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core competency |
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Definition of core competencycore competencya higher proficiency relative to competitors Core competencyPrimary area of competence. Narrowly defined fields or tasks at which a company or
Related Terms:Balanced ScorecardA system of non-financial performance measurement that links innovation, customer and process measures to financial performance. balanced scorecard (BSC)an approach to performance Core EarningsA measure of earnings that includes only the results of the primary operating Z scoreStatistical measure that quantifies the distance (measured in standard deviations) a data point is from balanced scorecard (BSC)an approach to performance Balanced-Budget MultiplierThe multiplier associated with a change in government spending financed by an equal change in taxes. ![]() Balanced fundAn investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a Absolute AdvantageThe ability to produce a good or service with fewer resources than competitors. See also comparative advantage. Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. activitya repetitive action performed in fulfillment of business functions activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and ![]() Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns 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 activity centera segment of the production or service activity drivera measure of the demands on activities and, actual cost systema valuation method that uses actual direct Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable ![]() Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Automated storage/retrieval systemA racking system using automated systems Average (across-day) measuresAn estimation of price that uses the average or representative price of a balanced scorecard (BSC)an approach to performance BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Basic business strategiesKey strategies a firm intends to pursue in carrying out its business plan. Blue-chip companyLarge and creditworthy company. Business cycleRepetitive cycles of economic expansion and recession. Business CycleFluctuations of GDP around its long-run trend, consisting of recession, trough, expansion, and peak. Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. Business failureA business that has terminated with a loss to creditors. business intelligence (BI) systema formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about business process reengineering (BPR)the process of combining information technology to create new and more effective Business riskThe risk that the cash flow of an issuer will be impaired because of adverse economic business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Changes in Financial PositionSources of funds internally provided from operations that alter a company's charge-back systema system using transfer prices; see transfer chief financial officer (CFO)Officer who oversees the treasurer and controller and sets overall financial strategy. Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Commercial Business Loan (Credit Insurance)An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s performance Presentation Standards Implementation 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 Comparative AdvantageA country has a comparative advantage over another country in the production of good A if to produce a unit of A it forgoes more of the production of good B than would the other country when it produces a unit of good A. Its efficiency in the production of good A relative to its efficiency in the production of good B is greater than is the case for the other country. See also absolute advantage. CompetenceSufficient ability or fitness for ones needs. Possessing the necessary abilities to be qualified to Competitive AdvantageThe strategies, skills, knowledge, resources or competencies that differentiate a business from its competitors. Competitive biddingA securities offering process in which securities firms submit competing bids to the Competitive offeringAn offering of securities through competitive bidding. Consumption FunctionThe relationship between consumption demand and disposable income. More generally, it refers to the relationship between consumption demand and all factors that affect this demand. Core EarningsA measure of earnings that includes only the results of the Primary operating Corporate financial managementThe application of financial principals within a corporation to create and Corporate financial planningfinancial planning conducted by a firm that encompasses preparation of both Corporate processing floatThe time that elapses between receipt of payment from a customer and the cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Cost company arrangementArrangement whereby the shareholders of a project receive output free of cost control systema logical structure of formal and/or informal cost management system (CMS)a set of formal methods costs of financial distressCosts arising from bankruptcy or distorted business decisions before bankruptcy. Country financial riskThe ability of the national economy to generate enough foreign exchange to meet Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. Critical Illness InsuranceCoverage that provides a lump-sum payment should you be diagnosed with a critical illness and survive a pre-determined period of time. There are no restrictions on how you use your benefit. Critical Illness Insurance (Credit Insurance)Coverage that provides a lump-sum payment should you become seriously ill with a specified illness. The payment is made to your creditors to pay off your debt owing. critical success factors (CSF)any item (such as quality, customer Defined benefit planA pension plan in which the sponsor agrees to make specified dollar payments to Defined Benefit PlanA pension plan that pays out a predetermined dollar Defined contribution planA pension plan in which the sponsor is responsible only for making specified Defined Contribution PlanA qualified retirement plan under which the employer Defined EBITDAA measure of EBITDA that is outlined or defined in a debt or credit agreement. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of Diffusion processA conception of the way a stock's price changes that assumes that the price takes on all Du Pont systemA breakdown of ROE and ROA into component ratios. Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies External Financial StatementsCorporate financial statements that have been reported on by an external independent accountant. Federal Reserve SystemThe central bank of the U.S., established in 1913, and governed by the Federal Federal Reserve SystemThe central banking authority responsible for monetary policy in the United States. FIFO method (of process costing)the method of cost assignment that computes an average cost per equivalent Finance Companycompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. financial accountinga discipline in which historical, monetary Financial analystsAlso called securities analysts and investment analysts, professionals who analyze Financial assetsClaims on real assets. financial assetsClaims to the income generated by real assets. Also called securities. Financial AssistanceEconomic assistance provided by unrelated third parties, typically government agencies. They may take the form of loans, loan guarantees, subsidies, tax allowances, contributions, or cost-sharing arrangements. financial budgeta plan that aggregates monetary details Financial controlThe management of a firm's costs and expenses in order to control them in relation to Financial CovenantA feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants. Financial CovenantsA promise made related to financial conditions or events. Often a promise not to allow certain balance sheet items or ratios to fall below an agreed level. Usually found in loan documents, as a protection mechanism. Financial distressEvents preceding and including bankruptcy, such as violation of loan contracts. Financial distress costsLegal and administrative costs of liquidation or reorganization. Also includes Financial engineeringCombining or dividing existing instruments to create new financial products. Financial futureA contract entered into now that provides for the delivery of a specified asset in exchange Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |