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Financial Terms | |
decentralization |
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Definition of decentralizationdecentralizationa management style that exists when top
Related Terms: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 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 management billVery short maturity bills that the Treasury occasionally sells because its cash Certified Management Accountant (CMA)a professional designation in the area of management accounting that Corporate financial managementThe application of financial principals within a corporation to create and 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. 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. Financing decisionsdecisions concerning the liabilities and stockholders' equity side of the firm's balance Institute of Management Accountants (IMA)an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management 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 ![]() 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. 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. Operating riskThe inherent or fundamental risk of a firm, without regard to financial risk. The risk that is operating risk (business risk)Risk in firm’s operating income. Operational Earnings Managementmanagement actions taken in the effort to create stable organizational culturethe set of basic assumptions about organizational forman entity’s legal nature (for example, organizational-level costa cost incurred to support the ongoing organizational structurethe manner in which authority and Passive investment managementBuying a well-diversified portfolio to represent a broad-based market performance management systema system reflecting the entire package of decisions regarding performance measurement and evaluation Portfolio managementRelated: Investment management Real Actions (Earnings) ManagementInvolves operational steps and not simply acceleration Risk managementThe process of identifying and evaluating risks and selecting and managing techniques to Short-run operating activitiesEvents and decisions concerning the short-term finance of a firm, such as Significant InfluenceThe extent of influence of an investor over the operating and financial Significant part numberAn identifying number assigned to an item that conveys Society of Management Accountants of Canadathe professional body representing an influential and diverse Statement on Management Accounting (SMA)a pronouncement developed and issued by the management Stop-limit orderA stop order that designates a price limit. In contrast to the stop order, which becomes a Stop-loss orderAn order to sell a stock when the price falls to a specified level. Stop order (or stop)An order to buy or sell at the market when a definite price is reached, either above (on a stop paymentA service which enables you to request a 'stop' on any cheque or other pre-authorized payment, as long as the funds have not yet been disbursed. For example, you might request a stop payment on a post-dated cheque if you no longer need the product or service for which that cheque was initially written. Stopping curveA curve showing the refunding rates for different points in time at which the expected value Stopping curve refunding rateA refunding rate that falls on the stopping curve. Strategic management accountingThe provision and analysis of management accounting data about a business and its competitors, which is of use in the development and monitoring of strategy (Simmonds). strategic resource managementorganizational planning for the deployment of resources to create value for customers and shareholders; key varibles in the process include the management of information and the management of change in response to threats and opportunities Subordinated DebentureA bond having a claim on assets only after the senior debt has been paid off in the event of liquidation. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |