A payment made for the use of property, especially a patent, copyrighted work, franchise, or natural resource. The amount is usually a percentage of revenues obtained through its use.
Accounts receivable that will likely remain uncollectable and will be written off. Charge offs appear as an expense on the company’sincome statement, thus reducing net income. In general, companiesmake an estimate of charge off expenses that might be incurred in the current time period based on past records as part of the process of estimating earnings.
An approach to the completion of a complex task which involves breaking the task into a number of simpler tasks and assigning these tasks to specialists who generally perform only their assigned task. |
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A graph showing the hypothetical supply of a product or service that would be available at different pricepoints. The supply curve usually slopes upward, since higher prices give producers an incentive to supply more in the hope of making greater revenue. In the short run the price-supply tradeoff is greater than in the long run.
Name for the process of increasing the connectivity and interdependence of the world’smarkets and businesses.
This process has sped up dramatically in the last few decades as technological advancesmake it easier for people to travel, communicate, and do business internationally. Two major recent driving forces are advances in telecommunications infrastructure and the growth of the internet.
A trust created for the trustor and administered by another party while the trustor is still alive. A living trust can be either revocable or irrevocable. A living trust avoidsprobate and therefore gets assets distributed significantly more quickly than a will does.
A measure of a company’sliquidity and ability to meet its obligations. Quick ratio, often referred to as acid-test ratio, is obtained by subtracting inventories from current assets and then dividing by current liabilities. Quick ratio is viewed as a sign of company‘s financial strength or weakness (higher numbermeans stronger, lowernumber means weaker). |