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Acceleration Clause: A loan contract clause stating that if you are in default, your creditor can demand payment of the entire balance of your loan at once, before its scheduled maturity. 
"S" corporation: A specific IRS designation which allows a corporation to be taxed similarly to a partnership, yet retain limited liability for its shareholders.
10-K is the audited annual report that most reporting companies file with the Securities Exchange Commission (SEC). It provides a comprehensive overview of the registrant's business. The report must be filed within 90 days after the end of the company's fiscal year.
10-Q is a report filed quarterly to the Securities Exchange Commission (SEC) by most reporting companies. It includes unaudited financial statements and provides a continuing view of the company's financial position during the year. The report must be filed for each of the first three fiscal quarters of the company's fiscal year and is due within 45 days of the close of the quarter.
13TH PERIOD in the fiscal year is the period used for fiscal year-end adjusting entries (periods 1-12 being the months in the fiscal year).
2. Sustainable Growth Rate (showing the degree to which a company can grow using retained earnings to fund growth).
401 (K) PLAN is a retirement plan in the United States that allows qualified employees to contribute money from their paychecks into a tax-sheltered account.
4-4-5 CALENDAR, in budgeting and accounting, is the breakdown of each month into weeks by counting the number of times Friday occurs within each month, e.g., Jan = 4 weeks, Feb = 4 weeks, Mar = 5 weeks, Apr = 4 weeks, May = 4 weeks, Jun = 5 weeks… etc. to total 52 weeks in a 12 month period. Every third month, Friday will occur 5 times. All other months, Friday will occur 4 times. In the months where Friday occurs 5 times, it is considered a 5 week month. Whereas, the 4 Friday months will be considered as 4 week months.
A&E can mean either Appropriation & Expense or Analysis & Evaluation.
A&P is an acronym for Administrative and Personnel.
ABA (Accredited Business Accountant or Accredited Business Advisor), in the US, is a national credential conferred by Accreditation Council for Accountancy and Taxation to professionals who specialize in supporting the financial needs of individuals and small to medium sized businesses. ABA is the only nationally recognized alternative to the CPA. Most accredited individuals do not perform audits. Generally, they are small business owners themselves. In addition to general accounting work, CPAs are also heavily schooled in performing audits; however, only a small fraction of America's businesses require an audit. In general, a CPA has majored in accounting, passed the CPA examination and is licensed to perform audits. An ABA has majored in accounting, passed the ABA comprehensive examination and in most states is not licensed to perform audits.
ABATEMENT - The reduction of a gift under will because of insufficiency of assets to satisfy all the gifts after the legal obligations of the estate (debts, taxes, charges, and claims) have been paid in full. The general rule is that all gifts of the same class shall abate proportionately, unless otherwise provided.
ABC FIRE EXTINGUISHER: Chemically based devices used to eliminate ordinary combustible, flammable liquid, and electrical fires.
absolute advantage  the ability to produce a specific product more efficiently than any other nation
ABSTRACT OF TITLE- A summary of all essential facts relating to the title to a parcel of real property.
ACCELERATED COST RECOVERY SYSTEM - A method for determining depreciation using statutory percentages of the cost basis of property over a given life as opposed to the declining balance method, straight-line depreciation or sum--of-the-digits method; a term frequently found in tax returns.
Accelerated depreciation. A depreciation method that allows larger deductions in the early years of an asset's "life" and smaller deductions at the end of the period. (See "Straight-line depreciation.")
Accelerated Depreciation. A method of calculating depreciation where deductions are higher in the early years of the asset's life. Contrasted with straight-line depreciation where deductions are equal for each year of the life of the asset.
ACCELERATED REMAINDER- The property which passes to the remainder-man through the failure of the income or preceding beneficiary.
ACCELERATION - The advancement of the interest where a trust is created for one beneficiary for life or for a term of years and for another in remainder, and the trust fails as to the interest for life or the term.
Acceleration Clause. A clause (often in mortgages or other loans) where some action will occur ahead of schedule as a result of some other action. For example, an acceleration clause in a loan may mean that the full amount is due immediately if the debtor misses two monthly payments in a row.
Acceptance of bill of exchange: Recognition of a legal obligation to pay the amount on a term bill of exchange at a specified future date (maturity date).
acceptance sampling is sampling to determine whether internal control compliance is greater than or less than the tolerable deviation rate.
accessory equipment  standardized equipment used in a firm’s production or office activities
ACCOUNT – A term commonly used within the advertising business to refer to the corporate entity employing an advertising agency. MJM's account roster includes a wide variety of businesses and service organizations.
Account a record of a business transaction. When you buy something on credit, the company you are dealing with sets up an "account". This means it sets up a record of what you buy and what you pay. You will do the same thing with any customers to whom you extend credit.
ACCOUNT COORDINATOR – The advertising agency employee responsible for much of the day-to-day business of servicing an account. Motto Advertising takes pride in the expertise and dedication of our account coordinators, who assist account executives and oversee traffic, production and media scheduling within the agency.
ACCOUNT EXECUTIVE (A/E) – The agency employee responsible for a client’s marketing and administrative efforts. At Motto Advertising, account executives deal directly with the client, vendors and the media. Our AE’s are all highly experienced and have more autonomy than at most other agencies.
account executive (or stock broker)  an individual—sometimes called a stock broker or registered representative—who buys and sells securities for clients
account payee only words often written on crossed cheques, which direct the bank to pay the cheque only to the bank account of the payee.
Account:  A record that holds the results of financial transactions.
accountability  the obligation of a worker to accomplish an assigned job or task
accountant a qualified person who is skilled at managing and analysing business financial records.
Accountant's Equation:  The equation that is the basis of the Balance Sheet: Assets = Liabilities + Owners' Equity. (Also, the response to "What does 1 + 1 equal?": "What do you want it to equal?")
Accountant's Opinion. If a independent certified public accountant is requested to audit a company's books, he will issue a opinion as to the condition of the financial statements. There are several degrees of opinion from clean to adverse. A clean opinion doesn't mean that every number is correct, only that the financials fairly represent the position of the company. An adverse opinion means the financials don't represent the position of the company. A disclaimer means the auditor can't (for any number of reasons) express an opinion on the statements.
ACCOUNTING - (1) The record of an account showing the transactions therein. (2) The submission of such a record to the court or to the beneficiaries of a trust or estate by the fiduciary.
Accounting - The recording, classifying, summarizing and interpreting in a significant manner and in terms of money, transactions and events of a financial character.
accounting and review services are official pronouncements covering compilation and review engagements. Compilation is presenting in the form of financial statements information that is the representation of management (owners) without expressing assurance. Review is inquiry and analytical procedures to provide the accountant a basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with U.S. generally accepted accounting principles or, if applicable, another comprehensive basis of accounting.
Accounting Controls. Methods and procedures intended to safeguard assets, authorize transactions, and ensure the accuracy of financial records.
accounting data includes journals, ledgers and other records such as spreadsheets that support financial statements. It may be in computer readable form or on paper.
accounting equation  the basis for the accounting process: assets = liabilities + owners’ equity
Accounting Equation. Simply stated, assets are equal to liabilities plus owners' equity.
accounting estimate An approximation of a financial statement element. Accounting estimates are often included in historical financial statements because measurement of some amounts is uncertain pending outcome of future events and relevant data about events that have occurred cannot be accumulated on a timely, cost-effective basis.
Accounting Method. Any number of approaches for calculating the income of an entity. Usually applied to the general means of recognizing income and expenses, e.g., cash or accrual. But it can also apply to method of keeping inventories, etc.
ACCOUNTING PERIOD A period of time, (month, quarter, year), for which a financial statement is produced.
Accounting period The time period between successive closings of the books of a business. An accounting period usually is a month, three months (a quarter), or a year (a fiscal year or a calendar year) corresponding to the tax year used by the business.
accounting principles are alternative ways of reporting and disclosing information in financial statements and related footnotes.
Accounting Procedure. Similar to accounting method, but applied to more routine issues. For example, the method of computing depreciation, handling small capital expenditures.
accounting program  a software package that enables users to record and report financial information
Accounting Rate of Return. A method of computing the profitability where the total cash inflow over the life of the project is reduced by expenses. This amount is divided by the estimated life of the project to arrive at an annual return. That's divided by the investment's cost. The result is an average rate of return.
accounting  the process of systematically collecting, analyzing, and reporting financial information
Accounting:  A service that oversees, measures, and evaluates financial information for decision making purposes.
Accounts Payable - Short-term debts incurred as the result of day-to-day operations.
Accounts Payable - Trade accounts of businesses representing obligations to pay for goods and services received.
accounts payable is money you owe to suppliers and other business creditors as a result of purchases of stock and other expenses such as overheads and taxes.
Accounts Payable The amount a company owes for goods already received. An account in the general ledger representing the amount owed by the business to its creditors on open purchases of goods and/or services.
ACCOUNTS PAYABLE This represents what a business owes to its suppliers and other creditors at a given point in time.
accounts payable  short-term obligations that arise as a result of making credit purchases
Accounts Payable. A liability arising when a vendor provides goods or services that are not immediately paid for and where the liability is not formalized in writing but backed by the reputation and credit worthiness of the debtor. When a business using the accrual basis of accounting purchases goods or services the company reports an expense and an account payable. When payment is made the account payable is reduced.
Accounts Payable: The amount of money that you owe for goods or services that you bought.
Accounts Payable:  Amounts due from your business to your creditors. Generally these are short term liabilities (30-120 days), and are shown under the Current Liabilities section in the Balance Sheet. (What you owe to other folks.)
Accounts Receivable - monies due your business as the result of day-to-day operations.
Accounts Receivable - Trade accounts of businesses representing moneys due for goods sold or services rendered evidenced by notes, statements, invoices or other written evidence of a present obligation.
accounts receivable a record of what is owed to you. All of the credit "accounts" - the record of what each customer owes you - taken together are your "accounts receivable".
accounts receivable Debts due from customers from sales of products and services. Normally a current asset.
Accounts Receivable Financing. Financing where the company's accounts receivable are used as collateral. This type of financing is usually short-term in nature.
Accounts Receivable The amount a company is owed for goods it sold on credit. An account in the general ledger representing the amount due the business from its customers for goods and/or services sold on credit.
ACCOUNTS RECEIVABLE This represents the amount due to a business by its customers at a given point in time.
accounts receivable turnover  a financial ratio calculated by dividing net sales by accounts receivable
Accounts Receivable Turnover. Ratio obtained by dividing total credit sales by accounts receivable. The result indicates how many times the receivables have been collected during the period covered by the sales. It's a measure of how well the company is collecting it's accounts receivable.
Accounts Receivable Turnover:  A measure used to determine a company's average collection period for receivables. Usually computed by dividing net sales (or net credit sales) by average accounts receivable.
Accounts Receivable. Claims to cash on account that are expected to be paid within one year.
Accounts Receivable. For accrual basis businesses, transactions not paid in cash create an account receivable, an unsecured promise to pay in the future. The accounting entry is a debit to accounts receivable and a credit to sales. On payment, the account receivable is credited and cash is debited.
Accounts Receivable: The amount of money that people or companies owe you.
Accounts Receivable:  Amounts due to your business from your customers. Generally these amounts are short term receivables (30-120 days), and are shown under Current Assets section in the Balance Sheet. (What other folks owe you.)
accounts receivables  amounts that are owed to a firm by its customers
ACCRETION - The increase or extension of the boundaries, or the acquisition of land by the gradual or imperceptible action of natural forces as by the washing up of sand or soil from the sea or a river, or by a gradual recession of the water from the usual watermark.
Accrual Accounting - A method of reporting income when earned and expenses when incurred, as opposed to reporting income when received and expenses when paid.
ACCRUAL ACCOUNTING A method of bookkeeping in which income and expenses are allocated to periods to which they apply, regardless of when actually received or paid. For example, when an invoice is rendered, its value is added to income immediately, even though it has not been paid. (Also see CASH ACCOUNTING)
Accrual Accounting. Under this method of accounting, income is recognized when earned, whether or not collected, and expenses are recognized when events have occurred that determine that a liability exists and the amount of the liability can be ascertained with reasonable accuracy. For example, at December 31 you ship a customer 100 widgets. You have to record the income in that year, even though you won't get paid until the following year. If you were buying the widgets, you could accrue the expense in the tax year you ordered them. There are some special rules for tax purposes and there can be a significant divergence between recognition of income and expenses for tax and financial accounting purposes.
Accrual Based Accounting - an accounting method that enters income and expenses into the books at the time of contract versus when payment is received or expenses incurred.
Accrual Basis Accounting:  The practice of bookkeeping when income is recorded when earned and expenses are recorded when they are incurred. (Opposite of Cash Basis Accounting, the way you run your personal checkbook; personal finances are almost always cash basis. Believe it or not, Accrual Basis accounting turns out to be a truer way of showing the profitability of your business.)
Accrual method - reporting income when it is earned, though one may receive payment in a later year. Expenses are deducted in the tax year they are incurred, whether or not they are paid in the same year.
Accrual method (or accrual basis). One of two main accounting methods for determining when a transaction has tax significance. The accrual method says that a transaction is taxed when an obligation to pay or a right to receive payment is created (for example, at the time products are delivered, services rendered, billings sent, etc.). This method is used by all but the smallest businesses. (See "Cash method (or cash basis).")
Accrual Method An accounting method under which income is subject to tax after all events have occurred which fix the right to receive such income and deductions are allowed when all the events have occurred to fix the obligation to pay the debt.
accrual method of accounting — Used for most corporate financial statements. Revenues are counted during the time they’re earned, and expenses are counted during the time they’re incurred. Cash doesn’t need to change hands to be recorded. This is a fuller way of looking at financial health. It’s as if you kept records not just of checks you’d written and deposits you made, but also of what you owed on your credit cards and what you were owed by others. You can feel pretty rich if your checking account is flush, but if you owe thousands on your credit card and don’t take that into account, you can spend yourself into trouble.
Accrual-basis accounting In accrual-based accounting, revenues are recorded at the time they are earned (payment may be received in another period); and expenses are recorded when incurred (often not in the period when they are paid).
Accrual-basis income statement An income statement compiled from accrual-basis accounting. Revenues are credited in the accounting period when earned; expenses are charged in the accounting period when incurred. Compared to other types of income statements, the accrual-basis income statement usually gives the most accurate measures of income or loss.
Accruals Amounts owed to or owed by a business that have not yet been recorded in the books of the business.
Accrue. To record an item in the accounting books when using the accrual method of accounting. For example, you accrue income when the customer signs a contract, even though you won't receive any cash at that time. When you accrue an item of income or expense can depend on a number of factors including the entity's procedures. IRS requirements here frequently diverge from accounting rules.
Accrued Expense. An expense that has been incurred, but not yet paid in cash. Similar to accounts payable, but usually associated with nontrade vendors. For example, an electric bill.
Accrued Interest - The interest that has accumulated since the last interest payment up to, but not including, the settlement date and that is added to the contract price of a bond transaction. There are two methods for calculating accrued interest: the 30-day-month (360-da
Accrued Revenue. Income that has been earned (by the sale of goods or performance of services) but where payment has not been received in cash. Similar to accounts receivable.
Accumulated depreciation The total of depreciation amounts taken since the time a depreciable asset was put in service. (Charges for depletion of natural resources and amortization of intangibles also are accumulated and reported on the balance sheet.)
Accumulated Depreciation. The total depreciation taken on an asset since it was acquired.
acid-test ratio  a financial ratio calculated by subtracting the value of inventory from the current asset amount and dividing the total by current liabilities
Acid-Test Ratio. Also called the quick ratio, it's equal to the sum of cash, short-term investments and net current receivables divided by current liabilities. It's a measure of whether or not the business could pay all its current liabilities if they came due immediately.
ACKNOWLEDGMENT - (1) A declaration or avowal of ones act or of a fact to give it legal validity, especially before a duly qualified public officer. (2) The formal certificate made by an officer before whom one has acknowledged a deed or other legal instrument.
Acquisition - The acquiring of supplies or services by the federal government with appropriated funds through purchase or lease.
Acquisitions in relation to the GST, acquisitions include the things you buy (goods, services and anything else) for your business. They also include many other transactions, such as obtaining advice or information, taking out a lease of business premises or hiring business equipment.
ACTION CARDS – A mail-order device in which a set of postcards with order forms and return addresses for a variety of products and companies is wrapped in plastic and sent to demographically and/or psychographically selected potential customers.
ACTIVATION: When all or a portion of the recovery plan has been put into motion.
Active Corps of Executives (ACE)  a group of active managers who counsel small-business owners on a volunteer basis
Active Participation. Involvement in a rental real estate activity making management decisions. Requires no specific number of hours.
ACTIVE TRUST - A trust regarding which the trustee has some active duty to perform; opposed to bare, naked, or passive trust.
Activity. For the passive activity rules, it's the integral economic unit for measuring a taxpayer's level of participation in a trade or business. One location can have more than one business activity. For example, you might have an S corporation that sells computers at retail and does typesetting working out of the same location. The two may be separate activities. On the other hand, two or more related businesses can also be combined into one activity.
Actual Expenses - refers to car and truck expenses. Method used to deduct costs of operating and maintaining a car or truck in your business, for example, depreciation, gas, repairs, etc. Expenses must be divided between business and personal use if used in both.
ACTUARY - A statistician who computes insurance and pension rates and premiums on the basis of experience tables.
Actuary a mathematician whose work is mainly concerned with insurance and finance.
ad hoc committee  a committee created for a specific short-term purpose
Ad valorem: According to value. 
ADB: Asia Development Bank, an international lending institution head quartered in Manila, Philippines.
Additional Paid-In Capital. Equity contributions to a corporation in excess of the amount of capital stock.
Add-On Interest. Interest that isn't paid by the debtor, but added to the principal amount.
ADJUDICATION - The decision of a competent court with regard to matters in dispute; to be distinguished from arbitration.
Adjustable Rate Mortgage (ARM): A contractual loan may have provision for adjustable rates. In the case of a home mortgage loan, the interest rate changes over time with movements in an index.
Adjusted basis. The cost of property (or a substitute figure-see "Basis") with adjustments made to account for depreciation (in the case of business property), improvements (in the case of real estate), withdrawals or reinvestment (in the case of securities, funds, accounts, insurance or annuities), etc. Adjusted basis is part of the computation for determining gain or loss on a sale or exchange and for depreciation.
Adjusted Basis. Used for determining depreciation and gain or loss on the disposition of an asset. Your adjusted basis in an asset is your beginning basis (see Basis, below), decreased by depreciation, depletion or any Sec. 179 expense taken or increased by capital additions. For example, you purchase a machine for $10,000 (your basis) and take a Sec. 179 expense deduction of $1,000 and depreciation of $2,000 in the first year. At the end of the year your adjusted basis is $7,000. Note. Even professionals often say basis when they really mean adjusted basis.
Adjusted Gross Income. Also known as AGI, it's your individual income before personal exemptions or standard or itemized deductions. It's the total of wages, interest, dividends, capital gains (or up to $3,000 in losses), profit or loss from real estate or pass-through entities (e.g., S corporation), pension income and certain other items less contributions to an IRA or Keogh plan, one-half of any self- employment income, and health insurance for self-employed individuals, and certain other deductions.
Adjusted gross income. The amount of income considered actually "available" to be taxed. Adjusted gross income is gross income reduced principally by business expenses incurred to earn the income and other specified reductions (such as alimony).
Adjusted Trial Balance. A list of all the ledger accounts with their adjustments and the adjusted balances.
adjusting entries are accounting entries made at the end of an accounting period to allocate items between accounting periods.
Adjusting Entry. An entry made at the end of the period to assign expenses to the period for which they were incurred and revenue to the period in which it was earned. They are also used to correct entries that could not be accurately made before the end of the year.
Adjustment Period: The length of time between interest rate changes on an ARM.
ADMINISTRATION - The care and management of an estate by a trustee or a guardian; to be distinguished from the settlement of an estate by an executor or an administrator.
administrative law  the regulations created by government agencies that have been established by legislative bodies
administrative manager  a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership
Advance Against Documents (AAD): A loan made on the security of the actual documents covering a shipment.
Advance payment: Trading method in which the buyer pays for the goods before they are dispatched. This is used where the buyer is of unknown credit worthiness and is unable to obtain a letter of credit. This is also used as a matter of convenience for small orders. 
Advances. Funds made available to another party. In the case of a loan, it's the disbursement of funds under a note. In tax parlance it often means something between a formalized loan and equity. For example, a shareholder puts money into a corporation with the intention of being paid back shortly.
adverse An audit opinion that the financial statements as a whole are not presented in conformity with U.S. GAAP.
ADVERSE POSSESSION - An occupation of land inconsistent with the right of the true owner.
ADVERTISEMENT – A paid public announcement appearing in the media.
ADVERTISING – Making known; calling public attention to a product, service, or company by means of paid announcements so as to affect perception or arouse consumer desire to make a purchase or take a particular action.
advertising agency  an independent firm that plans, produces, and places advertising for its clients
ADVERTISING MANAGER – A client representative responsible for overseeing marketing efforts related to product, including budgeting, creative activities and liaison with agency.
advertising media  the various forms of communication through which advertising reaches its audience
advertising  a paid, nonpersonal message communicated to a select audience through a mass medium
ADVERTORIAL – An advertisement that resembles a newspaper editorial or a television program but promotes a single advertiser’s product, service, or point of view.
Adviory Capacity:  Used to indicate that a shipper's agent or agent or reprentative is not empowered to make definitive changes or adjustments without approval of the group or individual represented.
advisory services are a consulting service in which the CPA develops the findings, conclusions, and recommendations presented for client consideration and decision making. This differs from attestation services where the CPA expresses a conclusion about reliability of a written assertion that is the responsibility of another.
Affidavit a declaration in writing on oath, made before a person legally qualified for the purpose.
Affiliates - Business concerns, organizations, or individuals that control each other or that are controlled by a third party. Control may include shared management or ownership; common use of facilities, equipment, and employees; or family interest.
affirmative action program  a plan designed to increase the number of minority employees at all levels within an organization
AFTER-BORN CHILD - A child born after the execution of the parent's will; to be distinguished from posthumous child.
AGATE LINE – A measure of advertising space, 1/14 of an inch in depth by one column in width. Thus there are 14 agate lines to the column inch. At Michael J. Motto Advertising, we precisely measure all of the classified ads we run and pay only for the exact size ad that runs. In this way we take thousands of dollars in linage corrections each month on behalf of our clients.
AGE GROUP – A target audience defined by age.
AGENCY – A company in the business of creating advertisements, packaging and names for products and services, as well as providing marketing and merchandizing advice and general business and promotional counsel to its clients.
agency shop  a workplace in which employees can choose not to join the union but must pay dues to the union anyway
agency  a business relationship in which one party, called the principal, appoints a second party, called the agent, to act on its behalf
Agent - (1) An individual or firm that effects securities transactions for the accounts of others. (2) A person licensed by a state as a life insurance agent. (3) A securities salesperson who represents a broker-dealer or issuer when selling or trying to sell sec
Agent A person authorized by another to act on their behalf. Thus, an agent can enter into contracts and other such legal binding functions on behalf of another. Usually, the corporation's officers act as corporate agents.
agent  a middleman that facilitates exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis
Agent: A person who is authorized to act on behalf of another. A corporation acts only through its agents, whether they are directors, employees, or officers.
Agents. Middlemen that provide a risk-free procurement function by not taking title to the merchandise they buy or sell for their customers.
aggregate (aggregated) Constituting the whole. Aggregate expenses include expenses of all divisions combined for the entire year.
Aggregate Par Value Aggregate par value is the par value multiplied by the number of authorized shares. This amount is important in determining initial fees and annual franchise taxes in many states.
Aggregation. The combination of several business operations into a larger unit. Primarily used to combine passive trade or business undertakings into one or more activities in order to determine whether a taxpayer is a material participant.
Aging of Accounts Receivable. A way to estimate bad debts by analyzing individual accounts receivable according to the length of time they have been outstanding. For example, outstanding accounts may be split into those 30 days or less outstanding, 60 days or less outstanding, etc. The analysis includes arriving at the balance for all the accounts in a group.
Aging Schedule: A schedule showing the length of time an invoice has been outstanding or held. Aging schedules are normally created for Accounts Payable and Accounts Receivable. For example, an aging schedule for accounts receivable can show how many days an invoice has been outstanding. Aging schedules can also be created for inventory.
agreed-upon procedures An engagement where the client specifies procedures and the accountant agrees to perform those procedures. An accountant may accept an engagement limited to applying agreed-upon procedures to financial statement elements, where the scope of the engagement is not sufficient to express an opinion on the elements, if the users assume responsibility for sufficiency of the procedures, and use of the report is restricted to specified users.
aicpa American Institute of Certified Public Accountants. The professional organization of CPAs in the U.S. It is a private organization of CPAs, not an arm of the government. Each state issues CPA certificates, not the AICPA. Since each state makes its own laws, each state could prepare and grade their own CPA examination. However, each state uses the uniform CPA exam prepared and graded by the AICPA.
Air way bill: Transport document used in air freight. Serves as a receipt for the goods and evidence of carriage contract.  This is not a document of title and so is not needed by the consignee in order to claim the goods from the carrier. 
AIRPLANE BANNER – A flag or banner bearing an advertisement that trails behind a low-flying airplane.
ALERT: Notification that a disaster situation has occurred - stand by for possible activation of disaster recovery plan.
alien corporation  a corporation chartered by a foreign government and conducting business in the United States
All risks insurance: Insurance covering risks set out in the Institute of London Underwriters Cargo Clauses A. Covers fire, theft, loss at sea, damage during loading, transhipment and discharge but NOT strikes, riots, civil commotion or war piracy.
Allocation Base. An approach for assigning a given cost to two or more departments of a business.
allocation Distribution according to a plan. Depreciation, amortization, and depletion are methods to allocate a cost to periods benefited.
All-or-None Bid. A bid for a number of different items in which the bidder will not accept a partial award, but only an award for all the items, services, etc. included in the bid.
allowance for bad debt — The amount of debt a company expects not to collect. This is subtracted from what the company is owed for goods it sold on credit (accounts receivable), so the balance sheet better reflects the company’s true economic health.
allowance for doubtful accounts A contra asset account with a credit balance used to reduce the carrying amount of accounts receivable to net realizable value. The allowance balance is the estimated total of uncollectible accounts included in accounts receivable.
allowance for sampling risk The difference between a sample estimate and the projected population characteristic at a specified sampling risk. This allowance is also the difference between the expected error rate and the tolerable deviation rate.
Alongside: The side of a ship.  Goods to be delivered "alongside" are to be placed on the dock or taken next to the ship within reach of the transport ship's tackle so that can be loaded aboard the ship.
ALTERNATE SITE: A location, other than the normal facility, used to process data and/or conduct critical business functions in the event of a disaster. SIMILAR TERMS: Alternate Processing Facility, Alternate Office Facility, Alternate Communication Facility.
Alternative minimum tax. An alternative tax system that says: your tax shall not go below this level. The alternative minimum tax works by negating (or minimizing) the effects of tax preferences or loopholes.
Amendment: Variation in the terms or conditions of any document.  In the case of Letters of credit, an amendment to a letter of credit is issued by the Issuing bank under the direction of the applicant, and is advised to the Advising bank, following the same route as the original LC.
american national standards institute (ansi) Without some semblance of a standardized language, computers could not easily communicate with each other. ANSI (pronounced "antsy") is the U.S.-based organization dedicated to developing industrywide standards for technology. ANSI works closely with other entities, such as the International Organization for Standardization (ISO) to facilitate the development of global standards. One widely used ANSI standard is ASCII (American standard code for information interchange), the most common format for computers and Internet text.
Amortise the gradual process of writing off the cost of an asset, or paying off a liability by means of a sinking fund, over a period of time.
Amortization - (1) The paying off of debt in regular installments over a period of time. (2) The ratable deduction of certain capitalized expenditures over a specified period of time.
Amortization - reduction of debt through installed payments.
Amortization The gradual reduction of debt by periodic payment sufficient to pay current interest and to eliminate the principal at maturity. This is also the term used for gradual reduction/writing off over a period of time in the book value of fixed or intangible assets, deferred charges and prepaid expenses, bond discount and bond premium, etc.
Amortization The reduction in the value of an intangible asset (a copyright, a patent, an address list, or other similar property) taken as an expense (written off) in each accounting period. (Compare to loan amortization, defined below.)
Amortization. The write-off of an amount spent for certain capital assets, similar to depreciation. This tax meaning is different from the common meaning of the term that describes, for example, payment schedules of loans.
Amortization. This is similar to straight-line depreciation, allowing a business or individual to write off an expenditure over a number of years. Amortization generally applies to intangible assets. For example, you purchase a business consisting of a machine with a fair market value of $10,000 and goodwill of $15,000. You can't expense (write off) the cost in the year acquired, but you can depreciate the machine using any of several methods, including one that provides greater deductions in the early years. The goodwill can only be amortized over 15 years using a straight-line method, or $1,000 per year.
Amortization: Repayment of a loan in installments of principal and interest, rather than interest-only payments.
Amortization:  The gradual and periodic reduction of an amount over time. It can apply to either the periodic write-down of an asset (see depreciation) or a gradual extinguishment of a debt (payments reducing loan principal).
Amortize. Process of rationally and systematically allocating cost of an asset over the expected life of the asset.
analytic process  a process in operations management in which raw materials are broken into different component parts
analytical procedure A comparison of financial statement amounts with the auditor's expectation. An example is the comparison of actual interest expense for the year (a financial statement amount) with an estimate of what that interest expense should be. The estimate can be found by multiplying a reasonable interest rate times the average balance of interest bearing debt outstanding during the year (the auditor's expectation). If actual interest expense differs significantly from the expectation the auditor explains the difference in the working papers.
analyze Identify and classify items for further study.
angel investors Wealthy individuals who choose to put substantial sums of their own money into startup companies. They are specifically not operating under the auspices of a venture capital fund. While their investments tend to be less than $1 million per venture, angel investors account for more than $20 billion annually in seed money, providing an important development layer for new technology and market ideas that might not otherwise get out of the gate.
Annual Meeting of Shareholders Nearly all states require a corporation to hold an annual meeting of shareholders at which time directors are elected and other corporate issues are voted on.
Annual Percentage Rate (APR): Cost of credit expressed as a yearly rate .
Annual Percentage Rate. A credit arrangement term that applies to the relative cost of credit stated as an annual percentage, i.e. the annual cost of credit.
Annual Report:  A report prepared by a business entity at the end of its calendar or fiscal year. It presents a company's financial position and operating results for use by interested parties, including potential investors, creditors, stockholders, and employees.
Annuity. The dictionary definition is a contract issued by an insurance company that pays an annuitant an amount periodically for a certain time for the remainder of his life. Common usage has expanded that definition to the point where you must dig deeper to understand the meaning. Variations include a deferred annuity where you make payments into a fund over a period of years (where tax on the fund's income is deferred), an immediate annuity (the original definition) or many other plans where a series of payments, either into or out of the fund, are involved.
anticipated Expected.
APEC: Asia Pacific Economic Cooperation, an organization of countries in Asia and elsewhere dedicated to increasing international trade.
Apostille Is a method of certifying a document for use in another country pursuant to the 1961 Hague Convention. With this certification by apostille, a document is entitled to recognition in the country of intended use, and no certification or legalization by the embassy or consulate of the foreign country where the document is to be used is required. With our international package, we include an apostilled copy of the certificate of incorporation for use in your desired country.
appellate court  a court that hears cases appealed from lower courts
applet A software program (or application) within a larger program that is designed for a specific task, such as the Java program embedded in Web browsers. Unlike applications, applets cannot be executed directly from the operating system. Well-designed applets can be executed from many different applications. This cross-platform compatibility, their small file size, and the fact that they cannot be used to gain access to a user's hard drive make applets ideal for small Internet applications accessible from a browser. See browser.
Applicable Federal Rates (AFRs). Minimum interest rates that must be charged on various transactions that involve payments over a number of years. If the parties to a transaction do not adhere to these rates, the IRS will impute the interest. (See "Imputed interest.")
Applicant: Buyer/importer in a letter of credit transaction, who applies to the Issuing Bank for a letter of credit in favor of the seller (beneficiary).  Other terms for this are, the accountee or accreditor. 
application control Programmed procedure in application software designed to ensure completeness and accuracy of information.
APPLICATION RECOVERY: The component of Disaster Recovery which deals specifically with the restoration of business system software and data, after the processing platform has been restored or replaced. SIMILAR TERMS: Business System Recovery.
APPORTIONMENT - The division or distribution of a receipt or a disbursement of property between or among two or more accounts, as between principal and income; to be distinguished from allocation.
APPRAISAL - The evaluation of property.
Appraisal: A report made by a qualified person giving an opinion or estimate of value.
APPRAISED VALUE - The values arrived at in an appraisal of property.
APPRECIATION - Increase in value of property; opposite to depreciation.
Appreciation - The increase in value of an asset.
Appreciation: An increase in the value of an item, for instance a home, due to changes in market conditions or other causes.
Appropriation of Retained Earnings. Restriction of retained earnings that is recorded by a formal journal entry. The restriction may be made voluntarily by the board of directors to show the earnings are being accumulated for a particular purpose or the restriction may be the result of a covenant in a loan agreement.
approve To authorize. A manager authorizes a transaction by signing a voucher providing approval for the disbursement.
Arbitage: The process of buying foreign exchange, stocks, bonds, and other commoditiies in one market and immediately selling them in another market at hopefully higher prices.
arbitration — One method of settling disputes, including union-employer battles. The parties choose a third party to settle their disagreement. This is called binding arbitration when the parties also agree to abide by the arbitrator’s decision.
arbitration  the step in a grievance procedure in which a neutral third party hears the two sides of a dispute and renders a decision
arithmetic mean  the sum of all the values of a set of data, divided by the number of items in the set
Arm's-Length Transaction:  Business dealings between independent and rational parties who are looking out for their own interests.
ART DIRECTOR – The person responsible for the graphic design and creative positioning of an advertisement or campaign; the person in charge of an agency’s production department.
articles of association the basic document of a registered company defining its internal organisation. It is one of two fundamental documents on which the registration of a company is based. See memorandum of association.
Articles of Incorporation (Certificate of Incorporation or charter). The articles are the primary legal document of a corporation; they serve as a corporation's constitution. The articles are filed with the state government to begin corporate existence. The articles contain basic information on the corporation as required by state law. Business Filings Incorporated prepares the articles as part of its incorporation services.
Articles of Incorporation (or Partnership). An agreement that is the contract between those individuals starting the corporation or partners in a partnership specifying such items as the name, location, nature of the business, capital investment, etc.
Articles of Incorporation: The charter of the corporation, this is the public filing with a state which requests that the corporation be allowed to exist. Along with the corporate By-Laws, it provides details of the organization and structure of the business. They must be consistent with the laws of the state of incorporation.
Articles of Organization LLCs must file the articles with the proper state authorities to begin existence. The articles of organization are very similar to a corporation's articles of incorporation. Business Filings Incorporated prepares the articles as part of its incorporation services.
ascertain An audit procedure to determine or to discover with certainty. For example, to ascertain the date on which an investment was purchased by examining source documents.
ASCII:  A standard computer code for the conversion of a character to a binary number (a combination of 1's and 0's) that is understood by almost all computers. Because it is a uniform code, it is used frequently in data transfer of all kinds.
ASEAN: The Association of South East Asian Nations, a regional organization of Southeast Asian countries. 
Asian Dollars: US funds deposited in banks in Asia and the Pacific Basin.
assertion Management asserts financial statements are correct with regard to existence or occurrence of assets, liabilities or transactions, completeness of information in the financial statements, rights and obligations at a point in time, appropriate valuation or allocation, presentation, and disclosure.
assess To determine the value, significance, or extent of.
assessed Determined. The level of control risk determined by the auditor, based on tests of controls, is the assessed level of control risk.
Assessments. The right to secure additional payments from partners or co-venturers in a project.
Asset Anything owned that has monetary value.
Asset anything of worth that is owned. The assets of a business are money in the bank, accounts receivable, securities held in the name of the business, property or buildings, equipment, fixtures, merchandise for sale or being made, supplies and all things of value that the business owns.
Assets - all real or intellectual property owned by the enterprise that has a positive financial value.
Assets - cash, property, and other resources owned by a firm.
ASSETS - The financial resources of a company (Cash, Accounts Receivable, Inventory, Machinery, Buildings, etc.
assets — Things a company controls, which usually means it owns these items. A car company’s assets would include everything from computers used by the accounting department, to cars not yet sold, to the factory where the autos are made. Items must have value and must have been obtained for a measurable cost; broken computers that can’t be repaired don’t count, nor does a company’s reputation.
Assets All of that which a business owns, including cash, merchandise inventories, real estate, equipment, supplies, copyrights, etc.
Assets Things of value held by or owned by a business or a person.
assets  the resources that a firm owns
ASSETS, CAPITAL - Those assets which are not readily convertible into cash. They are most often called fixed assets.
ASSETS, LIQUID - Those assets, generally current assets, which may be quickly converted to cash.
Assets. Probably future economic or income producing benefits of value that are owned or controlled by the business. Current assets are those that can be converted into cash within one year.
Assets: All property to include equipment, materials, vehicles, vessels, cash, investments, and other items you or your business owns.
Assets:  Economic resources owned or controlled by a person or company.
Assignment. A transfer of your rights to another party. For example, in the case of an insurance policy it's the partial or total transfer of the policyowner's rights to another party. If you're selling a piece of equipment, you may be able to assign the warranty to the buyer. Some contracts expressly prohibit assignment.
Assignment:  A transfer of legal rights under an agreement.  In the case of letters of credit, a banking arrangement between the beneficiary of a letter of credit and a third party - usually the supplier of the goods - who requires an assurance of payment.  Usually takes the form of a letter or deed of assignment.  The beneficiary of the credit is the assignor; part of the proceeds of the credit are irrevocably assigned to the assignee. 
Assumed Name A name under which a corporation conducts business that is not the legal name of the corporation as shown in its articles of incorporation. Assumed names (also called fictitious name and Doing Business As) are typically filed at the county level with the county recorders office. A corporation can use multiple assumed names.
Assumed name: A name, other than the corporation's legal name as shown on the Articles of Incorporation, under which a corporation will conduct business. Most states require registration of the fictitious name if a company desires to conduct business under an assumed name. The corporation's legal name is not an assumed name.
Assumption of Mortgage: A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. Ordinarily, assumptions require a lender’s written consent and the original buyer may not be released from the liability.
Assumption. An agreement where the purchaser agrees to make the payments on an existing mortgage on the property. The original borrower remains liable unless he is specifically released.
Assumptions - The act of assuming/undertaking another's debts or obligations.
ASSUMPTIONS: Basic understandings about unknown disaster situations that the disaster recovery plan is based on.
assurance The level of confidence one has in a proposition.
At-risk rules. Rules that limit an investor's deductible losses from an investment to the amount invested. Complications arise when investors finance their investment through loans that they are not personally on the hook for (nonrecourse financing). Without these rules, investors could raise their deduction limit considerably without being at-risk for the actual loss.
attest (attestation) report An attest engagement is one in which a practitioner is engaged to issue a written conclusion about the reliability of a written assertion that is the responsibility of another party. A financial statement audit is one type of attestation.
attorney's letter is signed by the client's lawyer and addressed to the auditor. It is the auditor's primary means to corroborate information furnished by management about litigation, claims, and assessments.
attribute sampling The characteristic tested is a property that has only two possible values (an error exists or it does not).
ATTRIBUTION - For purposes of the Internal Revenue Code sections dealing with stock redemptions and stock ownership, attribution refers to particular situations in which one family member (or a trust or estate) is deemed to own stock held by another family member (or trust or estate). The attribution of ownership between family members or trusts or estates may have adverse consequences in a stock redemption and such relationships need to be examined carefully.
Auction - A public sale of goods to the highest bidder.
AUDIOVISUAL (A/V) – Pertaining to the use of recordings, videos, slides, and other media for presentation.
audit adjustment, whether or not recorded by the entity, is a proposed correction of the financial statements that may not have been detected except through audit procedures.
audit committee A committee of the board of directors responsible for oversight of the financial reporting process, selection of the independent auditor, and receipt of audit results.
Audit detailed checking of the financial records of a business by an independent qualified person (auditor) in order to verify their correctness or to detect errors or fraud.
audit objective In obtaining evidence in support of financial statement assertions, the auditor develops specific audit objectives in the light of those assertions. For example, an audit objective related to the completeness assertion an auditor might develop for inventory balances is that inventory quantities include all products, materials, and supplies on hand.
Audit Opinion:  The official result of an audit. A CPA's "unqualified opinion" means that the financial statements he/she has audited present fairly the financial position and operating results of the company in conformity with GAAP (in other words, "you pass"). A "qualified opinion" occurs under a number of circumstances, for instance, if the financial statements do not follow GAAP and the client refuses to make the needed changes (this may be anything from "not bad" to "really bad", depending on the reason for the qualified opinion; a string of qualified opinions is generally "bad"). An "adverse opinion" happens when the financial statements are misleading and do not fairly represent a company's financial position (in other words, "you fail"; If you're running a company that just got an "adverse opinion", get ready to find new employment.) Keep in mind that, just because you passed an audit, it does not mean that your company is in good financial shape. It just means that your books are a fair representation of what you did.
audit planning is developing an overall strategy for the conduct and scope of the audit. The nature, extent, and timing of planning varies with the size and complexity of the entity, experience with the entity, and knowledge of the entity's business.
audit risk A combination of the risk that material errors will occur in the accounting process and the risk the errors will not be discovered by audit tests. Audit risk includes uncertainties due to sampling (sampling risk) and to other factors (nonsampling risk).
AUDIT Verification of financial records and accounting procedures generally conducted by a CPA or accounting firm or if you're really unlucky, the IRS.
audit  an examination of a company’s financial statements and accounting practices that produced them
Audit:  The result of an independent accountant's review of the financial statements and their footnotes to ensure compliance with generally accepted accounting principles (GAAP) and to express an opinion on the fairness of the financial statements.
auditing standards board Statements on Auditing Standards are issued by the auditing standards board, the senior technical body of the AICPA designated to issue auditing pronouncements.
AUTHENTICATED COPY - A copy of an instrument on which is an attestation in the manner required by law by an official authorized to make such certification, as by the certification and seal of a specified public official.
authorised capital the total amount of capital which a company, by its memorandum of association, is authorised to offer for subscription. See also, paid up capital.
authoritarian leader  one who holds all authority and responsibility, with communication usually moving from top to bottom
authority  the power, within the organization, to accomplish an assigned job or task
authorize (authorization) To give permission for. A manager authorizes a transaction by signing a voucher providing authorization for the disbursement.
Authorized Shares The total number of shares a corporation is authorized to issue. This number is specified in the articles of incorporation. All of the shares authorized need not be issued to shareholders, the corporation can have unissued shares that can distributed at a latter time.
Authorized Stock - The number of shares of stock that a corporation is permitted to issue. This number of shares is stipulated in the corporation's - state-approved charter, and may be changed by a vote of the corporation's stock-holders.
Authorized Stock See Authorized Shares.
Authorized stock: The number of shares of stock that a corporation is allowed to issue as stated in the Articles of Incorporation. All authorized shares need not be issued.
Automatic Data Processing - *** Data processing largely performed by automatic means. *** The discipline which deals with methods and techniques of automatic data processing. *** Pertaining to data processing equipment such as electrical accounting machines and electronic data proce
automatic vending  the use of machines to dispense convenience goods automatically when customers deposit money
automobile liability insurance  insurance that covers financial losses resulting from injuries or damages caused by the insured vehicle
automobile physical damage insurance  insurance that covers damage to the insured vehicle
Auto-responder: automated response to a customer e-mail inquiry.
Avalisation: Payment undertaking given by a bank in respect of a bill of exchange drawn on a buyer. A way of giving security to the drawer of a term bill.  The bill is stamped with wording such as 'Pour aval' and signed by a representative of the bank.
Average Cost Method. Inventory costing method based on the average cost of inventory during the period. Average cost is determined by dividing the cost of goods in inventory by the number of units of the same type in inventory at any point in time.
Award an agreement having the force of law, which sets out working conditions and wages for certain types of employment.
Back end e-commerce: an ordering system tied directly to your inventory with real time adjustments for sales.
BACK OFFICE LOCATION: An office or building, used by the organization to conduct support activities, that is not located within an organization's headquarters or main location.
Back-to-back letters of credit: Arrangement used by intermediaries to give payment security to their suppliers.  The beneficiary of one L/C (prime or 'master' letter of credit) offers this as security for the issuance of a further L/C (second or 'slave' letter of credit) in favour of the supplier of the goods.  The bank issuing the second L/C (usually Advising bank to the prime L/C) is called the second Issuing bank.   This is regarded by many banks as risky - if the prime L/C runs into problems, it will no longer serve as security for the second L/C.
backup A copy of a computer program or file stored separately from the original.
BACKUP AGREEMENTS: A contract to provide a service which includes the method of performance, the fees, the duration, the services provided, and the extent of security and confidentiality maintained.
BACKUP POSITION LISTING: A list of alternative personnel who can fill a recovery team position when the primary person is not available.
BACKUP STRATEGIES (RECOVERY STRATEGIES): Alternative operating method (i.e., platform, location, etc.) for facilities and system operations in the event of a disaster.
Bad Debt Expense. Generally, the cost of uncollectible accounts receivable which occurs when customers to whom a business has extended credit fail to pay. It can also refer to any debt owed you which is uncollectible.
Bad Debt:  An uncollectible Account Receivable.
bad debts money owed to you that you can't collect
BAILMENT - The delivery of personal property by one person to another for some specific purpose, such as for use, repairs, or safekeeping, but without passing title to the property. The person delivering the property is known as the bailor; the person receiving it, the bailee.
balance of payments  the total flow of money into the country minus the total flow of money out of the country, over some period of time
balance of trade — An accounting of a country’s exports versus imports.
balance of trade  the total value of a nation’s exports minus the total value of its imports, over some period of time
Balance of Trade: The difference between a country's total imports and exports; if exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.
balance sheet — A reckoning of a company’s financial health at a given time. Lists assets, liabilities and equities.
BALANCE SHEET - A report listing the assets, liabilities, and owner's equity of a business as of a specific date.
Balance Sheet - A report of a corporation's financial condition at a specific time.
Balance Sheet - a statement of assets and liabilities.
balance sheet (or statement of financial position)  a summary of the dollar amounts of a firm’s assets, liabilities, and owners’ equity accounts at the end of an accounting period
balance sheet an important business document that shows what a business owns and owes as of the date shown. Essentially a "balance sheet" is a list of business assets and their cost on one side and a list of liabilities and owners' equity (investment in the business) on the other side with the amount for each. The liabilities include all that the business owes.
BALANCE SHEET Financial statement showing assets and liabilities at a specific time.
Balance Sheet Statement of financial position of a business at a particular point in time; lists what is owned and owed.
Balance Sheet. A statement of financial condition of the business that provides the owner with an estimate of the firm's worth on a given date.
Balance Sheet. Listing of the assets, liabilities and owner's equity at a specific point in time.
Balance Sheet: A total list of all assets and liabilities in the business. The difference between them is owner equity.
Balance sheet:  A balance sheet is an itemized statement which lists the total assets and the total liabilities of a given business to show its net worth at a given moment in time (like a snapshot).
balance the amount of money remaining in an account. The total of your money in the bank after accounting for all transactions (deposits and withdrawals) is called a "balance".
Balloon Payment. The final installment on a loan which is greater than the prior payments and pays any remaining amount outstanding under the loan. For example, a loan calls for equal monthly payments of $500, where most of the payment is for interest. At the end of the loan a balloon payment of $100,000 is due.
Balloon Payment: A lump-sum principal payment due during the term of or at the end of a loan. It is substantially larger than the other payments.
Bandwidth One of the words most often misused in tech speak, but as with similar cases in language, the misuse is becoming a primary definition. The technical definition for bandwidth is the difference between two frequencies (expressed in Hertz, or cycles per second), no more, no less. Broadcast TV channels, for example, all have the same bandwidth, by FCC rule. Bandwidth is commonly (mis)used to mean bitrate, or speed of data transmission. It's also used to describe a tech executive's capacity to think about multiple things at once. If your boss tells you she doesn't have the bandwidth to deal with your issues right now, that doesn't mean it's time to install a new T-1 line.
bank draft a written instruction to a bank’s agent to pay a sum of money to the person specified on the draft. A safe and convenient way of remitting money overseas.
Bank guarantee: Undertaking given by a bank on behalf of a customer to pay the guaranteed party a sum of money if the customer cannot or will not pay.  This should not be confused with the payment undertaking given under a letter of credit. 
Bank Reconciliation - making sure the bank statement, checkbook, and books (ledger, journal, etc.) all agree.
bank reconciliation a comparison between the bank’s record of transactions and the record of the firm’s cash book. After taking into account such items as unpresented cheques and bank charges etc., the two records should show an identical balance.
Bank Reconciliation A formal comparison of the balance in the checking account as shown on the bank statement with the balance of the cash account in the general ledger, at a given date.
Bank Reconciliation:  Verification that your bank statement and your checkbook balance.
banker’s acceptance  a written order for the bank to pay a third party a stated amount of money on a specific date
Banker's draft: A payment instrument used to make international payments.
Bankrupt a debtor, who has volunteered or been forced to appear before a Bankruptcy Court and has been judged insolvent, because s/he has insufficient assets to meet the demands of all creditors.
Bankruptcy - A condition in which a business cannot meet its debt obligations and petitions a federal district court for either reorganization of its debts or liquidation of its assets. In the action the property of a debtor is taken over by a receiver or trustee in b
bankruptcy — A word you don’t want to hear if a company or person owes you a lot of money. The person or company is considered bankrupt if they’re unable to pay their debts. The U.S. Bankruptcy Court tries to sort out the financial troubles and get creditors paid. Companies filing for protection under Chapter 7 of the bankruptcy code are shut down and their assets handed over to the creditors. Under Chapter 11, companies try to rework their debts and stay in business.
bankruptcy  a legal procedure designed both to protect an individual or business that cannot meet its financial obligations and to protect the creditors involved
Bankruptcy:  (Business Failure) This involves a discharge of the debtor's obligations through court order. The purpose of bankruptcy is to provide the debtor with a fresh start and to have an equitable distribution of the debtor's assets among the creditors. A major federal law concerning bankruptcy in the USA is the Bankruptcy Reform Act of 1978. Chapter 7 deals with corporate bankruptcy; Chapter 9 involves procedures for municipal bankruptcy; and Chapter 13 pertains to individual bankruptcy. Chapter 11 deals with reorganization (can be either voluntary or involuntary).
banner advertising Banner ads are graphic images that appear on your screen to entice you to visit a Website. Banner ads appear with a link to another site or advertised product. One method that advertisers use to gauge their potential customer base is counting the number of times a banner is downloaded over a period of time.
barcodes The vertical series of lines printed on most physical goods these days, from magazines to lumber. A machine scans the barcode to identify the product, price, and other details. The scanner transmits the information to a cash register, computer, or other device for action, such as printing out a grocery receipt at the supermarket checkout. Barcodes are also used for many other purposes-from linking medical records to a hospital patient's ID bracelet to tracking packages from overnight shippers.
Bargain Purchase Option: A lease provision allowing the lessee, at its option, to purchase the equipment for a price predetermined at lease inception, that is substantially lower than the expected fair market value at the date the option can be exercised.
bargaining unit  the specific group of employees represented by a union
Barriers to Entry - conditions that create difficulty for competitors to enter the market. For example, copyrights, trademarks, patents, dedicated distribution channels and high initial investment requirements.
barter  a system of exchange in which goods or services are traded directly for other goods and/or services—without using money
barter  a system of exchange in which goods or services are traded directly for other goods and/or services—without using money
Barter:Trade in which merchandise is exchanged directly for other merchandise without the use of money.  Barter is the oldest form of trade and is currently widely in use in trade with countries using currency that is not readily convertible on world exchange markets.
Base. Also known as a Stop. In real estate leases tenants are often responsible for operating expenses of the building over a certain dollar amount, the base or stop. The base may be expressed in dollars per square foot, total dollars, or as a base year (in which case the base is the expense in the base year).
Basis Point. A way of quoting the yield on a bond, note, or other debt instrument. One basis point is equal to 0.01%. Thus, a 50 basis point yield increase in a bond would be equal to 0.5%.
basis. The modified accrual basis should be used for governmental funds. To be recognized as a revenue or expenditure, the actual receipt or disbursal of cash must occur soon enough after a transaction or event has occurred to have an impact on current spendable resources. In other words, revenues must be both measurable and available to pay for the current period's liabilities. Revenues are considered available when collectible either during the current period or after the end of the current period but in time to pay year-end liabilities. Expenditures are recognized when a transaction or event is expected to draw upon current spendable resources rather than future resources.
Basis. The starting point for computing gain or loss on a sale or exchange of property or for depreciation. (See "Adjusted basis.") For property that is purchased, basis is its cost. The basis of inherited property is its value at the date of death (or alternative valuation date). The basis of property received as a gift or a nontaxable transaction is based on the adjusted basis of the transferor (with some adjustments). Special rules govern property transferred between corporations and their shareholders, partners and their partnership, etc.
Basis. Used in determining depreciation or gain or loss on the sale of property. In the simplest situation, your basis in property you purchase is the cost. For example, you pay $1,000 for a machine--that's your basis. How you acquire the property determines your basis. For example, if you inherited the machine, your basis would be the fair market value at the decedent's death. In a simple trade-in, your basis is equal to your adjusted basis (see above) in the equipment traded in plus any cash paid. If you contributed the property to a corporation, the corporation's basis would be the basis of the property in your hands. Your basis in the stock in an S corporation is your cost plus profits taxed to you less losses passed through and distributions. There are a number of other ways of arriving at basis.
batch A set of computer data or jobs to be processed in a single program run.
Batch Processing. Entering transactions in a group rather than as they occur.
bear market  a market in which average stock prices are declining
Bearer Bond. While new issues are rare because of a change in the tax law, the principal and interest on the bond is payable to whoever has possession. On the other hand, the ownership of a bond in registered form is recorded with a bank, the issuer, etc.
BEARER BONDS - Bonds which are not registered as to the name of the owner but are the property of the holder and title to which passes by delivery. The Tax Code now denies tax-free treatment for interest paid on most bonds that are not registered.
behavior modification  a systematic program of reinforcement to encourage desirable behavior
BENEFICIARY - (1) The person for whose benefit a trust is created. (2) The person to whom the amount of an insurance policy or annuity is payable.
beneficiary  person or organization named in a life insurance policy as recipient of the proceeds of that policy on the death of the insured
Beneficiary. A person entitled to the benefits of a trust, will, insurance policy, pension plan, etc. For example, if you name your daughter as the sole beneficiary of a life insurance policy, only she is entitle to the proceeds.
Beneficiary: a party who receives a legal benefit.  In a letter of credit situation, the party to whom payment will be made.  Normally, but not always, the seller or exporter. 
benford's law is a mathematical law that applies to any population of numbers derived from other numbers (such as the dollar amount of a sale, found by multiplying the quantity sold times the unit price). It holds that 30% of the time the first non-zero digit of this derived number will be one, and it will be a nine only 4.6% of the time. Benford's law is used by auditors to identify fictitious populations of numbers.
Best And Final Offer - For negotiated procurements, a contractor's final offer following the conclusion of discussions.
BETTERMENTS - Improvements to real property that add to its value otherwise than by mere repairs.
Bid Bond. An agreement in which a third party agrees to be liable in the event the bidder fails to sign the contract as bid (if his bid is accepted). A bid deposit is similar, but the bidder must deposit cash or a certified check.
Big Emerging Markets: A group of fast growing economies identified by the Department of Commerce as having the most potential for US exporters.  They are: The Chinese Economic Area (China, Hong Kong and Taiwan), India, Indonesia, South Korea, Argentina, Brazil, Mexico, Poland, Turkey and South Africa.
Big-Ticket: A market segment of leasing, sales, etc for items costing over $2 million.  In leasing, this sector is generally dominated by leveraged leases, represented by lease financing over $2 million.
Bill of exchange: The most commonly-used financial instrument in international trade. An unconditional payment demand for a specific sum of money, payable either at sight or at a specified future date. This is drawn up by the seller and presented to the buyer.  This is sometimes called “the draft.” 
bill of lading A document issued by a carrier to a shipper, listing and acknowledging receipt of goods for transport and specifying terms of delivery.
bill of lading  issued by the transport carrier to the exporter to prove merchandise has been shipped
bill of sale a document under seal, which formally transfers ownership of property specified in the document from the borrower to the lender, until such time as the debt has been paid in full.
BILLBOARD – A large outdoor printed sign. Costs for a specific billboard are determined by the amount of traffic that passes its location, plus the board’s size and visibility.
BILLINGS – The agency’s annual gross dollar volume generated from one or several accounts.
binding arbitration — Better really mean it when you use this method of solving a dispute. Warring parties—like a union and employer—agree to argue their cases before a neutral party and accept the outsider’s decision.
binding contract  an agreement that requires an intermediary to purchase products from a particular supplier, not from the supplier’s competitors
biometrics The current craze in sci-fi and action-adventure movies, biometric gadgets essentially replace the keyboard as a gateway to all things computerized. Biometric devices identify, or authenticate, computer users by their unique biological characteristics, such as fingerprints, retinas and irises, and voice patterns. With biometrics you could, for example, enter an office building after hours by placing your thumbprint on a doorpad that recognizes only the employee prints stored in its system. Future uses might include e-commerce transaction signatures identified by biometric means. The technology promises great advances in security, but privacy advocates view biometrics with some concern, fearing that the data collected on individuals may not always be used for benign purposes.
Blank endorsement: The method whereby a bill of lading is made into a freely negotiable document of title.  Any bearer of a blank endorsed bill of lading has title to the goods and may claim them from the carrier.  Insurance documents can also be blank endorsed, so that any party can make a claim if necessary. 
Blanket Mortgage. A single mortgage that covers more than one property.
Blanket Order. A purchasing arrangement where the purchaser contracts with a vendor to provide his requirements for an item or service on an as-required basis.
Blanket Position Bond. A fidelity bond where each employee is covered up to the bond penalty. The maximum liability is equal to the bond penalty times the number of employees.
Blind Pool. A partnership or syndication where the investments to be purchased are not specified at the time the investments are sold.
blind trust A financial arrangement in which a person avoids possible conflict of interest by transferring financial affairs to a fiduciary who has sole asset management discretion. The person establishing the trust also gives up the right to information regarding the assets.
BLISTER PACK – A display package in which clear plastic seals the product, which rests against a "backer" sheet, usually made of card stock.
bloatware Software programs that require vast amounts of disk space and RAM (random access memory), effectively eating up valuable computer memory, or shutting down other systems, or completely fouling up the hard drive. Novice users often don't realize they have completely overstuffed their hard drive with memory-hungry software that does little more than make rodents sing when they turn on the computer.
BLOCKAGE - (1) Placing an account subject to United States Treasury control because of enemy or suspected enemy interest. (2) A discount from the estab-lished market price for which a large block of stock of a single corporation would have to be sold if the entire holding were placed on the market at a given date (a term used in connection with federal estate tax).
BLOCKED ACCOUNT - Any account in a bank, the handling of which is closely circumscribed by government regulations. The term in this country is used to designate any account whose administration is subject to United States Treasury license because of enemy or suspected enemy interest.
blue-chip stock  a stock that is a safe investment that generally attracts conservative investors
blue-sky laws  state laws that regulate securities trading
Board Of Directors - (1) Individuals elected by stockholders to establish corporate management policies. A board of directors decides, among other issues, if and when dividends will be paid to stockholders. (2) The body that governs the NYSE; it is composed of 20 members who
board of directors — A group of people chosen by stockholders to watch over a company and its executives, and to set overall corporate policy. Their job is to try to keep the company healthy and ensure stockholders get a good return on their money.
board of directors  the top governing body of a corporation, the members of which are elected by the stockholders
Board of Directors:  Individuals elected by the stockholders to govern a corporation.
Board of directors: The group with control of the general supervision of the corporation. They are elected by the shareholders and they, in turn, appoint the officers of the corporation.
bona fide in good faith, honestly, without fraud, collusion or participation in wrong doing.
bond — A written promise to repay a loan plus interest, usually more than one year after the bond is issued. Investors buy bonds from a company or government entity, essentially loaning the company or government that money.
Bond Discount. The excess of the value of a bond at maturity (the par value) over the issue price of a bond or the purchase price. The difference between the value at maturity and the issue price is often called original issue discount. For example, the par value of a bond is $1,000; the bond is issued at $990. The bond has $10 of original issue discount. Another bond has a par value of $1,000; you purchase it in the open market at $900. The bond has $100 of discount.
bond indenture  a legal document that details all the conditions relating to a bond issue
Bond payment by a tenant to a landlord before the tenant takes over the premises and from which the landlord may be able to deduct arrears of rent or the cost of rectifying damage.
Bond Premium. The excess of the bond's price over the maturity (par) value. For example, you purchase a bond for $1050; the maturity value is $1,000. The bond has a premium of $50.
Bond Sinking Fund. Amounts accumulated and segregated for the purpose of redeeming or retiring bonds. Can also apply to preferred stock.
Bond:  A contract between a borrower and a lender. The borrower promises to pay a specified rate of interest for each period the bond is outstanding and repay the principal at the maturity date.
Bonded Warehouse - a warehouse authorized for storage of good on which payment of duty is deferred until the goods are removed from the warehouse.
BOOK – A talent agency’s listing, with pictures of actors and models.
Book Value of an Asset. The asset's cost less accumulated depreciation.
Book Value of Stock. The book value of the assets of a company less the liabilities. Can be translated into book value per share by dividing by the number of shares outstanding.
Book Value:  The net amount (original value plus or minus any adjustments such as depreciation) shown in the accounts for an asset, liability, or owners' equity item.
BOOKING – A scheduling of the talent and staff that will work on a shoot or photo session.
Bookkeeping the process of recording business transactions in the accounting records
Bookkeeping:  The act of systematically recording the financial transactions affecting a business.
bookmark A Web browser's bookmarking functions serve the same purpose as the slip of cardboard marking the page where you last stopped reading your detective novel. When you open a Web page in a browser, you can tell your computer to remember the location by bookmarking it. Whenever you must get the latest standings in the Australian Rules Football League, you simply click on the previously saved bookmark to find out whether Newcastle beat Perth. Some users find bookmarks unwieldy, however, and many companies are developing alternatives to replace them. In the case of Internet Explorer, Microsoft's browser, bookmarks are referred to as "favorites". But the more common generic term is "bookmark".
Boot. A tax term that means cash or unlike property received in an exchange. For example, you trade investment real estate worth $500,000 for another property worth only $300,000. In addition to the deed on the new property you receive $200,000 in cash (or notes). The $200,000 is boot.
bots Bots, from robots, are smart software programs that continuously run in the background on a computer, performing specific repetitive tasks. A bot can, for example, search the Internet, post messages to newsgroups, comparison-shop, hold open a channel on the Internet, relay chat, generate reports at specified times, clip news articles, and so on. Bots are typically endowed with artificial intelligence, enabling them to make decisions based on past experiences. They are often called intelligent agents because they can be sent out on missions (although some bots run in place and are not, strictly speaking, agents). Hotbots, search bots, shopping bots, and spiders are among the many species of bot.
boycott in restraint of trade  an agreement between businesses not to sell to or buy from a particular entity
boycott  a refusal to do business with a particular firm
BRAINSTORMING – A meeting to generate creative ideas. At Michael J. Motto Advertising, daily, weekly and bi-monthly brainstorming sessions are held by various work groups within the firm. Our monthly I-Power brainstorming meeting is attended by the entire agency staff.
brand (or selective demand) advertising  advertising that is used to sell a particular brand of product
brand equity  the marketing and financial value associated with a brand’s strength in a market
brand loyalty  extent to which a customer is favorable toward buying a specific brand
brand mark  the part of a brand that is a symbol or distinctive design
brand name  the part of a brand that can be spoken
brand  a name, term, symbol, design, or any combination of these that identifies a seller’s products and distinguishes them from competitors’ products
branding Branding is the entire process of creating a distinct identity for a product, service, or concept and establishing it in the public mind. Branding can also be applied to corporate identity. The American Productivity and Quality Center and the American Marketing Association have defined the primary purpose of branding as to "establish a meaningful, differentiated presence that will increase the ability to attract and retain loyal customers and improve marketplace ability." Cobranding refers to partnerships between companies-such as retailers and manufacturers, or online and offline companies-to boost sales and build brand awareness.
breach of contract  the failure of one party to fulfill the terms of a contract when there is no legal reason for that failure
Break Even: The status of a business when you have made enough money to cover all costs, but not making any profit. The total sales in dollars equal the total costs.
BREAK-EVEN ANALYSIS - A method of determining the point at which the business will neither make a profit nor suffer a loss. This occurs when the dollars of revenues exactly equal the dollars of expenses.
Break-Even Point - The break-even point in any business is that point at which the volume of sales or revenues exactly equals total expenses -- the point at which there is neither a profit nor loss -- under varying levels of activity. The break-even point tells the manager
Break-Even Point - the point at which revenues are equal to expenses.
BREAK-EVEN POINT The point at which sales equal total costs.
break-even point the point at which volume of sales is enough to cover all costs.
Break-Even Point. The dollar amount or unit amount of sales where total revenue equals total expenses.
Break-even point:  The volume point of sales at which revenues and costs are equal; a combination of sales and costs that will yield a no profit/no loss operation.
breakeven quantity  the number of units that must be sold for the total revenue (from all units sold) to equal the total cost (of all units sold)
Breakpoint. See Overage Rent.
Brick and Mortar store: business location or store front in the "real" world. 
bridging loan a loan to provide short-term finance, usually to buy property or land, where the loan is to be cleared by longer-term borrowing, or the sale of assets.
Broad Form Storekeepers Policy. An insurance policy for a retail store with four or fewer employees that provides both fidelity and crime coverage.
broadband High-bandwidth connections to the Internet. In theory, broadband makes possible a whole new set of Internet applications, such as streaming video, due to speeds up to 20 times as fast as conventional modems.
BROCHURE – A folded leaflet with an advertising or promotional message.
broker  a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis
Broker. An agent middleman or wholesaler who arranges title-free sales for his clients.
Broker: A company or person who arranges, for a fee, purchase or sales or transactions between lessees and lessors of an asset.
browser The browser is the decoding lens-think of it as 3-D glasses-that allows you to look at a Website and see words and images, instead of software code, usually HTML (hypertext markup language). Recent versions of browsers also support more advanced technologies such as streaming video and audio. Microsoft's Internet Explorer and Netscape's Communicator are the two biggest names in today's browser market.
Budget an estimate of expanses and revenue required.
budget  a financial statement that projects income and/or expenditures over a specified future period
Budget:   A formal statement of management's expectations of sales, expenses, volume, and other financial transactions of an organization. A budget is a tool for planning and control. In the beginning it can act as a plan and in the end it can act as control to measure performance against so that future plans can be improved. (Also, a piece of paper that is quoted when one department wants another department's money, and is ignored when a department needs more money than is in the budget. See also: inter-department rivalry.)
bug An error or flaw in a computer program's code that makes it falter or fail. The "debugging" process begins as soon as a program is written, but it does not guarantee that the software will be perfect when released. Preliminary versions of programs, known as betas, often contain bugs that are eventually weeded out in later versions. Users can either avoid the beta releases or get a patch from the program's developer to bypass any bug-riddled code.
Builder's Bonds. Mortgage-backed securities issued by builders on mortgages accumulated from the sales of houses.
bull market  a market in which average stock prices are increasing
Bullet Loan. Generally, a loan where no principal repayments are made during the loan. Only interest is paid, leaving the total amount borrowed as a balloon payment at maturity.
BUMPER STICKER – An advertising strip attached to an automobile bumper.
bundle pricing  the packaging together of two or more products, usually of a complementary nature, to be sold for a single price
BURDEN OF PROOF - The duty of proving a position taken in a court of law. Failure in the performance of that duty calls for judgment against the person on whom the duty rests. Thus the burden of proof that the paper writing is not the valid will of the testator is upon the person who contests the will.
bureaucratic structure  a management system based on a formal framework of authority that is carefully outlined and precisely followed
burn rate The pace at which a new company spends its venture capital while waiting to turn a profit. In this hyperspeed landscape of venture-backed brainstorms, burn rate is especially applicable to Internet and technology startups, where profitability may be a distant goal even though the idea is worthy of funding. Once, companies were expected to be profitable before going public, but Wall Street has become attuned to burn rates. Today's initial public offerings (IPOs) are fueled by projections, and analysts like to bet on companies that promise to show profit long before they burn out.
BUS CARD – An advertising poster attached to the side or back of a bus.
Business Activity Statement a single form used to report business tax entitlements and obligations, including the amount of GST payable and your input tax credits.
Business balance sheet A financial statement providing a "snapshot view" of the financial condition of the subject business on specified date. The three principal divisions of a balance sheet are: assets, liabilities, and net worth (equity). (Also called a financial statement, a net worth statement, or a statement of financial condition.)
Business Birth - Formation of a new establishment or enterprise.
business buying behavior  the purchasing of products by producers, governmental units, and institutions
BUSINESS CONTINUITY PLANNING (BCP): An all encompassing, "umbrella" term covering both disaster recovery planning and business resumption planning. Also see disaster recovery planning and business resumption plannnig.
Business corporation laws: For each individual state, these provide the legal framework for the operation of corporations. The Articles of Incorporation and the By-Laws of a corporation must adhere to the specifics of state law.
business cycle  the recurrence of periods of growth and recession in a nation’s economic activity
Business Death - Voluntary or involuntary closure of a firm or establishment.
Business Dissolution - For enumeration purposes, the absence from any current record of a business that was present in a prior time period.
Business Entity An organization that possesses a separate existence for tax purposes. Some types of business entities include corporations and foreign corporations, business trusts, limited liability companies, and limited partnerships.
business ethics  the application of moral standards to business situations
Business Failure - The closure of a business causing a loss to at least one creditor.
Business Failure:  According to law, business failure can be either "technical insolvency" or "bankruptcy." In technical insolvency a business is unable to meet current obligations even if the total assets exceed total liabilities. In bankruptcy, liabilities exceed the market value of the assets and a negative net worth exists. (See accountant's equation).
BUSINESS IMPACT ANALYSIS: The process of analyzing all business functions and the effect that a specific disaster may have upon them.
Business Income Coverage: The insurance company agrees to pay your loss of business income that results in a suspension of your business operations because of damage to your building or personal property caused by a covered cause of loss insured in your property policy. Business Income includes net profit or loss that would have been earned if the suspension of operations had not occurred and normal operating expenses including payroll that would have continued during the suspension. Coverage begins with the date of the loss to your property and ends when the damage or destroyed property could have been restored with reasonable speed and like quality.
Business Income from Dependent Properties: Coverage is provided for you loss of business income because of damage to the building or personal property at another business that you are dependent on for your operations. The four types of dependent properties are businesses that furnish materials or services to you, businesses that purchase material or services from you, businesses that manufacture products for your customers, and a leader location, for example, an anchor store that attracts customers to your business.
Business Information Center (Bic) - One-stop locations for information, education, and training designed to help entrepreneurs start, operate, and grow their businesses. The centers provide free on-site counseling, training courses, and workshops and have resources for addressing a broad va
BUSINESS INTERRUPTION COSTS: The costs or lost revenue associated with an interruption in normal business operations.
business interruption insurance  insurance protection for a business whose operations are interrupted because of a fire, storm, or other natural disaster
Business Interruption Insurance. A policy that pays a stipulated amount when the business cannot operate because of some insured peril. For example, a policy will pay a certain percentage of the business's earnings lost because of a fire.
BUSINESS INTERRUPTION: Any event, whether anticipated (i.e., public service strike) or unanticipated (i.e., blackout) which disrupts the normal course of business operations at a corporate location.
Business Judgment Rule The rule states that directors of corporations will not be held personally liable for unwise business decisions providing that the directors made an informed decision and that decision was not tainted by self-interest.
Business liabilities Everything (all debts) owed by the business.
business model  a group of shared characteristics and behavior in a business situation
business name the name of a business officially listed in the state or territory Register of Business Names.
Business net worth or business equity The owners' interest in a business. Equity is calculated as the value of all business assets minus all business liabilities. (Often called owners equity or owners net worth.)
Business Plan - A comprehensive planning document which clearly describes the business developmental objective of an existing or proposed business applying for assistance in SBA's 8(a) or lending Programs. The plan outlines what and how and from where the resources needed
BUSINESS PLAN - A written review of the business to identify strengths and weaknesses, locate needs, and begin planning how to best accomplish the business' objectives.
business plan  a carefully constructed guide for the person starting a business
business product  a product bought for resale, for making other products, or for use in a firm’s operations
BUSINESS RECOVERY COORDINATOR: See Disaster Recovery Coordinator.
BUSINESS RECOVERY PROCESS: The common critical path that all companies follow during a recovery effort. There are major nodes along the path which are followed regardless of the organization. The process has seven stages: 1) Immediate response, 2) Environmental restoration, 3) Functional restoration, 4) Data synchronization, 5) Restore business functions, 6) Interim site, and 7) Return home.
BUSINESS RECOVERY TEAM: A group of individuals responsible for maintaining and coordinating the recovery process. SIMILAR TERMS: Recovery Team
BUSINESS REPLY CARD (B.R.C.) – A preprinted postcard enabling direct mail recipients to respond easily. Direct mail offers that include BRCs have a much higher response rate.
BUSINESS RESUMPTION PLANNING (BRP): The operations piece of business continuity planning. Also see: Disaster Recovery Planning
business service providers (bsps) A new breed of software developers that rent business applications. Rather than purchasing software, a company can access applications via the Internet. A BSP's offerings are hosted by a computer service provider, and are often tailored to a specific industry, such as banking, food service, or airlines. Tibersoft, for example, has created a service that connects food service vendors, distributors, and restaurants. First-generation BSPs include companies such as Automatic Data Processing (ADP), the leader in payroll distribution.
business service  an intangible product that an organization uses in its operations
Business Services - services offered to commercial enterprises, such as: equipment maintenance, supplying of part time personnel, engineering, design and management consulting, etc.
Business Start - For enumeration purposes, a business with a name or similar designation that did not exist in a prior time period.
Business Taxes - four general kinds of business taxes are income, self-employment, employment, and excise.
BUSINESS UNIT RECOVERY: The component of Disaster Recovery which deals specifically with the relocation of key organization personnel in the event of a disaster, and the provision of essential records, equipment supplies, work space, communication facilities, computer processing capability, etc. SIMILAR TERMS: Work Group Recovery.
business  the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs
Business:  An organization created with the objective of making a profit from the sale of goods or services.
Businessowner's Program. An insurance policy designed for small offices or stores, covering the building and contents for full replacement cost as well as liability insurance.
business-to-business (b2b) Communications and transactions conducted between businesses, as opposed to between businesses and consumers. Expressed in alphanumeric form, it refers to such transactions conducted over the Internet. See business-to-consumer.
business-to-business (B2B) model  firms that conduct business with other businesses
BUSINESS-TO-BUSINESS (B-TO-B) – Communications or commerce between companies (as distinguished from dealings between a company and a consumer); frequently conducted through trade journals.
business-to-consumer (b2c) Communications and transactions conducted between businesses and consumers, as opposed to between businesses. When expressed as B2C, it refers to such communications and commerce via the Internet. See business-to-business.
business-to-consumer (B2C) model  firms that focus on conducting business with individual buyers
business-to-distributor (b2d) Communications and transactions conducted between a business and the members of the distribution channel (resellers, distributors, agents, retailers) that it uses to sell its products to consumers. See channel.
Buy-Down. A loan in which someone other than the borrower puts up money to reduce the interest rate or borrower's monthly payments. Frequently done by builders in poor markets. It makes the house more affordable. The buy-down usually expires within a few years.
buying allowance  a temporary price reduction to resellers for purchasing specified quantities of a product
buying behavior  the decisions and actions of people involved in buying and using products
buying long  buying stock with the expectation that it will increase in value and can then be sold at a profit
buying on margin — For those who don’t have lots of money, but believe that’s what it takes to make a killing on the stock market. Stock buyers purchase stocks with borrowed money, gambling the share price will rise enough to pay off the loan and then some.
Buying Power Index (B.P.I.) A composite indicator of consumer demand in specific cities, counties, and metro areas. Published annually by Sales and Marketing Management magazine, the B.P.I. reflects disposable personal income, retail sales, and population in the area.
BUZZWORD – A word or phrase that takes on added significance through repetition or special usage. "Customer Retention Program" has become a buzzword among retailers.
Bylaws Bylaws are the rules and regulations adopted by a corporation for its internal governance. It usually contains provisions relating to shareholders, directors, officers and general corporate business. At the corporation's initial meeting the bylaws are adopted. Bylaws are a private document not filed with any state authority. Bylaws are more flexible than the articles of incorporation because they are easier to amend.
Bylaws. The rules governing the operation of an organization. In the case of a corporation, the bylaws are drawn up at the time, or shortly after incorporation. (Most stationery stores have standard forms which can be modified.)
By-Laws: The internal rules which govern the management of the corporation. They contain the procedures for holding meetings, appointments, elections and other management matters. If these conflict with the Articles of Incorporation, the provision in the Articles will be controlling.
Byproduct. Output of a production process with relatively little sales value when compared to the main product.
C Corporation A C corporation is simply a standard business corporation. It is called a C corporation because it is taxed under subsection C of the IRS code.
cable modems These are modems that receive data (usually Internet data) over the same type of cable that cable TV uses (fiber or coaxial). This cable provides much more bandwidth than that provided by regular phone lines, and thus more data-intensive operations, like video, are easily delivered. In theory, cable modems have maximum data rates six times those of a dedicated T-1 line, but since cable connections are shared, heavy use in a single neighborhood can slow things down.
cache A cache, generally speaking, is a store of data placed on a computer network close to the user who needs it. PC operating systems might use space on a hard drive to cache software that spills over its capacity. Web browsers use caches to remember recently surfed Web pages and images, speeding their display when a user returns to them. Network caching is where Web data is replicated on servers closest to the users who download it most frequently. Portals like Yahoo use caching services like Akamai to make their pages download more quickly. Caching is also key to technologies like streaming audio, which would overwhelm networks if streams weren't cached close to the listener.
Cafeteria plan. A plan maintained by an employer that allows employees to select from a menu of taxable and nontaxable benefits.
calendar software Software to tell you what day it is, ring an alarm (or flash a screen reminder), or line up and schedule events that are to take place at a certain time. An unprepossessing calendar utility is a freebie in Microsoft Windows operating system; more powerful ones are integral to personal information managers (PIMs). See personal information management.
Calendar Tax Year - 12 consecutive months beginning January 1 and ending December 31.
Calendar Year:  An entity's reporting year, covering 12 months and ending on December 31. (See: Fiscal year)
call — An option to buy a certain amount of stock at a specific price during a specific time.
CALL OPTION - Option to buy shares of a certain stock within a given period of time at a specific price fixed in the contract.
Call Option. 1. The right to buy 100 shares of a stock (or stock index, etc.) at set price. Usually, the option holder has the right, but not the obligation to purchase the property. The option expires at a set time. For example, the current price of Madison Inc. is $50. For $5 per share you can purchase a option that allows you to buy Madison stock at $52 at anytime within the next 60 days. Traded options expire at preset times. 2. The right to prepay a mortgage.
call premium  the dollar amount over par value that the corporation has to pay an investor when it redeems either preferred stock or a corporate bond
Call Premium. In the case of straight or convertible bonds or preferred stock it's the amount in excess of the par value of the security the issuer may have to pay for the privilege of redeeming the security before maturity. For example, if the par value is $1,000, the issuer may have to pay $1,100 to redeem the bond. The call premium can vary with the timing of the call feature. For example, the call premium may be $100 on a bond that's callable 5 years from issuance. The premium may be only $50 if the bond is callable 10 years after issuance. The term call premium can also refer to the purchase price of a call option.
CALL PRICE - The price at which a corporation or other obligor is permitted to redeem securities containing call provisions. To compensate for this privilege, a price above par is usually paid.
Call Protection. The length of time during which a bond, preferred stock, etc. cannot be redeemed by the issuer.
Callable Bond. A bond that can be redeemed by the issuer before the stated maturity date. Usually, the bond cannot be redeemed before a certain time, say 5 years. And often bonds are only callable at certain times. If a call date is missed, the bond may not be callable until the next call date. The call privilege is to enable the issuer to refund the bonds at a lower interest rate should that occur during the term. The yield and value of a bond can be affected by any call privilege. Sometimes known as a call feature.
CALLED BOND - A bond which the debtor has declared to be due and payable on a certain date, prior to maturity, in accordance with the provisions of the bond indenture. In case only part of an issue is to be redeemed, the bonds to be retired are usually drawn by lot.
CALLED PREFERRED STOCK - Preferred stock, containing call provisions, which is redeemed by a corporation.
CAMPAIGN – The total planned, coordinated sales effort on behalf of a specific client or product, often multimedia in nature and run over a period of time. Motto Advertising has created numerous award-winning campaigns for its clients.
cancel supporting documents To mark supporting documents as having been used to support a transaction so the same documents can't be used as support for a second transaction. An example is stamping vouchers "paid" and marking them with the check number.
Canceled Loan - The annulment or recission of an approved loan prior to disbursement.
CANON - A rule or law. Under civil law the rules by which the title to real property is traced are known as canons of inheritance; under common law such rules are known as canons of descent.
CANON LAW - The law of the church, ecclesiastical law.
CANON OF ETHICS - Written and unwritten standards of conduct expected by certain groups, especially professional groups, in pursuit of their specialized activities.
capacity  the amount of products or services that an organization can produce in a given time
Capital - *** Assets less liabilities, representing the ownership interest in a business; *** a stock of accumulated goods, especially at a specified time and in contrast to income received during a specified time period; *** accumulated goods devoted to the produc
capital — Money needed to start or grow a business. This pool can come from securities offerings and retained earnings.
Capital - the financial investment required to initiate and/or operate an enterprise.
Capital Account:  An account where an owner's or partners' interest in the business is recorded. It is increased by owner investment and net income and decreased by withdrawals and net losses.
Capital Asset - All tangible property, including securities, real estate and other property, held for the long term.
CAPITAL ASSET An asset that is purchased for long-term use such as machinery and equipment.
capital budget — Shows plans for buying long-term assets—machinery and other things you expect to last several years—and estimates the costs of those purchases.
capital budget  a financial statement that estimates a firm’s expenditures for major assets and its long-term financing needs
Capital Budgeting. A formal plan for making investments in plant, equipment, other fixed assets, advertising projects, etc. Items included in the capital budget have lives in excess of one year and often require long-range planning.
Capital Expenditure. The purchase of or outlay for an asset with a life of more than a year, or one that increases the capacity or efficiency of an asset or extends it's useful life. Generally, such expenditures cannot be deducted currently for tax purposes (or expensed for financial accounting purposes. Instead, they must be depreciated or amortized over their useful life.
Capital Expenditures - Business spending on additional plant equipment and inventory.
Capital expenditures. Amounts spent to acquire or improve assets with useful lives of more than one year. These expenditures may not be deducted, but are added to the basis of the property (See "Adjusted basis.") and, for business property, may be converted into deductions through depreciation or amortization.
Capital Expense:  A capital expenditure is one that will benefit one year or more. It can increase the quantity or quality of services to be gained from the asset. It is charged to an asset account.
Capital Gain - The profit realized when a capital asset is sold for a higher price than the purchase price. See also capital loss.
Capital Gain (or loss). A category of gain or loss under the tax law resulting from the sale or other disposition of specified property such as stock or bond investments, real estate, etc. It does not include property used in a trade or business. However, special rules apply in such situations that can result in similar treatment for business property.
capital gain a financial gain made from selling fixed assets such as land, buildings, or a business at a price above the original purchase price.
Capital gain or loss. Gain or loss from the sale or exchange of investment property, personal property (such as a home) or other "capital asset," which is often entitled to preferential tax treatment.
Capital Gain or Loss:  The difference between the market and book value at purchase or other acquisition realized at the sale or disposition of a capital asset. (Washington's gain is your loss.)
capital gain  the difference between a security’s purchase price and selling price
Capital Gains or Losses Gains or losses realized from the sale or exchange of capital assets. The amount is determined by calculating the difference between an asset's purchase and sale price.
Capital Lease:  Although the lessee does not legally own rental property, the property is theoretically acquired and recorded as an asset with the related liability.
Capital Lease: Type of lease classified and accounted for by a lessee as a purchase and by the lessor as a sale or financing, if it meets any one of the following criteria: (a) the lessor transfers ownership to the lessee at the end of the lease term; (b) the lease contains an option to purchase the asset at a bargain price; (c) the lease term is equal to 75 percent or more of the estimated economic life of the property (exceptions for used property leased toward the end of its useful life); or (d) the present value of minimum lease rental payments is equal to 90 percent or more of the fair market value of the leased asset less related investment tax credits retained by the lessor. (Also see finance lease.)
Capital Loss - The loss incurred when a capital asset is sold for a lower price than the purchase price. See also capital gain.
capital requirement a list of expenses that must be met to establish a business. Even before a business is started, the owner should start keeping records.
Capital Stock See Authorized stock.
Capital Stock:  The ownership shares of a corporation authorized by its articles of incorporation, including preferred and common stock.
Capital stock: See Authorized stock.
Capital the total owned and borrowed funds in a business.
capital  all the financial resources, buildings, machinery, tools, and equipment that are used in an organization’s operations
Capital. Account that represents real ownership and is the difference between the value of the assets and the liabilities. Includes owner's original investment, subsequent investments and profit derived from the business less losses incurred and withdrawals from the owner.
Capital. Sometimes used as a synonym for the owner's equity in a business.
Capital: Another word for “money”.
Capital:  Property or money used and owned by a business and used to acquire future income or benefits.
Capital: Initially, the actual money or property that shareholders transfer to the corporation to allow it to operate. Once in operation, it also consists of accumulated profits. The net worth of the corporation.
capital-intensive technology  a process in which machines and equipment do most of the work
capitalism  an economic system in which individuals own and operate the majority of businesses that provide goods and services
Capitalization - The sum of a corporation's long-term debt, stock and surpluses. Syn. invested capital.
Capitalization Rate. The rate of interest used to discount the future income from a property to arrive at a present value.
Capitalization: How you are going to raise money for your business.
Capitalized Property - Personal property of the agency which has an average dollar value of $300.00 or more and a life expectancy of one year or more. Capitalized property shall be depreciated annually over the expected useful life to the agency.
capitalized Recorded as an asset. A capitalized lease is in substance a purchase to the lessee. An asset is recorded equal to the present value of the lease payments, which is also recorded as a liability. Payments, partly interest and partly principal, are made on the lease liability. The lease asset is depreciated by the lessee as though it were legally owned by the lessee.
captioned photograph  a picture accompanied by a brief explanation
captive pricing  the pricing of a basic product in a product line at a low price, but pricing related items at a higher level
Carnet: A Customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration, or other purposes without paying import duties or posting bonds.
carrier  a firm that offers transporation services
Carrier: The party responsible for transport of goods (shipping line, airline, road haulage company etc.) 
Carrybacks and carryforwards. Deductions that may be transferred to a year other than the current year because they exceeded certain limits. These deductions are typically carried back to earlier years first and, if they exceed the limits for those years, are then carried forward to later years until the deduction is used up. Charitable contributions and net operating losses are examples of deductions that may be carried back or forward.
Carrying Costs. Expenses incurred from storage of inventory. Includes interest, insurance, taxes, deterioration, spoilage, obsolescence, handling and warehousing.
carve-outs The most common example of a carve-out used to be when an HMO would pay a separate insurer to provide and manage coverage in a related area, such as mental-health care. While mental-health care is a good old-economy example, carve-outs in the new economy mean leveraged buyouts or venture-capital investments (or both-see the Accel-KKR Internet Fund) that liberate a dotcom division from its bricks-and-mortar (nonvirtual) parent. A classic example of a carve-out is the creation of as a separate company from Barnes & Noble. While a tracking stock does not constitute a carve-out, it could set the stage for one.
Case of need: In a collection, party in the buyer's country who is designated by the seller to advise and/or give instructions in the event of problems or disputes. The collection order will specify whether the case of need is authorised to instruct the bank.
CASH ACCOUNTING The simplest form of accounting in which income is considered earned when received and expenses are not taken into account until paid.
Cash Against Documents (CAD): Payment for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash.
Cash Based Accounting - an accounting method that enters income and expenses into the books at the time when payment is received or expenses incurred.
Cash Basis:  A bookkeeping method that recognizes revenue and expenses at the time of cash receipt or payment. (Opposite of Accrual Basis.) (This is the same as your personal checkbook.)
cash book a record of cash payments and receipts, showing these under various categories.
cash budget  a financial statement that projects cash receipts and expenditures over a specified period
Cash Budget. An internal statement used by management to keep track of inflows and outflows of cash transactions over a period time.
Cash cover: In a letter of credit transaction, money deposited by the applicant with the Issuing bank.
Cash Discount - An incentive offered by the seller to encourage the buyer to pay within a stipulated time. For example, if the terms are 2/10/N 30, the buyer may deduct 2 percent from the amount of the invoice (if paid within 10 days) otherwise, the full amount is due in
cash discount a deduction that is given for prompt payment of a bill.
Cash Discount. Price reduction or discount on bills paid early. Terms of "2/10, Net 30," for example, means that a 2% discount is granted if the bill is paid within 10 days. Otherwise, the entire amount is due within 30 days.
Cash Flow - An accounting presentation showing how much of the cash generated by the business remains after both expenses (including interest) and principal repayment on financing are paid. A projected cash flow statement indicates whether the business will have cash
cash flow — Money coming into a company and being paid out by the company. Ideally you’d want to take in at least as much as you pay out. On a personal level, you’re having a cash-flow problem if you can’t make your mortgage payments. You’re not necessarily poor; your house might be worth a lot if sold, but you’re still having cash-flow problems.
CASH FLOW - The sources of funds and the uses of funds for a business during a specified time frame.
Cash Flow - the transfer of monies into and out of an enterprise.
Cash Flow Projection: An estimate into the future of how cash will move through the business during a period of time.
Cash Flow Projections based on analysis of past operating experience, payment of obligations, and collection of receivables. This experience is applied to budgeted sales and costs for a future periodi in order to allow for repayment of loan obligations and to assure adequate working capital from earned income. Cash flow forecasts provide a fundamental financial-management tool for planning cash needs and ensuring adquate liquidity.
cash flow the flow of internal funds generated within the business as a result of receipts from debtors, payments to creditors, drawings and cash sales.
cash flow  the movement of money into and out of an organization
Cash Flow: The movement of money into and out of a business as it sells products and services and pays expenses.
Cash Flow:  Generally refers to the difference between cash receipts and disbursements over a specific period of time
Cash flows All dollar amounts received by or paid by the business. All monetary flows into or out of the business.
Cash flows from financing Cash flows related to the use of credit by the business as it prepares for, engages in, or terminates business activities. NOTE: These "cash flows" include both debt extensions and debt repayments during the subject accounting period.
Cash flows from investing Cash flows from transactions involving purchases and sales of productive assets and the debt and equity instruments of other firms.
Cash flows from operations Cash flows from day-to-day, income-producing activities of the firm.
Cash in Advance (CIA): Payment for goods in which the price is paid in full before the shipment is made.  This type of payment is usually only made for very small shipments or when goods are made in order.
Cash includes all money in the bank, in the cash drawer and in petty cash. Banknotes, coins, bills and negotiable securities (like cheques) is cash. But so is the money you can draw on demand - your bank accounts or savings accounts also represent "cash".
Cash Method - reporting income one receives during the year, usually deducting expenses in the year you pay them.
Cash method (or cash basis). One of two main accounting methods for determining when a transaction has tax significance. The cash method says that a transaction is taxed when payment is made. This method is used by most individuals. (See "Accrual method (or accrual basis).")
Cash Method An accounting method under which income is subject to tax when actually received and deductions are allowed when actually paid.
CASH POSITION - The percentage of cash to the total net assets indicates the cash position of the firm.
cash receipts the money received by a business from customers
cash surrender value  the amount payable to the holder of a whole life insurance policy if the policy is canceled
Cash-basis accounting An accounting system in which revenues are recorded when received or collected, and expenses are recorded when paid.
Cash-basis income statement An income statement compiled from cash-basis accounting. Revenues are credited when received or collected; expenses are recorded when paid. A cash-basis income statement does not match current costs with current revenues. It can give erroneous measures of profit or loss when inventory levels increase or decrease during the accounting period.
Cash-On-Cash Return. Usually reserved for real estate income properties, it's the annual cash flow from the property divided by your cash investment. Sometimes called return on equity or equity dividend rate. It's a quick and dirty way to evaluate an investment.
CATALOG – An illustrated booklet listing products or services available.
catalog marketing  marketing in which an organization provides a catalog from which customers make selections and place orders by mail or telephone
catalog showroom  a retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store
category killer  a very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability
CAUSA MORTIS - See Gift Causa Mortis.
CAUTION. The rules for real property are more complicated.
caveat A warning or caution.
CAVEAT EMPTOR "Let the buyer beware"
caveat emptor let the buyer beware. The condition of sale is that the purchase is at the buyer’s risk.
caveat emptor  a Latin phrase meaning "let the buyer beware"
CAVEATOR - An interested party who gives notice to some officer not to do a certain act until the party is heard in opposition-as the caveator of a will offered for probate.
CBI is a Web-based knowledge management system that gathers and organizes structured (numeric) and unstructured (text) information from a wide variety of sources, including data warehouses, e-mail, and the Web, so that users can easily locate, present, share, annotate, and update such data. CBI systems capture information that may otherwise be lost when employees leave a company, extend information to a wider audience, bring together related information to recapture the context in which past decisions were made, and speed up the decision-making process. In essence, they make it possible to share and institutionalize not only information but also knowledge. SAS Institute is a leading provider of CBI.
CD Drive (or CD-ROM drive or CD-RW drive): A Compact Disc drive, used to read data CDs (also called CD-ROMs). A CD can store up to 650 Megabytes (millions of characters). These days, new programs and data are often distributed on CD-ROM, so a CD-Drive is almost mandatory. A CD-RW drive is able to write to special CD media (either CD-Recordable or CD-ReWritable). CD-Recordable media can be written only once, but can be read as often as you wish. CD-ReWritable media can be written multiple times (a minimum of 1000 times). Both types of media are available from office supply stores as well as computer stores.
cease and desist order — Federal Trade Commission ruling that orders a stop to an unfair business practice.
centralized organization  an organization that systematically works to concentrate authority at the upper levels of the organization
Certiciate of manufacture: A statement which is usually notarized in which the producer of goods certifies that the goods have been produced and are now available to the buyer.
certificate authority Security is the new frontier of the digital world, and there are numerous safeguards to build secure systems for e-commerce and data transfer. A certificate authority is a third-party organization that creates digital certificates for a public key infrastructure (PKI), which lays the groundwork for requiring users to have an issued key or password to access information. The certificate authority guarantees a user's identity and issues public and private keys for message encryption and decryption (coding and decoding). In essence, the certificate authority guarantees that a user making a request is the person she claims to be, and conversely, that the provider of the information is the recipient the user believes she is accessing.
Certificate of Acceptance: Term used in leasing.  A document whereby the lessee acknowledges that the equipment to be leased has been delivered, is acceptable, and has been manufactured or constructed according to specifications.
Certificate of analysis/certificate of inspection: Documents that may be asked for by the importer and/or the authorities of the importing country, as evidence of quality or conformity to specifications.
Certificate of Authority Is a document issued by the proper state authority to a foreign corporation granting the corporation the right to do business in that state.
Certificate Of Competency - A certificate issued by the Small Business Administration (SBA) stating that the holder is "responsible" (in terms of capability, competency, capacity, credit, integrity, perseverance, and tenacity) for the purpose of receiving and performing a specific g
Certificate of Compliance. A vendor's certification that the supplies or services delivered meet certain specified requirements.
certificate of deposit (CD)  a document stating that the bank will pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time
Certificate of Incorporation: See Articles of Incorporation. Note, however, some states will issue a Certificate of Incorporation after the filing of the Articles of Incorporation.
Certificate of origin: Documents that may be asked for by the authorities of the importing country, as evidence of the country of manufacture of the goods and hence qualification for preferential tariffs etc. 
certificates of deposit (CDs) — Generally considered conservative investments. You purchase the CDs from financial institutions–essentially loaning your money–and they promise to pay you back on a fixed date, usually with interest. You can invest for several months, but longer investments generally earn higher interest.
Certified 8(A) Firm - A firm owned and operated by socially and economically disadvantaged individuals and eligible to receive federal contracts under the Small Business Administration's 8(a) Business Development Program.
CERTIFIED BUSINESS CONTINUITY PLANNER (CBCP) or DISASTER RECOVERY PLANNER (CDRP): CBCP's are certified by the Disaster Recovery Institute, a not-for-profit corporation, which promotes the credibility and professionalism in the DR industry.
CERTIFIED LENDERS Banks that participate in the SBA's guaranteed loan program.
certified public accountant (CPA)  an individual who has met state requirements for accounting education and experience and has passed a rigorous two-day accounting examination
Certified Public Accountant:  A designation given to an accountant who has passed a uniform CPA examination and has met other certifying requirements. CPA certificates are issued and monitored by state boards of accountancy or similar agencies.
CESTUI QUE TRUST - (pl., cestuls que trustent) - A person for whose benefit a trust is created; a beneficiary.
CFR - Cost and Freight : A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price.
chain of command  the line of authority that extends from the highest to the lowest levels of an organization
chain retailer  a firm that operates more than one retail outlet
challenge-handshake authentication protocol (chap) A secure procedure for validating a network connection request. After the link is established, the server sends a challenge message to the connection requestor, who responds with encrypted authentication information-the username and password-based on a key in the challenge message. If the server is able to decipher the message using the original key, the authentication is acknowledged. Otherwise, the server terminates the contact. See the less secure password authentication procedure.
Change in net worth Change in business net worth during an accounting period due to business earnings during the period. Usually calculated from a cost-basis balance sheet (see definition under "Balance sheet terminology") holding unit value of inventories constant. (Sometimes called comprehensive income.)
channel conflict Occurs when a producer or manufacturer bypasses its normal distribution channel (resellers, distributors, agents, retailers) to sell directly to consumers, often on the Internet.
channel of distribution (or marketing channel)  a sequence of marketing organizations that directs a product from the producer to the ultimate user
channel(1) A path between two computers or communications devices. A channel can refer to the physical pathway (such as a coaxial cable) or, in wireless media, to the specific carrier frequency. (2) A channel is also a high-speed metal or fiber-optic pathway between a mainframe or other high-end computer and the control units of peripheral devices. In a 10-channel computer, for example, 10 separate streams of data can be transmitted to and from the central processing unit simultaneously. (3) Channel is also the pathway through which a vendor communicates with and sells products to customers. This can include a sales force, distributors, resellers, agents, retailers, direct mail, telemarketing, e-mail, or the Web. See channel conflict.
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Character - A letter, digit, or other symbol, that is a part of the organization, control, or representation of data used in computer systems.
Charged Off Loan - An uncollectible loan for which the principal and accrued interest were removed from the receivable accounts.
Charge-Off - An accounting transaction removing an uncollectible balance from the active receivable accounts.
Chart of Accounts:  A listing (usually in account number order) of all accounts used by a company.
Charter party bill of lading: Bill of lading issued by the charterer or hirer of a vessel. Unpopular with banks, because situations can arise when the owner of the vessel has a claim on the goods.
Charter:  Also known as Articles of Incorporation. A document issued by a state that gives legal status to a corporation and details its specific rights, including the authority to issue a certain maximum number of shares of stock.
chat A form of interactive communication that enables users to have real-time conversations with other people who are also online. In traditional chats, text messages are instantaneously relayed to other people in the same chat room. Recent developments include voice chat (communication via audio instead of text transmission) and customer support chat where users can log on to talk to a customer support representative.
check digit A redundant digit added to a code to check accuracy of other characters in the code.
check register A listing of checks issued, normally in numeric sequence and in order by date issued.
check  a written order for a bank or other financial institution to pay a stated dollar amount to the business or person indicated on the face of the check
CHECKLIST TEST: A method used to test a completed disaster recovery plan. This test is used to determine if the information such as phone numbers, manuals, equipment, etc. in the plan is accurate and current.
CHINESE WALL - A policy barrier between the trust department and the rest of the bank designed to stop the flow of information for the purpose of preventing use by the trust department of any material inside information, which may come into the possession of other bank departments, in making investment decisions.
CHOSE - Anything that is personal property.
CHOSE IN POSSESSION - Any article of tangible personal property in actual, rightful possession, such as a watch, an automobile, or a piece of furniture; to be distinguished from a chose in action.
CIF - Cost, Insurance, freight : a pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
Civil Authority Insurance: Business Income insurance pays for the loss of income if access to you business is prohibited by civil authorities because of damage to other property as a result of a covered cause of loss insured in your policy. Coverage is provided for up to two consecutive weeks from the date of the civil authority action.
Claims-Made Basis. Under this type of insurance policy the insurer is responsible only for claims filed during the period the policy is in force. See Claims-Occurrence Basis below.
Claims-Occurrence Basis. With this type of insurance policy the insurer is responsible for claims from events that occurred during the time the policy was in force. It makes no difference when the claim is filed.
classification Arrangement or grouping. Assets and liabilities are normally classified as current or noncurrent.
CLASSIFIED AD – A brief listing appearing in a periodical of items for sale and/or services offered, usually arranged by category. Motto Advertising has extensive experience in writing and inserting effective classified ads in newspapers, magazines, on television and the internet.
Clayton Act — One of the United States’ antitrust laws. This one forbids price discrimination.
Clean bill of lading: a receipt for goods issued by a carrier that indicates that the goods were received in apparently good order and without damage.
Clean collection: Collection in which only the financial document (bill of exchange) is sent through the banks.
clicks-and-mortar Combination of an old-fashioned (bricks-and-mortar) store and a Website where you can order merchandise online and possibly tie the Web to a physical store. For example, Gateway lets potential buyers try out its computers at their local Gateway Country Store, but customers still must make their purchases online. Some conventional retailers with Websites allow consumers to return items to physical stores.
clickthrough The percentage of people who, after viewing a banner ad on a Website, click on it and go to the ad's target site. Say that a Website's home page contains a banner ad for a free flight to Fiji. If the home page is opened 100 times and five people click on the ad to learn more, the clickthrough is 5 percent. (That's very high-most ads have a clickthrough of 1 percent or less.)
CLIENT – An organization that employs an advertising agency to create advertisements. Motto Advertising helps its clients become rich beyond the dreams of avarice.
client/serverThe client/server relationship is best defined as one computer program (the client) requesting information from another computer program (the server), and the server responding by fulfilling the request. In the client/server model, when you request a bank balance electronically, your request is forwarded by the client program and, at the bank end, received and processed by the server program. Originally, the term applied to network computing in the days when PCs were hooked up to one large mainframe computer, but the Internet has overturned the conventional client/server model, which requires specialized software at both ends. Now your Web browser is the client program, and the Web server that houses the Web pages is the recipient of that request. Today, with the advent of powerful individual workstations, most computers can act as both client and server in different situations, particularly when networked together. This scenario is often described as "n-tier computing," where "n" refers to the multiple levels of clients and servers that now exist.
close corporation  a corporation whose stock is owned by relatively few people and is not sold to the general public
Close corporation: Corporation with less than 50 shareholders and which has elected to be treated as a close corporation. Not all states have close corporation statutes. (For information regarding close corporations, please consult a competent attorney).
Close Corporations A close corporation is a corporation that possesses the following traits: a small number of shareholders; no ready market for the corporation's stock; and substantial participation by the majority shareholders in the management of the corporation. Some states have close corporation statutes.
Closed Loan - Any loan for which funds have been disbursed, and all required documentation has been executed, received and reviewed. For statistical purposes, first or total disbursement is counted as a closed loan.
closed shop  a workplace in which workers must join the union before they are hired, outlawed by the Taft-Hartley Act
closed-end fund — A mutual fund that sells a limited number of shares.
Closely Held Corporation. A corporation with five or fewer shareholders who own more than 50% in value of the stock at any one time during the year. Note, this is the IRS definition. In common usage the definition can be broader.
Closely-held corporation: Not a specific state-sanctioned type of corporation, but rather a designation of any corporation in which the stock is held by a small group of people or entities and is not publicly traded.
Closing - Actions and procedures required to effect the documentation and disbursement of loan funds after the application has been approved, and the execution of all required documentation and its filing and recordation where required.
Closing a Settlement Statement: When referring to a real estate mortgage loan, the financial disclosure statement that accounts for funds received to date and expected at the closing, including deposits for taxes, hazard insurance and mortgage insurance.
CLOUD ON TITLE - A defect in the owner-s title to property arising from a written instrument or judgment or from an order of court purporting to create in someone else an interest in or lien upon the property and therefore impairing the marketability of the owner-s title.
cloud The unpredictable part of any network that data travels through on its way to its final destination. In a packet-switched network, the physical path on which the data packet travels can vary from one packet to the next. In a circuit-switched network, the specific circuit can vary from one connection to the next.
cluster structure  an organization that consists primarily of teams with no or very few underlying departments
code of ethics  a guide to acceptable and ethical behavior as defined by an organization
CODICIL - An amendment or supplement to a will executed with all the formalities of the will itself.
Coinsurance Amount Limit. A requirement under burglary insurance that a minimum amount of insurance be maintained, based on the type and amount of merchandise.
coinsurance clause  a part of a fire insurance policy that requires the policyholder to purchase coverage at least equal to a specified percentage of the replacement cost of the property to obtain full reimbursement for losses
Coinsurance Clause. In the case of a partial loss where the property is not insured for the indicated percentage of its cash value at the time of the loss, the recovery from the company is based on a percentage.
COLD SITE: An alternate facility that is void of any resources or equipment except air-conditioning and raised flooring. Equipment and resources must be installed in such a facility to duplicate the critical business functions of an organization. Cold-sites have many variations depending on their communication facilities, UPS systems, or mobility (Relocatable-Shell). SIMILAR TERMS: Shell-site; Backup site; Recovery site; Alternative site.
collaborative business intelligence (cbi)
collaborative filtering The process by which a software component sifts through the profiles or usage patterns of users who visit a Website, and makes recommendations based on purchasing habits or other preferences. For example, if you go to a Website looking for a book on minor league baseball, when you click on the profile of that book, collaborative filtering can recommend a list of similar books based on data that reflects the purchases of other buyers of that book. Collaborative filtering is a tool intended to increase e-commerce sales through successful recommendations of product and upselling.
collaborative learning system  a work environment that allows problem-solving participation by all team members
COLLATERAL - An asset pledged to a lender to support the repayment of a debt.
Collateral - assets that can be pledged to guarantee a loan.
Collateral - Something of value -- securities, evidence of deposit or other property -- pledged to support the repayment of an obligation.
COLLATERAL An asset that can be sold for cash and which has been pledged to a creditor to secure a future obligation. (For example, if you finance a car it is the collateral for the loan).
Collateral Document - A legal document covering the item(s) pledged as collateral on a loan, i.e., note, mortgages, assignment, etc.
Collateral security provided by a borrower to cover the possibility that the loan will not be repaid.
collateral  real estate or personal property pledged as security for a loan
Collateral. Property that secures debt payment that the borrower pledges to the creditor. Collateral recovers all or part of a debt, if repayment of the loan is not forthcoming.
Collateral: Assets that can be sold to repay a loan in the event of failure of the business.
Collateralization. To pledge mortgages, bonds, accounts receivable or other marketable properties as security for a loan.
collateralize To pledge property as security (collateral) for a debt.
Collecting bank: Bank in the buyer's country that participates in a collection. The collecting bank may or may not also be the presenting bank, who presents documents
collection by the buyer.  These may be incurred unintentionally if the goods arrive before the buyer has received the document of title.
Collection order: In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.
Collection: Trading method in which the banking system acts on behalf of the seller, presenting documents to the buyer and only releasing them upon payment (or upon acceptance of a term bill).
collective bargaining — The process by which labor leaders and management iron out agreements on pay and working conditions.
collective bargaining  the process of negotiating a labor contract with management
collusion A secret agreement between two or more parties for fraud or deceit.
COLOR SEPARATION – A traditional photographic process that uses four film negatives to ultimately create a full-color printed product. Recent computer innovations have obviated the need for separated film negatives in certain applications.
Combined transport bill of lading: Transport document, widely used for containerized shipments, covering more than one transport mode - for example, rail and sea. Has the same general characteristics as a marine Bill of Lading. 
comfort letter A letter written by the auditor to an underwriter of securities, which expresses an opinion about whether the audited financial statements and schedules in the registration statement comply as to form with applicable accounting requirements of the Act and related rules and regulations adopted by the SEC. The procedures to be performed are specified by the underwriter.
COMMAND AND/OR CONTROL CENTER: A centrally located facility having adequate phone lines to begin recovery operations. Typically it is a temporary facility used by the management team to begin coordinating the recovery process and used until the alternate sites are functional.
command economy  an economic system in which the government decides what will be produced, how it will be produced, who gets what is produced, and the prices of what is produced
COMMERCIAL – An audio or video advertising announcement, usually presented on television, radio or in a movie theater. Visit our creative portfolio to see some of the celebrated commercials MJM has produced.
commercial bank  a profit-making organization that accepts deposits, makes loans, and provides related services to its customers
Commercial Blanket Bond. A bond that covers employee theft by one or more employees up to a fixed amount.
Commercial document: General term for documents describing various aspects of a transaction, e.g. commercial invoice, transport document, insurance document, certificate of origin, certificate of inspection etc. 
Commercial invoice: Document drawn up by the seller that gives a summary of the commercial transaction (goods supplied, price, means of shipment and so on).
commercial paper — Short term unsecured debt, with maturity up to 270 days. Banks, corporations and others raise money by issuing commercial paper to investors.
commercial paper  a short-term promissory note issued by a large corporation
Commercial Property Form. An all-risk type insurance policy covering business personal property against physical loss for retailers, wholesalers and certain other types of businesses.
commission broker — A person who does the trades for a stock broker’s clients, receiving a commission for the work. The stock broker places orders with them.
commission merchant  a middleman that carries merchandise and negotiates sales for manufacturers
commission  a payment that is a percentage of sales revenue
Commitment fee: This term has several meanings.  It is the fee charged by a forfeiter for reserving funds to a transaction that was forfeited.  It is the fee charged by a negotiating bank for waiving recourse to the beneficiary in the event of non-payment by the Issuing bank. 
Common Carrier - An organization that transports persons or goods for a fee.
Common Control. In tax parlance, the situation where a group of five or fewer persons own more than 50% of an undertaking and therefore have the ability (whether or not it is exercised) to direct operations.
common law  the body of law created by court decisions rendered by judges; also known as case law or judicial law
Common Stock - A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. See also equity; preferred stock.
common stock — Regular old stock. Owners of this bottom rung of stocks have a piece of the company and get to vote for the board of directors and on corporate policy. But they have to queue up behind owners of preferred stock both to receive dividends and, usually, to receive assets if a company is liquidated.
Common Stock The primary stock of a corporation. This stock gives shareholders the right to participate in management of the corporation and give the shareholder a proportionate share of the dividends.
common stock  stock owned by individuals or firms who may vote on corporate matters, but whose claims on profit and assets are subordinate to the claims of others
common stock  stock owned by individuals or firms who may vote on corporate matters, but whose claims on profit and assets are subordinate to the claims of others
Common Stock:  A class of stock issued by a corporation. It is the most frequently issued type of stock. It carries with it a voting right, however is secondary in priority to preferred stock in dividend and liquidation rights.
Common stock: The standard stock of a corporation which includes the right to vote the shares and the right to proportionate dividends. See also Preferred stock.
COMMUNICATIONS FAILURE: An unplanned interruption in electronic communication between a terminal and a computer processor, or between processors, as a result of a failure of any of the hardware, software, or telecommunications components comprising the link. (Also refer to Network Outage.)
communications program  software that allows computers to communicate with each other
COMMUNICATIONS RECOVERY: The component of Disaster Recovery which deals with the restoration or rerouting of an organization's telecommunication network, or its components, in the event of loss. SIMILAR TERMS: (Telecommunication Recovery, Data Communications Recovery)
community of interests  a situation in which one firm buys the stock of a competing firm to reduce competition between the two
Community property. A system governing spousal ownership of property and income that is the law in certain western and southern states and Wisconsin. The differences between community property and "common law" can change how federal tax law applies to spouses. For example: married taxpayers filing separately in a common law state do not have to report income earned by the other spouse. They do have to report income earned in a community property state.
community shopping center  a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores
Company a business owned by a group of people called shareholders, which has its own legal identity separate from its owners.
comparability Users evaluate accounting information by comparison. Similar companies account for similar transactions in similar ways. Another goal is comparison of one company's information from one period to the next (consistency). Operating trends should not be disguised by changing accounting methods.
Comparable Properties. One of the ways of appraising real estate (or other property) is to find recent selling prices of properties that are comparable to the one being appraised. If the properties are not identical, an appraiser can make adjustments.
comparable worth  a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills
comparative advantage  within a nation, the ability to produce a specific product more efficiently than any other product
comparative Financial statements of a prior period shown with those of the current period to aid in comparisons between periods.
compare (comparison) An audit procedure. The auditor observes similarities and differences among similar items such as an account from one year to the next.
comparison discounting  sets the price of a product at a specific level and simultaneously compares it with a higher price
compensating balance An offsetting balance. A requirement by some banks that a borrower maintain a minimum balance in a checking or savings account as a condition of granting a loan. The offsetting balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged.
compensation system  the policies and strategies that determine employee compensation
compensation  the payment that employees receive in return for their labor
competence of an internal audit staff is a function of qualifications, including education, certification, and supervision. Competent audit evidence is valid and reliable
competition  a rivalry among businesses for sales to potential customers
competitive intelligence One of the main byproducts of the technology age is data-valuable, quantifiable material on every facet of running a global corporation. Competitive intelligence is the corporate version of old-fashioned espionage, except the sleuths wear T-shirts and goatees instead of trench coats and dark glasses, and they tend to sit at computer terminals instead of slinking through the fog-covered streets of London and Paris. Knowledge ranges from marketing research to pricing to spreadsheet analysis of what other companies have done in the places you intend to go. Putting this knowledge to work is the utility of acquiring competitive intelligence.
compile (compilation) A compilation is presenting in the form of financial statements information that is the representation of management without expressing assurance. Compilation of a financial projection is assembling prospective statements based on assumptions of a responsible party, reading the statements, considering appropriateness of presentation, and issuing a compilation report. No assurance is provided on the statements or underlying assumptions. The accountant need not be independent.
completeness Assertions about completeness deal with whether all transactions and accounts that should be presented in the financial statements are included. For example, management asserts that all purchases of goods and services are recorded and included in the financial statements. Similarly, management asserts that notes payable in the balance sheet include all such obligations of the entity.
Completion Bond. A guarantee provided by a bonding company to a lender or other party that the contractor will turn over the property to the owner free of any claims.
compliance Following applicable rules or laws.
Compliant documents:  Documents presented under a letter of credit that comply with all its terms and conditions. The banks are only obliged to pay the beneficiary if documents are totally compliant.
component part  an item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly
COMPOUND INTEREST Interest earned on previously accumulated interest plus the original principal. Most spread sheets can calculate this easily for you but for the curious, the formula is C = P(1 + r/n)n, where C=compound amount, P=original principal, r=annual interest rate, n=total number of periods over which interest is compounded.
Compounding Period:  The period of time for which interest is computed.
comprehensive basis of accounting A complete set of rules other than U.S. GAAP applied to all items in a set of financial statements. Examples include a basis of accounting required by a regulatory agency, a basis of accounting the entity uses for its income tax return and the cash receipts and disbursements basis.
Compromise - The settlement of a claim resulting from a defaulted loan for less than the full amount due. Compromise settlement is a procedure available for use only in instances where the government cannot collect the full amount due within a reasonable time, by enfo
computer controls Internal controls performed by computer (software controls) as opposed to manual controls. Also means general and application controls over the computer processing of data.
COMPUTER RECOVERY TEAM: A group of individuals responsible for assessing damage to the original system, processing data in the interim, and setting up the new system.
computer service providers (csps)One of the new breed of outsource vendors for the dotcom world. CSPs are a kind of utility that house computer equipment-servers-to provide computer power for application service providers (ASPs), business service providers (BSPs), and e-commerce businesses. Customers run their software on the CSPs servers. One example is Exodus Communications.
computer virus A malevolent program that becomes embedded in a computer system or application. Viruses range from harmless pranks that merely display an annoying message to programs that can destroy files or disable your computer altogether. Viruses are most commonly transmitted through e-mail; recently, "strains" have appeared that use personal e-mail address books to propagate themselves from machine to machine.
computer viruses  software codes that are designed to disrupt normal computer operations
computer-aided design (cad) Also computer-assisted design, CAD is a system combining hardware and software that enables engineers, architects, and other professionals to design just about anything from a building to a bracket, from an integrated circuit to an ice pick, and from a sofa to a space station. CAD systems make it possible to view a design from any angle and to zoom in and out for close-ups and long views. If the user changes one value, the system automatically changes all the others that depend on it.
computer-aided design (CAD)  the use of computers to aid in the development of products
computer-aided engineering (cae) A computer hardware and software system that analyzes engineering designs by simulating how they will work under different conditions. Most computer-aided design (CAD) systems incorporate CAE, but there are stand-alone CAE systems that can analyze designs produced by a variety of CAD systems.
computer-aided manufacturing (cam) A computer hardware and software system used to automate the manufacturing process by directing the manufacture and inventory of parts. CAM systems include real-time control, robotics, and material requirements.
computer-aided manufacturing (CAM)  the use of computers to plan and control manufacturing processes
computer-integrated manufacturing (CIM)  a computer system that not only helps design products but also controls the machinery needed to produce the finished product
Concealment. Intentionally withholding adverse facts that are known when you're obligated to reveal them.
CONCEPT – The general idea behind a slogan, pitch, or campaign.
conceptual skill  the ability to think in abstract terms
Concessions. In real estate, free rent, allowances for alterations, etc., or similar payments or allowances from a landlord to induce a tenant to sign a lease.
condensed financial statements are presented in considerably less detail than complete financial statements.
Conditional. In insurance parlance, a contract requiring the insured to meet specified conditions to obtain payment for any losses.
confirm (confirmation) Communication with outside parties to authenticate internal evidence.
Confirmed letter of credit: Letter of credit in which a bank (usually) in the seller's country adds its own payment undertaking to that of the Issuing bank. Protects against country risk and bank risk as well as customer credit risk.
Confirming bank: Bank that adds its payment undertaking to a letter of credit. Also see confirmed letter of credit.
Consent Resolution: Any resolution signed by all of the directors or shareholders of a corporation authorizing an action, without the necessity of a meeting.
Consequential Losses. Indirect losses from an event.
CONSERVATOR - (1) Generally, an individual or a trust institution appointed by a court to care for property. (2) Specifically, an individual or a trust institution appointed by a court to care for and manage the property of an incompetent person, in the same way as a guardian cares for and manages the property of a minor.
consideration  the value or benefit that one party to a contract furnishes to the other party
Consignee: Party to whom goods are to be delivered. 
consignment Transfer of possession but not title to goods. Title stays with the consignor, while the consignee has possession.
Consignment:  In a consignment, the consignor (owner of the goods) transfers goods to the consignee. The consignor retains legal title and includes the goods in his inventory. The consignee is acting as an agent in an attempt to sell the goods. Although the consignee is temporarily holding the goods, the inventory is not an asset on his books. If a sale occurs, the consignee deducts from the selling price his commission and related expenses, remitting the balance to the consignor.
Consignment: Delivery of merchandise from an exporter to an agent under agreement that the agent sell the merchandise for the account of the exporter.  The consignor retains title to the goods until the consigneee has sold them.  The consignee sells the goods, collects the commission due and remits the net proceeds to the consignor.
consistency To achieve comparability of information over time, the same accounting methods must be followed. If accounting methods are changed from period to period, the effects must be disclosed.
Consolidation Loan: The process of paying off several smaller obligations with the proceeds of a new loan, usually with lower interest monthly payments than the combined total of the obligations being paid off.
Consortium - A coalition of organizations, such as banks and corporations, set up to fund ventures requiring large capital resources.
CONSORTIUM AGREEMENT: An agreement made by a group of organizations to share processing facilities and/or office facilities, if one member of the group suffers a disaster. SIMILAR TERMS: Reciprocal Agreement.
Construction Loan. A loan intended only to finance the construction of a property. Usually must be converted to a term loan after construction is complete.
Constructive control: The ability to retain control over goods dispatched to the buyer. Usually maintained through transport documents. Where there is credit risk,constructive control is important to the seller. Constructive control may also be important to a bank who has financed a transaction.
Constructive Total Loss. A partial loss where the cost of repairing the damage is greater than the value of the property after restoration.
Consular invoice: Commercial invoice prepared in the seller's country by the consulate of the buyer's country. Helps the government of the buyer's country control and
consulted Sought advice or information.
consulting services performed by CPAs include consultations, advisory services, implementation services, product services, transaction services, and staff and support services.
CONSUMER – A private individual at whom advertisements are aimed; a buyer.
consumer buying behavior  the purchasing of products for personal or household use, not for business purposes
CONSUMER MARKET – A defined group of consumers.
Consumer Price Index (Cpi) - A measure of price changes in consumer goods and services used to identify periods of inflation or deflation.
consumer price index (CPI) — Measures price changes of common goods and services, including such things as housing and food. What you quote when you’re trying to convince your boss you need a raise to keep up with inflation.
consumer price index (CPI) a measure of the aggregate rise or fall in prices of commonly used goods and services, published by the Commonwealth Government as a basis, among other things, for deciding what overall increases should be made to wages and salaries.
consumer product  a product purchased to satisfy personal and family needs
consumer products  goods and services purchased by individuals for personal consumption
consumer profiling The process of assembling a comprehensive database regarding consumer shopping habits, motivations, and product/service preferences. Information is captured from online and offline transactions, including supermarket loyalty cards scanned at checkout, cookies, credit cards, and other means. Profiling is the underpinning of targeted marketing.
consumer protection agency The federal agency charged with protecting consumers from unfair, deceptive, or fraudulent practices. It enforces consumer-protection laws enacted by Congress and trade regulations issued by the Federal Trade Commission. The bureaus divisions encompass advertising, financial, and marketing practices, as well as enforcement, planning, and information. Consumer privacy falls within its jurisdiction.
consumer sales promotion method  a sales promotion method designed to attract consumers to particular retail stores and motivate them to purchase certain new or established products
consumerism  all activities undertaken to protect the rights of consumers
consumers  individuals who purchase goods or services for their own personal use
consumer-to-business (c2b) A small segment of e-commerce that takes advantage of the Internet's power to reverse the normal channel, so that consumers dictate what they're willing to pay and vendors decide whether or not to accept. is an example.
contact manager A software program that makes it possible to automatically track and manage present and prospective customers. Contact managers are most widely used in B2B marketing and range from electronic Rolodexes to advanced customer-asset management systems. Most comprise a contact database, historical information about past interaction, and the ability to schedule and track future contacts. These systems can be used as personal contact managers, centralized field-sales automation systems, or integrated marketing systems encompassing field, telephone, direct mail, and other forms of contact. Some include customer service, help desk, and other nonmarketing activities. The most widely used contact managers are ACT 2000 (Symantec), Organizer 5.0 (Lotus), and FileMaker Pro 4.1 and 5.0 (Goldmine).
content provider An organization that provides and updates information on the Internet. (Content simply means any type of information, from stock quotes to news to gossip to worldwide weather forecasts.) An individual who creates content for the Web-say, a columnist on your favorite Website-can also be considered a content provider.
contingency is an existing condition involving uncertainty as to possible gain (gain contingency) or loss (loss contingency) that will be resolved by future events. Estimates, such as the useful life of an asset, are not contingencies. Eventual expiration of the asset's utility is not uncertain.
contingency plan  a plan that outlines alternative courses of action that may be taken if the organization’s other plans are disrupted or become ineffective
CONTINGENCY PLAN: See Disaster Recovery Plan.
CONTINGENCY PLANNING: See also Disaster Recovery Planning.
Contingent Business Interruption Insurance. An insurance policy that provides benefits if your earnings are reduced because of damages to another business on which yours is dependent.
Contingent Financing Clause. A clause in a purchase and sale agreement the specifies that the buyer must be able to secure financing on reasonable terms or he can back out of the purchase.
Contingent Interest. Income from a note that is at least partially based on the income from the property. This is common in financing commercial real estate. For example, Fred loans Madison $1 million at 8%. The terms also require the payment of 3% of the cash flow from the property in any year that the cash flow exceeds $750,000.
Contingent liabilities Liabilities that will be incurred only when assets are sold. Contingent liabilities include: selling costs for assets; income tax on capital gains realized through the sale of assets; and write-off of the unrecovered value of intangibles or natural resources.
Contingent Liability - A potential obligation that may be incurred dependent upon the occurrence of a future event. Two examples are: (1) the liability of an endorser or guarantor of a note if the primary borrower fails to pay as agreed and (2) the liability that would be incur
contingent liability a liability which will only arise upon the happening of a certain event, for example, the guarantor of a loan being asked to honour the guarantee if the borrower defaults.
Contingent Payments. Payments where the amount and/or timing is dependent on other events, usually the income from the property.
continuing accounting significance Matters of continuing accounting significance are those normally included in the permanent audit working paper file, such as the analysis of balance sheet accounts, and those relating to contingencies. Such information from a prior year is used by the auditor in the current year's audit and is updated each year.
continuing auditor is the auditor of the current year who also audited the financial statements of the client for the previous year.
Contra Account. An asset account that normally has a credit balance. The contra account is used to offset a related account. The approach is used so that the regular asset account is shown at the original or undiminished value. For example, accounts receivable has a contra account usually called allowance for doubtful accounts. Fixed assets have a contra account called accumulated depreciation.
Contract - A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them.
Contract a legally binding agreement between two or more parties.
CONTRACT An agreement between two (or more) parties in which each promises to perform in some way. Contracts can be complex and should always be reviewed by an attorney. A contract may not be binding if not correctly drafted and executed .
Contract Interest Rate. The stated, or nominal, interest rate in a contract.
contract  a legally enforceable agreement between two or more competent parties who promise to do, or not to do, a particular thing
Contracting - Purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes the description of supplies and services required, the selection and solicitation of sources, the preparation and award of contracts, a
Contracting Officer - A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.
Contractor Team Arrangement - An arrangement in which (a) two or more companies form a partnership or joint venture to act as potential prime contractor; or (b) an agreement by a potential prime contractor with one or more other companies to have them act as its subcontractors under a
Contribution Margin: The percentage of the selling price that can be used to pay fixed costs. If a product is sold for $1.00 and it costs 70 cents to make the product, 30 cents is the contribution that can be used to pay fixed costs and 30 % or .3 is the contribution margin. 70 cents pays for the variable costs.
Contribution: The difference between the selling price of a product and the cost to make that product. The amount of money that remains to pay fixed costs. After you break even, contribution is the amount of money from each sale of your product or service that now is counted as profit.
Contributory Negligence. A defense argument that the plaintiff did not exercise sufficient care and that this contributed to his injury.
control A policy or procedure that is part of internal control.
control environment is the attitude, awareness, and actions of the board, management, owners, and others about the importance of control. This includes integrity and ethical rules, commitment to competence, board or audit committee participation, organizational structure, assignment of authority and responsibility, and human resource policies and practices.
control policies and procedures Control activities are the policies and procedures that help ensure management directives are carried out. Those pertinent to an audit include performance reviews, information processing, physical controls and segregation of duties.
control risk The risk that material error in a balance or transaction class will not be prevented or detected on a timely basis by internal controls.
controllable expenses those expenses that can be controlled or restrained by the businessperson.
controller An officer who supervises financial affairs of an entity. In internal control the controller is often the person with recordkeeping (general ledger) responsibilities, as contrasted with asset custody, management decision making, and internal audit functions.
controlling  the process of evaluating and regulating ongoing activities to ensure that goals are achieved
Convenience Goods - goods often used by the consumer, but the consumer is unwilling to spend "shopping time" to acquire them. This covers a broad spectrum of products including candy, cigarettes, drugs, newspapers, magazines and most grocery products.
Convenience of Termination Clause. A contract clause that permits the party to terminate, at its own discretion.
convenience product  a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort
convenience store  a small retail store that sells a limited variety of products but remains open well beyond the normal business hours
Conventional Loan. A mortgage loan that is not backed by insurance from a government agency or other source.
convergence of technologies  the overlapping capabilities and the merging of products and services into one fully integrated interactive system
Convertible currency:  A currency that can be bought and sold for other currencies at will.
convertible preferred stock  preferred stock that the owner may exchange for a specified number of shares of common stock
Convertible Term. Term life insurance which is convertible into whole life without showing insurability.
cookie Former Netscape programmer Lou Montulli is credited with inventing the Web cookie, a small file that a Web server automatically sends to the PC of someone browsing a Website. Cookies contain information that identifies each user: log-in or registration information, passwords, shopping cart information, specified preferences, and so on. When the user revisits the Website, his or her computer automatically distributes the cookie, which establishes the users identity, thus eliminating the need to re-enter the information. Cookies allow, for example, to tailor its appearance to suit the users established preferences. Marketers can use cookies to track a users browsing and buying habits. This has given rise to concern about privacy and compelled some consumers to purge cookies from their hard drives.
cookie  a small piece of software sent by a web site that tracks an individual’s Internet use
CO-OP – The practice of a national brand subsidizing local advertising costs incurred by a company that sells its product. Typically, the national brand has stringent rules about the advertisement in which the product appears. SUN, Pepsi, and Cadillac are just a few of the thousands of brands that make co-op dollars available.
cooperative advertising  an arrangement whereby a manufacturer agrees to pay a certain amount of the retailer’s media cost for advertising the manufacturer’s product
COOPERATIVE HOTSITES: A hot site owned by a group of organizations available to a group member should a disaster strike. ALSO SEE Hot-Site.
cooperative  an association of individuals or firms whose purpose it is to perform some business function for its members
COPY – The written part of an advertisement. Effective copy is critically important, even in visually-oriented advertising messages.
Copyright a type of property right which protects the expression of ideas such as literary or dramatic works, television productions, drawings etc., from being used for commercial gain without permission of the copyright owner. Registration is not a prerequisite for protection.
copyright  control of content ownership
copyright  control of content ownership
Copyright: The exclusive right to reproduce, publish and sell printed materials, musical work, and art.
COPYWRITER – A person responsible for writing advertising copy and generating creative concepts, often in collaboration with an art director or creative director.
corporate bond  a corporation’s written pledge that it will repay a specified amount of money, with interest
corporate charter  a contract between the corporation and the state, in which the state recognizes the formation of the artifical person that is the corporation
corporate culture  the inner rites, rituals, heroes, and values of a firm
CORPORATE IDENTITY – A company’s name, logo, typeface, colors, slogan, etc., are elements that help comprise its corporate identity. Motto Advertising has produced effective corporate identity packages for many new and long-established organizations.
Corporate Image Advertising - a "corporate image" ad is designed to primarily promote the enterprise and secondarily promote the products or services of the enterprise.
corporate officers  the chairman of the board, president, executive vice presidents, corporate secretary and treasurer, or any other top executive appointed by the board of directors
Corporate Record Book Maintaining the proper records is very important to assure limited liability to corporate shareholders. The corporation should have a record book which contains a copy of the articles of incorporation, bylaws, initial and subsequent minutes of directors and shareholders meetings and a stock register.
corporation — A business owned by shareholders.
CORPORATION - A form of business organization that may have many owners. Each owner is liable only to the extent of the investment. It is an artificial entity established by the state.
Corporation - A group of persons granted a state charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of its members. The process of incorporating should be completed with the state's secretary of
Corporation A legal entity created under the laws of a state to carry on some business or other authorized activity. The principal distinction between a business corporation and other forms of business organization (i.e., proprietorship or partnership) is the fact that the liability of the owners is limited to the capital of the subject corporation.
corporation  an artifical person created by law, with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts
Corporation:  A type of business organization chartered by a state and given many of the legal rights as a separate entity. Ownership is represented by transferable shares of stock.
Correspondent bank: Overseas bank with whom a bank account has relationships (nostro-vostro accounts) and arrangements for authentication of communications.
corroborate (corroborating) (corroboration) (corroborative) To strengthen with other evidence, to make more certain.
Cosigner. Any person that signs along with the maker of a loan or credit obligation, thus becoming responsible if the maker defaults.
co-signers people whom together share responsibility on behalf of a business by jointly signing documents or cheques.
Cost and freight (CFR): Incoterm. Seller pays transport costs to named destination, but not insurance.
Cost Method. An appraisal method that values a property based on the cost to reproduce it today. That amount is usually adjusted for depreciation.
Cost of Good Sold:  COGS; The amount determined by subtracting the value of the ending merchandise inventory from the sum of the beginning merchandise inventory and the net purchases for the fiscal period.
Cost of Goods - the direct costs involved in producing a product or service which usually includes labor and materials.
cost of goods sold — How much it cost the seller to make or buy the goods sold. Same as “cost of sales.”
cost of goods sold the total cost to the business of the goods sold during an accounting period. In its simplest form this is the sum of the opening stock plus all purchases less the closing stock.
cost of goods sold  the dollar amount equal to beginning inventory plus net purchases less ending inventory
Cost of Goods Sold. Determined for the period by counting the merchandise left at the end of the period (physical inventory) and subtracting its cost from the total cost of merchandise available for sale.
Cost of Sales - the cost of goods plus the expenses involved in selling and delivering the product or service.
COST PER THOUSAND (C.P.M.) – The cost of advertising per thousand potential customers reached by a given publication, broadcast, or outdoor advertisement. This figure is often used in media planning.
Cost, insurance and freight (CIF): Incoterm. Seller pays transport costs and insurance to named destination.
Cost-basis balance sheet A balance sheet in which asset values are entered at cost or cost less depreciation, amortization, or depletion (as appropriate to the type of asset). (Also called a book-value balance sheet.)
cost-of-living adjustment (COLA) — A type of raise workers can get to reflect the higher cost of consumer goods. Also a sort of corporate hardship pay for employees sent to live and work in expensive places.
Costs - Money obligated for goods and services received during a given period of time, regardless of when ordered or whether paid for.
count Enumerate some characteristic such as the number of items in inventory.
Counter credit: Another name for back-to-back letter of credit.
Counter trade: The sale of goods or services that are paid for in whole or part by the transfer of goods or services from a foreign country.
countertrade  an international barter transaction
Countervailing Duties:  Duties levied on an imported good that has been unfairly subsidized by a foreign government.  Imposing duties on the good is meant to raise the product's price to a "fair market value". 
Country risk: Risk that economic or political instability in the buyer's country will interfere with the buyer's ability to pay for goods supplied.
coupon — A detachable part of traditional bond certificates. You present these to the issuer to collect your interest payments.
coupon rate — A bond’s annual interest rate, stated as a percentage of what was originally paid for the bond. Gets its name from traditional bond certificates, which have coupons you detach and return to the issuer to collect your interest payments.
coupon  reduces the retail price of a particular item by a stated amount at the time of purchase
coursewareWhere technology meets the classroom, or a hybrid of college course and software. Most people have their initial courseware experience when they plug in their first computer and get a tutorial. Courseware can also provide training and education for specific software programs, as well as computer business applications. The actual courseware program can come in the form of a CD-ROM, a Website, or even an old-fashioned instructional video. Courseware is also frequently used as ancillary material for computer training classes.
court of limited jurisdiction  a court that hears only specific types of cases
court of original jurisdiction  the first court to recognize and hear testimony in a legal action
Covenants. Promises included in an agreement to perform or not to perform certain acts. For example, a loan may contain a covenant that the borrower's debt-to-equity ratio cannot exceed 2 to 1.
cover note a temporary certificate of insurance issued by an insurance company to give immediate insurance cover until a formal document is prepared and issued.
Cover note: Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details. 
cracker Someone who intentionally breaks into a computer system, breaching computer security, usually with the intent of stealing information or disabling the system. Sometimes the cracker is engaging in hacking activity simply for the challenge; other times, to demonstrate a weakness in a particular Websites security. Crackers can be sophisticated corporate criminals or precocious high school kids stretching their programming muscles. Either way, hacking for destructive purposes is a criminal offense, and the authorities actively prosecute crackers.
craft union  an organization of skilled workers in a single craft or trade
CRATE & SHIP: A strategy for providing alternate processing capability in a disaster, via contractual arrangements with an equipment supplier to ship replacement hardware within a specified time period. SIMILAR TERMS: Guaranteed Replacement, Quick Ship.
creative selling  selling products to new customers and increasing sales to present customers
CREATIVE TEAM – The art director, copywriter, and artist, working together to develop an advertisement or campaign. At Michael J. Motto Advertising, the account executive directs this team.
Credit an entry made on the right hand side of an account and indicating a gain to a liability, owner’s equity or revenue account.
credit application a form to be completed by an applicant for a credit account, giving sufficient details to allow the seller to establish the applicant’s creditworthiness.
credit are irrevocably assigned to the assignee.
credit control any policy designed to increase or decrease credit.
Credit Enhancements. Using third-party guarantees such as a cosigner, the pledging of assets, an insurance company bond, or a letter of credit to provide additional security for a loan.
credit limit the upper limit of credit that a business will allow a customer to have.
Credit Rating - A grade assigned to a business concern to denote the net worth and credit standing to which the concern is entitled in the opinion of the rating agency as a result of its investigation.
Credit Rating: An evaluation of your qualifications to receive credit, based largely on your past credit history.
CREDIT REPORT A listing of an individual or company's history of repaying past loans and other liabilities.
Credit Report: A report given by a credit-reporting agency about your credit worthiness based on your present financial condition, experience and past credit history.  
Credit Risk Insurance: Insurance that covers the risk of nonpayment for delivered goods.
credit union  a financial institution that accepts deposits from, and lends money to, only those people who are its members
credit  immediate purchasing power that is exchanged for a promise to repay borrowed money, with or without interest, at a later date
Credit:  An entry on the right side of a ledger account.
Creditor a person or business to whom money is owed.
crime  a violation of a public law
CRISIS MANAGEMENT: The overall coordination of an organization's response to a crisis, in an effective, timely manner, with the goal of avoiding or minimizing damage to the organization's profitability, reputation, or ability to operate.
CRISIS SIMULATION: The process of testing an organization's ability to respond to a crisis in a coordinated, timely, and effective manner, by simulating the occurrence of a specific crisis.
CRISIS: A critical event, which, if not handled in an appropriate manner, may dramatically impact an organization's profitability, reputation, or ability to operate.
CRITICAL FUNCTIONS: Business activities or information which could not be interrupted or unavailable for several business days without significantly jeopardizing operation of the organization.
critical path  the sequence of production activities that takes the longest time from start to finish
CRITICAL RECORDS: Records or documents which, if damaged or destroyed, would cause considerable inconvenience and/or require replacement or recreation at considerable expense.
cross-channel marketing Marketing effort in which a company uses one of its sales channels to promote another. For example, a company may promote its bricks-and-mortar retail locations on its Website, or promote its Website in its catalogs.
crossed cheque a cheque across which two parallel lines have been drawn. The effect of crossing a cheque is to direct your bank to pay the cheque only through another bank account.
cross-functional team  a group of employees from different departments who work together on a specific team
Cross-Purchase Plan. A plan by which each stockholder or partner in a closely held business agrees to purchase the interest of a departing stockholder or partner. Usually funded by life insurance on the lives of the other stockholders or partners. (Note, cross-purchase agreements can become unwieldy when more than four owners are involved.)
cultural diversity (or workplace diversity)  differences among people in a work force due to race, ethnicity, and gender
cumulative effect of changing to a new accounting principle is the effect on retained earnings at the beginning of the current period. It is included in net income after extraordinary items. Only the direct effect (net of income tax effect) is considered.
cumulative preferred — Preferred stock that is due dividends, even if payments are delayed until the company can afford them. The amount owed builds until the dividends are paid. Owners are entitled to their payments before common-stock owners can collect theirs.
Cumulative Voting This method of voting is intended to create adequate representation of minority shareholders. Cumulative voting allows shareholders to aggregate their votes in favor of fewer candidates than there are slots available.
Cumulative voting: A voting right of shareholders which allows votes for directors to be spread among the various nominees. This right protects the voting strength of minority shareholders. The amount of votes in cumulative voting is based on the number of shares held times the number of director positions to be voted on. The shareholder can then allocate the total cumulative votes in any manner.
currency devaluation  the reduction of the value of a nation’s currency relative to the currencies of other countries
Currency option: Foreign exchange transaction in which a party buys the right (but not the obligation) to buy or sell a given amount of foreign currency at a given exchange rate at either:   a given future date or at any point within a future time period. 
Current Assets - Assets that can be converted quickly to cash.
current assets — Cash and assets that are expected to be used, sold or converted to cash in the near future, usually one year. A sporting goods store’s current assets would include the money in the register and its bicycles, as well as short-term insurance policies and marketable securities—securities expected to be turned into cash in one year.
Current Assets - Cash and other assets that are expected to be converted into cash within the next twelve months. Examples include such liquid items as cash and equivalents, accounts receivable, inventory and prepaid expenses.
CURRENT ASSETS - The assets which can be quickly converted to cash. Cash, investment accounts, inventories and accounts receivable are in this category.
Current assets Cash and other assets that normally will be sold or used up within one year. Categories include: cash, marketable securities (value is lower of cost or current market), receivables, inventories, prepaid expenses, and time deposits that mature within the accounting period.
current assets includes cash, short-term deposits, customers’ accounts, stock (includes work in progress, raw materials and finished goods), that will be converted into cash during the normal course of business, within a year.
current assets  assets that can be quickly converted into cash or that will be used in one year or less
Current Assets. Includes cash and other resources that can be converted into cash or used within the normal operations of a business within a relatively short period of time, usually less than one year.
Current Assets: Cash or other assets you expect to use in the operation of the firm within one year.
Current Assets:  Current assets are those assets of a company that are expected to be converted to cash, sold, or consumed during the normal operating cycle of the business (usually one year). Examples are cash, accounts receivable, short-term investments, US government bonds, inventories, and prepaid expenses.
Current Liabilities - All debts incurred in the normal day-to-day business and due within one calendar year.
current liabilities — These liabilities must be paid in a relatively short time, usually one year. Taxes are one example.
CURRENT LIABILITIES - Those obligations intended to be paid in one year or less, usually from earnings.
Current liabilities Debts or accrued amounts owed that are to be paid within a year. Current liability categories include: accounts payable, notes payable, taxes payable, current portion of principal on intermediate-term or long-term debt, cash dividends payable, accrued interest and other accrued liabilities.
current liabilities short-term debts such as bank overdraft, creditors and provisions set aside to pay taxation and other commitments (for example, holiday or long service leave) and expected to come due within one year of the Balance Sheet.
current liabilities  debts that will be repaid in one year or less
Current Liabilities. Debts and other amounts owed to creditors by the business entity due within one year. Includes wages payable, accounts payable, dividends payable, taxes payable, and so forth.
Current Liabilities: Debts payable within one year, including current portions of any long-term debt.
Current Liabilities:  Liabilities to be paid within one year of the balance sheet date.
CURRENT RATIO - A ratio which indicates a business' ability to pay current liabilities as they become due. It is calculated as the ratio of current assets to current liabilities.
Current ratio A liquidity ratio measuring the ability of a business to pay its current obligations when due. The current ratio is calculated by dividing total current assets by total current liabilities. Most managers and lenders want the current ratio to be 2.00 or greater.
current ratio Total current assets divided by total current liabilities.
current ratio  a financial ratio computed by dividing current assets by current liabilities
Current Ratio. A commonly used method of measuring a firm's short term solvency by indicating its ability to pay current debts from current assets. Current ratio is calculated by dividing current assets by current liabilities.
Current Ratio:  Also known as Working Capital Ratio. A measure of liquidity of business. Equal to current assets divided by current liabilities.
Current Yield. The yield of a bond or similar instrument, taking into account only the current interest and the price paid. Computed by dividing the annual interest by the purchase price.
custodian One that has possession or is in charge of something. Some entities entrust marketable investment securities to a bank which is custodian of the company's securities.
custody Possession.
customary pricing  certain goods priced primarily on the basis of tradition
customer information control systems (cics)An online transaction processing (OLTP) program developed by IBM. Combined with the COBOL language, it has become one of the most common programs for creating customer transaction systems. See online transaction processing.
customer interaction centers (cics)Traditional customer call centers are morphing into customer interaction centers. CICs integrate all customer contact-by phone, fax, e-mail, the Web, and other marketing technologies. Considered an integral part of customer relationship management (CRM), CICs are expected to become the operating control point for collecting and disseminating customer data within an organization. CICs function as the chief portal through which customers receive company information.
customer relationship management (crm)
customer relationship marketing A one-to-one marketing model in which information gathered throughout the history of the customer’s relationship with the company is used to market to that customer in a way that promotes trust, loyalty, and, therefore, increased sales. Customer relationship marketing is an important part of customer relationship management.
customer support The range of services a company provides to assist customers in using its products efficiently and effectively. Effective customer support can answer questions, troubleshoot problems, provide replacement parts or repairs, assist with development of applications, or offer technical assistance. Customer support is an integral component of customer relationship management. See customer relationship management.
customer support, real-time Providing customer support on an around-the-clock basis.
customer surveys A form of market research in which customers respond to particular questions or provide opinions. Surveys use a variety of techniques (interviews, focus groups, opinion polls, questionnaires) and media (telephone, fax, Internet, direct mail, publications).
Customhouse Broker: An individual or company licensed by the government to enter and clear good through customs.
customs (or import) duty  a tax on a foreign product entering a country
Customs: The government authorities designated to collect duties levied by a country on imports and exports.  The term also applies to the procedures involved in such a collection.
cutoff Designating a point of termination. An auditor uses tests of cutoff to obtain evidence that transactions for each year are included in the financial statements of the appropriate year.
cyberfraud The most common form of cyberfraud is online credit card theft. While data break-ins have received much publicity, a more common form of theft is the ordering of goods from stolen or invented credit card numbers. In addition, word travels very quickly on the e-commerce grapevine, and one incidence of cyberfraud can scare off consumers and mean a permanent loss of traffic to a site. Other common forms of cyberfraud are nondelivery of paid products purchased through online auctions and nondelivery of merchandise or software bought online.
cyberspace A metaphorical term that describes the invisible world where digital signals from a computer are transmitted. When you click on a Website or the send button in your e-mail program, you are sending data through cyberspace
cybersquatting The practice of purchasing a well-known domain name (such as in hopes of selling it at a big profit. When Internet commerce exploded, cybersquatting became a hotly contested practice as large corporations found that domain names similar to their trademarks and brands had already been registered. This practice is currently being contested in various legal battles.
cyberterrorism Literally, terrorism conducted in cyberspace, where criminals attempt to disrupt computer or telecommunications service. With the bulk of the world digitally connected, there is a grave vulnerability to attack. Hackers have the ability to spread a computer virus or launch a denial of service attack, with relative ease and anonymity. The ripple effect of bringing down a system in Sunnyvale, Calif., or Herndon, Va., can have ramifications in London or Calcutta. High-tech security to ward off cyberterrorism is a growing and vital business.


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