LER 497a

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LER 497a
2011-02-28 23:22:38
HR vocab

LER 497a Midterm Vocab Words
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  1. Accountability
    The responsibility placed on an individual or group for their own or others actions, conduct, performance, projects, etc.
  2. Accountant's Letter
    A written document prepared by an independent accountant used to provide a professional opinion regarding the scope and validity of financial data being reported on financial statements.
  3. Accounting Period
    The period of time in which businesses prepare internal accounts for the purpose of monitoring progress on a weekly, monthly or quarterly basis.
  4. Accounts Payable
    The debt a company is liable for and must pay off to suppliers or vendors
  5. Accrual
    Charges that have not been paid by the end of an accounting period but are included in the accounting results for the period
  6. Earnings
    The earnings reported on a companys income statement
  7. Insolvency
    Defined as a companys total liabilities exceeding its total assets
  8. Accrual Based Accounting
    An accounting system that enters income and expenses into the books at the time of the contract instead of when an expense is incurred or payment has been received
  9. Accumulated Depriciation
    The collective depreciation of an asset claimed as an expense since the asset was obtained
  10. Acquisition
    The process of acquiring control of another corporation, by purchase or stock exchange
  11. Actuary
    A statistician who calculates probable lengths of life so that insurancepremiums charged for a variety of risks can be correctly established
  12. Affiliate
    A business that is owned or controlled by another company or group that owns a minority of the voting stock of the other company
  13. After-hours trading
    Buying or selling stock outside of New York Stock Exchange standard trading hours
  14. After-tax
    Income from which taxes have already been deducted
  15. Aged Debt (Aging)
    A tern used to describe any debt that has become overdue. Typically, debts that are in arrears by 30 days or more
  16. Amortization
    A method of debt reduction whereby a borrower pays off a portion of a loans interest and principal periodically
  17. Anorexic Organization
    A term used to describe a company that has become so small as a result of downsizing or other business restructuring that it has lost its strength and ability to compete effectively
  18. Annual Percentage Rate (APR)
    The percentage rate charged by lending institutions for various types of loans
  19. Annual Percentage Yield (APY)
    The average amount of monthly interest paid to investors over a one- year period, expressed as a percentage
  20. Annuity
    A particular amount of income paid in either yearly, at other recurring intervals or in a lump sum
  21. Articles of Incorporation
    A companys charter that spells out the name, basic purpose, incorporators, amount and types of stock that may be issued, and any special characteristics, such as being nonprofit. Each state has its own system of approval of articles of incorporation, and this approval is usually handled by the states Secretary of State
  22. Assett Allocation
    The process of dividing funds between different types of assets (cash, stocks, bonds and real estate)
  23. Assets
    The items owned by a company (i.e., stocks, equipment, real estate, etc.) declared on the basis of initial purchase price instead of current market value
  24. Audit
    A systematic assessment of a companys management, finances, operations, controls and scope in which policies and procedures are carried out
  25. Backlog
    Total value of sales orders waiting to be processed/fulfilled
  26. Balance Sheet
    A financial document containing a list of all company assets and liabilities
  27. Balanced Fund
    A mutual fund that purchases a mixture of common stock, preferred stock, bonds and short-term bonds to provide income and capital gains while avoiding unnecessary risks
  28. Balanced Investment Strategy
    A portfolio allocation strategy aimed at managing risk and investment return. Typically, portfolios are divided equally among various equity and fixed-income securities
  29. Bankruptcy
    A legally declared condition of being unable to meet ones financial obligations and being legally declared financially insolvent
  30. Bear Market
    A market in a state of decline
  31. Benchmarks
    The systematic process of comparing an organizations products, services and practices against those of a competitor organization or other industry leader to determine what allows it to achieve high levels of performance
  32. Book Value
    The measure of a companys total asset worth minus intangible assets and liabilities
  33. Blue Chip Stocks
    A term used to describe stocks in some of the largest and most profitable companies
  34. Branding
    The process of identifying and differentiating an organizations products, processes or services from another organization by giving it a name, phrase or other mark
  35. Breach of Contract
    A situation in which an individual who is a party to a contract or agreement does not uphold or violates the terms of the contract
  36. Break-even Analysis
    A measure used to determine the approximate sales volume required to cover the costs associated with producing a particular product or service
  37. Break-even Point
    The point at which a companys revenues are equal to its expenses
  38. Budget
    A numerical summary of an organizations available resources and how those resources are to be allocated based on anticipated future expenditures for various items such as equipment, training and development programs, benefits, implementing new processes or services, etc.
  39. Budget Deficit
    The amount by which a government, company or individual expenditures are in excess of the amount of income being brought in over a specific period of time
  40. Bull Market
    Market that is moving upward instead of being in a state of decline
  41. Bundling
    The procedure of combining related products together to be sold as a single unit
  42. Bureau of Labor Statistics
    The principal fact-finding agency for the federal government in the broad field of labor economics and statistics. BLS is an independent national statistical agency that collects, processes, analyzes and disseminates essential statistical data to the American public, the U.S.Congress, other federal agencies, state and local governments, business and labor. BLS also serves as a statistical resource to the Department of Labor
  43. Business Ethics
    A philosophy principle concerned with opinions about appropriate and inappropriate business conduct or behavior by individuals or groups of individuals
  44. Business Literacy
    The knowledge and understanding of the financial, accounting, marketing and operational functions of an organization
  45. Business Plan
    A document that provides relevant information about a company by outlining items such as the companys business description, market or industry, management, competitors, future prospects and growth potential, etc.
  46. Business to Business (B2B)
    Any activity or program conducted between businesses through the use of a computer network connection vs. an intermediary
  47. Buy and Hold
    A long-term investment strategy whereby investors preserve existing holdings by disregarding short-term market fluctuations
  48. Buy Back
    The process of a company repurchasing of stock or bonds it has issued
  49. Capital
    The fixed nonlabor factors used in the production of goods and services, and the value of such factors
  50. Capital Appreciation
    Rise in the market price of an asset
  51. Capital Expenditure
    A dispersement for the purchase, replacement, renovation or expansion of facilities that can not be charged as an expense under generally accepted accounting standards
  52. Capital Gain
    The amount of profit realized from the sale of investments or property
  53. Capital Gains Tax
    A tax that is levied on the actual gain realized from the sale of property
  54. Cash Flow
    The movement of cash resulting from operations into and out of a business or activity
  55. C Corporation
    A company whose profits are taxed independently from an owners income
  56. Centralization
    The process of consolidating all decision-making authority under one central group or location
  57. Certificate of Deposit (COD)
    A deposit into an account at a financial savings institution that cannot be withdrawn prior to a specific maturity date
  58. Chain of Command
    Structure of decision-making responsibilities from the highest levels of authority to the lowest levels
  59. Class Action Suit
    A lawsuit filed by one party on behalf of themselves and other people in a group who share the same complaint
  60. Closely Held Corporation
    A business type that is only legally allowed to have 3050 stockholders, based on the state in which the business is incorporated
  61. Cold Calling
    A method used by sales people to obtain new business by making unsolicited calls to potential customers
  62. Common Stock
    Securities that represent ownership in a company. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a companys assets only after bondholders, preferred shareholders and other debtholders have been paid in full
  63. Conglomerate
    An assembly of diverse companies that are operated as a single unit under one common ownership
  64. Consumer Price Index
    An index of prices used to measure the change in the cost of basic goods and services in comparison with a fixed base period. Also called cost-of-living index
  65. Contingency Plan
    The process of identifying an organizations critical information systems and business operations, and developing and implementing plans to enable those systems and operations to resume following a disaster or other emergency situation
  66. Cooking the Books
    A term used to describe the practice of altering or fudging accounting numbers and records during or subsequent to an audit
  67. Corporate Culture
    The beliefs, values and practices adopted by an organization that directly influence employee conduct and behavior
  68. Corporate Values
    The prescribed standards, behaviors, principles or concepts that an organization regards as highly important
  69. Cost-Benefit Analysis
    A means of measuring the costs associated with a specific program, project, activity or benefit compared to the total benefit or value derived
  70. Cost Center
    A separate cost accounting unit charged with providing a method of isolating and tracking costs as a means to enhance management controls by identifying responsibility for various expenses
  71. Cost of Goods Sold
    The cost of buying raw materials and producing the merchandise a company sells
  72. Cost per Hire
    The direct and indirect costs that are calculated to measure the costs associated with filling a vacancy. Direct costs include, but are not limited to, advertising, employment agency fees, job fairs, employee referrals, credit and reference checking costs, examination and testing costs during the selection process, signing bonuses, relocation costs, HR overhead costs, college recruiting costs, internet costs, and training and communication costs. Indirect costs can include, but are also not limited to, lower productivity, costs of turnover, morale implications, safety (if there is a higher number of accidents as a result of the vacancy), disruption of regular business functions, overtime (to compensate for the vacancy), and hiring to maintain production
  73. Credit Rating
    The default risk assessment and rating of corporate bonds
  74. Crisis Management
    The practice of implementing organization-wide policies and procedures containing pre-established guidelines for responding to catastrophic events or tragedies (i.e., fire, earthquake, severe storms, workplace violence, kidnapping, bomb threats, acts of terrorism, etc.) in a safe and effective manner
  75. Crisis Planning
    A formal written plan establishing specific measures or actions to be taken when responding to catastrophic events or tragedies (i.e., fire, earthquake, severe storms, workplace violence, kidnapping, bomb threats,acts of terrorism, etc.) in the workplace
  76. Current Assets
    Assets that can be rapidly converted into cash
  77. Current Liabilities
    Debts incurred by a business in normal day-to-day operations, due within one calendar year
  78. Current Ratio
    All of a companys current assets divided by all current liabilities
  79. Decentralization
    The process of assigning decision-making authority to lower levels within the organizational hierarchy
  80. Debt Financing
    Financing obtained from a bank or other financial lending institution
  81. Default
    The failure to fully carry out a legally binding agreement, commitment or promise
  82. Delegation
    The process of assigning tasks or projects to subordinates and clearly dictating expected outcomes and time frame for completion
  83. Department of Labor
    The federal agency responsible for administering and enforcing a large quantity of federal labor laws, including, but not limited to, overtime pay, child labor, wages and hours, workplace health and safety, FMLA, and various other employee rights
  84. Depreciation
    An accounting procedure that spreads out the purchase cost of an asset over its depreciable life
  85. Deregulation
    Removal of government controls from an industry or sector
  86. Direct Labor
    The workers who actually produce a product or provide a service
  87. Discretionary Income
    The total amount of money available to an individual or an organization less total expenses
  88. Disposable Income
    The amount of post-tax income available to an individual for spending or saving
  89. Dividend
    An amount of money or stocks a company pays to its shareholders on a quarterly basis
  90. Diversified Investment
    An investment trust whereby funds are invested in a wide variety of securities
  91. Divestment
    The closing or sale of several businesses or business units
  92. Dollar Cost Averaging
    An investment strategy designed to reduce instability in which securities are purchased in fixed dollar amounts at regular periods, despite market movements
  93. Domestic Company
    A company that is in the very early stages of globalization. It remains focused on the domestic market with few international products or employees
  94. Dotted Line Relationship
    An organizational structure whereby a person reports to one manager but also has responsibilities to another
  95. Downsizing
    The process of reducing the employers workforce through elimination of positions, management layers, processes, functions, etc
  96. Due Dillegence
    A critical component of mergers and acquisitions, it is the process of investigation and evaluation, conducted to examine the details of a particular investment or purchase by obtaining sufficient and accurate information or documents that may influence the outcome of the transaction
  97. Earnings per Share
    A companys net earnings for the past 12 month divided by the present number of shares
  98. Economies of Scale
    A theory that as a company gets larger, its operations and associated unit costs decrease
  99. Employee Stock Ownership Plan (ESOP)
    A trust, established by a corporation, that operates as a tax qualified defined-contribution retirement plan, but unlike traditional defined contribution plans, employer contributions are invested in the companys stock
  100. Employee Stock Purchase Plan
    An employer-sponsored plan that allows employees to purchase company stock below the fair market value
  101. Equity
    The percentage of ownership interests held by a companys stockholders
  102. Ethics
    A philosophy principle concerned with opinions about appropriate and inappropriate moral conduct or behavior by an individual or social group
  103. Exit Strategy
    The process by which business ownership is liquidated by an individual
  104. Fat Organization
    An organization with a structure consisting of several layers of management
  105. Fiduciary
    A person, company or association that stands in a special relation of trust, confidence or responsibility and is responsible for holding assets in trust for a beneficiary
  106. Financial Statment
    A report containing financial information derived from an organizational accounting record
  107. Fixed Assets
    An accounting term used to describe tangible property used in the day-to-day operation of a business. Typically includes items such as real estate, equipment, machinery, fixtures and furnishings
  108. Fixed Costs
    The day-to-day costs of doing business that dont fluctuate based on the number of goods produced
  109. Fixed Rate
    A loan whereby the interest rate remains constant and does not fluctuate over the term of the loan
  110. Flat Organization
    An organization characterized by having only a few layers of management from top to bottom
  111. Foreign Exchange Rate
    The rate used to determine the conversion rate from one currency to another
  112. Form 5500
    An annual return used to report information concerning employee benefits plans and Direct Filing Entities (DFEs). Employee benefits plan Administrators or sponsors subject to ERISA must file information about each plan on an annual basis
  113. Free Trade Agreement
    A trade agreement between two or more countries to permit economic goods to flow across their borders free from tax tariffs
  114. General Ledger
    A book of final entry summarizing all of company financial transactions through the offsetting of debit and credit transactions
  115. Generally Accepted Accounting Principles (GAAP)
    The common set of accounting principles, standards and procedures companies use to compile their financial statements. GAAP is a combination of authoritative standards and the accepted method of conducting accounting transactions
  116. Glass Ceiling
    The terms used to describe the invisible barrier keeping women from advancing into executive-level positions
  117. Gross Profit
    Defined as the amount of revenue after any associated sales costs have been subtracted
  118. Group of Eight (G-8)
    An economic and financial alliance of the eight largest industrialized nations: Canada, France, Germany, Great Britain, Italy, Japan, Russia and the United States. Replaced Group of Seven (G-7). This group meets to discuss major economic and political issues
  119. Hostile Takeover
    A leveraged purchase of a company that goes against the wishes of the target companys management and board of directors
  120. Holding Company
    A company owning a significant portion of another companys voting stock in order to control management and operations by influencing or electing its board members
  121. Human Capital
    The collective knowledge, skills and abilities of an organizations employees
  122. Human Resource Metrics
    Measurements used to determine the value and effectiveness of HR strategies. Typically includes such items as cost-per-hire, turnover rates/costs, training and human capital ROI, labor/productivity rates and costs, benefit costs per employee, etc.
  123. Income Statement
    A financial document showing a companys income and expenses over a given period of time
  124. Indirect Labor
    Labor that is necessary to support the manufacturing of a product but is not directly involved with the actual process of manufacturing the product
  125. Industrial Espionage
    The often illegal act of spying on a competitor in order to secure a competitive advantage
  126. Industrial Psychology
    Applied psychology concerned with the study of human behavior in the workplace and how to efficiently manage an industrial labor force and problems encountered by employees
  127. Inflation
    Continual increase in the level of consumer prices and wages or continual decline of the purchasing power of money, caused by an increase in available currency beyond the quantity of goods and services that are available
  128. Initial Public Offering
    A company's first offer to sell its stock to the investing public
  129. Injunction
    A court-issued order requiring a party to either do or refrain from doing a certain act
  130. Insider Information
    Essential information about a companys plans that has not been released to the general public
  131. Insolvency
    The condition that a company is in when it has more debts (liabilities) than total assets that might be available to pay for them
  132. Interim Statement
    A report containing financial information covering a period of less than one year (i.e., quarterly reports)
  133. Intellectual Property
    Property that is protected under federal law, including trade secrets, confidential or proprietary information, copyrightable or creative works, ideas, patents or inventions
  134. Interest Rate
    The amount expressed as a percentage charged by a lender to a borrower on the total amount financed
  135. Internal Revenue Service
    U.S. government agency responsible for collecting taxes and enforcing tax laws
  136. Inventory
    The total of all raw materials, materials in process and finished products available for use or sale
  137. Inventory Turnover
    A measure of a companys basic efficiency, it is a metric used to gauge a companys annual sales to its inventory or, equivalently, how quickly a company sells the products it produces
  138. Issue Price
    The price at which company shares are initially offered to investors
  139. Joint Venture
    Businesses that have been officially linked to improve market share, participate in supportive activities, reduce operating costs and achieve superior efficiency
  140. Laundering
    The process of concealing or disguising illegally obtained funds
  141. Leadership
    The process by which an individual determines direction, influences a group and directs it toward a specific goal or organizational mission
  142. Lean Manufacturing
    A management principle that focuses on the reduction of waste to improve overall customer value
  143. Letter of Credit
    A letter or certificate issued by a bank or other lending institution guaranteeing that a buyers payment to a seller will be submitted for the correct amount and in a timely manner
  144. Letter of Intent
    A written statement stating the intention of the undersigned to enter into a formal business agreement with another entity or individual
  145. Leverage
    A term used to describe the degree to which an investor or company is utilizing borrowed money in relation to equity in the companys financial structure
  146. Liabilities
    The items a company is obligated to, such as accounts payable and bond or bank loans
  147. Liability Insurance
    An insurance policy purchased to provide protection to an individual or company against claims of negligent or inappropriate acts that result in property damage or bodily injury
  148. Licensing Agreement
    An agreement between two enterprises or individuals granting the legal right to use a patent or trademark
  149. Limited Liability Corporation
    A type of business structure that is a cross between a partnership and a corporation. Under an LLC structure, business owners are protected from suffering personal liability, and profits and losses are passed directly to owners without taxation
  150. Line of Credit
    A loan arrangement between a lending institution and a borrower that allows the customer to borrow up to a pre-specified dollar amount on an as-needed basis
  151. Liquidation
    The process of terminating a business or filing for bankruptcy, resulting in the sale of assets with the proceeds being used to pay creditors
  152. Liquidity
    The percentage of a companys assets that is readily available for cash conversion
  153. Litigation
    A legal proceeding in a federal or state court of law to determine and enforce legal rights
  154. Long-term Assets
    The value of a companys non-liquid assets such as property, equipment and other capital minus depreciation
  155. Long-term Liabilities
    Debt and other repayments recorded on the balance sheet that are due in more than one year
  156. Margin
    A companys earnings expressed as a percentage of revenue (also referred to as profit margin)
  157. Market Life Cycle
    The period of time during which a considerable portion of the buying public remains interested in purchasing a given product or service
  158. Market Penetration
    The degree to which a product is recognized and purchased by customers in a specific market
  159. Market Price
    The price for securities and other exchangeable goods traded on a stock exchange
  160. Market Share
    The percentage of the total sales (from all sources) of a given type of product or service attributable to a specific company
  161. Maturity
    The time at which a financial instrument, such as a note or bond, becomes due
  162. Merger
    The joining of two or more different organizations under one common owner and management structure
  163. Mission Statement
    A statement illustrating what the company is, what the company does and where the company is headed
  164. Monopoly
    Persistent market situation where there is only one provider of a particular product or service
  165. Mulitnational Company
    A company that has operations in different countries and is mainly staffed by local nationals but whose decisions are largely made by headquarters personnel
  166. Municipal Bond
    An often tax-exempt bond issued by federal, city, county, state or local government agencies to finance capital expenditures for public projects
  167. Net Profit
    Generally referred to as the bottom line, net profit is calculated by subtracting total expenses from total revenue (also referred to as net earnings)
  168. Net Worth
    A companys total assets minus liabilities
  169. New York Stock Exchange
    The leading corporation, operated by a board of directors, responsible for listing securities, setting policies and supervising the stock exchange and its member activities
  170. No-load Fund
    A mutual fund that does not charge commissions
  171. Non Profit/ Not for Profit
    An association formed for educational, fraternal, religious or social purposes and comprised of members who abide by the bylaws of the association
  172. North American Free Trade Agreement (NAFTA)
    An agreement, reached by the United States, Canada and Mexico, that instituted a schedule for the phasing out of tariffs and eliminated a variety of fees and other hindrances to encourage free trade between the three North American countries
  173. Offering Price
    The price at which the first investors are able to purchase shares
  174. Operating Budget
    A detailed projection of all projected income and expenses during a specified future period
  175. Option
    A contract for the right to purchase or sell an asset, subject to certain terms and conditions
  176. Opportunity Costs
    The amount that a particular product or resource could have earned in its next best use. For example, if an asset is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for
  177. Organization Chart
    A graphic representation outlining how authority and responsibility are distributed within an organization
  178. Organization Culture
    An organizations attitude and values regarding itself, employees, customers and the general public. It encompasses the manner in which things are done within the organization based on defined policies and practices
  179. Outsourcing
    A contractual agreement between an employer and an external third-party provider whereby the employer transfers responsibility and management for certain HR, benefits or training-related functions or services to the external provider
  180. Overhead
    The costs (excluding labor costs) associated with operating a business, including items such as the cost of rent, utilities, taxes, etc.
  181. Paradigm Shift
    A term used to define the process of change in patterns of thought or behavior
  182. Partnership
    An alliance between two or more individuals who mutually agree to share in the profits and losses of a business venture
  183. Penny Stock
    Defined by the Securities Exchange Commission (SEC) as shares with a trade value of less than $5.00
  184. Per Capita Income
    The average income per person in a particular population
  185. Perpetuity
    A term that simply stated means indefinitely. In finance terms, it is the number of years in which the simple interest of any sum becomes equal to the principal or annuity payable indefinitely
  186. Petty Cash
    Refers to the small quantity of cash typically kept on hand by a company to cover incidental expenses
  187. Portfolio
    An itemized list of investments such as stocks, bonds or mutual funds, all owned by the same individual or company
  188. Profit and Loss Statement
    A financial document summarizing company revenue and expenses during a specified period of time
  189. Pro Forma Statement
    a term used to describe the presentation of data, usually financial statements, where the data reflect information as if the state of the world were different from that which is, in fact, the case
  190. Promissory Note
    A legally binding written contract between a borrower and a lender in which the borrower agrees to pay back money to a lender according to specified terms
  191. Proprietary Information
    nformation associated with company products, business or activities, including such items as financial data; trade secrets; product research and development; product designs; marketing plans or techniques; computer programs; processes; and know-how that has been clearly identified and communicated by the company as proprietary, a trade secret or confidential
  192. Proxy Statement
    A written statement containing information issues that to be discussed and voted on at a shareholder meeting
  193. Public Domain
    Materials such as literary works, music, films, photographs, art, etc. that are no longer covered under copyright law and that can be published without obtaining permission or paying a fee
  194. Public Offering
    The introduction of new securities to the general public by means of underwriting
  195. Publicly Held Corporation
    A term used to describe an organization whose stock is held by the public
  196. Rate of Exchange
    The rate at which the unit of currency of one country may be exchanged for another countrys equivalent unit of currency
  197. Rate of Return
    The return rate earned on an investment on an annual basis, expressed as a percentage
  198. Reduction in Force
    An involuntary separation of an employee or groups of employees due to economic pressures, lack of work, organizational changes or other reasons of business necessity that require a reduction in staff
  199. Reinsurance
    Insurance policies purchased by an insurer to protect against exceptionally large risks or other related risks an insurer faces
  200. Request for Proposal (RFP)
    A request made by a private company or government agency to potential vendors or contractors regarding a price quote for specified products or services
  201. Restrictive Covenant
    A contract clause requiring executives or other highly skilled employees to refrain from seeking and obtaining employment with competitor organizations in a specific geographical region and for a specified period of time
  202. Restructuring
    Changing an organizational structure in order to make it more efficient and cost effective
  203. Retained Earnings
    The amount of after-tax profit that is not paid out as dividends and is retained and reinvested in the business or used to pay off financial obligations
  204. Return on Investment (ROI)
    A ratio of the benefit or profit derived from a specific investment compared to the cost of the investment itself
  205. Revenue
    The amount of income generated by a product or service over a period of time
  206. Rightsizing
    An approach to reducing staff whereby jobs are prioritized in order to identify and eliminate unnecessary work. This method uses a selection criteria based on individual jobs rather than people in order to avoid possibly laying off the wrong employees
  207. Risk Management
    The use of insurance and other strategies in an effort to minimize an organizations exposure to liability in the event a loss or injury occurs
  208. Sarbanes Oxley Act (SOX)
    The Sarbanes-Oxley Act of 2002 was enacted to increase accountability of corporations to their shareholders in the wake of recent accounting scandals. There are many financial provisions that are not germane to HR basics. Two provisions are of special interest to HR professionals are the whistleblower protection provision and the 401(k) blackout notice provision
  209. S Corporation
    Business enterprise allowed by the IRS for most companies with 75 or fewer shareholders, enabling the company to enjoy the benefits of incorporation while being taxed as if it were a partnership
  210. Securities and Exchange Commission (SEC)
    Business enterprise allowed by the IRS for most companies with 75 or fewer shareholders, enabling the company to enjoy the benefits of incorporation while being taxed as if it were a partnership
  211. Shareholder
    An individual or corporation that owns shares in the corporation
  212. Short term debt
    Debts payable in full within a period of one year or less
  213. Signature Guarantee
    The endorsement of a signature in the form of a stamp, seal or written confirmation by a bank or other acceptable guarantor
  214. Silent Partner
    An investor who does not have any management responsibility but furnishes capital and shares in the liability losses experienced by the company
  215. Slander
    False defamation expressed as spoken words, signs or gestures that cause damage to the character or reputation of the individual being defamed
  216. Slush Fund
    A fund that does not have a designated purpose
  217. Sole Proprietorship
    A business enterprise in which an individual is fully and personally liable for all the obligations of the business, is entitled to all profits and exercises complete managerial control
  218. Stock Split
    an increase in the number of shares outstanding of a company's stock; For example, if a stock with a par value of $200 splits 2-for-1, the price per share drops by half, to $100
  219. Standard and Poor's Rating
    An organization that provides ratings (opinions) regarding the creditworthiness of issuers or capital market obligations operating under the four major principles of: independence; objectivity, analytic integrity and disclosure
  220. Start-up Company
    A relatively new small business supported primarily by venture capital in line with the technology sector
  221. Strategic Alliance
    Two or more companies coming together to enhance business operations
  222. Strategic Planning
    The process of identifying an organizations long-term goals and objectives and then determining the best approach for achieving those goals and objectives
  223. Strike
    A situation that occurs when employees deliberately refuse to perform their jobs and/or form picket lines outside the employers premisses to prevent or discourage others from working in their place or conducting business with the employer
  224. Subsidiary
    A company that has more than half of its stock owned by another company or is completely owned by another company
  225. Succession Planning
    The process of identifying long-range needs and cultivating a supply of internal talent to meet those future needs. Used to anticipate the future needs of the organization and assist in finding, assessing and developing the human capital necessary to the strategy of the organization
  226. Summary Annual Report
    A summarized report containing information on the financial status of an employee benefits plan
  227. Supply and Demand
    The amount of goods or services available to consumers at a specific price and the level of consumer need or demand for those goods or services at the specified price
  228. Sweat Equity
    Work performed in return for a share in ownership
  229. SWOT Analysis
    A strategic planning tool used to collect and evaluate information on an organizations current strengths, weaknesses, opportunities and threats involved in a specific project or business venture
  230. 10-k
    The official account of a public companys annual report filed with the Securities and Exchange Commission (SEC)
  231. Takeover
    The leveraged purchase and acquisition of control of a company by purchasing or exchanging of stock in a friendly or hostile manner (see also hostile takeover)
  232. Tax-Deferred
    An investment in which some or all taxes are paid at a future date instead of the year the investment experiences a gain
  233. Tax-Exempt
    A reduction taken from income subject to federal taxes for a specific reason, as allowed by the Internal Revenue Service
  234. Tax Shelter
    A financial arrangement that reduces tax liability on current earnings
  235. Think Tank
    A group organized for the purpose of intensive research and problem solving, especially in the areas of technology, social or political strategy, or demographics
  236. Thrift Institution
    The general term used to describe banks, lending institutions and credit unions
  237. Trade Secret
    Any formula, pattern, device or compilation of information used in ones business that gives the individual or entity an opportunity to obtain an advantage over competitors that do not know or use this formula, pattern, device or compilation of information
  238. Treasury Bill
    A short-term security issued by the U.S. government
  239. Treasury Bond
    A long-term interest bearing bond issued by the U.S. government
  240. Treasury Note
    A U.S. government-issued note
  241. Trustee
    An individual or institution that oversees and manages a trust
  242. Undervalued
    An asset that is available for purchase at a cost that is lower than the products actual value
  243. Underwriting
    The risk an insurance company assumes for the payment of premiums
  244. Unemployment Insurance
    A statutory benefit, unemployment insurance (UI) is designed to provide workers who have been laid off a weekly income during short periods of unemployment. The system is run and funded by state and federal taxes paid by employers
  245. Uninsurable
    An individual or business enterprise that does not meet eligibility requirements be insured
  246. W-2 Form
    A tax form provided to employees at the end of each calendar year, detailing their total earnings and amounts withheld for applicable federal, state, local and FICA taxes
  247. W-4 Form
    A tax form employers ask employees to complete at the time of hiring to determine appropriate tax withholding liability based on factors such as number of dependents and outside income
  248. Wellness Program
    Programs such as on-site or subsidized fitness centers, health screenings, smoking cessation, weight reduction/management, health awareness and education that target keeping employees healthy, thereby lowering costs associated with absenteeism, lost productivity and increased health insurance claims
  249. Wholly-Owned Subsidiary
    A company that is entirely owned by another company
  250. Windfall Profit
    An unforeseen profit that occurs as a consequence of events beyond the recipients control
  251. Withholding Tax
    Income tax withheld from an employees wagesand paiddirectlyto federal, state and local governmentagencies by the employer.
  252. Working Capital
    The amount of cash available to a business for routine operations
  253. Year-end Closing
    Financial reports prepared and released at the end of a companys fiscal year
  254. Yield
    The amount of interest paid on income generated by an investment