	The transmission of information and meaning from one party to another through the use of shared symbols.
	Comparable Worth	Principle of equal pay for different jobs of equal worth.
	Comparative Financial Statement	Statement with data for two or more successive periods placed in side-by-side columns, often with changes shown in dollar amounts and percents.
	Compatibility Principle	Information system principle that requires an accounting system to conform with a company's activities, personnel, and structure.
	Competing	A style of dealing with conflict involving strong focus on one’s own goals, and little or no concern for the other person’s goals.
	Competitive Environment	Interactive process that occurs in the marketplace among marketers of directly competitive products, marketers of products that can be substituted for one another, and marketers competing for the consumer’s purchasing power.
	Competitive Intelligence	Information that helps managers determine how to compete better.
	Competitive Strategy	Methods through which a firm deals with its competitive environment.
	Complaint	A pleading, filed by the plaintiff, providing a short statement of the claim.
	Compliance-Based Ethics Programs	Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.
	Compound Interest	Interest earned on both the initial principal and the interest reinvested from prior periods.
	Compound Journal Entry	Journal entry that affects at least three accounts.
	Compounding	The process of accumulating interest on an investment over time to earn more interest.
	Compromise	A style of dealing with conflict involving moderate attention to both parties’ concerns.
	Computer Hardware	Physical equipment in a computerized accounting information system.
	Computer Network	Linkage giving different users and different computer users access to common databases and programs.
	Computer Software	Programs that direct operations of computer hardware.
	Computer-Integrated Manufacturing (CIM)	The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes.
	Concentrated Marketing	Focusing marketing efforts on satisfying a single market segment. Also called Niche Marketing.
	Concentration	A strategy employed for an organization that operates a single business and competes in a single industry.
	Concentric Diversification	A strategy used to add new businesses that produce related products or are involved in related markets and activities.
	Concept Testing	Method for subjecting a product idea to additional study before actual development by involving consumers through focus groups, surveys, in-store polling, and the like.
	Conceptual and Decision Skills	Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members.
	Concerted Action	Tactics, such as a strike, used by a union to gain a bargaining advantage.
	Conflict	Opposing pressures from different sources. Two levels of conflict are psychological conflict and conflict that arises between individuals or groups.
	Conglomerate Diversification	A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.
	Consolidated Metropolitan Statistical Area (CMSA)	Urban area that includes two or more PMSAs.
	Constitution	The supreme law of a political entity. The United States Constitution is the highest law in the country.
	Consultative Selling	Meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sale.
	Consumer (B2C) Product	Product destined for use by ultimate consumers.
	Consumer Innovator	People who purchase new products almost as soon as the products reach the market.
	Consumer Orientation	Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them.
	Consumer Products	Products bought by ultimate consumers for personal use.
	Consumer Rights	List of legitimate consumer expectations suggested by President Kennedy.
	Consumerism	Social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government.
	Containerization	Process of combining several unitized loads into a single, well-protected load for shipment.
	Contest	Sales promotion technique that requires entrants to complete a task such as solving a puzzle or answering questions on a quiz for the chance to win a prize.
	Contingency Plans	Alternative courses of action that can be implemented based on how the future unfolds.
	Contingent Liability	Obligation to make a future payment if, and only if, an uncertain future event occurs.
	Continuous Budgeting	Practice of preparing budgets for a selected number of future periods and revising those budgets as each period is completed.
	Continuous Process	A process that is highly automated and has a continuous production flow.
	Continuous Quality Improvement	A philosophy and attitude for analyzing capabilities and processes and improving them repeatedly to achieve the objective of customer satisfaction.
	Contra Account	Account linked with another account and having an opposite normal balance; reported as a subtraction from the other account’s balance.
	Contract Carriers	For-hire transporters that do not offer their services to the general public.
	Contract Rate	Interest rate specified in a bond indenture (or note); multiplied by the par value to determine the interest paid each period. Also called Coupon Rate, Stated Rate, or Nominal Rate.
	Contractual Marketing System	VMS that coordinates channel activities through formal agreements among participants.
	Control Principle	Information system principle that requires an accounting system to aid managers in controlling and monitoring business activities.
	Controllable Variance	Combination of both overhead spending variances (variable and fixed) and the variable overhead efficiency variance.
	Controlling	The management function of monitoring performance and making needed changes.
	Controlling Account	General ledger account, the balance of which (after posting) equals the sum of the balances in its related subsidiary ledger.
	Convenience Products	Goods and services that consumers want to purchase frequently, immediately, and with minimal effort.
	Conversion Rate	Percentage of visitors to a Web site who make a purchase.
	Convertible Bonds	Bonds that bondholders can exchange for a set number of the issuer's shares.
	Cooperative Strategies	Strategies used by two or more organizations working together to manage the external environment.
	Copyright	Right giving the owner the exclusive privilege to publish and sell musical, literary, or artistic work during the creator’s life plus 70 years.
	Core Based Statistical Area (CBSA)	Collective term for metropolitan and micropolitan statistical areas.
	Core Competencies	The unique skills and/or knowledge an organization possesses that give it an edge over competitors.
	Core Region	Region from which most major brands get 40 to 80 percent of their sales.
	Corporate Marketing System	VMS in which a single owner operates the entire marketing channel.
	Corporate Social Responsibility	Obligation toward society assumed by business.
	Corporate Strategy	The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities.
	Corporation	Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
	Cost	All normal and reasonable expenditures necessary to get a plant asset in place and ready for its intended use.
	Cost Competitiveness	Keeping costs low in order to achieve profits and be able to offer prices that are attractive to consumers.
	Cost of Capital	The minimum required return on a new investment.
	Cost per Impression	Measurement technique that relates the cost of an ad to every thousand people who view it.
	Cost per Response	(Also called click-throughs) Direct marketing technique that relates the cost of an ad to the number of people who click it.
	Cost Principle	Accounting principle that requires financial statement information to be based on actual costs incurred in business transactions.
	Cost Variance	Difference between the actual incurred cost and the standard cost.
	Cost-benefit Principle	Information system principle that requires the benefits from an activity in an accounting system to outweigh the costs of that activity.
	Counter-claim	A claim made by the defendant against the plaintiff.
	Countertrade	Form of exporting whereby goods and services are bartered rather than sold for cash.
	Coupon	Sales promotion technique that offers a discount on the purchase price of goods or services.
	Coupon Bonds	Bonds with interest coupons attached to their certificates; bondholders detach coupons when they mature and present them to a bank or broker for collection.
	Court of Chancery	In medieval England, the court originally operated by the Chancellor.
	Creative Selling	Personal selling that involves situations in which a considerable degree of analytical decision making on the buyer's part results in the need for skillful proposals of solutions for the customer's needs.
	Creativity	Human activity that produces original ideas or knowledge, frequently by testing combinations of ideas or data to produce unique results.
	Credit	Recorded on the right side; an entry that decreases asset and expense accounts, and increases liability, equity, and revenue accounts. Abbreviated: Cr
	Creditor Beneficiary	When one party to a contract intends to benefit a third party to whom he owes a debt, that third party is referred to as a creditor beneficiary.
	Creditors	Individuals or organizations entitled to receive payments.
	Criminal Law	Rules that permit a government to punish certain behavior by fine or imprisonment.
	Critical Thinking	Determining the authenticity, accuracy, and worth of information, knowledge, claims, and arguments.
	Cross-Examination	During a hearing, for a lawyer to question an opposing witness.
	Cross-Selling	Selling multiple, often unrelated goods and services to the same customer based on knowledge of that customer's needs.
	Cultural Diversity	The co-existence of two or more cultural groups within an organization. The vast array of differences created by cultural phenomena such as history, economic conditions, personality characteristics, language, norms, and more.
	Cultural Norms	The way a society solves its problems. Different cultures have developed their own unique ways of solving problems. A key value or belief that the culture in question holds dear.
	Culture Shock	The disorientation and stress associated with being in a foreign environment.
	Current Assets	Cash or other assets expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.
	Current Liability	Obligation due to be paid or settled within one year or the company's operating cycle, whichever is longer.
	Current Ratio	Ratio used to evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities.
	Customer Relationship Management (CRM)	A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns.
	Customer Relationship Manager (CRM)	Combination of strategies and tools that drives relationship programs, reorienting the entire organization to a concentrated focus on satisfying customers.
	Customer Service	The speed and dependability with which an organization can deliver what customers want.
	Customer-Based Segmentation	Dividing a business-to-business market into homogeneous groups based on buyer’s product specifications.
	Custom-Made Solutions	New, creative solutions designed specifically for the problem.
	Date of Declaration	Date the directors vote to pay a dividend.
	Date of Payment	Date the corporation makes the dividend payment.
	Days' Sales Uncollected	Measure of the liquidity of receivables computed by dividing the current balances of receivables by the annual credit (or net) sales and then multiplying by 365. Also called Days' Sales in Receivables.
	De Novo	The power of an appellate court or appellate agency to make a new decision in a matter under appeal, entirely ignoring the findings and conclusions of the lower court or agency official.
	Debit	Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability, equity, and revenue accounts. Abbreviated: Dr
	Debt Ratio	Ratio of total liabilities to total assets; used to reflect risk associated with a company’s debts.
	Debtors	Individuals or organizations that owe money.
	Decider	Person who chooses a good or service, although another person may have the formal authority to complete the sale.
	Decline Stage	Final stage of the product life cycle, in which a decline in total industry sales occurs.
	Declining-Balance Method	Method that determines depreciation charge for the period by multiplying a depreciation rate (often twice the straight-line rate) by the asset’s beginning-period book value.
	Decoding	Receiver’s interpretation of a message.
	Default Judgment	Court order awarding one party everything it requested because the opposing party failed to respond in time.
	Defenders	Companies that stay within a stable product domain as a strategic maneuver.
	Delegation	The act by which a party to a contract transfers duties to a third person who is not a party to the contract.
	Demarketing	Process of reducing consumer demand for a good or service to a level that the firm can supply.
	Democratic Leadership	A form of leadership in which the leader solicits input from subordinates.
	Democratic Style	A management or leadership style characterized by a sharing of decision-making authority with subordinates by the leader.
	Demographic Segmentation	Division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family life cycle. Also called Socioeconomic Segmentation.
	Demographics	Measures of various characteristics of the people who comprise groups or other social units.
	Demonstration	Stage in the personal selling process in which the customer has the opportunity to try out or otherwise see how a good or service works before purchase.
	Depletion	Process of allocating the cost of natural resources to periods when they are consumed.
	Deponent	The person being questioned in a deposition.
	Deposit Ticket	Lists items such as currency, coins, and checks deposited and their corresponding dollar amounts.
	Deposition	A form of discovery in which a party’s attorney has the right to ask oral questions of the other party or of a witness. Answers are given under oath.
	Deposits in Transit	Deposits recorded by the company but not yet by its bank.
	Depreciable Cost	Cost of a plant asset less its salvage value.
	Depreciation	Expense created by allocating the cost of plant and equipment to periods in which they are used; represents the expense of using the asset.
	Deregulation Movement	Opening of markets to previously subject to government control.
	Derived Demand	Demand for a resource that results from demand for the goods and services that are produced by that resource.
	Development	Teaching managers and professional employees broad skills needed for their present and future jobs.
	Devil’s Advocate	A person who has the job of criticizing ideas to ensure that their downsides are fully explored.
	Dialectic	A structured debate comparing two conflicting courses of action.
	Differentiated Marketing	Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments.
	Differentiation Strategy	A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.
	Diffusion Process	Process by which new goods or services are accepted in the marketplace.
	Direct Channel	Marketing channel that moves goods directly from a producer to the business purchaser or ultimate user.
	Direct Examination	During a hearing, for a lawyer to question his own witness.
	Direct Mail	Communications in the form of sales letters, postcards, brochures, catalogs, and the like conveying messages directly from the marketer to the customer.
	Direct Marketing	Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store Web site visits.
	Direct Method	Presentation of net cash from operating activities on the statement of cash flows that lists major operating cash receipts less major operating cash payments.
	Direct Sales Results Test	Method for measuring promotional effectiveness based on the specific impact on sales revenues for each dollar of promotional spending.
	Direct Selling	Strategy designed to establish direct sales contact between producer and final user.
	Direct Write-off Method	Method that records the loss from an uncollectible account receivable at the time it is determined to be uncollectible; No attempt is made to estimate bad debts.
	Directed Verdict	The decision by a court to instruct a jury that it must find in favor of a particular party because, in the judge’s opinion, no reasonable person could disagree on the outcome.
	Disadvantages of Teamwork	Some individuals are better and/or faster, process losses from team development time, many companies don’t support the best team environment, social loafing.
	Discount	Calculate the present value of some future amount.
	Discount on Bonds Payable	Difference between a bond's par value and its lower issue price or carrying value; occurs when the contract rate is less than the market rate.
	Discount Rate	The rate used to calculate the present value of future cash flows.
	Discount Rate	Expected rate of return on investments. Also called Cost of Capital, Hurdle Rate, or Required Rate of Return.
	Discounted Cash Flow (DCF) Valuation	Calculating the present value of a future cash flow to determine its value today.
	Discounting the Future	A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.
	Discounts Lost	Expenses resulting from failures to take advantage of cash discounts on purchases.
	Discovery	A stage in litigation, after all pleadings have been served, in which each party seeks as much relevant information as possible about the opposing party’s case.
	Discretionary Income	Money available to spend after buying necessities such as food, clothing, and housing.
	Dishonor	An obligor refuses to pay an instrument that is due.
	Dismiss	To terminate a lawsuit, often on procedural grounds, without reaching the merits of the case.
	Distribution	Movement of goods and services from producers to customers.
	Distribution Strategy	Planning that ensures that consumers find a firm’s products in the proper quantities at the right times and places.
	Diversification	A firm's investment in a different product, business, or geographic area.
	Diversity	Committing to establish an environment where the full potential of all employees can be tapped by paying attention to, and taking into account their differences in work background, experience, age, gender, race, ethnic origin, etc.
	Diversity Jurisdiction	One of the two main types of civil cases that a United States district court has the power to hear. It involves a lawsuit between citizens of different states, in which at least one party makes a claim for more than $75,000.
	Diversity Training	Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce.
	Divestiture	A firm selling one or more businesses.
	Domain Selection	Entering a new market or industry with an existing expertise.
	Donee Beneficiary	When one party to a contract intends to make a gift to a third party, that third party is referred to as a done beneficiary.
	Double Taxation	Corporate income is taxed and then its later distribution through dividends is taxed again for shareholders.
	Double-Declining Balance (DDB) Depreciation	Depreciation equals beginning book value multiplied by 2, times the straight-line rate.
	Double-Entry Accounting	Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
	Downsizing	The planned elimination of positions or jobs.
	Downstream Management	Controlling part of the supply chain that involves finished product storage, outbound logistics, marketing and sales, and customer service.
	Downward Communication	Information that flows from higher to lower levels in the organization’s hierarchy.
	Du Pont Identity	Popular expression breaking ROE into three parts: operating efficiency, asset use efficiency, and financial leverage.
	Dual Distribution	Network that moves products to a firm's target market through more than one marketing channel.
	Due Process Clause	Part of the Fifth Amendment, Procedural due process ensures that before depriving anyone of liberty or property, the government must go through procedures which ensure that the deprivation is fair. Substantive due process holds that certain rights, such as privacy, are so fundamental that the government may not eliminate them.
	Dumping	Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producer's domestic market.
	Duty of Fair Representation	The union’s obligation to act on behalf of all members impartially and in good faith.
	Earnings	Amount earned after subtracting all expenses necessary for and matched with sales for a period. Also called Income or Profit.
	Ecocentric Management	Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
	Ecology	Relationship between organisms and their natural environment.
	Economic Environment	Factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource availability.
	Economic Responsibility	To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
	Economies of Scope	Economies in which materials and processes employed in one product can be used to make other, related products.
	Effective Interest Method	Allocates interest expense over the bond life to yield a constant rate of interest; interest expense for a period is found by multiplying the balance of the liability at the beginning of the period by the bond market rate at issuance. Also called Interest Method.
	Efficiency	Company's productivity in using its assets; usually measured relative to how much revenue a certain level of assets generates.
	Efficiency Variance	Difference between the actual quantity of an input and the standard quantity of that input.
	Egoism	An ethical system defining acceptable behavior as that which maximizes consequences for the individual.
	Elasticity	Economic term – usually refers to the responsiveness in the quantity demanded of a commodity to changes in environment.
	Electronic Funds Transfer (EFT)	Use of electronic communication to transfer cash from one party to another.
	Embargo	Complete ban on the import of specified products.
	Emergency Goods and Services	Products bought in response to unexpected and urgent needs.
	Eminent Domain	The power of the government to take private property for public use.
	Emotional Intelligence	The skills of understanding yourself, managing yourself, and dealing effectively with others.
	Employment-at-Will	The legal concept that an employee may be terminated for any reason.
	Empowerment	The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization.
	Enabling Legislation	A statute authorizing the creation of a new administrative agency and specifying its powers and duties.
	Encoding	Translating a message into understandable terms.
	End-Use Application Segmentation	Segmenting a business-to-business market based on how industrial purchasers will use the product.
	Engel's Laws	Three general statements about the impact of household income on consumer spending behavior: as household income increases, a smaller percentage of expenditures goes for food; the percentage spent on housing, household operations, and clothing remains constant; and the percentage spent on other items (such as recreation and education) increases.
	Enterprise Resource Planning (ERP) Software	Programs that manage a company's vital operations, which range from order taking to manufacturing to accounting.
	Entity	Organization that, for accounting purposes, is separate from other organizations and individuals.
	Environmental Management	Attainment of organizational objectives by predicting and influencing the competitive, political-legal, economic, technologic, and social-cultural environments.
	Environmental Scanning	Process of collecting information about the external marketing environment to identify and interpret potential trends.
	Environmental Uncertainty	Lack of information needed to understand or predict the future.
	Equal Protection Clause	Part of the Fourteenth Amendment, it generally requires the government to treat equally situated people the same.
	Equity	Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities. Also called Net Assets.
	Equity	The broad powers of a court to fashion a remedy where justice demands it and no common law remedy exists. An injunction is an example of an equitable remedy.
	Equity Ratio	Portion of total assets provided by equity, computed as total equity divided by total assets.
	Equity Theory	A theory stating that people assess how fairly they have been treated according to two key factors: outcome and inputs.
	Error of Law	A mistake made by a trial judge that concerns a legal issue as opposed to a factual matter. Permitting too many leading questions is a legal error; choosing to believe one witness rather than another is a factual matter.
	Ethical Climate	In an organization it refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
	Ethical Issue	Situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.
	Ethical Leader	One who is both a moral person and a moral manager influencing others to behave ethically.
	Ethical Responsibilities	Meeting other social expectations, not written as law.
	Ethics	Codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest.
	Ethnocentrism	The tendency to judge others by the standards of one's group or culture, which are seen as superior.
	European Union (EU)	Customs union that is moving in the direction of an economic union by adopting a common currency, removing trade restrictions, and permitting free flow of goods and workers throughout the member nations.
	Event Marketing	Marketing of sporting, cultural, and charitable activities to selected target markets.
	Events	Happenings that both affect an organization’s financial position and can be reliably measured.
	Exchange Control	Method used to regulate the privilege of international trade among importing organizations by controlling access to foreign currencies.
	Exchange Functions	Buying and selling functions of marketing.
	Exchange Process	Activity in which two or more parties give something of value to each other to satisfy perceived needs.
	Exchange Rate	Price of one nation's currency in terms of another country's currency.
	Exclusive Dealing Agreement	Arrangement between a manufacturer and a marketing intermediary that prohibits the intermediary from handling competing product lines.
	Exclusive Distribution	Distribution of a product through a single wholesaler or retailer in a specific geographic region.
	Executive Agency	An administrative agency within the executive branch of government.
	Executive Order	An order by a president or governor, having the full force of law.
	Exhaustion of Remedies	A principle of administrative law that no party may appeal an agency action to a court until she has utilized all available appeals within the agency itself.
	Expanded Accounting Equation	Assets = Liabilities + Equity where Equity = [Owner Capital – Owner Withdrawals + Revenues – Expenses].
	Expatriates	Parent-company nationals who are sent to work at a foreign subsidiary.
	Expectancy	Employee’s perception of the likelihood that their efforts will enable them to attain their performance goals.
	Expectancy Theory	A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome.
	Expected Return	The return on a risky asset expected in the future.
	Expenses	Outflows or using up of assets as part of operations of a business to generate sales.
	Expert Power	The ability to influence related to some expertise, special skill, or knowledge. Expert power is a function of the judgment by the less-powerful person that the other person has knowledge that exceeds his own.
	Expert Witness	A witness in court case who has special training or qualifications to discuss a specific issue, and who is generally permitted to state an opinion.
	Exporting	Marketing domestically produced goods and services in foreign countries.
	External Environment	All relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy.
	External Transactions	Exchanges of economic value between one entity and another entity.
	External Users	Persons using accounting information who are not directly involved in running the organization.
	Extinction	Withdrawing or failure to provide a reinforcing consequence.
	Extraordinary Repairs	Major repairs that extend the useful life of a plant asset beyond prior expectations; treated as a capital expenditure.
	Extrinsic Rewards	Rewards external to the job such as pay, promotion or fringe benefits.
	Facilitating Functions	Functions that assist the marketer in performing the exchange and physical distribution functions.
	Factfinder	The one responsible, during a trial, for deciding what occurred, that is, who did what to whom, when, how, and why. It is either the jury or, in a jury-waived case, the judge.
	Failure Rate	The number of expatriate managers of an overseas operation who come home early.
	Family Brand	Single brand name that identifies several related products.
	Family Life Cycle	Process of family formation and dissolution.
	Favorable Variance	Difference in actual revenues or expenses from the budgeted value that contributes to a higher income.
	Federal Question Jurisdiction	One of the two main types of civil cases that a United States district court has the power to hear. It involves a federal statute or a constitutional provision.
	Federalism	A form of national government in which power is shared between one central authority and numerous local authorities.
	Feedback	Receiver’s response to a message.
	Field Selling	Sales presentations made at prospective customers' locations on a face-to-face basis.
	Filtering	The process of withholding, ignoring, or distorting information.
	Final Consumer	Those who purchase products in their finished form.
	Financial Accounting	Area of accounting mainly aimed at serving external users.
	Financial Accounting Standards Board (FASB)	Independent group of full-time members responsible for setting accounting rules.
	Financial Ratios	Relationships determined from a firm's financial information and used for comparison purposes.
	Financial Reporting	Process of communicating information relevant to investors, creditors, and others in making investment, credit, and business decisions.
	Financial Statement Analysis	Application of analytical tools to general-purpose financial statements and related data for making business decisions.
	Financial Statements	Includes the balance sheet, income statement, statement of owner’s equity, and statement of cash flows.
	Financing Activities	Transactions with owners and creditors that include obtaining cash from issuing debt, repaying amounts borrowed, and obtaining cash from or distributing cash to owners.
	First Mover Strategy	Theory advocating that the company that is first to offer a product in a marketplace will be the long-term market winner.
	Fiscal Year	Consecutive 12-month (or 52-week) period chosen as the organization’s annual accounting period.
	Fish Boning	A total quality technique that places the problem statement on a horizontal line, with key words on lines drawn at a 45 degree angle to the right, above and below it (so it resembles the backbone and ribs of a fish).
	Fixed Budget	Planning budget based on a single predicted amount of volume; unsuitable for evaluations if the actual volume differs from predicted volume.
	Fixed Budget Performance Report	Report that compares actual revenues and costs with fixed budgeted amounts and identifies the differences as favorable or unfavorable variances.
	Fixed-Sum-Per-Unit Method	Method of promotional budgeting in which a predetermined amount is allocated to each sales or production unit.
	Flexibility Principle	Information system principle that requires an accounting system be able to adapt to changes in the company, its operations, and needs of decision makers.
	Flexible Benefit Programs	Benefit programs in which employees are given credits to spend on benefits that fit their unique needs.
	Flexible Budget	Budget prepared (using actual volume) after a period is complete that helps managers evaluate past performance; uses fixed and variable costs in determining total costs.
	Flexible Budget Performance Report	Report that compares actual revenues and costs with their variable budgeted amounts based on actual sales volume (or other level of activity) and identifies the differences as variances.
	Flexible Factories	Manufacturing plants that have short production rounds, are organized around products, and use decentralized scheduling.
	Flexible Processes	Methods for adapting the technical core to changes in the environment.
	Follower Support	Followers must 1) know what to do, 2) know how to do it, 3) understand why they are doing it, 4) want to do it, 5) have the right resources, and 6) believe they have the proper leadership.
	Follow-up	Postsale activities that often determine whether an individual who has made a recent purchase will become a repeat customer.
	Forecasting	Method for predicting how variables will change the future.
	Foreign Licensing	Agreement that grants foreign marketers the right to distribute a firm's merchandise or to use its trademark, patent, or process in a specified geographic area.
	Formal Rulemaking	The process whereby an administrative agency notifies the public of a proposed new rule and then permits a formal hearing, with opportunity for evidence and cross-examination, before promulgating the final rule.
	Forward Integration	Process through which a firm attempts to control downstream distribution.
	Founding Fathers	The authors of the United States Constitution, who participated in the Constitutional Convention in Philadelphia in 1787.
	Framing Effects	A psychological bias influenced by the way in which a problem or decision alternative is phrased or presented.
	Franchise	An arrangement in which the franchisee buys from a franchisers the right to establish a business using the franchiser’s trade name and selling the franchiser’s products. Typically the franchiser also trains the franchise in the proper operation of the business.
	Franchises	Privileges granted by a company or government to sell a product or service under specified conditions.
	Free Cash Flow	Another name for cash flow from assets.
	Free Trade Area of the Americas (FTAA)	Proposed free-trade area stretching the length of the entire Western Hemisphere and designed to extend free trade benefits to additional nations in North, Central, and South America.
	Freedom of Information Act (FOIA)	A federal statute giving private citizens and corporations access to many of the documents possessed by an administrative agency.
	Friendship, Commerce, and Navigation (FCN) Treaties	International agreements that deal with many aspects of commercial relations among nations.
	Frontline Managers	Lower-level managers who supervise the operational activities of the organization.
	Full-Disclosure Principle	Principle that prescribes financial statements (including notes) to report all relevant information about an entity’s operations and financial condition.
	Functional Authority	The right that a manager of a staff department has to make decisions and give orders that affect the way things are done in another department.
	Functional Strategies	Strategies implemented by each functional area of the organization to support the organization’s business strategy.
	Fundamental Rights	In constitutional law, those rights that are so basic that any governmental interference with them is suspect and likely to be unconstitutional.
	Future Value (FV)	The amount an investment is worth after one or more periods.
	Garbage Can Model	Model of organizational decision making depicting a chaotic process and seemingly random decisions.
	Gatekeeping	Controlling access to another person or the flow of information.
	General Agreement on Tariffs and Trade (GATT)	International trade accord that has helped reduce world tariffs.
	General and Administrative Expense Budget	Plan that shows predicted operating expenses not included in the selling expenses budget.
	General Journal	All-purpose journal for recording the debits and credits of transactions and events.
	Generally Accepted Accounting Principles (GAAP)	Rules that specify acceptable accounting practices.
	Generally Accepted Auditing Standards (GAAS)	Rules that specify acceptable auditing practices.
	General-purpose Financial Statements	Statements published periodically for use by a variety of interested parties; includes the income statement, balance sheet, statement of owner's equity (or statement of retained earnings for a corporation), statement of cash flows, and notes to these statements.
	Generic Products	Products characterized by plain labels, no advertising, and the absence of brand names.
	Geographic Information Systems (GISs)	Software packages that assemble, store, manipulate, and display data by their location.
	Geographic Segmentation	Division of an overall market into homogeneous groups based on their locations.
	Glass Ceiling	An invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy.
	Global Model	An organization model consisting of a company's overseas subsidiaries and characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations. Typically adopted by organizations that base their global competitive strategy on low cost.
	Global Sourcing	Purchasing goods and services from suppliers worldwide.
	Globalization – Ethical Dilemmas	Companies have discovered that there is no single standard of ethical behavior applying to all business decisions in the international arena. Practices that are illegal in one country may be perfectly acceptable, even expected, in another.
	Goal	A target or end that management desires to reach.
	Goal Displacement	A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.
	Goal Setting	The process of developing, negotiating, and formalizing the targets or objectives that an employee or group is responsible for accomplishing.
	Goal-Setting Theory	A motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end.
	Going-Concern Principle	Principle that requires financial statements to reflect the assumption that the business will continue operating.
	Goods	Tangible products that customers can see, hear, smell, taste, or touch.
	Goods-Services Continuum	Spectrum along which goods and services fall according to their attributes, from pure good to pure service.
	Goodwill	Amount by which a company’s (or a segment’s) value exceeds the value of its individual assets less its liabilities.
	Grapevine	Informal communication network.
	Gray Goods	Products manufactured abroad under license from a U.S. firm and then sold in the U.S. market in competition with that firm's own domestic product.
	Green Marketing	Production, promotion, and reclamation of environmentally sensitive products.
	Gross Domestic Product (GDP)	Sum of all goods and services produced by a nation in a year.
	Group Maintenance Behaviors	Actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group.
	Group Norms	Standards shared by the members of a group.
	Groupthink	A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus. The deterioration of the mental efficiency, reality testing, and moral judgment of the individual members of the group in the interest of group solidarity.
	Growth Need Strength	The degree to which individuals want personal and psychological development.
	Growth Stage	Second stage of the product life cycle, which begins when a firm starts to realize substantial profits from its investment in a product.
	Guerrilla Marketing	Unconventional, innovative, and low-cost marketing techniques designed to get consumers’ attention in unusual ways.
	Habit	Can be a negative for group or individual decision making. Groups that always make decisions in the same way without considering new options may no longer be innovative.
	Harmless Error	A ruling made by a trial court which an appeals court determines was legally wrong but not fatal to the decision.
	Hierarchy	The various levels of managerial positions and the people chosen to staff an organization’s positions of formal authority.
	High-involvement Organization	A type of organization in which top management ensures that there is consensus about the direction
	Home Shopping Channel	Television direct marketing in which a variety of products are offered and consumers can order them directly by phone or online.
	Homeshoring	Hiring workers to do jobs from their homes.
	Horizontal Analysis	Comparison of a company's financial condition and performance across time.
	Horizontal Communication	Information shared among people on the same hierarchical level.
	Host-country Nationals	Natives of the country where an overseas subsidiary is located.
	Human Capital	The knowledge, skills, and abilities of employees that have economic value.
	Human Resources Management (HRM)	Formal systems for the management of people within an organization.
	Hurdle Rate	Minimum acceptable rate of return (set by management) for an investment.
	Hybrid Rulemaking	A method of administrative agency procedure incorporating some elements of formal and some elements of informal rulemaking, typically involving a limited public hearing with restricted rights of testimony and cross-examination.
	Hygiene Factors	Characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied.
	Illusion of Control	People’s belief that they can influence events, even when they have no control over what will happen.
	Impairment	Diminishment of an asset value.
	Import Quotas	Trade restrictions that limit the number of units of certain goods that can enter a country for resale.
	Importing	Purchasing foreign goods and services.
	Imprest System	Method to account for petty cash; maintains a constant balance in the fund, which equals cash plus petty cash receipts.
	Impulse Goods and Services	Products purchased on the spur of the moment.
	In Camera	“In the judge’s chambers,” meaning the judge does something out of view of the jury and the public.
	Inadequacy	Condition in which the capacity of plant assets is too small to meet the company’s production demands.
	Inbound Telemarketing	Sales method in which prospects call a toll-free number to obtain information, make reservations, and purchase goods and services.
	Income	Amount earned after subtracting all expenses necessary for and matched with sales for a period. Also called Profit or Earnings.
	Income Statement	Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
	Income Summary	Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred; its balance is transferred to the capital account.
	Incremental Cost	Additional cost incurred only if a company pursues a specific course of action.
	Incremental Model	Model of organizational decision making in which major solutions arise through a series of smaller decisions.
	Indefinite Useful Life	Asset life that is not limited by legal, regulatory, contractual, competitive economic, or other factors.
	Independent Agency	An administrative agency outside the executive branch of government, such as the Interstate Commerce Commission.
	Independent Strategies	Strategies that an organization acting on its own uses to change some aspect of its current environment.
	Indirect Evaluation	Method for measuring promotional effectiveness by concentrating on quantifiable indicators of effectiveness such as recall and readership.
	Indirect Method	Presentation that reports net income and then adjusts it by adding and subtracting items to yield net cash from operating activities on the statement of cash flows.
	Individual Brand	Single brand that uniquely identifies a product.
	Induction	A program developed to introduce a new employee to his or her job, working environment, supervisor or peers. Also sometimes called orientation.
	Inelastic Demand	Demand that, throughout an industry, will not change significantly due to a price change.
	Inflation	Rising prices caused by some combination of excess consumer demand and increases in the costs of one or more factors of production.
	Influencer	Typically, technical staff such as engineers who affect the buying decision by supplying information to guide evaluation of alternatives or by setting buying specifications.
	Infomercial	Paid-30 minute or longer product commercial that resembles a regular television program.
	Informal Rulemaking	The process whereby an administrative agency notifies the public of a proposed new rule and permits comment but is then free to promulgate the final rule without a public hearing.
	Information Processor	Component of an accounting system that interprets, transforms, and summarizes information for use in analysis and reporting.
	Information Storage	Component of an accounting system that keeps data in a form accessible to information processors.
	Informing	A team strategy that entails making decisions with the team and then informing outsiders of its intentions.
	Infrastructure	A nation's basic system of transportation networks, communications systems, and energy facilities.
	Injunction	A court order that a person either do or stop doing something.
	Innovation	A change in method or technology; a positive, useful departure from previous ways of doing things. The introduction of new goods and services.
	Inpatriate	A foreign national brought in to work at the parent company.
	Input Device	Means of capturing information from source documents that enables its transfer to information processors.
	Inputs	Goods and services organizations take in and use to create products or services.
	Inside Selling	Selling by phone, mail, and electronic commerce.
	Installations	Business products such as factories, assembly lines, and large machinery that are major capital investments.
	Installment Note	Liability requiring a series of periodic payments to the lender.
	Instructions or Charge	The explanation given by a judge to a jury, outlining the jury’s task in deciding a lawsuit and the underlying rules of law the jury should use in reaching its decision.
	Instrumentality	The perceived likelihood that performance will be followed by a particular outcome.
	Intangible Assets	Long-term assets (resources) used to produce or sell products or services; usually lack physical form and have uncertain benefits.
	Integrated Marketing Communications (IMC)	Coordination of all promotional activities to produce a unified, customer-focused promotional message.
	Integrated Marketing Communications (IMC)	Coordination of all promotional activities to produce a unified customer-focused promotional message.
	Integrity-Based Ethics Programs	Company mechanisms designed to instill in people a personal responsibility for ethical behavior.
	Intensive Distribution	Distribution of a product through all available channels.
	Interactive Marketing	Buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the Internet and virtual reality kiosks.
	Interest	Charge for using money (or other assets) loaned from one entity to another.
	Interest on Interest	Interest earned on the reinvestment of previous interest payments.
	Interim Financial Statements	Financial statements covering periods of less than one year; usually based on one-, three-, or six-month periods.
	Intermediate Consumer	A customer who purchases raw materials or wholesale products before selling them to final customers.
	Intermodal Operations	Combination of transport modes such as rail and highway carriers (piggyback), air and highway carriers (birdyback), and water and air carriers (fishyback) to improve customer service and achieve cost advantages.
	Internal Control System	All policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.
	Internal Rate of Return (IRR)	Rate used to evaluate the acceptability of an investment; equals the rate that yields a net present value of zero for an investment.
	Internal Transactions	Activities within an organization that can affect the accounting equation.
	Internal Users	Persons using accounting information who are directly involved in managing the organization.
	International Accounting Standards Board (IASB)	Group that identifies preferred accounting practices and encourages global acceptance; issues international Financial Reporting Standards (IFRS).
	International Model	An organization model that is composed of a company's overseas subsidiaries and characterized by greater control by the parent company over the research function and local product and marketing strategies than is the case in the multinational model.
	Internet Protocol Television (IPTV)	Technology that allows a two-way broadcast signal to be sent through a telephone or cable network by way of a broadband connection.
	Interpersonal and Communication Skills	People skills; the ability to lead, motivate, and communicate effectively with others.
	Interpretive Rules	A formal statement by an administrative agency expressing its view of what existing statutes or regulations mean.
	Interrogatory	A form of discovery in which one party sends to an opposing party written questions that must be answered under oath.
	Intrinsic Rewards	Rewards that are part of the job itself. The responsibility, challenge, and feedback characteristics of the job are intrinsic rewards.
	Introductory Stage	First stage of the product life cycle, in which a firm works to stimulate sales of a new market entry.
	Investing Activities	Transactions that involve purchasing and selling of long-term assets, includes making and collecting notes receivable and investments in other than cash equivalents.
	Invoice	Itemized record of goods prepared by the vendor that lists the customer's name, items sold, sales price, and terms of sale.
	Invoice Approval	Document containing a checklist of steps necessary for approving an invoice for recording and payment. Also called Check Authorization.
	ISO 9000	A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers.
	Issue	All direct descendants such as children, grandchildren, and so on.
	Job Analysis	A tool for determining what is done on a given job and what should be done on that job.
	Job Enlargement	Increasing the number of tasks or the quantity of output required for a job.
	Job Enrichment	Providing variety, deeper personal interest and involvement, greater autonomy and challenge, or increased responsibility.
	Job Rotation	Changing from one routine task to another to alleviate boredom.
	Joint Demand	Demand for a product that depends on the demand for another product used in combination with it.
	Joint Venture	A partnership for a limited purpose.
	Journal	Record in which transactions are entered before they are posted to ledger accounts. Also called Book of Original Entry.
	Journalizing	Process of recording transactions in a journal.
	Judgment non obstante verdicto (n.o.v.)	“Judgment notwithstanding the verdict.” A trial judge overturns the verdict of the jury and enters a judgment in favor of the opposing party.
	Judicial Activism	The willingness shown by certain courts (and not by others) to decide issues of public policy, such as constitutional questions (free speech, equal protection, etc.) and matters of contract fairness (primary estoppel, unconscionability, etc.).
	Judicial Restraint	A court’s preference to abstain from adjudicating major social issues and to leave such matters to legislatures.
	Judicial Review	The power of the judicial system to examine, interpret, and even nullify actions taken by another branch of government.
	Jurisdiction	The power of a court to hear a particular dispute, civil or criminal, and to make a binding decision.
	Jurisprudence	The study of the purposes and philosophies of the law, as opposed to particular provisions of the law.
	Just-in-Time (JIT)/Just-in-Time II (JIT II)	Inventory practices that seek to boost efficiency by cutting inventories to absolute minimum levels. With JIT II, suppliers’ representatives work at the customer’s facility.
	Kohlberg’s Model of Cognitive Moral Development	Classifies people based on their level of moral judgment.
	Label	Branding component that carries an item’s brand name or symbol, the name and address of the manufacturer or distributor, information about the product, and recommended uses.
	Labor Relations	The system of relations between workers and management.
	Laissez-faire	A leadership philosophy characterized by an absence of managerial decision making.
	Land Improvements	Assets that increase the benefits of land, have a limited useful life, and are depreciated.
	Large Batch	Technologies that produce goods and services in high volume.
	Lateral Leadership	Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.
	Law Merchant	The body of rules and customs developed by traders and businesspersons throughout Europe from roughly the fifteenth to the eighteenth century.
	Law of Effect	A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated.
	Leader-Member Exchange (LMX) Theory	Highlights the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis.
	Leadership	The ability to get work done with and through others while winning their respect, confidence, loyalty, and willing cooperation.
	Leading	The management function that involves the manager's efforts to stimulate high performance by employees.
	Lean Manufacturing	An operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.
	Learning Organization	An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.
	Lease	Contract specifying the rental of property.
	Leasehold	Rights the lessor grants to a lessee under the terms of a lease.
	Leasehold Improvements	Alterations or improvements to leased property such as partitions and storefronts.
	Ledger	Record containing all accounts (with amounts) for a business. Also called General Ledger.
	Legal Positivism	The legal philosophy holding that law is what the sovereign says it is, regardless of its moral content.
	Legal Realism	The legal philosophy holding that what really influences law is who makes and enforces it, not what is put in writing.
	Legal Responsibilities	To obey local, state, federal, and relevant international laws.
	Legislative History	Used by courts to interpret the meaning of a statute, this is the record of hearings, speeches, and explanations that accompanied a statute as it made its way from newly proposed bill to final law.
	Legislative Rules	Regulations issued by an administrative agency.
	Lessee	Party to a lease who secures the right to possess and use the property from another party (the lessor).
	Lessor	Party to a lease who grants another party (the lessee) the right to process and use its property.
	Level 5 Leadership	A combination of strong professional will (determination) and humility that builds enduring greatness.
	Liabilities	Creditor’s claims on an organization’s assets; involves a probable future payment of assets or services that a company is obligated to make due to past transactions or events.
	Life-Cycle Analysis (LCA)	A process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine total environmental impact.
	Lifetime Value of a Customer	Revenues and intangible benefits that a customer brings to an organization over an average lifetime, minus the investment the firm has made to attract and keep the customer.
	Limited Liability	Owner can lose no more than the amount invested.
	Limited Liability Company	An organization that has the limited liability of a corporation by is not a taxable entity.
	Limited Liability Limited Partnership	In a limited liability limited partnership, the general partner is not personally liable for the debts of the partnership.
	Limited Partnership	A partnership with two types of partners: (1) limited partners who have no personal liability for the debts of the enterprise nor any right to manage the business, and (2) general partners who are responsible for management and personally liable for all debts.
	Line Authority	A manager’s right to give direct orders to subordinates and appraise, reward, and discipline those who receive those orders.
	Line Extension	Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.
	Line Extension	Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.
	Liquid Assets	Resources such as cash that are easily converted into other assets or used to pay for goods, services, or liabilities.
	Liquidity	Availability of resources to meet short-term cash requirements.
	Litigation	The process of resolving disputes through formal court proceedings.
	Lockout	A management tactic, designed to gain a bargaining advantage, in which the company refuses to allow union members to work (and hence deprives them of their pay).
	Logistics	Process of coordinating the flow of information, goods, and services among members of the distribution channel.
	Long-term Investments	Long-term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
	Long-term Liabilities	Obligations not due to be paid within one year or the operating cycle, whichever is longer.
	Low-Cost Strategy	A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.
	Macroenvironment	The most general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.
	Maker of the Note	Entity who signs a note and promises to pay it at maturity.
	Management	The process of planning, organizing, directing, and controlling human, material, and information resources for the purposes of setting and achieving stated goals; also, a team of people making up an organization’s hierarchy.
	Management by Exception	Management process to focus on significant variances and give less attention to areas where performance is close to the standard.
	Management by Objectives (MBO)	A process in which objectives set by a subordinate and a supervisor must be reached within a given time period.
	Management Teams	Teams that coordinate and provide direction to the subunits under their jurisdiction and integrate work among subunits.
	Managerial Accounting	Area of accounting mainly aimed at serving the decision-making needs of internal users.
	Managing Diversity	Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization’s advantage.
	Manufacturer’s Brand	Brand name owned by a manufacturer or other producer.
	Manufacturers' Representative	Agent wholesaling intermediary that represents manufacturers of related by noncompeting products and receives a commission on each sale.
	Manufacturing Budget	Plan that shows the predicted costs for direct materials, direct labor, and overhead to be incurred in manufacturing units in the production budget.
	Marginal Tax Rate	Amount of tax payable on the next dollar earned.
	Market	Group of people with sufficient purchasing power, authority, and willingness to buy.
	Market Development Strategy	Strategy that concentrates on finding new markets for existing products.
	Market Penetration Strategy	Strategy that seeks to increase sales of existing products in existing markets.
	Market Prospects	Expectations (both good and bad) about a company's future performance as assessed by users and other interested parties.
	Market Rate	Interest rate borrowers are willing to pay and lenders are willing to accept for a specific debt agreement given its risk level.
	Market Risk Premium	The slope of the SML, the difference between the expected return on a market portfolio and the risk-free rate.
	Market Segmentation	Division of the total market into smaller, relatively homogeneous groups.
	Market Share/ Market Growth Matrix	Framework that places SBU’s on a chart that plots market share against market growth potential.
	Marketing	Organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
	Marketing (Distribution) Channel	System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user.
	Marketing Communications	Messages that deal with buyer-seller relationships.
	Marketing Concept	Company-wide consumer orientation with the objective of achieving long-run success.
	Marketing Ethics	Marketers’ standards of conduct and moral values.
	Marketing Intermediary (Middleman)	Wholesale or retailer that operates between producers and consumers or business users.
	Marketing Mix	Blending of the four strategy elements – product, distribution, promotion, and pricing – to fit the needs and preferences of a specific target market.
	Marketing Mix	Blending of the four strategy elements – product, distribution, promotion, and price – to fit the needs and preferences of a specific target market.
	Marketing Myopia	Management’s failure to recognize the scope of its business.
	Marketing Plan	Detailed description of the resources and actions needed to achieve stated marketing objectives.
	Marketing Planning	Implementing planning activities devoted to achieving marketing objectives.
	Marketing Strategy	Overall, company-wide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix.
	Maslow’s Need Hierarchy	A conception of human needs organizing needs into a hierarchy of five major types.
	Mass Customization	The production of varied, individually customized products at the low cost of standardized, mass-produced products.
	Master Budget	Comprehensive business plan that includes specific plans for expected sales, product units to be produced, merchandise (or materials) to be purchased, expenses to be incurred, plant assets to be purchased, and amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet.
	Matching Principle	Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
	Materiality	Prescribes that accounting for items that significantly impact financial statement and inferences from them adhere strictly to GAAP.
	Materials Handling System	Set of activities that move production inputs and other goods within plants, warehouses, and transportation terminals.
	Maturity Date of a Note	Date when a note’s principal and interest are due.
	Maturity Stage	Third stage of the product life cycle, in which industry sales level out.
	Maximizing	A decision realizing the best possible outcome.
	Mechanistic Organization	A form of organization that seeks to maximize internal efficiency.
	Media Richness	The degree to which a communication channel conveys information.
	Mediation	The process of using a neutral person to aid in the settlement of a legal dispute. A mediator’s decision is non-binding.
	Mediator	A third party who intervenes to help others manage their conflict.
	Meeting Competition Method	Method of promotional budgeting that simply matches competitors’ outlays.
	Mentors	Higher level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.
	Merchandise Purchases Budget	Plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.
	Merchandisers	Trade sector buyers who secure needed products at the best possible prices.
	Merger	One or more companies combining.
	Message	Communication of information, advice, or a request by the sender to the receiver.
	Metropolitan Statistical Area (MSA)	Freestanding urban area with a population in the urban center of at least 50,000 and a total MSA population of 100,000 or more.
	Micromarketing	Targeting potential customers at very narrow, basic levels, such as by zip code, specific occupation, or lifestyle - possibly even individuals themselves.
	Micropolitan Statistical Area	Area that has at least one town of 10,000 to 49,999 people with proportionally few of its residents commuting to outside the area.
	Middle-level Managers	Managers located in the middle layers of the organizational hierarchy, reporting to top-level executives.
	Mission	An organization’s basic purpose and scope of operations.
	Mission Statement	A mission statement defines the core purpose of the organization – why it exists. Effective missions are inspiring, long-term in nature, and easily understood and communicated.
	Missionary Selling	Indirect type of selling in which specialized salespeople promote the firm's goodwill among indirect customers, often by helping customers use products.
	Mixed Cost	Cost that behaves like a combination of fixed and variable costs.
	Mobile Marketing	Marketing messages transmitted via wireless technology.
	Modified Rebuy	Situation in which a purchaser is willing to reevaluate available options for repurchasing a good or service.
	Modify	An appellate court order changing a lower court ruling.
	Monetary Unit Principle	Principle that assumes transactions and events can be expressed in money units.
	Monolithic Organization	An organization that has a low degree of structural integration – employing few women, minorities, or other groups that differ from the majority – and thus has a highly homogenous employee population.
	Monopoly	Market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.
	Moral Philosophy	Principles, rules, and values people use in deciding what is right or wrong.
	Mortgage	Legal loan agreement that protects a lender by giving the lender the right to be paid from the cash proceeds from the sale of a borrower's assets identified in the mortgage.
	Motion	A formal request that a court take some specified step during litigation. A motion to compel discovery is a request that a trial judge order the other party to respond to discovery.
	Motivation	Forces that energize, direct, and sustain a person’s efforts.
	Motivation Factor	According to Herzberg, a factor that has the potential to stimulate internal motivation to provide better-than-average performance and commitment.
	Motivators	Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement.
	Multicultural Organization	An organization that values cultural diversity and seeks to utilize and encourage it.
	Multinational Corporation	Firm with significant operations and marketing activities outside its home country.
	Multinational Model	An organization model that consists of the subsidiaries in each country in which a company does business, with ultimate control exercised by the parent company.
	Multiple Sourcing	Purchasing from several vendors.
	National Accounts Organization	Promotional effort in which a dedicated sales team is assigned to a firm's major customers to provide sales and service needs.
	National Labor Relations Board (NLRB)	The administrative agency charged with overseeing labor law.
	Natural Business Year	Twelve-month period that ends when a company’s sales activities are at their lowest point.
	Natural Law	The theory that an unjust law is no law at all, and that a rule is only legitimate if based on an immutable morality.
	Natural Resources	Assets physically consumed when used; Examples are timber, mineral deposits, and oil and gas fields. Also called Wasting Assets.
	Nearshoring	Moving jobs to vendors in countries close to the business’s home country.
	Needs Assessment	An analysis identifying the jobs, people, and departments for which training is necessary.
	Negative or Dormant Aspect of the Commerce Clause	The doctrine that prohibits a state from any action that interferes with or discriminates against interstate commerce.
	Negative Reinforcement	Removing or withholding an undesirable consequence.
	Net Assets	Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities.
	Net Income	Amount earned after subtracting all expenses necessary for and matched with sales for a period.
	Net Loss	Excess of expenses over revenues for a period.
	Net Method	Method of recording purchases at the full invoice price less any cash discounts.
	Net Present Value (NPV)	Dollar estimate of an asset's value that is used to evaluate the acceptability of an investment; computed by discounting future cash flows from the investment at a satisfactory rate and then subtracting the initial cost of the investment.
	Net Working Capital	Current assets less current liabilities.
	Network Marketing	Personal selling that relies on lists of family members and friends of the salesperson, who organizes a gathering of potential customers for a demonstration of products.
	Networking	Exchanging information for mutual benefit. Using one’s friends, family and work-related contacts to help find employment or to advance one’s career.
	New-Task Buying	First-time or unique purchase situation that requires considerable effort by decision makers.
	Niche Marketing	Marketing strategy that focuses on profitably satisfying a single market segment. Also called Concentrated Marketing.
	Noise	Any stimulus that distracts a receiver from receiving a message.
	Nominal Group Technique	Technique in which group members follow a generate-discussion-vote cycle until they reach an appropriate decision.
	Non-cash Items	Expenses charged against revenues that do not directly affect cash flow, such as depreciation.
	Non-personal Selling	Promotion that includes advertising, product placement, sales promotion, direct marketing, public relations, and guerilla marketing – all conducted without being face-to-face with the buyer.
	Non-programmed Decisions	New, novel, complex decisions having no proven answers.
	Non-sufficient Funds (NSF) Check	Maker's bank account has insufficient money to pay the check. Also called Hot Check.
	Norms	Shared beliefs about how people should think and behave.
	North American Free Trade Agreement (NAFTA)	Accord removing trade barriers between Canada, Mexico, and the United States.
	North American Industry Classification System (NAICS)	Classification used by NAFTA countries to categorize the business marketplace into detailed market segments.
	Note Payable	Liability expressed by a written promise to pay a definite sum of money on demand or on a specific future date(s).
	Note Receivable	Asset consisting of a written promise to receive a definite sum of money on demand or on a specific future date(s).
	Novation	If there is an existing contract between A and B, a novation occurs when A agrees to release B from all liability on the contract in return for C’s willingness to accept B’s liability.
	Objection	Expression of sales resistance by the prospect.
	Objectives	Goals that support a firm’s overall mission.
	Objectivity Principle	Principle that prescribes independent, unbiased evidence to support financial statement information.
	Obligee	The party to a contract who is entitled to receive performance from the other party.
	Obligor	The party to a contract who is required to do something for the benefit of the other party.
	Obscenity	Constitutional law doctrine holding that some works will receive no First Amendment protection because a court determines they depict sexual matters in an offensive way.
	Obsolescence	Condition in which, because of new inventions and improvements, a plant asset can no longer be used to produce goods or services with a competitive advantage.
	Off-Balance-Sheet Financing	Acquisition of assets by agreeing to liabilities not reported on the balance sheet.
	Offshoring	Movement of high-wage jobs from one country to lower-cost overseas locations.
	Oligopoly	Market structure in which relatively few sellers compete and where high start-up costs form barriers to keep out new competitors.
	One-way Communication	A process in which information flows in only one direction: from the sender to the receiver, with no feedback loop.
	Online Processing	Approach to inputting data from source documents as soon as the information is available.
	Open Systems	Organizations that are affected by, and that affect their environment.
	Open-Book Management	Practice of sharing with employees at all levels of the organization vital information previously meant for management’s eyes only.
	Operating Activities	Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business.
	Operating Cash Flow	Cash generated from a firm's normal business activities.
	Operating Cycle	Normal time between paying cash for merchandise or employee services and receiving cash from customers.
	Operating Leases	Short-term (or cancelable) leases in which the lessor retains risks and rewards of ownership.
	Operational Planning	The process of identifying the specific procedures and processes required at lower levels of the organization.
	Optimizing	Achieving the best possible balance among several goals.
	Order Processing	Selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.
	Ordinary Repairs	Repairs to keep a plant asset in normal, good operating condition; treated as a revenue expenditure and immediately expensed.
	Organic Structure	An organizational form that emphasizes flexibility.
	Organization Marketing	Marketing by mutual-benefit organizations, service organizations, and government organizations intended to influence others to accept their goals, receive their services, or contribute to them in some way.
	Organizational Behavior Method (OB Mod)	The application of reinforcement theory in organizational settings.
	Organizing	The management function of assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals.
	Orientation Training	Training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like.
	Outbound Telemarketing	Sales method in which sales representatives place phone calls to prospects and try to conclude the sale over the phone.
	Outcome	A consequence a person receives for his or her performance.
	Outplacement	The process of helping people who have been dismissed from the company to regain employment elsewhere.
	Output Devices	Means by which information is taken out of the accounting system and made available for use.
	Outputs	The products or services organizations create.
	Outsourcing	Using outside vendors to provide goods and services formerly produced in-house. Part of a make-or-buy decision.
	Outstanding Checks	Checks written and recorded by the depositor but not yet paid by the bank at the bank statement date.
	Overhead Cost Variance	Difference between the total overhead cost applied to products and the total overhead cost actually incurred.
	Override	The power of Congress or a state legislature to pass legislation despite a veto by a president or governor. A congressional override requires a two-thirds vote in each house.
	Over-the-Counter Selling	Personal selling conducted in retail and some wholesale locations in which customers come to the seller's place of business.
	Owner Capital	Account showing the owner’s claim on company assets; Equals owner investments plus net income (or net loss) minus owner withdrawals since the company’s inception. Also referred to as Equity.
	Owner Investment	Assets put into the business by the owner.
	Owner Withdrawals	Payment of cash or other assets from a proprietorship to its owner or owners.
	Owner’s Equity	Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities. Also called Net Assets.
	Paid-in Capital	Contributed Capital.
	Par Value of a Bond	Amount the bond issuer agrees to pay at maturity and the amount on which cash interest payments are based. Also called Face Amount or Face Value.
	Parading	A team strategy that entails simultaneously emphasizing internal team building and achieving external visibility.
	Parallel Teams	Teams that operate separately from the regular work structure and exist temporarily.
	Participation in Decision Making	Leader behaviors that managers perform in involving their employees in making decisions.
	Participative Leadership	When a manager is willing to share decision-making and problem-solving activities with associates. It also occurs in teams when individual members of a group take part in the decision-making process.
	Partnership	Unincorporated association of two or more persons to pursue a business for profit as co-owners.
	Patent	Exclusive right granted to its owner to produce and sell an item or use a process for 17 years.
	Path-goal Theory	A theory that concerns how leaders influence subordinates' perceptions of their work goals and the paths they follow toward attainment of those goals.
	Payback Period (PBP)	Time-based measurement used to evaluate the acceptability of an investment; equals the time expected to pass before an investment's net cash flows equal to its initial cost.
	Payee of the Note	Entity to whom a note is made payable.
	Pension Plan	Contractual agreement between an employer and its employees for the employer to provide benefits to employees after they retire; expensed when incurred.
	Percentage-of-Sales Method	Method of promotional budgeting in which a dollar amount is based on a percentage of past or projected sales.
	Perception	The process of receiving and interpreting information.
	Peremptory Challenge	During voir dire, a request by one attorney that a prospective juror be excused for an unstated reason.
	Performance Appraisal (PA)	Assessment of an employee’s job performance.
	Permanent Accounts	Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called Real Accounts.
	Person Marketing	Marketing efforts designed to cultivate the attention, interest, and preferences of a target market toward a person (perhaps a political candidate or celebrity).
	Personal Selling	Interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyer.
	Petty Cash	Small amount of cash in a fund to pay minor expenses.
	Philanthropic Responsibilities	Additional behaviors and activities that society finds desirable and that the values of the business support.
	Physical Distribution Functions	Broad range of activities aimed at efficiently moving finished goods from the end of the production line to the consumer.
	Place Marketing	Marketing efforts to attract people and organizations to a particular geographic area.
	Plain Meaning Rule	In statutory interpretation, the premise that words with an ordinary, everyday significance will be so interpreted, unless there is some apparent reason not to.
	Planned Obsolescence	Intentional design, manufacture, and marketing products with limited durability.
	Planning	Process of anticipating future events and conditions and of determining the best way to achieve organizational objectives.
	Planning	The management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue.
	Plans	The actions or means managers intend to use to achieve organizational goals.
	Plant Assets	Tangible long-lived assets used to produce or sell products and services. Also called Property, Plant, and Equipment, or Fixed Assets.
	Pleadings	The documents that begin a lawsuit: the complaint, the answer, the counter-claim and reply.
	Pledged Assets to Secured Liabilities	Ratio of the book value of a company's pledged assets to the book value of its secured liabilities.
	Pluralistic Organization	An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds.
	Point-of-Purchase (POP) Advertising	Display or other promotion placed near the site of the actual buying decision.
	Political Risk Assessment (PRA)	Units within a firm that evaluate the political risks of the marketplaces in which they operate as well as proposed new marketplaces.
	Political-Legal Environment	Component of the marketing environment consisting of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights.
	Porter’s Five Forces	Model developed by strategy expert Michael Porter that identifies five competitive forces that influence planning strategies: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products, and rivalry among competitors.
	Portfolio	A group of assets such as stocks and bonds held by an investor.
	Portfolio Analysis	Evaluation of a company’s products and divisions to determine which are strongest and which are weakest.
	Portfolio Weight	A percentage of a portfolio's total value that is in a particular asset.
	Positioning	Placing a product at a certain point or location within a market in the minds of prospective buyers.
	Positioning Map	Tool that helps marketers place products in a market by graphically illustrating consumers' perceptions of competing products within an industry.
	Positive Aspect of the Commerce Clause	The power granted to Congress to regulate commerce between the states.
	Positive Reinforcement	Applying consequences that increase the likelihood that a person will repeat the behavior that led to it.
	Post-Closing Trial Balance	List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
	Posting	Process of transferring journal entry information to the ledger.
	Posting Reference (PR) Column	A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
	Power	The ability to influence others.
	Precall Planning	Use of information collected during the prospecting and qualifying stages of the sales process and during previous contacts with the prospect to tailor the approach and presentation to match the customer's needs.
	Precedent	An earlier case that decided the same legal issue as that presently in dispute, and which therefore will control the outcome of the current case.
	Preemption	The doctrine, based on the Supremacy Clause, by which any federal statute takes priority whenever (1) a state statute conflicts or (2) there is not conflict but Congress indicated an intention to control the issue involved.
	Premium	Item given free or at reduced cost with purchases of other products.
	Premium on Bonds	Difference between a bond's par value and its higher carrying value; occurs when the contract rate is higher than the market rate. Also called Bond Premium.
	Prepaid Expenses	Items paid for in advance of receiving their benefits; Classified as Assets.
	Preponderance of the Evidence	The level of proof that a plaintiff must meet to prevail in a civil lawsuit. It means that the plaintiff must offer evidence that, in sum, is slightly more persuasive than the defendant’s evidence.
	Present Value (PV)	The current value of future cash flows discounted at the appropriate discount rate.
	Presentation	Personal selling function of describing a product's major features and relating them to a customer's problems or needs.
	Presentment	A holder of an instrument makes a demand for payment.
	Price Variance	Difference between actual and budgeted revenue or cost caused by the difference between the actual price per unit and the budgeted price per unit.
	Pricing Strategy	Methods of setting profitable and justifiable prices.
	Primary Demand	Desire for a general product category.
	Primary Metropolitan Statistical Area (PMSA)	Urbanized county or set of counties with social and economic ties to nearby areas.
	Principal of a Note	Amount that the signer of a note agrees to pay back when it matures, not including interest.
	Principle of Diversification	Spreading an investment across a number of assets will eliminate some, but not all, of the risk.
	Principle of Right Sizing	This principle deals with matching your organization’s size with its business goals. Large corporations used to use this term instead of downsizing. They would say that the organization had gotten too big and they were right sizing.
	Principles of Internal Control	Principles requiring management to establish responsibility, maintain records, insure assets, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls, and perform reviews.
	Priority Setting	Putting activities in order of importance to you, the group, or the business.
	Privacy Act	A federal statute prohibiting federal agencies from divulging to other agencies or organizations information about private citizens.
	Private Brand	Brand offered by a wholesaler or retailer.
	Private Carriers	Transporters that provide service solely for internally generated freight.
	Pro Forma Financial Statements	Statements that show the effects of proposed transactions and events as if they had occurred.
	Probing	A team strategy, that requires team members to interact frequently with outsiders, diagnose their needs, and experiment with solutions.
	Procedural Justice	Using fair process in decision making and making sure others know that the process was as fair as possible.
	Procedural Law	The rules establishing how the legal system itself is to operate in a particular kind of case.
	Product	Bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs.
	Product Development	Introduction of new products into identifiable or established markets.
	Product Differentiation	Occurs when consumers regard a firm’s products as different in some way from those of competitors.
	Product Diversification Strategy	Developing entirely new products for new markets.
	Product Liability	Responsibility of manufacturers and marketers for injuries and damages caused by their products.
	Product Life Cycle	Progression of a product through introduction, growth, maturity, and decline stages.
	Product Line	Series of related products offered by one company.
	Product Manager	Marketer within an organization who is responsible for an individual product or product line; also called a brand manager.
	Product Mix	Assortment of product lines and individual product offerings that a company sells.
	Product Placement	Form of promotion in which a marketer pays a motion picture or television program owner a fee to display a product prominently in the film or show.
	Product Positioning	Consumers’ perceptions of a product’s attributes, uses, quality, and advantages and disadvantages relative to competing brands.
	Product Strategy	Decisions about what goods or services a firm will offer its customers; also includes decisions about customer service, packaging, brand names, and the like.
	Production Budget	Plan that shows the units to be produced each period.
	Production of Documents and Things	A form of discovery in which one party demands that the other furnish original documents of physical things, relating to the suit, for inspection and copying.
	Production Orientation	Business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that “a good product will sell itself.”
	Product-Related Segmentation	Division of a population into homogeneous groups based on their relationships to the product.
	Professional Corporation	A form of organization that permits professionals (such as doctors, lawyers, and accountants) to incorporate. Shareholders are not personally liable for the torts of other shareholders, or for the contract debts of the organization.
	Profit	Amount earned after subtracting all expenses necessary for and matched with sales for a period. Also called Income or Earnings.
	Profit Margin	Ratio of a company’s net income to its net sales; the percent of income in each dollar of revenue. Also called Net Profit Margin.
	Profitability	Company's ability to generate an adequate return on invested capital.
	Programmed Decisions	Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations.
	Project and Development Teams	Teams that work on long-term projects but disband once the work is completed.
	Promissory Note	Written promise to pay a specified amount either on demand or at a definite future date; is a note receivable for the lender but a note payable for the lendee. Also called Note.
	Promotion	Communication link between buyers and sellers; the function of informing, persuading, and influencing a consumer’s purchase decision.
	Promotion	Communication link between buyers and sellers; the function of informing, persuading, and influencing a consumer’s purchase decision.
	Promotional Mix	Subset of the marketing mix in which marketers attempt to achieve the optimal blending of the elements of personal and non-personal selling to achieve promotional objectives.
	Promulgate	To issue a new rule.
	Proprietorship	Business owned by one person that is not organized as a corporation.
	Prospecting	Personal selling function of identifying potential customers.
	Prospectors	Companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring new enterprises.
	Protective Order	A court order limiting one party’s discovery.
	Protective Tariff	Taxes designed to raise the retail price of an imported product to match or exceed that of a similar domestic product.
	Pseudotransformational Leaders	Leaders who talk about positive change but allow their self interest to take precedence over followers' needs.
	Psychographic Segmentation	Division of a population into groups that have similar psychological characteristics, values, and lifestyles.
	Psychological Contract	A set of perceptions of what employees owe their employers, and what their employers owe them.
	Public Relations	Firm’s communications and relationships with its various publics.
	Public Service Announcements (PSAs)	Advertisements aimed at achieving socially oriented objectives by focusing on causes and charitable organizations that are included in print and electronic media without charge.
	Publicity	Non-personal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium.
	Pulling Strategy	Promotional effort by the seller to stimulate final-use demand, which then exerts pressure on the distribution channel.
	Punishment	Administering an aversive consequence.
	Purchase Order	Document used by the purchasing department to place an order with a seller (vendor).
	Purchase Requisition	Document listing merchandise needed by a department and requesting it be purchased.
	Purchases Journal	Journal normally used to record all purchases on credit.
	Push Money	Financial incentive that gives retail salespeople cash rewards for every unit of a product they sell.
	Pushing Strategy	Promotional effort by the seller directed to members of the marketing channel rather than final users.
	Qualifying	Determining that a prospect has the needs, income, and purchase authority necessary for being a potential customer.
	Quality	The excellence of your product (goods or services).
	Quality Circles	Voluntary groups of people drawn from various production teams who make suggestions about quality.
	Quality of Work Life (QWL) Programs	Programs designed to create a workplace that enhances employee well being.
	Quantity Variance	Difference between actual and budgeted revenue or cost caused by the difference between the actual number of units and the budgeted number of units.
	Radio Frequency Identification (RFID)	Technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance.
	Ratio Analysis	Determination of key relations between financial statement items as reflected in numerical measures.
	Ready-Made Solutions	Ideas that have been seen or tried before.
	Realizable Value	Expected proceeds from converting an asset into cash.
	Reasonable Doubt	The level of proof that the government must meet to convict the defendant in a criminal case. The factfinder must be persuaded to a very high degree of certainty that the defendant did what the government alleges.
	Receiving Report	Form used to report that ordered goods are received and to describe their quantity and condition.
	Reciprocity	Buying from suppliers that are also customers.
	Recordkeeping	Part of accounting that involves recording transactions and events, either manually or electronically. Also called Bookkeeping.
	Recruitment	The development of a pool of applicants for jobs in an organization.
	Reflecting	Contemplating and considering the significance of the work performed; evaluating the value and meaning of the specific service as it relates to a larger context.
	Reflection	Process by which a person states what he or she believes the other person is saying.
	Refund	Cash given back to consumers who send in proof of purchasing one or more products.
	Registered Bonds	Bonds owned by investors whose names and addresses are recorded by the issuer; interest payments are made to the registered owners.
	Reinforcers	Positive consequences that motivate behavior.
	Related Party Trade	Trade by U.S. companies with their subsidiaries overseas as well as trade by U.S. subsidiaries of foreign-owned firms with their parent companies.
	Relationship Marketing	Development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit.
	Relationship Selling	Regular contacts between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship
	Relativism	Bases ethical behavior on the opinions and behaviors of relevant other people.
	Relevance Principle	Information system principle prescribing that its reports be useful, understandable, timely, and pertinent for decision making.
	Relevant Benefits	Additional or incremental revenue generated by selecting a particular course of action over another.
	Reliability	The consistency of test scores over time and across alternative measurements.
	Remand	The power of an appellate court to return a case to a lower court for additional action.
	Remanufacturing	Efforts to restore older products to like-new condition.
	Reply	A pleading, filed by the plaintiff in response to a defendant’s counter-claim.
	Report Form Balance Sheet	Balance sheet that lists accounts vertically in the order of assets, liabilities, and equity.
	Repositioning	Changing the position of a product within the minds of prospective buyers relative to the positions of competing products.
	Request for Admission	A form of discovery in which one party demands that the opposing party either admit or deny particular factual or legal allegations.
	Reseller	Marketing intermediaries that operate in the trade sector.
	Resources	Inputs to a system that can enhance performance.
	Results Orientation	Knowing what results are important and focusing resources to achieve them. Focuses on having a diverse, high-performing workforce, and a performance management system that effectively plans, monitors, develops, rates, and rewards employee performance.
	Retail Cooperative	Group of retailers that establish a shared wholesaling operation to help them compete with chains.
	Return	Monies received from an investment; often in percent form.
	Return on Equity	Ratio of net income to average equity.
	Return on Total Assets	Ratio reflecting operating efficiency; defined as net income divided by average total assets. Also called Return on Assets or Return on Investment.
	Revenue Expenditures	Expenditures reported on the current income statement as an expense because they do not provide benefits in future periods.
	Revenue Recognition Principle	The principle prescribing that revenue is recognized when earned.
	Revenues	Gross increase in equity from a company’s business activities that earn income. Also called Sales.
	Reverse Channel	Channel designed to return goods to their producers.
	Reversing Entries	Optional entries recorded at the beginning of a new period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred.
	Rewards	A satisfying return or result for performance of a required behavior.
	Rightsizing	A successful effort to achieve an appropriate size at which the company performs most effectively.
	Right-to-Work	Legislation that allows employees to work without having to join a union.
	Risk	Uncertainty about an expected return. The state that exists when the probability of success is less than 100 percent, and losses may occur.
	Risk Aversion	An economic concept related to the behavior of consumers under uncertainty. It is the reluctance of a person to accept something with an uncertain payoff rather than something else with a more certain, but possibly lower, expected payoff.
	Risk Taking	The willingness to make mistakes, advocate unconventional or unpopular positions, or tackle extremely challenging problems without obvious solutions. Risk takers are willing to tackle challenging tasks, even when success is uncertain.
	Role Ambiguity	The situation that exists whenever a manager is uncertain about the role they are expected to play due to a lack of clarity regarding duties, responsibilities, and/or authority. Role ambiguity may be due to the complexity of the job.
	Role Conflict	A situation that occurs when contradictory or opposing demands are made on a manager. For example, a boss will suffer role conflict if forced to fire an employee who is also a close friend.
	Role Playing	Technique used for overcoming shyness. Often a script is given to an individual to act out situations that help the individual become more comfortable.
	Roles	Different sets of expectations for how different individuals should behave.
	Rolling Budget	New set of budgets a firm adds for the next period (with revisions) to replace the ones that have lapsed.
	Rule of Three	Three dominant companies in an industry that will capture 70 to 90 percent of the market.
	Rulemaking	The power of an administrative agency to issue regulations.
	Rules of Evidence	Law governing the proof offered during a trial or formal hearing. These rules limit the questions that may be asked of witnesses and the introduction of physical objects.
	S Corporation	A corporation that is not a taxable entity.
	Safety Stock	Quantity of inventory or materials over the minimum needed to satisfy budgeted demand.
	Salary	Fixed compensation payment made periodically to an employee.
	Sales	Gross increase in equity from a company’s business activities that earn income. Also called Revenues.
	Sales Budget	Plan showing the units of goods to be sold or services to be provided; the starting point in the budgeting process for most departments.
	Sales Incentives	Programs that reward salespeople for superior performance.
	Sales Journal	Journal normally used to record sales of goods on credit.
	Sales Orientation	Business assumption that consumers will resist purchasing non-essential goods and services, with the attitude toward marketing that only creative advertising and personal selling can overcome consumers’ resistance and persuade them to buy.
	Sales Promotion	Marketing activities other than personal selling, advertising, guerilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness.
	Sales Quota	Level of expected sales for a territory, product, customer, or salesperson against which actual results are compared.
	Salvage Value	Estimate of amount to be recovered at the end of an asset’s useful life. Also called Residual Value, or Scrap Value.
	Sampling	In market research, the process of selecting survey respondents or research participants; in sales promotion, free distribution of a product in an attempt to obtain future sales.
	Sanctions	Negative means, such as threat or punishments, used to encourage subordinates to play their roles as prescribed by superiors or the organization.
	Sarbanes-Oxley Act	An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
	Satisficing	Choosing an option that is acceptable, although not necessarily the best or perfect.
	Scenario	A narrative that describes a particular set of future conditions.
	Schedule of Accounts Payable	List of the balances of all accounts in the accounts payable ledger and their total.
	Schedule of Accounts Receivable	List of balances for all accounts in the accounts receivable ledger and their total.
	Scoreboarding	Providing feedback on individual and team efforts to reach goals.
	Scribing	Group role where the individual takes notes for the group or is the record keeper.
	Second Mover Strategy	Theory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the marketplace.
	Secured Bonds	Bonds that have specific assets of the issuer pledged as collateral.
	Securities and Exchange Commission (SEC)	Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
	Security Market Line (SML)	A positively sloped straight line displaying the relationship between expected return and beta.
	Segment Return on Assets	Segment operating income divided by segment average (identifiable) assets.
	Selection	Choosing from among qualified applicants to hire into an organization.
	Selective Demand	Desire for a specific brand within a product category.
	Selective Distribution	Distribution of a product through a limited number of channels.
	Self-Designing Teams	Teams with the responsibilities of autonomous work groups, plus control over hiring, firing, and what tasks members perform.
	Self-Managed Teams	Autonomous work groups in which workers are trained to do all or most of the jobs in a unit, have no immediate supervisor, and make decisions previously made by first-line supervisors.
	Self-Monitoring	The individual ascertaining how well he or she is doing.
	Seller’s Market	Market in which there are more buyers for fewer goods and services.
	Selling Expense Budget	Plan that lists the types and amounts of selling expenses expected in the budget period.
	Semi-autonomous Work Groups	Groups that make decisions about managing and carrying out major production activities, but still get outside support for quality control and maintenance.
	Sender	Source of the message communicated to the receiver.
	Separation of Powers	The principle, established by the first three articles of the Constitution, that authority should be divided among the legislative, executive, and judicial branches.
	Serial Bonds	Bonds consisting of separate amounts that mature at different dates.
	Servant Leader	A leader who serves others' needs while strengthening the organization.
	Services	Intangible tasks that satisfy the needs of consumer and business users.
	Sexual Harassment	Conduct of a sexual nature that has negative consequences for employment.
	Shared Leadership	Rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time.
	Shareholders	Owners of a corporation. Also called Stockholders.
	Shares	Equity of a corporation divided into units. Also called Stock.
	Shopping Products	Products that consumers purchase after comparing competing offerings.
	Signature Card	Includes the signatures of each person authorized to sign checks on the bank account.
	Simple Interest	Interest earned only on the original principal amount invested.
	Simultaneous Engineering	A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers' needs.
	Sinking Fund Bonds	Bonds that require the issuer to make deposits to a separate account; bondholders are repaid at maturity from that account.
	Situational Analysis	A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
	Situational Approach	Leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation.
	Slotting Allowances	Money paid by vendors to retailers to guarantee display of merchandise.
	Small Batch	Technologies that produce goods and services in low volume.
	Smoothing	Leveling normal fluctuations at the boundaries of the environment.
	Social Capital	Goodwill stemming from your social relationships.
	Social Contract	The idea of Beccaria and other members of the Classical School that government can be thought of as created by its citizens for certain shared and common ends. “Social Contract Theory” uses this notion to determine when laws are just or unjust.
	Social Loafing	Occurs when individuals believe that their contributions are not important, others will do the work for them, their lack of effort will go undetected, or they will be the loser if they work hard.
	Social Responsibility	Being accountable for the impact that one’s actions might have on society.
	Social Responsibility	Marketing philosophies, policies, procedures, and actions whose primary objective is the enhancement of society.
	Social-Cultural Environment	Component of the marketing environment consisting of the relationship between marketer, society, and culture.
	Sole Proprietorship	Business owned by one person that is not organized as a corporation. Also called Proprietorship.
	Sole Sourcing	Purchasing a firm’s entire stock of an item from just one vendor.
	Solvency	Company's long-run financial viability and its ability to cover long-term obligations.
	Source Documents	Source of information for accounting entries that can be in either paper or electronic form. Also called Business Papers.
	Sources of Cash	A firm's activities that generate cash.
	Span of Control	The number of representatives who report to first-level sales managers.
	Spanning	This may refer to span of control. Span of control refers to the number of people that a manager can oversee. A wide span of control discourages one-on-one supervision. There are too many subordinates for managers to keep up with on a one-to-one basis.
	Special Journal	Any journal used for recording and posting transactions of a similar type.
	Specialty Advertising	Sales promotion technique that places the advertiser's name, address, and advertising message on useful articles that are then distributed to target customers.
	Specialty Products	Products that offer unique characteristics that cause buyers to prize those particular brands.
	Speed	Fast and timely execution, response, and delivery of results.
	Spending Variance	Difference between the actual price of an item and its standard price.
	Sponsorship	Relationship in which an organization provides funds or in-kind resources to an event or activity in exchange for a direct association with that event or activity.
	Spot Strokes	Verbal or written praise to reward performance.
	Spreadsheet	Computer program that organizes data by means of formulas and format. Also called Electronic Work Sheet.
	Spreadsheet Analysis	Grid that organizes numerical information in a standardized, easily understood format.
	Stakeholder	Someone other than a stockholder or creditor who potentially has a claim on the cash flows of the firm.
	Stakeholders for Non-Profits	The various groups and individuals who affect and are affected by the company. Examples of stakeholders include suppliers, workers, customers, investors, and the community where it operates, etc.
	Standard Costs	Costs that should be incurred under normal conditions to produce a product or component or to perform a service.
	Standard Industrial Classification (SIC) Code	A U.S. government code used to classify a firm by its type of business operations.
	Staples	Convenience goods and services that consumers constantly replenish to maintain a ready inventory.
	Stare Decisis	“Let the decision stand.” A basic principle of the common law, it means that precedent is usually binding.
	Statement of Cash Flows	A financial statement that lists cash inflows (receipts) and cash outflows (payments) during a period; arranged by operating, investing, and financing.
	Statement of Financial Accounting Standards (SFAS)	FASB publications that establish U.S. GAAP.
	Statement of Owner’s Equity	Report of changes in equity over a period; adjusted for increases (owner investment and net income) and for (withdrawals and net loss).
	Statute	A law passed by a legislative body, such as Congress.
	Statutory Interpretation	A court’s power to give meaning to new legislation by clarifying ambiguities, providing limits, and ultimately applying it to a specific fact pattern in litigation.
	Stock	Equity of a corporation divided into units. Also called Shares.
	Stockholders	Owners of a corporation. Also called Shareholders.
	Straight Rebuy	Recurring purchase decision in which a customer repurchases a good or service that has preformed satisfactorily in the past.
	Straight-Line Depreciation	Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
	Straight-Line Method	Method allocating an equal amount of bond interest expense to each period in the life of bonds.
	Strategic Alliance	Partnerships in which two or more companies combine resources and capital to create competitive advantages in a new market.
	Strategic Business Unit (SBU)	Key business units within diversified firms.
	Strategic Control System	A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action.
	Strategic Goals	Major targets or end results relating to the organization’s long-term survival, value, and growth.
	Strategic Leadership	Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future.
	Strategic Management	A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.
	Strategic Maneuvering	An organization's conscious efforts to change the boundaries of its task environment.
	Strategic Planning	A set of procedures for making decisions about the organization’s long-term goals and strategies.
	Strategic Vision	The long-term direction and strategic intent of a company.
	Strategic Window	Limited periods during which the key requirements of a market and the particular competencies of a firm best fit together.
	Strategy	A pattern of actions and resource allocations designed to achieve the organization’s goals.
	Stretch Goals	Targets that are particularly demanding, sometimes even though to be impossible.
	Strike	The ultimate weapon of a labor union, it occurs when all or most employees of a particular plant or employer walk off the job and refuse to work.
	Structured Interview	Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.
	Subcontracting	Contractual agreements that assign the production of goods or services to local or smaller firms.
	Suboptimization	Condition that results when individual operations achieve their objectives but interfere with progress toward broader organizational goals.
	Subpoena	An order to appear, issued by a court or government body.
	Subpoena Duces Tecum	An order to produce certain documents or things before a court or government body.
	Subsidiary Ledger	List of individual sub-accounts and amounts with a common characteristic; linked to a controlling account in the general ledger.
	Subsidy	Government financial support of a private industry.
	Substantive Law	Rules that establish the rights of parties. For example, the prohibition against slander is substantive law, as opposed to procedural law.
	Substantive Outcomes	An outcome is a consequence that a person receives for his or her performance. Substantive refers to substantial outcomes.
	Substitutes	Goods that can be used to satisfy the same needs. The buyer carries out a conscious process of choice. May also refer to leadership theory and using one theory in place of another depending on the situation.
	Substitutes for Leadership	Factors in the workplace that can exert the same influence on employees that leaders would provide.
	Summary Judgment	The power of a trial court to terminate a lawsuit before a trial has begun, on the grounds that no essential facts are in dispute.
	Supervisory Leadership	Behavior that provides guidance, support, and corrective feedback for day-to-day activities.
	Supply Chain	Linkages of services or goods extending from suppliers, to the company itself, and on to customers.
	Supply Chain Management	Control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers.
	Supremacy Clause	From Article VI of the Constitution, it declares that federal statutes and treaties take priority over any state law, if there is a conflict between the two or, even absent a conflict, if Congress manifests an intent to preempt the field.
	Survivor's Syndrome	Loss of productivity and morale in employees who remain after a downsizing.
	Sustainable Competitive Advantage	Superior market position that a firm possesses and can maintain for an extended period of time.
	Sustainable Growth	Economic growth and development that meets present needs without harming the needs of future generations.
	Sweepstakes	Sales promotion technique in which prize winners are selected by chance.
	Switching Costs	Fixed costs buyers face when they change suppliers.
	SWOT Analysis	A comparison of Strengths, Weaknesses, Opportunities, and Threats that helps executives formulate strategy.
	Synergy	Cooperative Action or force of two or more elements pulling together that yields a result greater than the sum of the results that could be achieved separately.
	Systematic Risk	A risk that influences a large number of assets. Also called Market Risk.
	Systematic Risk Principle	The expected return on a risky asset depends only on that asset's systematic risk.
	Systems Integration	Centralization of the procurement function within an internal division or as a service of an external supplier.
	T-Account	Tool used to show the effects of transactions and event on individual accounts.
	Tactical Planning	A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.
	Takings Clause	Part of the Fifth Amendment, it ensures that when any governmental unit takes private property for public use, it must compensate the owner.
	Target Market	Segment to whom a firm decides to direct its marketing efforts and ultimately its goods and services.
	Tariff	Tax levied against imported goods.
	Task Force	A temporary grouping of individuals and resources for the accomplishment of a specific objective.
	Task Orientation	Concerned with achieving productivity and success. Focusing on the leader’s tasks and skills necessary for success.
	Task Performance Behaviors	Actions taken to ensure that the work group or organization reaches its goals.
	Task-Objective Method	Development of a promotional budget based on evaluation of the firm’s promotional objectives.
	Team	Groups of two or more members who interact ad influence and are mutually accountable for common objectives within an organization.
	Team Facilitator	A supervisor in charge of teams, but who works outside of them.
	Team Leader	A supervisor working in a team who is responsible for its members.
	Team Selling	Selling situation in which several sales associates or other members of the organization are recruited to help the lead sales representative reach all those who influence the purchase decision.
	Team Training	Training that provides employees with the skills and perspectives they need to work in collaboration with others.
	Technical Skill	The ability to perform a specialized task involving a particular method or process.
	Technological Environment	Application of marketing of knowledge based on discoveries in science, inventions, and innovations.
	Technology	Business application or knowledge based on scientific discoveries inventions, and innovations.
	Telemarketing	Promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders.
	Temporary Accounts	Accounts used to record revenues, expenses, and withdrawals (and dividends for a corporation); they are closed at the end of each period. Also called Nominal Accounts.
	Term Bonds	Bonds scheduled for payment (maturity) at a single specified date.
	Termination Interview	A discussion between a manager and an employee about the employee’s dismissal.
	Theory X	Concept described by Douglas McGregor indicating an approach to management that takes a negative and pessimistic view of workers. Theory X attitudes: most employees dislike work and will avoid it when possible.
	Theory Y	Concept described by Douglas McGregor reflecting an approach to management that takes a positive and optimistic perspective on workers. Most people find work as natural as play.
	Theory Z	A set of approaches to managing people based on the attitudes of Japanese managers about the importance of the individual and of team effort to the organization.
	Third Party (Contract) Logistics Firm	Company that specializes in handling logistics activities for other firms.
	Third Party Beneficiary	Someone who stands to benefit from a contract to which she is not a party. An intended beneficiary may enforce such a contract; an incidental beneficiary may not.
	Third-country Nationals	Natives of a country other than the home country or the host country of an overseas subsidiary.
	Three-Fifths Clause	A clause in Article 1, section 2 of the United States Constitution, now void and regarded as racist, which required that for purposes of taxation and representation, a slave should be counted as three-fifths of a person.
	Time Period Principle	Assumption that an organization’s activities can be divided into specific time periods such as months, quarters, or years.
	Time-Based Competition	Strategy of developing and distributing goods and services more quickly than competitors.
	Top-level Managers	Senior executives responsible for the overall management and effectiveness of the organization.
	Total Asset Turnover	Measure of a company’s ability to use its assets to generate sales; Computed by dividing net sales by average total assets.
	Total Quality Management (TQM)	Continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world-class performance.
	Trade Allowance	Special financial incentive offered to wholesalers and retailers that purchase or promote specific products.
	Trade Dress	Visual components that contribute to the overall look of a brand.
	Trade Industries	Retailers or wholesalers that purchase products for resale to others.
	Trade Promotion	Sales promotion that appeals to marketing intermediaries rather than to consumers.
	Trade Show	Product exhibition organized by industry trade associations to showcase goods and services.
	Trademark	Brand for which the owner claims exclusive legal protection.
	Trademark or Trade (Brand) Name	Symbol, name, phrase, or jingle identified with a company, product, or service.
	Training	Teaching lower-level employees how to perform their present jobs.
	Trait Approach	A leadership perspective that attempts to determine the personal characteristics that great leaders share.
	Transaction	Exchange of economic consideration affecting an entity’s financial position that can be reliably measured.
	Transactional Leaders	Leaders who manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered.
	Transaction-based Marketing	Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between the parties.
	Transcendent Education	An education with five higher goals that balance self-interest with responsibility to others.
	Transformational Leader	A leader who motivates people to transcend their personal interests for the good of the group.
	Transnational Model	An organization model characterized by centralization of certain functions in locations that best achieve cost economies; basing of other functions in the company's national subsidiaries to facilitate greater local responsiveness; and fostering of communication among subsidiaries to permit transfer of technological expertise and skills.
	Trial Balance	List of accounts and their balances at a point in time prior to financial statement preparation; total debit balances equal total credit balances.
	Trial Court	Any court in a state or federal system that holds formal hearings to determine the facts in a civil or criminal case.
	Two-Factor Theory	Herzberg’s theory describing two factors affecting people’s work motivation and satisfaction.
	Two-Way Communication	A process in which information flows in two directions: the receiver provides feedback, and the sender is receptive to the feedback.
	Tying Agreement	Arrangement that requires a marketing intermediary to carry items other than those they want to sell.
	Unadjusted Trial Balance	List of accounts and balances prepared before adjustments are recorded and posted.
	Unavoidable Expense	Expense (or cost) that is not relevant for business decisions; an expense that would continue even if a department, product, or service is eliminated.
	Uncertainty	The state that exists when decision makers have insufficient information.
	Unclassified Balance Sheet	Balance sheet that broadly groups assets, liabilities, and equity accounts.
	Undifferentiated Marketing	Strategy that focuses on producing a single product and marketing it to all customers. Also called Mass Marketing.
	Unemployment	Proportion of people in the economy who are actively seeking work but do not have jobs.
	Unfair Labor Practice	An act, committed by either a union or an employer, that violates the National Labor Relations Act, such as failing to bargain in good faith.
	Unfavorable Variance	Difference in revenues or costs, when the actual value is compared to the budgeted value, that contributes to a lower income.
	Union Shop	An organization with a union and a union security clause specifying that workers must join the union after a set period of time.
	Units-of-Production Depreciation	Method that charges a varying amount to depreciation expense for each period of an asset’s useful life depending on its usage.
	Universal Product Code (UPC)	Numerical bar code system used to record product and price information.
	Universalism	The ethical system stating that all people should uphold certain values that society needs to function.
	Unsecured Bonds	Bonds backed only by the issuer's credit standing; almost always riskier than secured bonds. Also called Debentures.
	Unsought Products	Products marketed to consumers who may not yet recognize a need for them.
	Unsystematic Risk	A risk that affects at most a small number of assets. Also called Unique or Asset-specific Risk.
	Upstream Management	Controlling part of the supply chain that involves raw materials, inbound logistics, and warehouse and storage facilities.
	Upward Communication	Information that flows from the lower to higher levels in the organization’s hierarchy.
	Useful Life	Length of time an asset will be productively used in the operations of a business. Also called Service Life.
	User	Individual or group that actually uses a business good or service.
	Uses of Cash	A firm's activities in which cash is spent. Also called Applications of Cash.
	Utilitarian Outcomes	Extent to which uses enhances the effectiveness of the job. The manager’s behavior results in optimization of satisfaction of people inside and outside the organization. It results in the greatest good for the greatest number of people.
	Utilitarianism	An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
	Utility	Want-satisfying power of a good or service.
	Valence	The value an outcome holds for the person contemplating it.
	Validity	The degree to which a selection test predicts or correlates with job performance.
	VALS	Segmentation system that divides consumers into eight psychographic categories: actualizers, fulfillers, believers, achievers, strivers, experiencers, makers, and strugglers.
	Value Analysis	Systematic study of the components of a purchase to determine the most cost-effective approach.
	Value Chain	The sequence of activities that flow from raw materials to the delivery of a product or service, with additional value created at each step.
	Value of Bonds	Net amount at which bonds are reported on the balance sheet; equals the par value of the bonds less any unamortized discount or plus any unamortized premium. Also called Carrying Amount or Book Value.
	Variance Analysis	Process of examining differences between actual and budgeted revenues or costs and describing them in terms of price and quantity differences.
	Vendee	Buyer or purchaser of goods or services.
	Vendor	Seller of goods or services.
	Vendor Analysis	Assessment of supplier performance in areas such as price, back orders, timely delivery, and attention to special requests.
	Venture Team	Associates from different areas of an organization who work together in developing new products.
	Verdict	The decision of the factfinder in a case.
	Vertical Analysis	Evaluation of each financial statement item or group of items in terms of a specific base amount.
	Vertical Integration	The acquisition or development of new businesses that produce parts or components of the organization’s product.
	Vertical Marketing System (VMS)	Planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain.
	Veto	The power of the president to reject legislation passed by Congress, terminating the bill unless Congress votes by a 2/3 majority to override.
	Vigilance	A process in which a decision maker carefully executes all stages of decision making.
	Virtual Sales Team	Network of strategic partners, suppliers, and others who recommend a firm's goods or services.
	Virtual Teams	Teams that are physically disbursed and communicate electronically more than face-to-face.
	Virtue Ethics	A perspective that what is moral comes from what a mature person with “good” moral character would deem right.
	Vision	A mental image of a possible and desirable future state of the organization.
	VoIP	Voice over Internet protocol – a phone connection through a personal computer with any type of broadband Internet connection.
	Voir Dire	The process of selecting a jury. Attorneys for the parties and the judge may inquire of prospective jurors whether they are biased or incapable of rendering a fair and impartial verdict.
	Volume Variance	Difference between two dollar amounts of fixed overhead cost; one amount is the total budgeted overhead cost, and the other is the overhead cost allocated to products using the predetermined fixed overhead rate.
	Voucher	Internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded.
	Voucher System	Procedures and approvals designed to control cash disbursements and acceptance of obligations.
	Vroom Model	A situational model that focuses on the participative dimension of leadership.
	Wholesalers	Channel intermediary that takes title to goods it handles and then distributes these goods to retailers, other distributors, or B2B customers.
	Wireless Technology	Technology that allows communications connections without cables or wires.
	Withdrawal (CS)	Payment of cash or other assets from a proprietorship or partnership to its owner or owners.
	Work Sheet	Spreadsheet used to draft an unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements.
	Working Capital	Current assets minus current liabilities at a point in time.
	Working Papers	Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
	World Trade Organization (WTO)	Organization that replaces GATT, overseeing GATT agreements, making binding decisions in mediating disputes, and reducing trade barriers.
	Writ	An order from a government compelling someone to do a particular thing.
	Writ of Certiorari	Formal notice from the United States Supreme Court that it will accept a case for review.

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