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Related Party |
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Definition of Related PartyRelated PartyAn entity whose management or operating policies can be controlled or significantly
Related Terms: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 Accounting entityA business for which a separate set of accounting records is being Accounting PoliciesThe principles, bases, conventions, rules and procedures adopted by management in preparing and presenting financial statements. 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 Aggressive Capitalization PoliciesCapitalizing and reporting as assets significant portions of Annual fund operating expensesFor investment companies, the management fee and "other expenses," ![]() Asset/liability managementAlso called surplus management, the task of managing funds of a financial Balance sheet identityTotal Assets = Total Liabilities + Total Stockholders' Equity 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 Change in Reporting EntityA change in the scope of the entities included in a set of, typically, consolidated financial statements. Complementary Policiespolicies which enhance each other. ![]() Controlled disbursementA service that provides for a single presentation of checks each day (typically in Controlled foreign corporation (CFC)A foreign corporation whose voting stock is more than 50% owned Corporate financial managementThe application of financial principals within a corporation to create and cost management system (CMS)a set of formal methods Counterparty Partyon the other side of a trade or transaction. Counterparty riskThe risk that the other party to an agreement will default. In an options contract, the risk 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. Equity-linked policiesRelated: Variable life ![]() Institute of Management Accountants (IMA)an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management 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; Money managementRelated: Investment management. Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. 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 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 controlled arbitrageA self-funding, self-hedged series of transactions that generally utilize mortgage Risk managementThe process of identifying and evaluating risks and selecting and managing techniques to Roth IRA. An IRA account whose earnings are not taxable at all under certaincircumstances. Short-run operating activitiesEvents and decisions concerning the short-term finance of a firm, such as 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 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 supply-chain managementthe cooperative strategic planning, Surplus managementRelated: asset management synchronous managementthe use of all techniques that help an organization achieve its goals third-party logisticsoutsourcing of the moving and warehousing Top-down equity management styleA management style that begins with an assessment of the overall total quality management (TQM)a structural system for creating organization-wide participation in planning and implementing a continuous improvement process that exceeds Value-based managementA variety of approaches that emphasize increasing shareholder value as the primary goal of every business. Working capital managementThe management of current assets and current liabilities to maximize shortterm liquidity. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |