LER 497a

The responsibility placed on an individual or group for their own or others actions, conduct, performance, projects, etc.

A written document prepared by an independent accountant used to provide a professional opinion regarding the scope and validity of financial data being reported on financial statements.

The period of time in which businesses prepare internal accounts for the purpose of monitoring progress on a weekly, monthly or quarterly basis.

The debt a company is liable for and must pay off to suppliers or vendors

Charges that have not been paid by the end of an accounting period but are included in the accounting results for the period

The earnings reported on a companys income statement

Defined as a companys total liabilities exceeding its total assets

An accounting system that enters income and expenses into the books at the time of the contract instead of when an expense is incurred or payment has been received

The collective depreciation of an asset claimed as an expense since the asset was obtained

The process of acquiring control of another corporation, by purchase or stock exchange

A statistician who calculates probable lengths of life so that insurancepremiums charged for a variety of risks can be correctly established

A business that is owned or controlled by another company or group that owns a minority of the voting stock of the other company

Buying or selling stock outside of New York Stock Exchange standard trading hours

Income from which taxes have already been deducted

A tern used to describe any debt that has become overdue. Typically, debts that are in arrears by 30 days or more

A method of debt reduction whereby a borrower pays off a portion of a loans interest and principal periodically

A term used to describe a company that has become so small as a result of downsizing or other business restructuring that it has lost its strength and ability to compete effectively

The percentage rate charged by lending institutions for various types of loans

The average amount of monthly interest paid to investors over a one- year period, expressed as a percentage

A particular amount of income paid in either yearly, at other recurring intervals or in a lump sum

A companys charter that spells out the name, basic purpose, incorporators, amount and types of stock that may be issued, and any special characteristics, such as being nonprofit. Each state has its own system of approval of articles of incorporation, and this approval is usually handled by the states Secretary of State

The process of dividing funds between different types of assets (cash, stocks, bonds and real estate)

The items owned by a company (i.e., stocks, equipment, real estate, etc.) declared on the basis of initial purchase price instead of current market value

A systematic assessment of a companys management, finances, operations, controls and scope in which policies and procedures are carried out

Total value of sales orders waiting to be processed/fulfilled

A financial document containing a list of all company assets and liabilities

A mutual fund that purchases a mixture of common stock, preferred stock, bonds and short-term bonds to provide income and capital gains while avoiding unnecessary risks

A portfolio allocation strategy aimed at managing risk and investment return. Typically, portfolios are divided equally among various equity and fixed-income securities

A legally declared condition of being unable to meet ones financial obligations and being legally declared financially insolvent

A market in a state of decline

The systematic process of comparing an organizations products, services and practices against those of a competitor organization or other industry leader to determine what allows it to achieve high levels of performance

The measure of a companys total asset worth minus intangible assets and liabilities

A term used to describe stocks in some of the largest and most profitable companies

The process of identifying and differentiating an organizations products, processes or services from another organization by giving it a name, phrase or other mark

A situation in which an individual who is a party to a contract or agreement does not uphold or violates the terms of the contract

A measure used to determine the approximate sales volume required to cover the costs associated with producing a particular product or service

The point at which a companys revenues are equal to its expenses

A numerical summary of an organizations available resources and how those resources are to be allocated based on anticipated future expenditures for various items such as equipment, training and development programs, benefits, implementing new processes or services, etc.

The amount by which a government, company or individual expenditures are in excess of the amount of income being brought in over a specific period of time

Market that is moving upward instead of being in a state of decline

The procedure of combining related products together to be sold as a single unit

The principal fact-finding agency for the federal government in the broad field of labor economics and statistics. BLS is an independent national statistical agency that collects, processes, analyzes and disseminates essential statistical data to the American public, the U.S.Congress, other federal agencies, state and local governments, business and labor. BLS also serves as a statistical resource to the Department of Labor

A philosophy principle concerned with opinions about appropriate and inappropriate business conduct or behavior by individuals or groups of individuals

The knowledge and understanding of the financial, accounting, marketing and operational functions of an organization

A document that provides relevant information about a company by outlining items such as the companys business description, market or industry, management, competitors, future prospects and growth potential, etc.

Any activity or program conducted between businesses through the use of a computer network connection vs. an intermediary

A long-term investment strategy whereby investors preserve existing holdings by disregarding short-term market fluctuations

The process of a company repurchasing of stock or bonds it has issued

The fixed nonlabor factors used in the production of goods and services, and the value of such factors

Rise in the market price of an asset

A dispersement for the purchase, replacement, renovation or expansion of facilities that can not be charged as an expense under generally accepted accounting standards

The amount of profit realized from the sale of investments or property

A tax that is levied on the actual gain realized from the sale of property

The movement of cash resulting from operations into and out of a business or activity

A company whose profits are taxed independently from an owners income

The process of consolidating all decision-making authority under one central group or location

A deposit into an account at a financial savings institution that cannot be withdrawn prior to a specific maturity date

Structure of decision-making responsibilities from the highest levels of authority to the lowest levels

A lawsuit filed by one party on behalf of themselves and other people in a group who share the same complaint

A business type that is only legally allowed to have 3050 stockholders, based on the state in which the business is incorporated

A method used by sales people to obtain new business by making unsolicited calls to potential customers

Securities that represent ownership in a company. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a companys assets only after bondholders, preferred shareholders and other debtholders have been paid in full

An assembly of diverse companies that are operated as a single unit under one common ownership

An index of prices used to measure the change in the cost of basic goods and services in comparison with a fixed base period. Also called cost-of-living index

The process of identifying an organizations critical information systems and business operations, and developing and implementing plans to enable those systems and operations to resume following a disaster or other emergency situation

A term used to describe the practice of altering or fudging accounting numbers and records during or subsequent to an audit

The beliefs, values and practices adopted by an organization that directly influence employee conduct and behavior

The prescribed standards, behaviors, principles or concepts that an organization regards as highly important

A means of measuring the costs associated with a specific program, project, activity or benefit compared to the total benefit or value derived

A separate cost accounting unit charged with providing a method of isolating and tracking costs as a means to enhance management controls by identifying responsibility for various expenses

The cost of buying raw materials and producing the merchandise a company sells

The direct and indirect costs that are calculated to measure the costs associated with filling a vacancy. Direct costs include, but are not limited to, advertising, employment agency fees, job fairs, employee referrals, credit and reference checking costs, examination and testing costs during the selection process, signing bonuses, relocation costs, HR overhead costs, college recruiting costs, internet costs, and training and communication costs. Indirect costs can include, but are also not limited to, lower productivity, costs of turnover, morale implications, safety (if there is a higher number of accidents as a result of the vacancy), disruption of regular business functions, overtime (to compensate for the vacancy), and hiring to maintain production

The default risk assessment and rating of corporate bonds

The practice of implementing organization-wide policies and procedures containing pre-established guidelines for responding to catastrophic events or tragedies (i.e., fire, earthquake, severe storms, workplace violence, kidnapping, bomb threats, acts of terrorism, etc.) in a safe and effective manner

A formal written plan establishing specific measures or actions to be taken when responding to catastrophic events or tragedies (i.e., fire, earthquake, severe storms, workplace violence, kidnapping, bomb threats,acts of terrorism, etc.) in the workplace

Assets that can be rapidly converted into cash

Debts incurred by a business in normal day-to-day operations, due within one calendar year

All of a companys current assets divided by all current liabilities

The process of assigning decision-making authority to lower levels within the organizational hierarchy

Financing obtained from a bank or other financial lending institution

The failure to fully carry out a legally binding agreement, commitment or promise

The process of assigning tasks or projects to subordinates and clearly dictating expected outcomes and time frame for completion

The federal agency responsible for administering and enforcing a large quantity of federal labor laws, including, but not limited to, overtime pay, child labor, wages and hours, workplace health and safety, FMLA, and various other employee rights

An accounting procedure that spreads out the purchase cost of an asset over its depreciable life

Removal of government controls from an industry or sector

The workers who actually produce a product or provide a service

The total amount of money available to an individual or an organization less total expenses

The amount of post-tax income available to an individual for spending or saving

An amount of money or stocks a company pays to its shareholders on a quarterly basis

An investment trust whereby funds are invested in a wide variety of securities

The closing or sale of several businesses or business units

An investment strategy designed to reduce instability in which securities are purchased in fixed dollar amounts at regular periods, despite market movements

A company that is in the very early stages of globalization. It remains focused on the domestic market with few international products or employees

An organizational structure whereby a person reports to one manager but also has responsibilities to another

The process of reducing the employers workforce through elimination of positions, management layers, processes, functions, etc

A critical component of mergers and acquisitions, it is the process of investigation and evaluation, conducted to examine the details of a particular investment or purchase by obtaining sufficient and accurate information or documents that may influence the outcome of the transaction

A companys net earnings for the past 12 month divided by the present number of shares

A theory that as a company gets larger, its operations and associated unit costs decrease

A trust, established by a corporation, that operates as a tax qualified defined-contribution retirement plan, but unlike traditional defined contribution plans, employer contributions are invested in the companys stock

An employer-sponsored plan that allows employees to purchase company stock below the fair market value

The percentage of ownership interests held by a companys stockholders

A philosophy principle concerned with opinions about appropriate and inappropriate moral conduct or behavior by an individual or social group

The process by which business ownership is liquidated by an individual

An organization with a structure consisting of several layers of management

A person, company or association that stands in a special relation of trust, confidence or responsibility and is responsible for holding assets in trust for a beneficiary

A report containing financial information derived from an organizational accounting record

An accounting term used to describe tangible property used in the day-to-day operation of a business. Typically includes items such as real estate, equipment, machinery, fixtures and furnishings

The day-to-day costs of doing business that dont fluctuate based on the number of goods produced

A loan whereby the interest rate remains constant and does not fluctuate over the term of the loan

An organization characterized by having only a few layers of management from top to bottom

The rate used to determine the conversion rate from one currency to another

An annual return used to report information concerning employee benefits plans and Direct Filing Entities (DFEs). Employee benefits plan Administrators or sponsors subject to ERISA must file information about each plan on an annual basis

A trade agreement between two or more countries to permit economic goods to flow across their borders free from tax tariffs

A book of final entry summarizing all of company financial transactions through the offsetting of debit and credit transactions

The common set of accounting principles, standards and procedures companies use to compile their financial statements. GAAP is a combination of authoritative standards and the accepted method of conducting accounting transactions

The terms used to describe the invisible barrier keeping women from advancing into executive-level positions

Defined as the amount of revenue after any associated sales costs have been subtracted

An economic and financial alliance of the eight largest industrialized nations: Canada, France, Germany, Great Britain, Italy, Japan, Russia and the United States. Replaced Group of Seven (G-7). This group meets to discuss major economic and political issues

A leveraged purchase of a company that goes against the wishes of the target companys management and board of directors

A company owning a significant portion of another companys voting stock in order to control management and operations by influencing or electing its board members

The collective knowledge, skills and abilities of an organizations employees

Measurements used to determine the value and effectiveness of HR strategies. Typically includes such items as cost-per-hire, turnover rates/costs, training and human capital ROI, labor/productivity rates and costs, benefit costs per employee, etc.

A financial document showing a companys income and expenses over a given period of time

Labor that is necessary to support the manufacturing of a product but is not directly involved with the actual process of manufacturing the product

The often illegal act of spying on a competitor in order to secure a competitive advantage

Applied psychology concerned with the study of human behavior in the workplace and how to efficiently manage an industrial labor force and problems encountered by employees

Continual increase in the level of consumer prices and wages or continual decline of the purchasing power of money, caused by an increase in available currency beyond the quantity of goods and services that are available

A company's first offer to sell its stock to the investing public

A court-issued order requiring a party to either do or refrain from doing a certain act

Essential information about a companys plans that has not been released to the general public

The condition that a company is in when it has more debts (liabilities) than total assets that might be available to pay for them

A report containing financial information covering a period of less than one year (i.e., quarterly reports)

Property that is protected under federal law, including trade secrets, confidential or proprietary information, copyrightable or creative works, ideas, patents or inventions

The amount expressed as a percentage charged by a lender to a borrower on the total amount financed

U.S. government agency responsible for collecting taxes and enforcing tax laws

The total of all raw materials, materials in process and finished products available for use or sale

A measure of a companys basic efficiency, it is a metric used to gauge a companys annual sales to its inventory or, equivalently, how quickly a company sells the products it produces

The price at which company shares are initially offered to investors

Businesses that have been officially linked to improve market share, participate in supportive activities, reduce operating costs and achieve superior efficiency

The process of concealing or disguising illegally obtained funds

The process by which an individual determines direction, influences a group and directs it toward a specific goal or organizational mission

A management principle that focuses on the reduction of waste to improve overall customer value

A letter or certificate issued by a bank or other lending institution guaranteeing that a buyers payment to a seller will be submitted for the correct amount and in a timely manner

A written statement stating the intention of the undersigned to enter into a formal business agreement with another entity or individual

A term used to describe the degree to which an investor or company is utilizing borrowed money in relation to equity in the companys financial structure

The items a company is obligated to, such as accounts payable and bond or bank loans

An insurance policy purchased to provide protection to an individual or company against claims of negligent or inappropriate acts that result in property damage or bodily injury

An agreement between two enterprises or individuals granting the legal right to use a patent or trademark

A type of business structure that is a cross between a partnership and a corporation. Under an LLC structure, business owners are protected from suffering personal liability, and profits and losses are passed directly to owners without taxation

A loan arrangement between a lending institution and a borrower that allows the customer to borrow up to a pre-specified dollar amount on an as-needed basis

The process of terminating a business or filing for bankruptcy, resulting in the sale of assets with the proceeds being used to pay creditors

The percentage of a companys assets that is readily available for cash conversion

A legal proceeding in a federal or state court of law to determine and enforce legal rights

The value of a companys non-liquid assets such as property, equipment and other capital minus depreciation

Debt and other repayments recorded on the balance sheet that are due in more than one year

A companys earnings expressed as a percentage of revenue (also referred to as profit margin)

The period of time during which a considerable portion of the buying public remains interested in purchasing a given product or service

The degree to which a product is recognized and purchased by customers in a specific market

The price for securities and other exchangeable goods traded on a stock exchange

The percentage of the total sales (from all sources) of a given type of product or service attributable to a specific company

The time at which a financial instrument, such as a note or bond, becomes due

The joining of two or more different organizations under one common owner and management structure

A statement illustrating what the company is, what the company does and where the company is headed

Persistent market situation where there is only one provider of a particular product or service

A company that has operations in different countries and is mainly staffed by local nationals but whose decisions are largely made by headquarters personnel

An often tax-exempt bond issued by federal, city, county, state or local government agencies to finance capital expenditures for public projects

Generally referred to as the bottom line, net profit is calculated by subtracting total expenses from total revenue (also referred to as net earnings)

A companys total assets minus liabilities

The leading corporation, operated by a board of directors, responsible for listing securities, setting policies and supervising the stock exchange and its member activities

A mutual fund that does not charge commissions

An association formed for educational, fraternal, religious or social purposes and comprised of members who abide by the bylaws of the association

An agreement, reached by the United States, Canada and Mexico, that instituted a schedule for the phasing out of tariffs and eliminated a variety of fees and other hindrances to encourage free trade between the three North American countries

The price at which the first investors are able to purchase shares

A detailed projection of all projected income and expenses during a specified future period

A contract for the right to purchase or sell an asset, subject to certain terms and conditions

The amount that a particular product or resource could have earned in its next best use. For example, if an asset is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for

A graphic representation outlining how authority and responsibility are distributed within an organization

An organizations attitude and values regarding itself, employees, customers and the general public. It encompasses the manner in which things are done within the organization based on defined policies and practices

A contractual agreement between an employer and an external third-party provider whereby the employer transfers responsibility and management for certain HR, benefits or training-related functions or services to the external provider

The costs (excluding labor costs) associated with operating a business, including items such as the cost of rent, utilities, taxes, etc.

A term used to define the process of change in patterns of thought or behavior

An alliance between two or more individuals who mutually agree to share in the profits and losses of a business venture

Defined by the Securities Exchange Commission (SEC) as shares with a trade value of less than $5.00

The average income per person in a particular population

A term that simply stated means indefinitely. In finance terms, it is the number of years in which the simple interest of any sum becomes equal to the principal or annuity payable indefinitely

Refers to the small quantity of cash typically kept on hand by a company to cover incidental expenses

An itemized list of investments such as stocks, bonds or mutual funds, all owned by the same individual or company

A financial document summarizing company revenue and expenses during a specified period of time

a term used to describe the presentation of data, usually financial statements, where the data reflect information as if the state of the world were different from that which is, in fact, the case

A legally binding written contract between a borrower and a lender in which the borrower agrees to pay back money to a lender according to specified terms

nformation associated with company products, business or activities, including such items as financial data; trade secrets; product research and development; product designs; marketing plans or techniques; computer programs; processes; and know-how that has been clearly identified and communicated by the company as proprietary, a trade secret or confidential

A written statement containing information issues that to be discussed and voted on at a shareholder meeting

Materials such as literary works, music, films, photographs, art, etc. that are no longer covered under copyright law and that can be published without obtaining permission or paying a fee

The introduction of new securities to the general public by means of underwriting

A term used to describe an organization whose stock is held by the public

The rate at which the unit of currency of one country may be exchanged for another countrys equivalent unit of currency

The return rate earned on an investment on an annual basis, expressed as a percentage

An involuntary separation of an employee or groups of employees due to economic pressures, lack of work, organizational changes or other reasons of business necessity that require a reduction in staff

Insurance policies purchased by an insurer to protect against exceptionally large risks or other related risks an insurer faces

A request made by a private company or government agency to potential vendors or contractors regarding a price quote for specified products or services

A contract clause requiring executives or other highly skilled employees to refrain from seeking and obtaining employment with competitor organizations in a specific geographical region and for a specified period of time

Changing an organizational structure in order to make it more efficient and cost effective

The amount of after-tax profit that is not paid out as dividends and is retained and reinvested in the business or used to pay off financial obligations

A ratio of the benefit or profit derived from a specific investment compared to the cost of the investment itself

The amount of income generated by a product or service over a period of time

An approach to reducing staff whereby jobs are prioritized in order to identify and eliminate unnecessary work. This method uses a selection criteria based on individual jobs rather than people in order to avoid possibly laying off the wrong employees

The use of insurance and other strategies in an effort to minimize an organizations exposure to liability in the event a loss or injury occurs

The Sarbanes-Oxley Act of 2002 was enacted to increase accountability of corporations to their shareholders in the wake of recent accounting scandals. There are many financial provisions that are not germane to HR basics. Two provisions are of special interest to HR professionals are the whistleblower protection provision and the 401(k) blackout notice provision

Business enterprise allowed by the IRS for most companies with 75 or fewer shareholders, enabling the company to enjoy the benefits of incorporation while being taxed as if it were a partnership

Business enterprise allowed by the IRS for most companies with 75 or fewer shareholders, enabling the company to enjoy the benefits of incorporation while being taxed as if it were a partnership

An individual or corporation that owns shares in the corporation

Debts payable in full within a period of one year or less

The endorsement of a signature in the form of a stamp, seal or written confirmation by a bank or other acceptable guarantor

An investor who does not have any management responsibility but furnishes capital and shares in the liability losses experienced by the company

False defamation expressed as spoken words, signs or gestures that cause damage to the character or reputation of the individual being defamed

A fund that does not have a designated purpose

A business enterprise in which an individual is fully and personally liable for all the obligations of the business, is entitled to all profits and exercises complete managerial control

an increase in the number of shares outstanding of a company's stock; For example, if a stock with a par value of $200 splits 2-for-1, the price per share drops by half, to $100

An organization that provides ratings (opinions) regarding the creditworthiness of issuers or capital market obligations operating under the four major principles of: independence; objectivity, analytic integrity and disclosure

A relatively new small business supported primarily by venture capital in line with the technology sector

Two or more companies coming together to enhance business operations

The process of identifying an organizations long-term goals and objectives and then determining the best approach for achieving those goals and objectives

A situation that occurs when employees deliberately refuse to perform their jobs and/or form picket lines outside the employers premisses to prevent or discourage others from working in their place or conducting business with the employer

A company that has more than half of its stock owned by another company or is completely owned by another company

The process of identifying long-range needs and cultivating a supply of internal talent to meet those future needs. Used to anticipate the future needs of the organization and assist in finding, assessing and developing the human capital necessary to the strategy of the organization

A summarized report containing information on the financial status of an employee benefits plan

The amount of goods or services available to consumers at a specific price and the level of consumer need or demand for those goods or services at the specified price

Work performed in return for a share in ownership

A strategic planning tool used to collect and evaluate information on an organizations current strengths, weaknesses, opportunities and threats involved in a specific project or business venture

The official account of a public companys annual report filed with the Securities and Exchange Commission (SEC)

The leveraged purchase and acquisition of control of a company by purchasing or exchanging of stock in a friendly or hostile manner (see also hostile takeover)

An investment in which some or all taxes are paid at a future date instead of the year the investment experiences a gain

A reduction taken from income subject to federal taxes for a specific reason, as allowed by the Internal Revenue Service

A financial arrangement that reduces tax liability on current earnings

A group organized for the purpose of intensive research and problem solving, especially in the areas of technology, social or political strategy, or demographics

The general term used to describe banks, lending institutions and credit unions

Any formula, pattern, device or compilation of information used in ones business that gives the individual or entity an opportunity to obtain an advantage over competitors that do not know or use this formula, pattern, device or compilation of information

A short-term security issued by the U.S. government

A long-term interest bearing bond issued by the U.S. government

A U.S. government-issued note

An individual or institution that oversees and manages a trust

An asset that is available for purchase at a cost that is lower than the products actual value

The risk an insurance company assumes for the payment of premiums

A statutory benefit, unemployment insurance (UI) is designed to provide workers who have been laid off a weekly income during short periods of unemployment. The system is run and funded by state and federal taxes paid by employers

An individual or business enterprise that does not meet eligibility requirements be insured

A tax form provided to employees at the end of each calendar year, detailing their total earnings and amounts withheld for applicable federal, state, local and FICA taxes

A tax form employers ask employees to complete at the time of hiring to determine appropriate tax withholding liability based on factors such as number of dependents and outside income

Programs such as on-site or subsidized fitness centers, health screenings, smoking cessation, weight reduction/management, health awareness and education that target keeping employees healthy, thereby lowering costs associated with absenteeism, lost productivity and increased health insurance claims

A company that is entirely owned by another company

An unforeseen profit that occurs as a consequence of events beyond the recipients control

Income tax withheld from an employees wagesand paiddirectlyto federal, state and local governmentagencies by the employer.

The amount of cash available to a business for routine operations

Financial reports prepared and released at the end of a companys fiscal year

The amount of interest paid on income generated by an investment