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

Category: Finance Dictionary

LONGITUDINAL STUDY

To identify a long-term trend, applying this statistical study. Also refer to cross sectional study.

LOSS CARRYFORWARD

Current year’s net loss offsets subsequent years’ taxable income as an accounting adjustment. Even a partial loss carryback of up to 20 years under the US tax laws is possible.

LOSS LEADER

Below-cost sale as advertised of goods or services. Intended to increase retail store customer visits. Assumption is visits will also increase full-priced item purchases. Also refer to price leader.

LUMP SUM

1. Single large amount; no smaller amounts; no installments. 2. Entire lot’s , or group of goods or services’ single price. Given no individual item breakdown.

MACHINABILITY

Being easier to cut, drill, grind, and shape are typical of this material’s characteristics.

MACROECONOMIC EQUILIBRIUM

Meeting aggregate demand with aggregate supply as a national economic conditional activity. Prices, employment and resources show impacts by significant movement on either side.

MAILMERGE

Function available in most word processing programs that merges text and a form-letter intended for many recipients, but with each letter personalized for each recipient. The program formats each recipient’s name and

MAJOR NONCONFORMANCE

The failure, or significant usability reduction of a facility, machine, plant, program, project, or system that is likely to result in a non-critical non-conformance.

MALONEY ACT

Securities Exchange Act of 1934 amendment. The over-the-counter market oversight responsibility was assigned to a Self-Regulatory Organization (SRO) registered with the Securities & Exchange Commission (SEC). See NASD.

MANAGEMENT INFORMATION SYSTEM (MIS)

The study of information needs as this organized method facilitates at every level in making operational, tactical, and strategic decisions by an organization’s management. Designing, implementing, maintaining procedures, processes, and routines to

MAN-MADE DISASTER

Deliberate or negligent human actions directly and principally caused one or more identifiable disastrous events. Also known as human-made disaster. Contrast to natural disaster.

MANUFACTURING RESOURCE PLANNING (MRP-II)

Interfaced resource system to a material requirements planning (MRP) process or system. It integrates a manufacturing firm’s total planning, not just production. Functions include: Business planning, production and schedule planning, required capacity

MARGINAL COST OF FUNDS

Assuming that a bank’s cost of funds remains the same, this is the cost of funding one additional loan.

MARGINAL PROFIT

The result of marginal revenue minus marginal cost. Marginal profit equals zero In the best-case scenario.

MARGINALIZATION

The process of according less importance to something or someone moved away from the inner workings of the group. A social phenomenon of excluding a minority, subgroup, or undesirables by ignoring their

MARKET DENSITY

A product’s potential customers tallied within a specific unit area of land. A square-mile or square-kilometer is the typical area unit.

MARKETABILITY

Selling similar items at a price at which this particular item is sold measures the relative ease of its marketability.

MARKUP PRICING

The activity of setting an item’s selling price by adding either a set percentage or some additional amount to an item’s cost price.

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