The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: B

BACK PAY AWARD

A requirement that retroactive compensation be denied by an employer. They were used in discrimination cases in the federal civil rights laws.

BACK-END SYSTEM

A computer or computers that do calculation heavy operations for corporations.

BACKLOG TRAP

The negative effect that pending work puts on operations. When one element of the system is not available it holds up production.

BACKWARD LINKAGES

The channels information, material, and money takes in a company. The suppliers and buyers make up a netowrk. Refer to forward linkages.

BAIL

Releasing a prisoner due to a deposit of a security. The person must still appear in court. A civil case allows release but criminal issues are based on the courts discretion. Bail

BALANCE PROTECTION

Insurance that makes minimum monthly payments for credit cards. Its done if the insured is injured or unemployed. A percentage of the balance is the premium. It is added as a fee

BALANCED SCORECARD (BSC)

When past good performance is used to predict future performance. The cards do not take in to consideration the environment.

BANK INSURANCE FUND (BIF)

A fund whose deposit money is insured by a commercial bank. It is admisitered by the Federal Depository Insurance Corporation or the FDIC.

BANKRUPTCY REMOTE

How a company compares its status to another company in the same group. It prevents debt relief from being taken on by the group. This works for an established business not start

BARGAIN PURCHASE OPTION

When a leasee can buy the asset leased at the end of the term. The price is lowver than fair market value. If noncancelable lease has this clause it is a capital

BASE PREMIUM

Insurance company premuims that are used to calculate the reinsurance rates.

BASIC BENEFITS

The least insurance that is given in insurance. AKA basic hospital plan.

BASIC RESEARCH

Any investigation on a subject to understand it and make a specific outcome.

BASLE ACCORD

An agreement between participating industrialized countries to adopt RISKbased CAPITAL methods developed by the BANK FOR INTERNATIONAL SETTLEMENTS. The Accord, which addresses in detail capital standards for CREDIT RISK and MARKET RISK,

BEARER SECURITY

A security that can be transferred or redeemed by the holder, who may or may not be the BENEFICIAL OWNER. Many securities are issued in bearer form, which eliminates the time and

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