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Financial Terms | |
centralization |
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Definition of centralizationcentralizationa management style that exists when top management
Related Terms:decentralizationa management style that exists when top 45-Degree LineA line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis. Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received American-style optionAn option contract that can be exercised at any time between the date of purchase and Annual fund operating expensesFor investment companies, the management fee and "other expenses," ![]() Asian currency units (ACUs)Dollar deposits held in Singapore or other Asian centers. Asset/liability managementAlso called surplus management, the task of managing funds of a financial Blow-off topA steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen Blue-chip companyLarge and creditworthy company. Bottom-up equity management styleA management style that de-emphasizes the significance of economic cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving ![]() CASH FLOWS FROM FINANCING ACTIVITIESA section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations. CASH FLOWS FROM INVESTING ACTIVITIESA section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery. Cash management billVery short maturity bills that the Treasury occasionally sells because its cash Central BankA public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority. Certified Management Accountant (CMA)a professional designation in the area of management accounting that Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk Corporate financial managementThe application of financial principals within a corporation to create and Cost company arrangementArrangement whereby the shareholders of a project receive output free of cost management system (CMS)a set of formal methods decision makingthe process of choosing among the alternative degree of operating leveragea factor that indicates how a percentage change in sales, from the existing or current degree of operating leverage (DOL)Percentage change in profits given a 1 percent change in sales. Demand Management PolicyFiscal or monetary policy designed to influence aggregate demand for goods and services. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Earnings ManagementThe active manipulation of earnings toward a predetermined target. equivalent units of production (EUP)an approximation of the number of whole units of output that could have been European-style optionAn option contract that can only be exercised on the expiration date. Exchange controlsGovernmental restrictions on the purchase of foreign currencies by domestic citizens or Finance Companycompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. financing activitiesOne of the three classes of cash flows reported in the Financing decisionsdecisions concerning the liabilities and stockholders' equity side of the firm's balance Foreign exchange controlsVarious forms of controls imposed by a government on the purchase/sale of Holding companyA corporation that owns enough voting stock in another firm to control management and Institute of Management Accountants (IMA)an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management Insurance CompanyA firm licensed to sell insurance to the public. Intercompany loanLoan made by one unit of a corporation to another unit of the same corporation. Intercompany transactionTransaction carried out between two units of the same corporation. internal accounting controlsRefers to forms used and procedures investing activitiesOne of the three classes of cash flows reported in the Investment decisionsdecisions concerning the asset side of a firm's balance sheet, such as the decision to Junior debt (subordinate debt)Debt whose holders have a claim on the firm's assets only after senior limited liability companyan organizational form that is a hybrid of the corporate and partnership organizational Making deliveryRefers to the seller's actually turning over to the buyer the asset agreed upon in a forward contract. Managementmanagement refers to the individuals in an entity that have the authority and the responsibility to manage the entity. The positions of these individuals, and their titles, vary from one entity to another and, to some extent, from one country to another depending on the local laws and customs. Thus, when the context requires it, the term includes the board of directors or committees of the board which are designated to oversee certain matters (e.g., audit committee). Management accountingThe production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved. management accountinga discipline that includes almost Management Accounting Guidelines (MAGs)pronouncements of the Society of management Accountants of Management buyout (MBO)Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout (MBO)Acquisition of the firm by its own management in a leveraged buyout. Management/closely held sharesPercentage of shares held by persons closely related to a company, as management controlThis is difficult to define in a few words—indeed, an management control system (MCS)an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans, management expense ratio (MER)The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund. Management feeAn investment advisory fee charged by the financial advisor to a fund based on the fund's management feeThe fee paid to the fund’s manager for supervising the administration of the fund. management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates management stylethe preference of a manager in how he/she interacts with other stakeholders in the organization; Managerial decisionsdecisions concerning the operation of the firm, such as the choice of firm size, firm Money managementRelated: Investment management. Most distant futures contractwhen several futures contracts are considered, the contract settling last. Mutually exclusive investment decisionsInvestment decisions in which the acceptance of a project Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. Nonsignificant part numberAn identifying number assigned to a part that conveys open-book managementa philosophy about increasing a firm’s performance by involving all workers and by ensuring operating activitiesIncludes all the sales and expense activities of a business. operating budgeta budget expressed in both units and dollars Operating cash flowEarnings before depreciation minus taxes. It measures the cash generated from operating cash flowSee cash flow from operating activities. Operating Cash FlowIncome available after the payment of taxes, plus the value of the Operating cycleThe average time intervening between the acquisition of materials or services and the final Operating EarningsA term frequently used to describe earnings after the removal of the Operating expenseAny expense associated with the general, sales, and administrative OPERATING EXPENSESThe total amount that was spent to run a company this year. Operating ExpensesThe amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates. Operating exposuredegree to which exchange rate changes, in combination with price changes, will alter a Operating incomeThe net income of a business, less the impact of any financial activity, Operating IncomeA measure of results produced by the core operations of a firm. It is common Operating leaseShort-term, cancelable lease. A type of lease in which the period of contract is less than the Operating leaseThe rental of an asset from a lessor, but not under terms that would Operating LeaseOne where the risks and benefits, as well as ownership, stays with the lessor. Operating leverageFixed operating costs, so-called because they accentuate variations in profits. operating leverageA relatively small percent increase or decrease in operating leveragethe proportionate relationship between operating leveragedegree to which costs are fixed. Operating Line of CreditA bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year. Operating LoanA loan advanced under an operating line of credit. Operating profitThe profit made by the business for an accounting period, equal to gross profit less selling, finance, administration etc. expenses, but before deducting interest or taxation. operating profitSee earnings before interest and income tax (EBIT). Operating profit marginThe ratio of operating margin to net sales. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |