Category: O

Total payroll expenses for all employees of an insured business, excluding executives, contractors, officers of the company and departmental managers.

Flow chart, showing the hierarchical structure of an organization, including formal lines of communication and accountability.

The process by which organizations enhance their ability to understand and adapt to change. Involves wide-scale interpretation and integration of developing knowledge that leads to changes in organizational policy and practice.

A customer?s first order with a company, used by marketers to gain understanding of new customer behavior.

This condition is found in almost all insurance policies (except life insurance). It stipulates that, if multiple policies apply to a given risk, any associated losses will be paid from all relevant

Classification term that applies to items that do not meet given specifications.

An estimation of how long it will take a company to spend the revenue generated during an accounting period.

1. Retailing: A drug or medication that does not require a doctor’s prescription. 2. Securities: Unlisted US securities (usually unlisted because the issuer does not meet the exchange?s requirements).

Occurs when expenditure exceeds the budgeted amount.

To place demands on a piece of equipment or a system that are in excess of its capacity, typically resulting in damage to equipment or system collapse.

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The risk that is undertaken on the company’s use of a product that is obsolete.It significantly affects their business and revenues.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.