Useful definitions

A Fortiori Analysis
In decision theory, an analysis
made to intentionally favour
alternative solutions when
compared to the solution
adjudged as best. The
alternative is deliberately
weighted to make them look
better. If the adjudged-best
solution still remains the best,
its position as the likely
choice is further
strengthened. „A Fortiori‟ is
Latin for, „even more so‟ or
„more conclusively‟.
Knowledge
1. The state or fact of knowing.
2. Familiarity, awareness, or
understanding gained
through experience or
study.
3. The sum or range of what has
been perceived, discovered, or
learned.
4. Learning; erudition: teachers
of great knowledge.
5. Specific information about
something.
6. Carnal knowledge.

Leadership
Has been described as “a process
of influence in which one person
can enlist the aid and support of
others in the accomplishment of a
common task”. Other in-depth
definitions of leadership have also
emerged.
Leadership is "organizing a group of
people to achieve a common goal".
The leader may or may not have
any formal authority. Studies of
leadership have produced theories
involving traits, situational
interaction, function, behaviour,
power, vision and
values, charisma, and intelligence,
among others. Somebody whom
people follow: somebody who
guides or directs others.
Transformational leadership
Enhances the motivation, morale,
and performance of followers
through a variety of
mechanisms. These include
connecting the follower's sense
of identity and self to the
project and the collective
identity of the organization;
being a role model for followers
that inspires them and makes
them interested; challenging
followers to take greater
ownership for their work, and
understanding the strengths
and weaknesses of followers, so
the leader can align followers
with tasks that enhance their
performance.

Global Leadership
 Is the interdisciplinary study of the key
elements that future leaders in all
realms of the personal
experience should acquire to effectively
familiarize themselves with
the psychological,
physiological, geographical, geopolitical
, anthropological and sociological
effects of globalization.
Global leadership occurs when an
individual or individuals navigate
collaborative efforts of different
stakeholders through environmental co
mplexity towards a vision by leveraging
a global mindset. As a result of trends,
starting with
colonialism and perpetuated by the
increase in mass media, innovation, a
host of meaningful new concerns
face mankind; consisting of but not
limited to: human
enterprises toward peace, international
business design, and significant shifts
in geopolitical paradigms.
A goal
 Is a desired result a person or
a system envisions, plans and
commits to achieve a personal
or organizational desired end-
point in some sort of assumed
development. Many people
endeavour to reach goals within
a finite time by
setting deadlines.
It is roughly similar to purpose or
aim, the anticipated result
which guides reaction, or
an end, which is an object,
either a physical object or
an abstract object, that
has intrinsic value.

Value
Denotes something's degree of
importance, with the aim of
determining what action or life
is best to do or live
(Deontology), or at least
attempt to describe the value of
different actions (Axiology). It
may be described as treating
actions themselves as abstract
objects, putting value to them.
It deals with right conduct and
good life, in the sense that a
highly, or at least relatively
highly, valuable action may be
regarded as ethically "good"
(adjective sense), and an action
of low, or at least relatively low,
value may be regarded as
"bad".
Mindset
In decision theory and general
systems theory, a mindset is
a set of assumptions, methods,
or notations held by one or
more people or groups of
people that is so established
that it creates a powerful
incentive within these people or
groups to continue to adopt or
accept prior behaviours,
choices, or tools. This
phenomenon is also sometimes
described as mental inertia,
"groupthink", or a "paradigm",
and it is often difficult to
counteract its effects upon
analysis and decision making
processes.

Culture
 Is a modern concept based on a term
first used in classical antiquity by the
Roman orator, Cicero: "cultura animi".
The term "culture "appeared first in its
current sense in Europe in the 18th and
19th centuries, to connote a process of
cultivation or improvement, as in
agriculture or horticulture. In the 19th
century, the term developed to refer
first to the betterment or refinement of
the individual, especially
through education, and then to the
fulfilment of national aspirations or
ideals. In the mid-19th century, some
scientists used the term "culture" to
refer to a universal human capacity.
For the German non positivist
sociologist Georg Simmer, culture
referred to "the cultivation of
individuals through the agency of
external forms which have been
objectified in the course of history".
Communication
 From Latin "communis",
meaning to share) is the activity of
conveying information through the
exchange of thoughts, messages, or
information, as by speech, visuals,
signals, writing, or behaviour. It is
the meaningful exchange of
information between two and a
group of person.
One definition of communication is
“any act by which one person gives
to or receives from person
information about that person's
needs, desires, perceptions,
knowledge, or affective states.
Communication may be intentional
or unintentional, may involve
conventional or unconventional
signals, may take linguistic or non-
linguistic forms, and may occur
through spoken or other modes

Absorption Costing
 A method of costing a product
in which all fixed and variable
costs are apportioned to cost
centres where they are
accounted for using absorption
rates. This method ensures that
all incurred costs are recovered
from the selling price of a good
or service. Also called full
absorption costing. See also
costing, marginal.
Account
1. Accounting: Chronological record of
changes in the value of an entity's assets,
liabilities, and the owners' equity; each of
which is represented by a separate page in
the ledger. See also accounting equation
and accounts.
2. Banking: Continuing financial relationship
between a bank and a customer, in which
deposits and debts are held and processed
within a framework of established rules
and procedures.
3. Commerce: On-going contractual
relationship between a buyer and seller
whereby payment for goods received is
made at a later time (usually 30 days). See
also charge account and open account.
4. Law: Obligation of each party to a contract
or partnership to account to other(s) for
amounts received or due.
5. Services: Client of an advertising,
brokerage, consulting, marketing, or
public relations firm.

Accounting Bases
 Assumptions, methods,
and procedures that
constitute accounting
policies of a firm.
Account Reconcilement
 Comparing an account statement
(or bank statement) with one's
own accounting records, to detect
any discrepancies that may
indicate leakage of cash, slack
accounting controls, or an error.
Account Payee Only
 Words added to the
crossing on a check to
ensure that check is paid
only into the account of
the entity to whom the
check is made out. This
step makes a check a
non-negotiable
instrument, and provides
protection against its
fraudulent conversion.
The words 'not
negotiable' have the
same effect.

Accounting Fraud
 The intentional misrepresentation
or alteration of accounting records
regarding sales, revenues, expenses
and other factors for a profit
motive such as inflating company
stock values, obtaining more
favourable financing or avoiding
debt obligations. Employees who
commit accounting fraud at the
request of their employers are
subject to personal criminal
prosecution.
Accounting System
 Organized set of manual and
computerized accounting methods,
procedures, and controls established to
gather, record, classify, analyze,
summarize, interpret, and present
accurate and timely financial data for
management decisions.
Accounting Policies
 Principles, rules and procedures
selected, and consistently followed, by
the management of an organization
(the accounting entity) in preparing
and reporting the financial statements.
Accounting policies deal specifically
with matters such as consolidation of
accounts, depreciation methods,
goodwill, inventory pricing, and
research and development costs.
Accounting policies must be disclosed
in the annual financial statements. See
also summary of significant accounting
policies.

Accounting Principles
Board
 Board of the American
Institute of Certified
Public Accountants
(AICPA), the original
publisher of GAAP.
Replaced by Financial
Accounting Standards
Board In 1973.
Activity Based Costing (ABC)
 Cost accounting approach concerned
with matching costs with activities
(called cost drivers) that cause those
costs. It is a more sophisticated kind of
absorption-costing and replaces labour
based costing system. ABC states that
(1) products consume activities, (2) it is
the activities (and not the products)
that consume resources, (3) activities
are the cost drivers, and (4) that
activities are not necessarily based on
the volume of production. Instead of
allocating costs to cost centres (such as
manufacturing, marketing, finance),
ABC allocates direct and indirect costs
to activities such as processing an
order, attending to a customer
complaint, or setting up a machine. A
subset of activity based management
(ABM), it enables management to
better understand (a) how and where
the firm makes a profit, (b) indicates
where money is being spent and (c)
which areas have the greatest potential
for cost reduction. Developed by
professors Robert Kaplan and Robin
Cooper of Harvard University in late
1980's.

Accounts Payable (A/P)
 Unpaid bills. Accounts that
are owed to suppliers (trade
creditors) as distinguished
from accrued interest, rent,
salaries, taxes, and other such
accounts. Accounts payable
are shown under current
(short-term) liabilities in the
balance sheet. Lenders and
investors examine the
relationship of these accounts
to the firm‟s purchases in
order to judge the soundness
of its day to day financial
management.
Accounts Receivable (A/R)
 Sales made but not paid-for
by the customers (trade
debtors). Accounts receivables
are shown as current (short-
term) assets in a balance
sheet and are, in fact,
unsecured promises by
customers to pay in the
future. These sums are a key
factor in determining a firm's
liquidity and may be
discounted used in raising a
short-term bank loan, or sold
to a factor. A provision is
usually made in the accounts
of a firm to offset
uncollectible accounts
receivable (bad debts) as
losses.

Accounts Payable (A/P)
to Sales Ratio
 Relationship between
unpaid suppliers' bills and
the sales revenue in an
accounting period. It is
considered high if it
approaches 1.0 and, in
some industries, may be a
sign that the firm is having
liquidity problems.
Formula: Total accounts
payable ÷ Sales revenue.
Accounts Receivable
(A/R) Turnover
 Ratio that shows the
relationship between
unpaid credit sales to total
credit sales. It indicates, in
general, the effectiveness
(or lack of it) of a firm's
credit policies and cash
collection efforts. Formula:
Outstanding accounts
receivable (in an
accounting period) ÷ credit
sales revenue (in the same
period). Also called
receivable turnover.

Accounts Receivable
(A/R) to Sales Ratio
 Shows the relationship
between unpaid sales and
the total sales revenue. It is
considered high if it is near
to 1.0, because that means
a significant amount of
cash is tied up with the
slow paying customers.
Formula: Total accounts
receivable (outstanding in
an accounting period) ÷
period).
Accounts Receivable
(A/R) Turnover
 Ratio that shows the
relationship between
unpaid credit sales to total
credit sales. It indicates, in
general, the effectiveness
(or lack of it) of a firm's
credit policies and cash
collection efforts. Formula:
Outstanding accounts
receivable (in an
accounting period) ÷ credit
period). Also called
receivable turnover.

Accrual Concept
 Fundamental accounting concept
which recognizes the time lag
between sales and purchases on
one hand, and collection and
payment of cash on the other. It
forms an important part of the
GAAP, and permits meaningful
comparisons based on the actual
operations of the business
undisturbed by the timing of
payments. Under this principle,
sales and expenses are taken
account of in the accounting
period in which they occur (and
are included in the income
statement for that period),
whether or not cash was received
or paid out. Also called accrual
principle. See also accounting
concepts.
Accrued Expenses
 Expenses (such as wages,
salaries, and utility charges)
which are incurred but for which
no payment is made during an
accounting period. They are
shown in the balance sheet as a
current (short term) liability.
Also called accrued liabilities.
Accrued Income
 Amount earned in the current
accounting period, but which will
be received in a subsequent
period.

Accrued Revenue
 Revenue earned in the
current accounting period,
but which will be collected
in a subsequent period.
Also called unrealized
revenue.
Accrued Liability
 Debt, expense, or
obligation incurred in an
accounting period but
chargeable or payable in
another.
Absorption Pricing
 Method of pricing in which
all costs are recovered. The
price of the product
includes the variable cost of
each item plus a
proportionate amount of
the fixed costs
Accounting Ratios
 Three basic types of
accounting ratios are: (1)
Efficiency Ratios, (2)
Profitability ratios, and (3)
Solvency ratios. See also
ratio analysis.

Accounts Receivable
Aging
 Process of determining
which customers are
paying on time, which
are not, and how far they
are behind the payment
date. This analysis assists
in estimating bad debts
and in establishing credit
guidelines.
Annual percentage rate
(APR)
 Standardized method of
quoting the effective
interest rate (actual cost
of credit) on consumer
loans, specially where
interest is computed on
monthly or other non-
annual basis. An APR
includes all fees (except
penalties), and takes into
account the continual
reduction of principal
amount through
amortization.

Activity Based
Budgeting (ABB)
 Resource allocation
based on relationship
between activities and
costs, and which
provides greater detail
on overheads than the
normal financial
budgeting. See also
activity based costing.
Ad Valorem
 Method for charging a
duty, fee, or tax
according to the value of
goods and services,
instead of by a fixed rate,
or by weight or quantity.
Latin for, [according] to
the value.

Annual Percentage Yield
(APY)
 Standardized method for
quoting compounded
interest earned on a
deposit account or
investment. In computing
APY, it is assumed the
funds will remain on fixed
deposit or invested for a
full 365-day period.
Annual Report
 Presentation of a firm's
audited accounts for the
preceding year, as required
in corporate legislation. In
addition to the auditor's
report, an annual report
commonly includes (1)
management's review of
the operations of the firm
and its future prospects, (2)
balance sheet, (3) income
statement (profit and loss
account), (4) cash flow
statement, and other
supporting documents.
Also called annual
accounts.

Appraisal
1. Impartial analysis and evaluation
conducted according to established
criteria to determine the
acceptability, merit, or worth of an
item.
2. Evaluation by a qualified appraiser
to (1) assess the current market
value of a property, (2) estimate
the extent of damage to an insured
property and cost of repairs, or (3)
determine if a total loss occurred.
A written appraisal is usually a key
requirement when a property is
bought, sold, insured, or
mortgaged. It is required also
when a claim is filed for
compensation for damage or
destruction of the insured
property. See also appraisal value.
3. Alternative term for valuation.
Asset Value per Share
 Net value of the total assets of a
firm divided by the number of
issued (outstanding) common
stock or ordinary shares of the
firm. It is a theoretical indicator of
the portion of assets attributable to
each share in case the firm is
liquidated. Formula: Total net
asset value ÷ Number of
outstanding shares.

Asset valuation
 Determination of the
value of capital assets or
fixed assets, they value at
which they should be
shown in their owner's
balance sheet.
Balanced Budget
 Government budget where the
current expenditure equals
current revenue. Most
government budgets are
unbalanced almost always on
the expense side, purportedly
to spur growth and reduce
unemployment by creating
demand with additional money
supply.
Balance Sheet
 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.

Bank Reconciliation
 Analysis and adjustment
of differences between
the cash balance shown
on a bank statement, and
the amount shown in the
account holder's records.
This matching process
involves making
allowances for checks
issued but not yet
presented, and for checks
deposited but not yet
cleared or credited. And,
if discrepancies persist,
finding the cause and
bringing the records into
agreement.
Basic Earnings per
Share (EPS)
 A measure of a
company's performance
calculated by dividing its
net earnings by its total
number of outstanding
shares. Also referred to
as simply Earnings Per
Share or EPS. Compare
to diluted earnings per
share; EBITDA.

Basic Earnings Power
 Ratio that indicates basic
profitability of assets and is
useful in comparing firms
with different degree of
leverage. Formula: Earnings
Before interest and tax ÷
Total assets.
Basic Financial Statements
 Accounting reports compiled
in conformity with the
provisions of GAAP, and
necessary for the fair
evaluation of operations of an
entity. For businesses, the
balance sheet, income
statement (profit and loss
account), and the cash-flow
statement make up the set of
basic financial
Basis of Accounting
 Method used to determine
when revenues and expenses
(with associated assets and
liabilities) are recognized in
the accounts of a firm, and
reported in its financial
statements. In accrual basis
accounting, for example,
revenues are recognized when
earned and expenses are
recognized when incurred,
whether or not any cash is
received or paid. In cash basis
accounting, however,
revenues and expenses are
recognized only when cash is
received or paid, irrespective
of the timing of actual sales or
purchases.

Amortization
 1. Accounting: Preferred term for the
apportionment (charging or writing off)
of the cost of an intangible asset as an
operational cost over the asset's
estimated useful life. It is identical to
depreciation, the preferred term for
tangible assets. The purpose of both
terms is to (1) reflect reduction in the
book value of the asset due to usage
and/or obsolescence, (2) spread a large
expenditure proportionately over a
fixed period, and thereby (3) reduce the
taxable income (not the actual or cash
income) of a firm. In effect, it is a
process by which invested capital of a
firm is recovered by gradual sale of the
firm's asset(s) to its customers over the
years.
 2. Banking: Gradual repayment of a
loan in equal (or nearly equal)
instalments which include portions of
interest and principal amounts. See
also level payment amortization.
Analysis of Alternatives (AOA)
 Evaluation of different choices
available for achieving an objective,
usually requiring cost-benefit analysis,
life cycle costing, and sensitivity
analysis. Also called alternative
analysis.
Analysis of Variances (ANOVA)
 1. General: Statistical technique for
determining the degree of difference or
similarity between two or more groups
of data. It is based on the comparison
of the average value of a common
component.
 2. Accounting: Investigation of causes
of difference between actual costs and
estimated or standard costs.
 3. Quality control: Methodology
employed in determining if the
variance between the mean in different
sets of observations is greater than
what may be attributable to chance.

Annual audit
 An annual review of the
financial records of an
organization, such as a
business, a non-profit
group, or a government
agency. The audit may
check the accuracy of
records, compliance with
accounting methods, and
the soundness of
financial practices,
including internal
control
Annual Basis
 Mathematical technique
employed in converting
figures for a period of
less-than or more-than
one year to a twelve-
month period.
Annual Budget
 A budget that is prepared
to coincide with a
calendar or fiscal year.

Balance sheet ratios
 Comparisons of balance
sheet items to gain
insight into the (1)
changes in the financial
position, (2)
strength/weakness of the
financial position, and
(3) relationship between
different items. Two
basic balance sheet ratios
are the debt ratio (total
debt ÷ total assets) and
debt to equity ratio (total
debt ÷ total equity).
Budgeted cost of work
performed (BCWP)
 In construction industry,
total of the budgeted
costs of the activities
(that make up a job or
project) completed to-
date, or on any given
date. Also called
achieved cost or earned
value. See also actual
cost of work performed.

Budgeted Cost of Work
Scheduled (BCWS)
In construction industry, sum of
the budgeted costs for all
planned work scheduled to be
completed to-date, or on any
given date.
Budgeting
 Process of expressing
quantified resource
requirements (amount of
capital, amount of material,
number of people) into time-
phased goals and milestones.
Capacity Cost
 A fixed expense for a
company that will provide for
or increase business
operations. The costs do not
usually change with
production levels. In order for
a business to function it must
incur these expenses
regardless of how much or
how little business is actually
being done. The costs can be
reduced or avoided only if the
business locations are closed
or due to outsourcing of work.
Examples of capacity costs
may include lease payments,
machine/equipment
depreciation, insurance,
utilities, and insurance costs.

Capacity Overhead
Expense
 Costs such as depreciation,
insurance, property tax,
rent, associated with
having a manufacturing or
storage facility.
Capacity Utilization Rate
 Percentage of the
production capacity (of a
firm, industry, or industrial
sector) actually used for
production during a
month, quarter, year. Also
called operating ratio.
Capital Employed
 Total capital harnessed in a
firm's fixed and current
assets. Viewed from the
funding side, it equals
stockholders' funds (equity
capital) plus long-term
liabilities (loan capital).
Viewed from the asset side,
it equals fixed assets plus
working assets.
Capital Efficiency
 The relationship between
how many expenses are
incurred by the company to
how much money is used to
manufacture a good or
service.

Capital Growth
 Profit made on an
investment or purchase
of an asset, measured by
the increase in its market
value over the invested
amount or cost price.
Also called capital
appreciation.
Capital Reserve
 A resource created by the
accumulated capital
surplus (not revenue
surplus) of an
organization, such as by
an upward revaluation of
its assets to reflect their
current market value
after appreciation.
Allocating such sums to
capital reserve means
they are permanently
invested and will not be
paid as dividends.

Capitalization Ratios
 Ratios that express each
component of a firm's
capital (common stock or
ordinary share, preferred
stock or preference shares,
other equities, and debt) as
a percentage of its total
capitalization. These ratios
are used in analyzing the
firm's capital structure.
Cash Ratio
 Comparison of cash plus
cash equivalents to current
liabilities. Also called
liquidity ratio, it is a
refinement of quick ratio
and indicates the extent to
which the readily available
funds can pay off the
current liabilities. Formula:
(Cash + cash equivalents) ÷
Current liabilities.
Cash Value Added (CVA)
 A measurement of the
amount of cash generated
from operations minus the
cash flow demands for the
same period.

Competitive Parity
 A term used to describe a
method of allocating a
budget for promotional
activities that depends on
what competitors are
spending for similar
activities. Competitive
parity spending is a
defensive strategy that can
help a business protect its
brand or product's
competitive position in the
marketplace without
overspending. Also called
defensive budgeting.
Cost Accounting
 A method of accounting in
which all costs incurred in
carrying out an activity or
accomplishing a purpose
are collected, classified,
and recorded. This data is
then summarized and
analyzed to arrive at a
selling price, or to
determine where savings
are possible.
 In contrast to financial
accounting (which
considers money as the
measure of economic
performance) cost
accounting considers
money as the economic
factor of production

Cost Advantage
 Superiority achieved through
factors such as access to cheaper
inputs, efficient processes,
favourable location, skilled
workforce, superior technology,
and/or waste reduction or
elimination.
Cost Audit
 An internal audit used for
enterprise governance to assess
operational efficiencies and
resource management. Special
attention is given to verification
of cost records and adherence to
acceptable cost accounting
procedures.
Cost Benefit Analysis (CBA)
 Process of quantifying costs and
benefits of a decision, program,
or project (over a certain period),
and those of its alternatives
(within the same period), in
order to have a single scale of
comparison for unbiased
evaluation. Unlike the present
value (PV) method of investment
appraisal, CBA estimates the net
present value (NPV) of the
decision by discounting the
investment and returns. Though
employed mainly in financial
analysis, a CBA is not limited to
monetary considerations only. It
often includes those
environmental and social costs
and benefits that can be
reasonably quantified. See also
feasibility study.

Cumulative Dividend
Preference
 Right of a cumulative preferred
stock (cumulative preference
shares) holder
to receive the current as well as
unpaid
past dividends before holders o
f common stock (ordinary
shares) receive any.
Current Assets To Short-
term Debt Ratio
 Measure of a firm's ability to
meet its current obligations.
Higher numbers indicate
greater ability.
Formula: Current
assets ÷ Current liabilities.
Current Asset
 An asset such
as receivables, inventory, work in
process, or cash, that is constantly
flowing in and out of an organization in
the normal course of its business, as
cash is converted into goods and then
back into cash. In accounting, any asset
expected to last or be in use for less
than one year is considered a current
asset. Also called circulating asset
Deferred Income
 1. General: Income received after
the period in which it was earned, such
as sales commission that is
computed quarterly.
 2. Accounting: Income received or
recorded before it is earned, and shown
in the income statement only when it
can be matched with the period in
which it is earned.

Retained Earnings
 Profits generated by a company that are
not distributed
to stockholders (shareholders)
as dividends but are either reinvested
in the business or kept as a reserve for
specific objectives (such as to pay
off a debt or purchase a capital asset).
A balance sheet figure shown under
the heading retained earnings is
the sum of all profits retained since
the company's inception.
Retained earnings are reduced by
losses, and are also called accumulated
earnings, accumulated profit,
accumulated income,
accumulated surplus, earned surplus,
undistributed earnings, or undivided
profits. See also retention ratio.
Retention Ratio
 Percentage of the earnings of a firm
that are not paid out
to stockholders (shareholders)
as dividends but are either reinvested
in the firm or are kept as reserve for
specified purposes (such as to pay off
a debt or purchase a capital asset).
Formula: Retained earnings in
an accounting period x 100 ÷ earnings
in that accounting period
Return Of Capital
 Inflow of cash resulting
from depreciation, sale of capit
al assets, tax savings, or
any transaction not related to
the accumulated or retained
earnings.
Cost Audit
 An internal audit used
for enterprise governance to
assess operational
efficiencies and resource
management. Special attention
is given to verification of cost
records and adherence to
acceptable cost
accounting procedures.

Propriety Theory
 A theory that states assets
and liabilities are
the responsibility of the business
owner.
In The Black
 A slang phrase referring to
a company that will have
enough revenue to cover operatin
g expenses.
In The Red
 A slang phrase referring to
a company that is burdened
by operating expenses and is
unable to generate revenue.
Management
 The organization
and coordination of the
activities of a business in order
to achieve defined objectives.
Management is often included as
a factor of production along
with machines, materials,
and money. Management
comprises planning, organizing, s
taffing, leading or directing,
and controlling an organization (
a group of one or more people or
entities) or effort for the purpose
of accomplishing a goal.
Resourcing encompasses the
deployment and manipulation
of human resources,
financial resources, technologica
l resources, and natural
resources.

Process management
 Is the application
of knowledge, skills, tools,
techniques and systems to
define, visualize, measure,
control, report and improve
processes with the goal to
meet customer requiremen
ts profitably. It can be
differentiated
from program
management in that
program management is
concerned with managing a
group of inter-dependent
projects.
Waste Management:
 Prices whereby consumers
use purchasing decisions to
communicate to product
manufacturers that they
prefer environmentally
sound products packaged
with the least amount of
waste, made from recycled
or recyclable materials, and
containing no hazardous
substances.

Cost Management
Management of cost relat
ed activities achieved by
collecting, analyzing,
evaluating, and reporting
cost information used
for budgeting, estimating, f
orecasting,
and monitoring costs.
FEMA declaration
process
 The procedure used
to obtain assistance
through the U.S.
Federal Emergency Manag
ement Agency. When a
state experiences a catastro
phe such as an earthquake
or a flood, the governor
may ask the president to
declare the event a disaster.
This declaration makes the
state eligible to receive a
variety of relief efforts from
the federal government.

Knowledge
 is a familiarity with someone or
something, which can
include facts,
information, descriptions,
or skills acquired
through experience or education.
It can also refer to the theoretical
or practical understanding of a
subject. It also said to be related
to the capacity of
acknowledgement in human
beings.
Skills
 A skill is the learned capacity or
ability to carry out pre-
determined results often with the
minimum outlay of time, energy,
or both. In other words the
abilities that one possesses. Skills
can often be divided into
domain-general and domain-
specific skills.
Competence (or competency)
 is the ability of an individual to
do a job properly. A competency
is a set of defined behaviours that
provide a structured guide
enabling the identification,
evaluation and development of
the behaviours in individual
employees.
Capabilities
 refers to the knowledge of
converting the 'knowledge' into a
desired result. In other words,
the extent of new possibilities of
knowing and doing things out of
a given 'knowledge' is called
'capability'.

Learning
 Measurable and relatively
permanent change in behaviour
through experience, instruction,
or study.
Whereas individual learning is
selective, group learning is
essentially political its outcomes
depend largely on power playing
in the group. Learning itself
cannot be measured; learning is
"detection and correction of
error" where an error means "any
mismatch between our intentions
and what actually happens."
Training
 Organized activity aimed at
imparting information and/or i
nstructions
to improve the recipient's perfor
mance or to help him or her
attain
a required level of knowledge or s
kill
Leadership
 means "organizing a group of
people to achieve a common
goal". The leader may or may not
have any formal authority.
Studies of leadership have
produced theories involving
traits, situational interaction,
function, behaviour, power,
vision and values, charisma, and
intelligence, among others.
Somebody whom people follow:
somebody who guides or directs
others.
Human Relationship
 A discipline within resource
management which addresses
interpersonal behaviours. Factor
s that are considered
include leadership; communicati
on; team building;
and negotiation, facilitation
and mediation abilities.

Communication
 Two-way process of reaching
mutual
understanding, in
which participants not
only exchange (encode-
decode) information, news, ideas
and feelings but
also create and share meaning.
In general, communication is
a means of connecting people
or places. In business, it is
a key function of management--
an organization cannot operate
without communication
between levels, departments
and employees.
Corporate Governance
 the framework of rules and practi
ces by which a board of
directors ensures accountability,
fairness, and transparency in
a company's relationship with its
all stakeholders (financiers, custo
mers, management, employees, g
overnment, and the community).
 The corporate
governance framework consists
explicit and implicit
contracts between
the company and the
stakeholders
for distribution of responsibilitie
s, rights,
and rewards, procedures for
reconciling the sometimes
conflicting interests of
stakeholders in accordance with
their duties, privileges, and roles,
and procedures for proper
supervision, control,
and information-flows to serve as
a system of checks-and-balances.

Graduation
 is the action of receiving or
conferring an academic or the
ceremony that is sometimes
associated, where students
become graduates. Before the
graduation, candidates are
referred to as grad ands. The date
of graduation is often
called graduation day. The
graduation itself is also called
commencement, convocation or i
nvocation.
Mindset
 In decision theory and general
systems theory, a mindset is
a set of assumptions, methods, or
notations held by one or more
people or groups of people that is
so established that it creates a
powerful incentive within these
people or groups to continue to
adopt or accept prior behaviours,
choices, or tools.
Six Sigma
 seeks to improve the quality of
process outputs by identifying
and removing the causes of
defects (errors) and
minimizing variability in
manufacturing and business
processes. It uses a set of
management methods,
including statistical methods,
and creates a special
infrastructure of people within
the organization who are experts
in these very complex methods.
Superior goods
 make up a larger proportion of
consumption as income rises,
and therefore are a type of goods
in consumer theory. Such a good
must possess two economic
characteristics: it must be scarce,
and, along with that, it must have
a high price.

Marketing
 is the process of communicating
the value of a product or service
to customers, for the purpose of
selling the product or service. It
is a critical business function for
attracting customers. It is the
process of communicating the
value of a product or service
through positioning to
customers. Marketing can be
looked at as an organizational
function and a set of processes
for creating, delivering and
communicating value to
customers, and managing
customer relationships in ways
that also benefit the organisation
and its shareholders. Marketing
is the science of choosing target
markets through market analysis
and market segmentation, as well
as understanding consumer
buying behaviour and providing
superior customer value.
Finance
 Is the study of how people
allocate their assets over time
under conditions of certainty and
uncertainty. A key point in
finance, which affects decisions,
is the time value of money, which
states that a unit of currency
today is worth more than the
same unit of currency tomorrow.
Finance aims to price assets
based on their risk level, and
expected rate of return. Finance
can be broken into three different
sub categories: finance,
corporate and personal finance.

Work environment
 Location where
a task is completed. When
pertaining to a place
of employment, the work
environment involves the
physical geographical location
as well as the immediate
surroundings of
the workplace, such as
a construction site or office bu
ilding. Typically involves
other factors relating to the
place of employment, such as
the quality of the air, noise
level, and
additional perks and benefits
of employment such
as free child care or unlimited
coffee, or adequate parking.
Supply Chain
 Entire network of entities,
directly or indirectly
interlinked and
interdependent in serving the
same consumer or customer.
It comprises of vendors that s
upply raw material, producers
who convert
the material into products, wa
rehouses that store, distributi
on centres that deliver to
the retailers, and retailers
who bring the product to the
ultimate user.

Total Productive
Maintenance (TPM)
 Methodology designed to
ensure that
every machine in
a production
process always performs
its required task and
its output rate is never
disrupted.
Improvements
 Additions to
or enhancements of raw
land or a building that
normally increase its
usefulness and value, and
are intended to
remain attached or
annexed as drains, drives,
sewers, sidewalks, streets,
trees, etc.
Innovation
 Is the development of new
values through solutions
that meet new
requirements, inarticulate
needs, or old customer and
market needs in value
adding new ways. This is
accomplished through
more
effective products, processe
s, services, technologies,
or ideas that are readily
available to markets,
governments, and society.

Improvements
 Additions to
or enhancements of raw
land or a building that
normally increase its
usefulness and value, and are
intended to
remain attached or annexed
as drains, drives, sewers,
sidewalks, streets, trees, etc.
Quality control (QC)
 An aspect of the quality
assurance process that
consists
of activities employed in
detection
and measurement of
the variability in
the characteristics of output a
ttributable to the production
system, and includes
corrective responses.
Ethics
 also known as moral
philosophy, is a branch of
philosophy that involves
systematizing, defending, and
recommending concepts of
right and wrong conduct.
Ethics is a complement to
Aesthetics in the philosophy
field of Axiology. In
philosophy, ethics studies the
moral behaviour in humans,
and how one should act.
Ethics may be divided into
four major areas of study.
Environment
 The sum total of all surroundi
ngs of a living organism,
including natural forces and
other living things,
which provide conditions for
development and growth as
well as of danger and damage.

Change
 To alter; to make different; to
cause to pass from one state t
o another; as, to change the p
osition, character,
or appearance of a thing; to c
hange the countenance. To gi
ve and take reciprocally; to ex
change; followed by with; as, t
o change place, or hats, or mo
ney, with another.
Self Assessment
 is the first step of the career
planning process. It is the
process of gathering
information about you in
order to make an informed
career decision. A self
assessment should include a
look at the following: values,
interests, personality, and
skills.
Lean Manufacturing
 Lean enterprise, or lean
production, often simply
 "Lean," is a production
practice that considers the
expenditure of resources for
any goal other than the
creation of value for the end
customer to be wasteful, and
thus a target for elimination.
Working from the perspective
of the customer who
consumes a product or
service, "value" is defined as
any action or process that a
customer would be willing to
pay for.

Value adding process
 Set of quality
control activities which
transform an input into
an output that is valuable
to internal and/or external
customers of
an organization.
Kaizen
 Japanese term for a
gradual approach to ever
higher standards
in quality enhancement an
d waste reduction, through
small but continual
improvements involving
everyone from
the chief executive to the
lowest level workers.
Popularized by Mosaki
Imai in his books 'Kaizen:
The Key To
Japan's competitive Succes
s.'

Source:
www.businessdictionary.com

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