Category: Finance Dictionary

Using volume discounts or hedging against possible shortages. Stocking up beyond typical needs. Refer to hedging.

Fire insurance section that calculates a property’s total loss value by excluding the value of a property’s foundation.

The amount of future CREDIT RISK inherent in an OVERTHECOUNTER DERIVATIVE transaction, typically combined with ACTUAL EXPOSURE to determine total credit exposure. The amount of fractional exposure in a derivative is dependent

An entity (a company or producer) with a market model for its products or services to be franchised. The franchising entity maintains a number of controlling factors related to the franchise. The

Term of sale whose charges only get goods into the custody of the carrier at a place named by the buyer. The price invoiced or quoted by a seller includes only those

Keeping some firms afloat using drawbacks, grants, subsidies, tax breaks, and other such means. Intended to bolster depressed area with (1) jobs, (2) specific industries like agriculture or defense, (3) research and

One party selling or giving its ownership to another party. No permission is needed is this is a fractional ownership. For example, a part-owner of company sell his/her portion to another entity,

Subordinates are un-supervised, proving their worth by their accomplishments. Supervisory criteria is non-existent. Only goals and objectives are stated.

Supplier-to-departure transportation costs. Part of the final, total transportation costs of the shipment.

An often verbal, otherwise undocumented, or un-witnessed, risky agreement between associates, friends or family members.

Starting statements in a contract that set the basis of contract administration, rights, responsibilities, and relationships of the contracting parties. T

A substance that provides energy when its makeup is chemically or physically altered. A product consumed, oxidized, or otherwise used.

Balance sheet’s breakdown by action or decision. Economic, environmental, health, and social costs posted into specific accounts.

Typically has a restaurant attached to it. Also refer to full service restaurant.

A condition a person must achieve to be eligible to collect social security retirement benefits. A section of OASDHI detailing the condition requirements. OASDHI stands for ‘Old Age, Survivors, Disability, and Health

Reduced productivity of a capital asset due to obsolescence. Decreased capability and throughput of an asset.

Using bonds or loans to raise monies. Sometimes done through issuance of securities such a bonds.

Disability benefits improvement at specific listed times during the plan or contract without rechecking insurability.