|Doctrine of sovereign immunity|
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Definition of Doctrine of sovereign immunity
Doctrine of sovereign immunity
doctrine that says a nation may not be tried in the courts of another country
This doctrine says that a nation is sovereign within its own borders and its domestic
The risk that a central bank will impose foreign exchange regulations that will reduce or
A market in which there is much trading.
A strategy that uses available information and forecasting techniques to seek a
a repetitive action performed in fulfillment of business functions
the process of detailing the various repetitive actions that are performed in making a product or
A method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing.
planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and
A 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.
A relatively new method advocated for the
a process using multiple cost drivers to predict and allocate costs to products and services;
A cost allocation system that compiles costs and assigns
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
a segment of the production or service
a measure of the demands on activities and,
The actual expenditure made to acquire an asset, which includes the supplierinvoiced
actual cost system
a valuation method that uses actual direct
The physical commodity underlying a futures contract. Cash commodity, physical.
One who uses statistical information to evaluate the probability of future events and prices insurance products.
ADF (annuity discount factor)
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
Allocation base A measure of activity or volume such as labour
hours, machine hours or volume of production
The pool factor implied by the scheduled amortization assuming no prepayemts.
Present value of $1 paid for each of t periods.
Present value of an annuity of $1 per period.
Asset activity ratios
Ratios that measure how effectively the firm is managing its assets.
The amount of total risk that can be eliminated by diversification by
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for
risk of a firm measured from the standpoint of an investor who holds a highly diversified portfolio.
Bill and Hold Practices
Products that have been sold with an explicit agreement that delivery
A guaranteed investment contract purchased with a single (one-shot) premium. Related:
The risk that the cash flow of an issuer will be impaired because of adverse economic
an activity that is necessary for the operation of the business but for which a customer would not want to pay
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
Cash Flow Provided by Operating Activities
With some exceptions, the cash effects of transactions
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
Cash Flow Provided or Used from Investing Activities
Cash receipts and payments involving
A statement that shows where a company’s cash came from and where it went for a period of time, such as a year.
Cash Flow statement
A financial report that shows the movement in cash for a business during an accounting period.
CASH FLOWS FROM FINANCING ACTIVITIES
A 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 ACTIVITIES
A section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery.
Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving
A transaction where exchange is immediate, as contrasted to a forward contract, which
The market model applied to a single security. The slope of the line is a security's beta.
The percentage of a given month's sales collected during the month of sale and each
The risk that a foreign debtor will be unable to pay its debts because of business events,
common-size income statement
Income statement that presents items as a percentage of revenues.
Related: Unsystematic risk
See asset-specific risk
A contract accounting method that recognizes contract revenue
The risk that a project will not be brought into operation successfully.
computer-aided manufacturing (CAM)
the use of computers to control production processes through numerically
computer integrated manufacturing (CIM)
the integration of two or more flexible manufacturing systems through the use of a host computer and an information networking system
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Consolidated Omnibus Budget Reconciliation Act (COBRA)
A federal act
Consumer Credit Protection Act
A federal act specifying the proportion of
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual
A formal written statement of the rights and obligations of each party to a transaction.
Method of accounting for sales or service agreements where completion
an external party that has been granted an outsourcing contract to produce a part or component for an entity
The month in which futures contracts may be satisfied by making or accepting a delivery.
an external party that has been granted an
Contract Work Hours and Safety Standards Act
A federal act requiring federal contractors to pay overtime for hours worked exceeding 40 per week.
An annual statement filed by a life insurance company in each state where it does
Rules set by the Chicago Board of Trade for determining the invoice price of each
cost of goods manufactured (CGM)
the total cost of the
Cost of manufacture
The cost of goods manufactured for subsequent sale.
a contract in which the customer agrees
The risk that the other party to an agreement will default. In an options contract, the risk
Country financial risk
The ability of the national economy to generate enough foreign exchange to meet
Country risk General
Level of political and economic uncertainty in a country affecting the value of loans or
Creative Accounting Practices
Any and all steps used to play the financial numbers game, including
The risk that an issuer of debt securities or a borrower may default on his obligations, or that the
Financial and moral risk that an obligation will not be paid and a loss will result.
critical success factors (CSF)
any item (such as quality, customer
Refers to the volatility of returns on international investments caused by events associated
Related: Exchange rate risk
Currency risk sharing
An agreement by the parties to a transaction to share the currency risk associated with
Current Tax Payment Act of 1943
A federal act requiring employers to withhold income taxes from employee pay.
Davis-Bacon Act of 1931
A federal act providing wage protection to nongovernment
Existing in actual fact although not by official recognition.
Also referred to as credit risk (as gauged by commercial rating companies), the risk that an
design for manufacturability (DFM)
a process that is part of the project management of a new product; concerned with finding optimal solutions to minimizing product failures
Present value of $1 received at a stated future date.
Present value of a $1 future payment.
Related: unsystematic risk.
In project financing, the risk that the project's output will not be salable at a price that will
Employee Retirement Income Security Act of 1974 (ERISA)
A federal act that sets minimum operational and funding standards for employee benefit
Equal Pay Act of 1963
A federal act requiring that both sexes receive equal pay
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
An insurance program designed to provide funds for insured's dependents upon death of the insured, and to also conserve, as much as possible, the personal assets that the insured wants to bequeath to heirs.
The risk that the ability of an issuer to make interest and principal payments will change because
A bond portfolio management strategy that involves finding the lowest cost portfolio
Exchange rate risk
Also called currency risk, the risk of an investment's value changing because of currency
The variability of a firm's value that results from unexpected exchange rate changes or the
External Financial Statements
Corporate financial statements that have been reported on by an external independent accountant.
A financial institution that buys a firm's accounts receivables and collects the debt.
An agent who buys and sells goods on behalf of others for a commission.
A statistical procedure that seeks to explain a certain phenomenon, such as the return on a
A way of decomposing the factors that influence a security's rate of return into common and
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