Funding of a company's assets and/or operations in a way that it does not show up on the company's balance sheet, i.e., it does not show up as an asset, a liability or owners' equity. Examples of off-balance sheet financing include operating leases (the costs of which can be recorded as expenses rather than assets or liabilities) and joint ventures (wherein the the joint venture company assumes liabilities and holds assets that would otherwise have to be assumed and held by the joint venture owners if they did the joint venture's business in-house.)
The person (or organization) who receives an offer from another person (or organization). That offer can be anything -- an offer to purchase something, an offer to sell something, an offer of a job, etc. The person (or organization) who receives the offer is free to accept or reject it.
The person (or organization) who makes an offer to another person (or organization). That offer can be anything -- an offer to purchase something, an offer to sell something, an offer of a job, etc. The person (or organization) who receives the offer is free to accept or reject it. Depending on the contents of the offer, once made the offer is made it may or may not be binding, i.e. the offerer may or may not be free to withdraw the offer. In the case of a binding offer, there will likely be limitations on the offerer's obligation to honor the offer, such as the offer becoming void if not accepted within a certain time.
The transfer of business functions that were formally or, in other companies, are normally done within the company's domestic operations to another country. Typically the transfer is to an independent company that does the work on a contract basis, but it could be to an out-of-country subsidiary of the same company. Offshoring is usually done in order to reduce costs by having the functions carried out in countries with lower labor costs, but there may be other reasons, such as taking advantage.
A product/service market in which the vast majority of the market is controlled by a very small number of companies.
In most jurisdictions it is illegal for companies to collude in order to set prices whether or not it is an oligopolistic market. However, in an oligopoly it is common for companies to follow the dominant company when it comes to setting prices and deciding on production volumes, without there being any formal agreement among the competitors to do so. Unlike in oligopolies, in highly competitive markets it is almost impossible for this price leadership/followership tradition to evolve as there will always be competitors who, because they know that if they don't do it someone else will, see it as being in their best interest to win a higher share of the market by undercutting the company/companies attempting to lead prices higher.
The gender-neutral version of what used to be universally referred to as "ombudsman" regardless of the sex of the officeholder. An ombudsperson uses mediation, arbitration, coaching and/or communication facilitation to try to resolve a dispute. The ombudsperson should be unbiased and not have a direct working or other relationship with any of the parties to the dispute.
Contributed by: Managerwise Staff
Pay given to employees for a time period when they are not, under normal conditions, at work, but during which they must:
Be readily reachable.
Keep themselves available for work.
Ensure that they can be on the job within a certain time after being called.
Contributed by: Managerwise Staff
A measure of the profitability derived directly from the firms operations. It is earnings before interest payments and taxes have been deducted. It is also refered to as operating profit and EBIT (Earnings Before Interest and Taxes).
Contributed by: ManagerWise Staff
A lease under which the owner of the transfers only the right to use the property to the lessee. At the end of the lease term the lessee returns the property to the lessor. With an operating lease, the lease term is usually short relative to the useful live of the asset being leased.
The ratio of fixed to variable costs in a company's operations. A company is said to have high operating leverage when a large percentage of its costs are fixed. Operating profit fluctuations are more closely correlated to sales fluctuations for companies with high operating leverage than for ones with low operating leverage because when variable costs are low a higher percentage of the price of each product or service sold is take in profit rather than cost.
The risk that an unanticipated problem in a company's business processes, technologies or equipment will force the company to incur an unexpected cash outflow and/or a reduction in revenue. Examples of operational risks include a computer crash that shuts down the company's Web store thereby curtailing sales or a failure on the company's assembly line that makes it impossible for the company to fulfill the orders that it does have. In addition to the lost revenue, both of these examples might cause the company to incur an unexpected expense to fix the underlying problem.