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

Category: O

OPENING BALANCE SHEET

The initial figures used in a financial plan. For established businesses, these figures are based on the balance sheet from the previous accounting period. For new businesses, the figures are based on

OPERATIONAL PERFORMANCE

The performance of the company against prescribed standards, such as compliance with regulations, waste reduction, productivity, etc.

OPT OUT

Explicit instruction not to send marketing materials to an individual.

OPTION HOLDER

A buyer of options who has yet to exercise or sell an option.

ORGANIZATIONAL POLITICS

Selfish pursuit of individual agendas by members of an organization, with no regard to the impact on the organization?s stated goals.

ORIGINATION FEE

This charge is imposed by a lender on a borrower to cover costs incurred during the mortgage application.

OUTPLACEMENT

The means by which a company helps recently laid off employees find alternative employment. Typically involves the commission of an outside agency, paid for by the company doing the laying off.

OVERHEAD ABSORPTION

Applying an amount of overhead costs that reflects the expense of producing goods or services.

OVERPACK

An outer container that protects one or more inner containers.

OVERTIME PREMIUM

Known as ?time and a half?, refers to the fact that employees earn 50% more than their usual hourly rate when working overtime.

OBJECT COST

The total sum of direct and indirect costs to the manufacturer on a product or service provided.

OCCUPANCY AGREEMENT

The agreement that allows the buyer to occupy a property beforethe deal is finalized. This is in consideration with the payment of a specified amount of rent.

OFF BALANCE SHEET CONDUITS

The issuance of highly rated commercial papers is carried out by financial institutions through the use of this instrument. It is treated as a separate entity that is not registered on the

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