N.

SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

distribution channel
A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel.

distribution channel is in the Advertising, Marketing, & Sales and Distribution & Logistics subjects. distribution channel appears in the definitions of the following terms:
push promotional strategy, channel width, distribution, node, and marketing channel.

W formation
A technical analysis term used to describe a chart on which the price of a security has made two approximately equal bottoms over a period of time. Technical analysts try to buy at one of the bottoms in anticipation of a rise (which would make the shape of a "W" on the chart). also called double bottom. opposite of double top.

electronic commerce (E-Commerce)

Business conducted through the use of computers, telephones, fax machines, barcode readers, credit cards, automated teller machines (ATM) or other electronic appliances (whether or not using the internet) without the exchange of paper-based documents. It includes activities such as procurement, order entry, transaction processing, payment, authentication and non-repudiation, inventory control, order fulfillment, and customer support. When a buyer pays with a bank card swiped through a magnetic-stripe-reader, he or she is participating in e-commerce.

electronic commerce (E-Commerce) is in the Banking, Commerce, Credit, & Finance, E-Commerce and Internet & World Wide Web subjects. electronic commerce (ECommerce) appears in the definitions of the following terms: authentication key, social
commerce, Rivest Shami Adleman (RSA) method, Open Financial Exchange (OPX), and electronic hub.

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

consolidated tape
A ticker tape which includes quotes for both NYSE and AMEX stocks. The consolidated tape is split into two different reporting systems. One reports the trading prices and volumes on the New York Stock Exchange, and also trading prices and volume from other exchanges of stocks that are listed on the New York Stock Exchange. The other reports the trading prices and volumes on the American Stock Exchange, and on the trading volume and prices of AMEX-listed stock in other exchanges and the over-the-counter market.

basis point
Smallest measure of quoting the yield on a bond, note, or other debt instrument. One basis point is equal to one hundredth of one percent (0.01%): one percent of a yield equals 100 basis points. For example, an interest rate of 5 percent is 50 basis point higher than the interest rate of 4.5 percent. Similarly, a spread of 50 basis points (between the bid price and offer price of a bond) means the investor must pay 0.5 percent more to buy it than he or she could realize from selling it.

basis point is in the Accounting & Auditing, Investing and Securities & Futures Trading subjects. basis point appears in the definitions of the following terms: point, spread duration,
DV01, and money market yield.

standard accounting practice

A set of rules that a company must follow when reporting information on its financial statement. The standard accounting practice guidelines allow companies to be compared to each other because they have followed the same rules. The standard methods in the U.S. are referred to as Generally Accepted Accounting Principles.

appraisal value

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

Appraiser's opinion (not determination) of the current worth of a property based on factors such as area, location, improvements, and amenities. Generally, this value is arrived at by using one of three methods: (1) Cost approach, (2) Income approach, or (3) Market comparison approach. Not to be confused with assessed value. Also called appraised value.

appraisal value is in the Accounting & Auditing, General, Marine, & Life Insurance, Investing and Real Estate & Buildings subjects. appraisal value appears in the definitions
of the following terms: appraisal, market approach, appraised value, Housing and Economic Recovery Act (HERA), and income approach.

rate differential swap

A swap in which the two payments are tied to two currencies in two different interest rate indexes, but in which the payments are exchanged in one base currency. For example, a rate differential swap might have payments denominated in U.S. dollars, but could have one set tied to the Japanese LIBOR and another to the U.S. LIBOR. The Japanese LIBOR payments will still be made in dollars. The rate differential swap allows investors to profit from changes in the interest rates of the two indexes. also called cross-index basis swap, cross-rate swap, differential swap, interest rate index swap, LIBOR differential swap.

inventory value
Determination of the cost of unsold inventory at the end of an accounting period. Inventory is valued usually at cost or at the market value, whichever is lower. The four common valuation methods are first-in, first-out (FIFO), last-in, first-out (LIFO), average cost (AVCO), and specific identification.

inventory value is in the Accounting & Auditing, Banking, Commerce, Credit, & Finance and Inventory Control & Storage subjects. inventory value appears in the definitions of the
following terms: turnover ratios, inventory cost, Pareto principle, acid test ratio, and inventory carrying cost.

covered warrant

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

A right (but not an obligation) to buy or sell a set amount of stock, bonds or other securities from a financial institution at a specific price and date. Unlike a regular warrant, which is issued by a company and allows a holder to buy or sell that company's securities, a covered warrant is issued by a financial institution and can apply to outside securities. For example, a bank might issue a covered warrant on shares of Microsoft. The warrant is "covered" because the issuing organization owns at least some of the underlying securities.

blue chip
Large, prestigious, prosperous, and stable corporation. Blue chip firms have a solid record of earnings and dividend payments in both good and bad times, and have a strong long-term growth potential. The term comes from the game of poker in which the highest value chip is blue. Called first section in Japan.

blue chip is in the Entrepreneurship, Management, & Small Business, Investing and Securities & Futures Trading subjects. blue chip appears in the definitions of the following
terms: large capitalization stock, opportunity cost of capital, junk bond, Nikkei stock average, and Dow Jones Industrial Average (DJIA).

adjusted debit balance

Value used to determine a margin account's position, as required by Regulation T. This is the amount a customer owes a broker, minus profits on short sales and balances in a special miscellaneous account. If the adjusted debit balance is very small, the customer can withdraw cash or securities from a margin account.

impact fee
Industrial: Charge imposed on industrial projects to compensate for their negative social or environmental cost which will eventually be borne by the public. Real estate: Charge imposed on land developers to cover the cost of infrastructure and related services that will have to be provided by the local or national government.

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impact fee is in the Environment & Pollution Control and Real Estate & Buildings subjects.

RTO
Reverse Take-Over. When a company buys out a larger company, but could also occasionally refer to a private company taking over a publicly listed company. Typically, a public company that is taken over by a private company will remain listed, and the private company will use the acquisition as means of gaining a listing. A reverse take-over is a relatively rare event.

money market
Network of banks, discount houses, institutional investors, and money dealers who borrow and lend among themselves for the short-term (typically 90 days). Money markets also trade in highly liquid financial instruments with maturities less than 90 days to one year (such as bankers' acceptance, certificates of deposit, and commercial paper), and government securities with maturities less than three years (such as treasury bills), foreign exchange, and bullion. Unlike organized markets (such as stock exchanges) money markets are largely unregulated and informal where most transactions are conducted over phone, fax, or online. Long-term borrowing and lending markets are called capital markets.

money market is in the Banking, Commerce, Credit, & Finance, Economics, Politics, & Society and Investing subjects. money market appears in the definitions of the following
terms: money market deposit account, interbank dealings, official cash rate, money center banks, and capital IQ.

forex hedge
Tactic used by a forex trader to protect a current position from undesirable changes in exchange rates. For example, if a trader predicted that the dollar may take a turn for the worst, he/she may implement a forex hedge to protect the investment.

implied-in-law contract

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

Fictional contract imposed by a court as a legal remedy to prevent injustice. It is forced in favor of the wronged party, and against the party that obtains an undue advantage or gains at the expense of the other. The wrongdoer is considered to be under an obligation 'quasi ex contractu' (Latin for, as if from a contract) to make restitution.

implied-in-law contract is in the Agreements & Contracts and Corporate, Commercial, &
General Law subjects.

implied-in-law contract appears in the definitions of the following terms: contract and
implied contract.

satisfaction
Customer level of approval when comparing a product's perceived performance with his or her expectations. Also could refer to discharge, extinguishment, or retirement of an obligation to the acceptance of the obligor, or fulfillment of a claim. While satisfaction is sometimes equated with performance, it implies compensation or substitution whereas performance denotes doing what was actually promised. See also accord and satisfaction.

satisfaction is in the Agreements & Contracts, Corporate, Commercial, & General Law,
Customer Relations & Services and Purchasing & Procurement subjects.

satisfaction appears in the definitions of the following terms: junior debt, customer
relationship management (CRM), scheme of arrangement, American customer satisfaction index, and marketing concept.

APT
Arbitrage Pricing Theory. An alternative asset pricing model to the Capital Asset Pricing Model. Unlike the Capital Asset Pricing Model, which specifies returns as a linear function of only systematic risk, Arbitrage Pricing Theory may specify returns as a linear function of more than a single factor.Thus, there is no clear risk-return trade-off in this model.

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

white collar
Refers to employees whose job entails, largely or entirely, mental or clerical work, such as in an office. The term white collar work used to characterize non-manual workers, but now it refers to employees or professionals whose work is knowledge intensive, non-routine, and unstructured. Historically, in the West, clerical workers wore white shirt collars but manual workers wore blue. See also blue collar.

white collar is in the HR, Recruiting, Teams, & Training subject. white collar appears in the definitions of the following terms: blue collar, middle class, and
businessman.

currency overlay
Currency risk management that is outsourced to specialist firm otherwise called the overlay manager. Most often used for international investment portfolios the overlay manager acts as risk manager to limit risk from adverse movements and to assist in profit building. Hedging is conducted by overlay manager on behalf of firm in order to achieve firm's objectives. Most currency overlay is specialized for example profiting from currency movements.

blue collar
Refers to employees whose job entails (largely or entirely) physical labor, such as in a factory or workshop. For a piece of work to be termed blue collar, it should be directly related to the output generated by the firm, and its end result should be identifiable or tangible. Historically, in the West, manual workers wore blue shirt collars but clerical workers wore white. See also white collar.

blue collar is in the HR, Recruiting, Teams, & Training subject. blue collar appears in the definitions of the following terms: white collar and working class.

offshoring

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

Shifting a business function from one country to another. For a business, this can entail moving product manufacturing, service centers or operations to a different country. Offshoring is often used to reduce the cost of business, with the company seeking to move parts of operations to countries with more favorable economic conditions.

export subsidy
Government help to exporters, generally in two forms (1) Service subsidy: trade information, trade shows, feasibility studies, foreign representation, etc. (2) Cash subsidy: (a) rebate on imported raw materials and duty-free import of manufacturing equipment (called indirect cash subsidy); or (b) drawback as a percentage of the value of exports (called direct cash subsidy). Although World trade Organization (WTO, formerly GATT) recognizes that subsidies hinder fair competition and distort trade practices, it has not been able to define precisely what kind of assistance constitutes a subsidy.

export subsidy is in the Banking, Commerce, Credit, & Finance, Economics, Politics, &
Society and International Trade & Relations subjects.

export subsidy appears in the definitions of the following terms: drawback, Cairns group,
trade liberalization, and non tariff barrier (NTB).

Term of the Day

regional exchange
An SEC-registered stock exchange which focuses on listing stocks of corporations in its geographic region. The major U.S. regional exchanges are the Boston, Chicago, Cincinnati, Pacific, and Philadelphia stock exchanges. Regional exchanges are usually significantly smaller than exchanges that focus on listing stocks at the national level. Many stocks listed on regional exchanges are not listed on national exchanges. However, regional exchanges also feature stocks which list both on the regional and the national exchange.

account party
Entity (usually an importer) who applies to a bank to establish a letter of credit (L/C) in favor of another entity (the 'accredited party' or 'beneficiary,' usually an exporter). However, where a

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finance company applies for a L/C on behalf of an importer, the finance company is usually called the 'applicant' and the importer is called the 'account party.' Also called accountee or applicant.

account party is in the Banking, Commerce, Credit, & Finance and International Trade &
Relations subjects.

account party appears in the definitions of the following terms: soft clause, confirmed
irrevocable letter of credit (L/C), assignment under documentary credit, red clause, and accountee.

constant dollar plan

An investment strategy designed to reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. Thus, as prices of securities rise, fewer units are bought, and as prices fall, more units are bought. also called constant dollar plan. also called dollar cost averaging.

structure
Construction or framework of identifiable elements (components, entities, factors, members, parts, steps, etc.) which gives form and stability, and resists stresses and strains. Structures have defined boundaries within which (1) each element is physically or functionally connected to the other elements, and (2) the elements themselves and their interrelationships are taken to be either fixed (permanent) or changing only occasionally or slowly. See also infrastructure, superstructure, and system.

structure is in the Economics, Politics, & Society, Entrepreneurship, Management, & Small
Business and Systems & Methodologies subjects.

structure appears in the definitions of the following terms: affinity diagram, corporeal
property, organization, duplex stainless steel, and gestalt theory.

publicly-traded fund

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Publicly-traded funds behave more like stock than open-end funds: closed-end funds issue a fixed number of shares to the public in an initial public offering, after which time shares in the fund are bought and sold on a stock exchange, and they are not obligated to issue new shares or redeem outstanding shares as open-end funds are. The price of a share in a publicly-traded fund is determined entirely by market demand, so shares can either trade below their net asset value ("at a discount") or above it ("at a premium"). also called closed-end investment company or closed-end fund.

strategic business unit (SBU)

<p>An autonomous division or organizational unit, small enough to be flexible and large enough to exercise control over most of the factors affecting its long-term performance.</p> <p>Because strategic business units are more agile (and usually have independent missions and objectives), they allow the owning conglomerate to respond quickly to changing economic or market situations.</p>

strategic business unit (SBU) is in the Decision Making, Problem Solving, & Strategy
and Entrepreneurship, Management, & Small Business subjects.

strategic business unit (SBU) appears in the definitions of the following terms: portfolio
planning matrix and category management.

OCC
Options Clearing Corporation. The organization that handles clearing of the options trades for the various options exchanges and regulates the listing of new options. It is regulated by the Securities and Exchange Commission, and is owned jointly by the U.S. stock exchanges that trade options (American Stock Exchange, Chicago Board Options Exchange, Pacific Exchange, and Philadelphia Stock Exchange). The fact that all listed options are cleared through OCC means that all options are free of default risk, since the OCC guarantees all option contracts. Therefore, the buyer or a seller of an option only faces the credit risk of the OCC (which is minimal), not the credit risk of the counterparty. In order to manage risk, the OCC imposes margin requirements on all options brokers. The margin requirement depends on the particulars of each specific contract.

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

journal entry
Definition
The recording of financial data (taken usually from a journal voucher) pertaining to business transactions in a journal such that the debits equal credits. Journal entries provide an audit trail and a means of analyzing the effects of the transactions on an organization's financial position. See also journalizing.

balance sheet
Definition
A condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period). Among other items of information, a balance sheet states (1) what assets the entity owns, (2) how it paid for them, (3) what it owes (its liabilities), and (4) what is the amount left after satisfying the liabilities. Balance sheet data is based on a fundamental accounting equation (assets = liabilities + owners' equity), and is classified under subheadings such as current assets, fixed assets, current liabilities, Long-term Liabilities. With income statement and cash flow statement, it comprises the set of documents indispensable in running a business. An audited balance sheet is often demanded by investors, lenders, suppliers, and taxation authorities; and is usually required by law. To be considered valid, a balance sheet must give a true and fair view of an organization's state of affairs, and must follow the provisions of GAAP in its preparation. Also called statement of condition, statement of financial condition, or statement of financial position.

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

SIMPLE
Savings Incentive Match Plan for Employees. A retirement plan sponsored by companies with fewer than 100 employees which is attractive for employers because it avoids some of the administrative fees and paperwork of plans such as a 401(k) plan. A SIMPLE plan may be structured as either a 401(k) or an IRA.

seed capital
Comparatively small amount of capital contributed in the very beginning by a firm's founder(s). It is rarely provided by lenders or institutional investors because startup is the riskiest stage in a firm's life cycle with the highest chance of failure. Also called front end money, front money, or startup capital.

seed capital is in the Accounting & Auditing and Banking, Commerce, Credit, & Finance subjects. seed capital appears in the definitions of the following terms: front money, front
end money, and microbusiness.

gamble
To engage in any activity in which money is put at risk for the purpose of making a profit, and which is characterized by some or most of the following (in approximately descending order of importance): little or no research has been conducted; the odds are unfavorable; the behavior is risk-seeking; an unsystematic approach is being taken; emotions such as greed and fear play a role; the activity is a discrete event or series of discrete events not done as part of a long-term plan; the activity is significantly motivated by entertainment or compulsion; ownership of something tangible is not involved; no net economic effect results.

whitewash resolution
A term used in Europe to refer to a specific portion of the corporation act (called the Companies Act in Europe). This portion of the act indicates that a specific resolution must be passed before a

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

company being bought out can provide financial assistance to the company which is buying it out. This is to prevent companies from taking advantage of the companies they are buying out.

nationalization
Takeover of privately owned corporations, industries, and resources by a government with or without compensation. Common reasons for nationalization include (1) prevention of unfair exploitation and large-scale labor layoffs, (2) fair distribution of income from national resources, and (3) to keep means of generating wealth in public control.

nationalization is in the Banking, Commerce, Credit, & Finance and Economics, Politics, & Society subjects. nationalization appears in the definitions of the following terms: monopoly, public ownership, privatization, micro country risks, and laissez-faire economics.

split coupon bond

A bond which pays no coupons, is sold at a deep discount to its face value, and matures at its face value. A zero-coupon bond has the important advantage of being free of reinvestment risk, though the downside is that there is no opportunity to enjoy the effects of a rise in market interest rates. Also, such bonds tend to be very sensitive to changes in interest rates, since there are no coupon payments to reduce the impact of interest rate changes. In addition, markets for zero coupon bonds are relatively illiquid. The imputed interest on a split coupon bond is taxable as it accrues, even though there is no cash flow. also called accrual bond or zero-coupon bond.

reciprocity
General: Exchange of equal or identical advantages or privileges, such as removal of traveling restriction between two countries. International trade: Lowering of import duties and other trade barriers in return for similar concessions from another country. Reciprocity is a traditional principle of GATT/WTO, but is practicable only between developed nations due to their roughly matching economies. For trade

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between them and developing nations, the concept of relative reciprocity is applied whereby the developed nations accept less than full reciprocity from their developing trading partners.

reciprocity is in the Economics, Politics, & Society, International Trade & Relations and Shipping, Transport, & Travel subjects. reciprocity appears in the definitions of the
following terms: rational choice theory (RCT), diplomatic immunity, General Agreement on Tariff and Trade (GATT), and mutuality.

sovereign risk
Probability that the government of a country (or an agency backed by the government) will refuse to comply with the terms of a loan agreement during economically difficult or politically volatile times. Although sovereign nations don't "go broke," they can assert their independence in any manner they choose, and cannot be sued without their assent. Sovereign risk was a significant factor during 1970s after the oil shock when Argentina and Mexico almost defaulted on their loans which had to be rescheduled.

sovereign risk is in the Banking, Commerce, Credit, & Finance, Disaster Planning & Risk Management and Investing subjects. sovereign risk appears in the definitions of the
following terms: risk and country risk.

mean reversion
1. The theory that a given value will continue to return to an average value over time, despite fluctuations above and below the average value. This theory can be applied to any measurable value, including interest rates and the return on a certain investment. 2. A purchasing strategy based on the above theory, which assumes that prices will return to an average value. This strategy encourages purchasing underperforming securities, under the premise that the market will eventually rebound, and the value of the security will increase.

Regulation FD
SEC regulation adopted in 2000 that eliminated the practice of selective disclosure. The rule requires that when a public company chooses to release any information, it must be done in such

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

a way that the general public has access to it at the same time as institutional investors and analysts. If information is accidentally released to specific parties, the company must disseminate that information widely within 24 hours.

profit multiple
Product of pretax or operating profit and a number (called market multiplier) which is either estimated from the selling prices of comparable businesses or is published by the financial press in some countries. This number commonly ranges from 1 to 5, depending on the current popularity or potential of a particular type of business. Profit multiple is one of the most widely used methods of valuing a business as a going concern. See also sales multiple.

profit multiple is in the Accounting & Auditing, Banking, Commerce, Credit, & Finance and Investing subjects. profit multiple appears in the definitions of the following terms:
sales multiple and market multiplier.

bullet dodging
Waiting to grant an employee stock option until after bad news involving the company is made public. Because the strike price on an option is linked to the date on which the option was issued, waiting until after bad news sends a stock price lower and allows the employee to obtain shares at a lower strike price.

debt
<p>A duty or obligation to pay money, deliver goods, or render service under an express or implied agreement. One who owes, is a debtor or debitor; one to whom it is owed, is a debtee, creditor, or lender.</p> <p>Use of debt in an organization's financial structure creates financial leverage that can multiply yield on investment provided returns generated by debt exceed its

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cost. Because the interest paid on debt can be written off as an expense, debt is normally the cheapest type of long-term financing.</p>

debt is in the Accounting & Auditing and Banking, Commerce, Credit, & Finance subjects. debt appears in the definitions of the following terms: factoring, cash flows from financing
activities, agency cost view, sinking fund provision, and risk-based pricing.

Federal Unemployment Tax Act

FUTA. A federal law that taxes businesses in order to fund the unemployment benefits set forth by the Social Security Act of 1935. In times of economic growth, revenues from the tax increase but are used less frequently because unemployment levels are low, creating a cushion of funds. During times of slowing growth and rising unemployment, this cushion can provide benefits to the unemployed.

appeal
Request, usually by a party losing a case in a lower court to a higher (appellate) court, to reverse or modify the lower court's decision. Appellate courts, in general, deal with a appeal by notionally rehearing the case through the trial notes (transcripts) before calling any witnesses. The appellant usually has to post an appeal-bond, to pay for the appellee's expenses in case the appeal is unsuccessful. In some civil cases, a winning party may appeal for an award of a larger sum in damages.

appeal is in the Corporate, Commercial, & General Law subject. appeal appears in the definitions of the following terms: appellee, 30-day letter, settlement office, mass market, and undifferentiated marketing.

prepayment privilege
A clause in some loans allowing the borrower to pay off the debt prior to its due date without incurring a penalty. This is an advantage for a borrower when interest rates are falling, since he/she can pay off the existing loan and then refinance at a more favorable rate. also called prior redemption privilege.

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

quick response
Just in time inventory partnership strategy between suppliers and retailers of general merchandise. It is aimed mainly at reducing order response time, and achieving greater accuracy in shipping the correct goods in correct quantities, by employing computerized equipment such as barcodes and EDI to speed up flow of information. Its other objectives include reduction in operating expenses, out-of-stock situations, and forced mark-downs (discounts).

quick response is in the Advertising, Marketing, & Sales, Data Management, Communications, & Networks and Inventory Control & Storage subjects. quick response appears in the definition of the following term: best interests.

accounting information system (AIS)

A system, typically computer-based, used for storing, collecting, and analyzing a company's financial and accounting data. Accounting information systems are generally used by executives to make decisions, develop company strategies, and generate reports for shareholders, internal personnel, and regulatory agencies. Accounting information systems also streamline accounting cycles and reduce the incidence of accounting errors.

financial statement
Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position. The three basic financial statements are the (1) balance sheet, which shows firm's assets, liabilities, and net worth on a stated date; (2) income statement (also called profit & loss account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firm's activities during a stated period.

financial statement is in the Accounting & Auditing and Banking, Commerce, Credit, & Finance subjects. financial statement appears in the definitions of the following terms:
annual earnings change, noncash item, billings in excess of costs, accounting noise, and contingent asset.

flowchart

N.SETHUSANGURAJAN, MBA(FINANCE),SRM UNIVERSITY CHENNAI

Pictorial summary (graphical algorithm) of the decisions (such as production, storage, transportation) and flows (movement of information and materials) that make up a procedure or process from beginning to end. One of the seven tools of quality, a flowchart shows how the entire system functions, and where error and wastes occur. This information is used in defining, documenting, studying, and improving the system. Also called flow diagram, flow process chart, or network diagram.

flowchart is in the Planning & Scheduling, Project Management, Quality Control & Management and Statistics, Mathematics, & Analysis subjects. flowchart appears in the
definitions of the following terms: backward chaining, algorithm, seven tools of quality, flow diagram, and simulation.

fraption
Also known as an interest rate guarantee, this type of option allows an investor to set up a forward rate agreement during an agreed amount of time that triggers in response to a pre-set strike price. Fraptions are used to protect investors from dramatic declines in interest rates.

joint tenancy
Joint ownership of property by two or more related or unrelated entities (joint-tenants) which is effected only when four conditions interest, possession, time, and title (called four unities) are fulfilled. Unlike in tenancy-in-common, joint-tenants have right of survivorship: the entire share of a deceased joint-tenant automatically (without probate) passes on to the surviving jointtenant(s), the last survivor becoming the absolute and sole owner. Property in joint-tenancy is not subject to probate or claims of anyone (except due taxes) and passes on free. Also called joint tenancy with right of ownership in common. See also tenancy in common and time sharing.

joint tenancy is in the Banking, Commerce, Credit, & Finance, Corporate, Commercial, & General Law and Real Estate & Buildings subjects. joint tenancy appears in the definitions
of the following terms: joint account, tenancy by the entirety, probate assets, tenancy in common, and joint tenancy with right of ownership in common.