Kurian - The AMA Dictionary of Business and Management

The AMA
Dictionary of
Business and Management

The AMA
Dictionary of
Business and Management

George Thomas Kurian

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Library of Congress Cataloging-in-Publication Data

Kurian, George Thomas.

The AMA dictionary of business and management / George Thomas Kurian.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0-8144-2028-7

ISBN-10: 0-8144-2028-1

1. ManagementDictionaries. 2. BusinessDictionaries. I. Title. II. Title: Dictionary of business and management.

HD30.15.K894 2013

650.03dc23

2012032937

2013 George Thomas Kurian.

All rights reserved.

Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.

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Printing number

10 9 8 7 6 5 4 3 2 1

The AMA
Dictionary of
Business and Management

A1 In life and marine insurance, rating given to person or property in perfect condition.

AAA Prime rating given to securities by Standard and Poors.

AAP

Abandonment 1. Final stage in a product life cycle when the decision is made to discontinue it. 2. Relinquishing a product to a third party with or without a settlement or compensation.

Abandonment option Choice of terminating an investment before its scheduled closing date.

ABB

ABC

ABC

Abilene paradox Theory that some decisions ostensibly based on consensus are counterproductive because they are founded on misperceptions and poor communications. Proposed by J ERRY H ARVEY , Professor Emeritus of Management, George Washington University, in 1974.

Abnormal return Rate of return for a risk greater than that required or expected by analysts.

Above-the-line 1. Entries in a profit-and-loss account that are within the ordinary activities of business. 2. Entries in a balance sheet dealing with revenue, as opposed to capital. Compare . 3. Advertising through television, radio, newspapers, and Internet.

Abreaction channel Mechanisms for employees to express dissatisfaction with their work or their superiors.

Absence culture Corporate culture in which absenteeism is condoned.

Absenteeism Unauthorized leave from work, especially repeatedly.

Absolute cost advantage Cost of producing particular products as influenced by certain advantages, such as cheap labor or abundant natural resources.

Absolute cost barrier Built-in obstacle to entry into a new market, such as the advantage held by established or large firms.

.

Absolute monopoly Severe form of monopoly in which production and distribution of a product or service is in the hands of a single corporation.

Absolute performance standard Theoretical standard of performance, such as , against which actual performance may be judged.

Absorption costing Accounting process in which overhead costs of production are apportioned on the basis of seven elements: unit, weight, or volume; labor hours; machine hours; direct labor costs; direct material costs; prime costs; and standard hours.

Abusive dismissal Termination of an employee that is technically legal in some countries but violates accepted standards of fairness and equity.

Accelerated depreciation Rate of depreciation of assets that is faster than useful-life basis.

Acceleration principle Relationship between a change in output and the level of investment spending. The capital to output ratio is known as the .

Accelerator 1. Company that supplies office space, marketing space, and infrastructural services. 2. Capital-output ratio that indicates changes in output and level of investment.

Acceptance Agreement to the terms of a bill of exchange certifying that the person on whom it is drawn accepts the conditions of the bill, denoted by the persons signature.

Acceptance bonus Bonus paid to a new employee upon beginning a job; part of a Golden hello.

Acceptance sampling technique that uses statistical methods to examine a sample before acceptance of a batch.

in terms of its acceptance by subordinates and not as inherent in the office.

Accession rate Measure of the number of new employees joining a firm over a given period.

Accident analysis Use of E RGONOMIC analysis techniques to identify causes of accidents and potential hazards in the workplace, so as to create a safer working environment.

Accord and satisfaction Legal device defining a contractual obligation and the satisfaction and discharge of that obligation under the law of tort.

Account 1. A statement of transactions. 2. In advertising, marketing, and public relations, a client from whom a commission or fee is obtained in return for services.

Account executive Professional in an advertising, marketing, or public relations agency responsible for liaising with a client and implementing the clients business program.

Account reconciliation Procedure for ensuring reliability of accounting records by verifying authorized amounts and actual payments.