Category: O

This is the arrangement under which a number of share holders can apply to purchase the portion of a rights issue that is not distributed.

A provision within insurances policies that allows a policy to be owned by someone other than the person insured.

A person assuming a position in a public office either through election or appointment is expected to take this formal oath which reminds them of their obligations to the public and to

The risk that is undertaken on the company’s use of a product that is obsolete.It significantly affects their business and revenues. Technology companies are the most susceptible to this risk.

The probability of the occurrence of an event that is expressed as a ratio of the possible occurrences to the possible nonoccurences. The odds of an event A is given by p(A).

Items such as litigation procedures which are usually not reflected as an expense on the balance statement. However, they do need to be repaid at a later date.

An individual who is appointed by bankruptcy court who has no connection to the property on which debt is charged. This individual manages the property and presides over the meetings of creditors,

A firm which is headquartered in another country, where it is registered or where the investors of the firm reside.

A law that was passed in 1990 by the US that places civic liability on tanker vessels and facilities that explore and transport oil, for the removal and damages incurred due to

An account held in the name of a Futures Commission Merchant (FCM) that combines the transactions of two or more other individuals. Compare with Fully Disclosed Account.

When a contract?s terms cost more to satisfy than the projected economic benefits, it may be described as onerous. A lease contract might be described in this way.

This is a computing system in which time-sensitive data related to a transaction is processed immediately. Data must always be kept current. This is usually found in online banking, control of inventories,

This is when a firm has pending transactions that will occur near the end of the accounting period, and the budget will not change until these are accounted for.

The conspicuous entry of a non-occupant into a premises or property, usually with witnesses present.

A bidding system that enables anyone to submit bids, in order to encourage competitive bidding.

A fund that allows shares to be bought or sold, according to demand. The fund?s market value is calculated by dividing the total value by the number of shares and then adding

Subsidiary of any corporation that is run like an independent company. An operating unit has its own structures, assets and liabilities, distinct from those of the parent corporation.

The likelihood that a loss will be incurred by committing resources to one opportunity, preventing the pursuit of better opportunities in the future.

Production system that takes account of capacity constraints in the production process and does not attempt to continuously operate at full capacity. The aim is not to produce as many units as

A contract term that stipulates any replacement items must be equal to the specified item in all relevant respects.