Management Dictionary (A to Z Glossary)

Management Terms and Definitions from A

Activity Based CostABC accounting procedures that can quantify the true profitability of different activities by identifying their actual costs.
ActuaryAn entity or business professional that computes and analyzes the financial performance and consequences of risk in scientifically and statistically.
AcquisitionThe act of obtaining or buying another company or part of a company
AdvertisingIt is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Alpha(α)It is a measurement of the performance of an investment in a portfolio against the market performance i.e. Market Index
Aspirational GroupsIt is a group which a person hopes or would like to join.
AssetIt is a resource with economic value that an individual or corporation owns or control for future benefits.
Asset AllocationIt is the distribution of major assets in the investment portfolio in such a ay that risk is minimized and profit is maximized.
Average CostIt is the cost per unit at a given level of production. It is equal to total costs divided by production.
BankIt is a financial institution licensed to receive deposits and to provide loans
BondIt is a financial asset or instrument of indebtedness of the issuer to the holder. In other terms, bonds are the debt securities under which issuer owes the holders a debt and is obliged to pay a regular interest income and to repay the principal at maturity.
BrandIt is a representation of a company or product. It is a means of identification that distinguish the company from others. Brand can be a symbol, mark, logo, name, word or sentence.
Brand EquityIt is the added value endowed to the products and services.
Brand MixIt is the set of all brands lines that a particular seller makers available to buyers.
Brand ValuationIt is an estimate of the total financial value of the brand.
Bullish TrendA bullish trend is a nature or a characteristics of a stock market where the market is reflecting the upward trend
Captive ProductsThey are products that are necessary to the use of other products, such as razor blades or film.
CashIt is a legal tender that can be used to exchange services. It is the most liquid asset a company or individual can own.
Channel Conflict When one channel member’s actions prevent the channel from achieving its goal.
Conformance QualityIt is the degree to which all the produced units are identical and meet the promised specifications.
CommerceIt is an activity of interchanging goods and services for money .
CommodityIt is a basic good used in commerce that is interchangeable with other goods of the same type.
CreditorIt is an individual or institution that lends money or services to another entity under a repayment agreement.
Credit UnionA credit union is also a financial institution of cooperative form. In a credit union, all the financial services are exclusive to its members only i.e. the benefit of saving and lending and other functions are limited to its members only.
Current AssetIt is an asset which can be converted into cash within one year.
Current LiabilityIt is an obligation that must be repaid within the current period or the next year whatever is longer.
DebtIt is an amount of money borrowed by one party from another.
DebtorIt is a person or entity who is in debt or any financial obligation to another.
DerivativeIt is a financial asset which derives its value from an underlying assets
Direct MarketingIt is the use of consumer-direct channels to reach and deliver goods and services to costumers without using marketing middlemen.
Dividendt is the distribution of reward from a portion of the company’s earnings and is paid to a class of shareholders.
DiversificationIt is a risk management strategy that involves wide variety of investments within a portfolio.
EquityIt is shareholders’ equity which represents the amount of money invested for the ownership.
ForexIt is a global decentralized or over the counter market for the trading of currencies.
Financial AccountingFinancial Accounting is a branch of accounting which involves recording, summarizing, and reporting of the transactions from business operations over a period of time.
IncomeIt is that money which an individual or business receives in exchange for providing a good or service through capital investment.
InterestIt is the amount paid for borrowing or using others’ money.
InvestmentIt is a decision of investing money or capital in order to gain profitable return or appreciation in value.
LiquidityIt is state or quality of assets  which can be converted into ready cash without affecting its market price.
Management AccountingManagement Accounting involves preparing reports about business operations which later helps managers make short term and long term strategies and decisions.
Market IndexIt is an index that represents a stock market or a subset of stock market that helps investors compare current price levels with past prices.
Market RiskIt is the risk of losses to the bank arising from movements in market prices as a result of changes in interest rates, foreign exchange rates, and equity and commodity prices.
MarketingIt is the act or process of selling or purchasing in a market.
Mutual FundIt is a financial asset which is a pool of fund collected from various investors which later is invested  in securities such as stocks, bonds, money market and other assets.
Operational RiskIt is the uncertainty of loss resulting  from insufficient, incompetent and failed internal process, people and system or from any external environment events.
Operational CostThe cost resulting from running a business is operational cost. It is also known as current expenditure or revenue expenditure.
Opportunity CostA cost that is used in deciding between investment choices. The offset choice among the choices is opportunity cost.
OptimizeTo maximize the efficiency and effectiveness
PortfolioIt is a pool or grouping of financial assets such as stocks, bonds, commodities, mutual funds, forex, closed funds, other derivatives etc.
ProfitabilityIt is the ability or position of a business where revenues excess the expenses.
RevenueIt is the money collected or earned for providing service or product.
RiskIt is a  equity investment option that represents part ownership in corporation or company.
StockIt is a  equity investment option that represents part ownership in corporation  or company
ThriftIt is a depository financial institution with a community bank focus such as credit unions and saving banks.
Underlying AssetsIt is an asset that contractually determines the price of another asset.
UtilityIt is an economic concept which measures an entity’s relative satisfaction with a good or commodity.
Working CapitalIt is a capital in business which is used for day-to-day operation. Working capital is difference between current assets and current liabilities.

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