Business Dictionary

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An alphabetical listing of General terms and items.

Partnership   Dico Tools
A legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.

Parts/Sub Assembly Goods   Dico Tools
Products that will normally become a part of the purchaser's end product. Examples are screws, bolts, transistors, printed circuits, electric motors, forgings, castings, etc.

Passive Investment Management   Dico Tools
The managing of a mutual fund or other investment portfolio by relying on automatic adjustments such as indexation instead of making personal judgments.

Patent   Dico Tools
A type of copyright granted as a fixed-term monopoly to an inventor by the state to prevent others copying an invention, or improvement of a product or process.

Pay Pal   Dico Tools
A Web based service that enables Internet users to send and receive payments electronically. To open a Pay Pal account, users register and provide their credit card details. When they decide to make a transaction via Pay Pal, their card is charged for the transfer.

Payable   Dico Tools
Ready to be paid. One of the standard accounts kept by a book keeper is "accounts payable." This is a list of those bills that are current and due to be paid.

Payment Gateway   Dico Tools
A company or organization that provides an interface between merchant's point-of-sale system, acquirer payment systems, and issuer payment systems.

Payment-in-kind   Dico Tools
An alternative form of pay given to employees in place of monetary reward but considered to be of equivalent value. A payment in kind take the form of a car, purchase of goods at cost price, or other nonfinancial exchange that benefits an employee.

Perception   Dico Tools
The process of selecting, organizing and interpreting infor mation received through the senses.

Perfomance Appraisal   Dico Tools
A face-to-face discussion in which one employee's work is discussed, reviewed, and appraised by another, using an agreed and understood framework.

Personal Finance   Dico Tools
Personal Finance refers to financial planning relative to the individual. In general, the term relates to analyzing an individual's current financial status, budgeting, and planning for the future.

Personal Service At Customer's Site   Dico Tools
This service can be a one-to-one or one-to-many relationship between the servicer and customer, sometimes dealing with factors that the customer deems confidential. The service is traditionally provided at the customer's enterprise. Examples of this type of service would be: tutoring, consulting, etc.

Personal Service At Servicer's Site   Dico Tools
This service is usually a one-on-one relationship between the customer and servicer, often dealing with factors the customer deems confidential. The service is traditionally provided at the servicer's enterprise. Examples of this type of service would be: doctor, lawyer, accountant, educational institution, etc.

Personal Service, Volume   Dico Tools
Some services deal with very high volumes but still require the "personal touch". Examples are airline services or a parcel delivery service like Federal Express.

Petty Cash   Dico Tools
A small store of cash used for minor business expenses.

Phantom Income   Dico Tools
Income that is subject to tax even though the recipient never actually gets control of it, for example, income from a limited partnership.

Philanthropy   Dico Tools
Usually refers to the act of generosity associated with giving money, time, or effort to a charitable cause or institution under the intention of improving the well-being of humanity.

Pink Slip   Dico Tools
Get your pink slip to be dismissed from employment

Piracy   Dico Tools
Illegal copying of a product such as software or music.

Placement Fee   Dico Tools
A fee that a stockbroker receives for a sale of shares.

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Planning   Dico Tools
The process of setting objectives, or goals, and formulating policies, strategies, and procedures to meet them.

Pledge Of Allegiance   Dico Tools
A patriotic oath to the flag of the United States of America used by Americans to show their loyalty to their country.

Poaching   Dico Tools
The practice of recruiting people from other companies by offering inducements.

Point Of Purchase   Dico Tools
The place at which a product is purchased by the customer. The point of sale can be a retail outlet, a display case, or even a legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.

Ponzi Scheme   Dico Tools
Ponzi scheme or Ponzi scam is the name of a fraudulent operation designed to take money from new "investors" and give it to previous "investors" instead of using it to create an actual profit. Ponzi schemes are usually cloaked by seemingly legitimate investment operations with high returns for those who buy into the program. Named after Charles Ponzi.

Postdate   Dico Tools
To put a later date on a document or check than the date when it is signed, with the effect that it is not valid until the later date.

Prebilling   Dico Tools
The practice of submitting a bill for a product or service before it has actually been delivered.

Prepaid Expenses   Dico Tools
Expenditures that are paid in advance for items not yet received.

Prepaid Interest   Dico Tools
Interest paid in advance of its due date.

Prepayment Penalty   Dico Tools
A charge that may be levied against somebody who makes a payment before its due date. The penalty compensates the lender or seller for potential lost interest.

Price   Dico Tools
The exchange value of a product or service from the perspective of both the buyer and the seller.

Price Ceiling   Dico Tools
The highest amount a customer will pay for a product or a service based upon perceived value.

Price Control   Dico Tools
Government regulations that set maximum prices for commodities or control price levels by credit controls.

Price Discrimination   Dico Tools
The practice of selling of the same product to different buyers at different prices.

Price Floor   Dico Tools
The lowest amount a business owner can charge for a prod uct or service and still meet all expenses.

Price Planning   Dico Tools
The systematic process for establishing pricing objec tives and policies.

Price War   Dico Tools
A situation in which two or more companies each try to increase their own share of the market by lowering prices.

Principal   Dico Tools
The amount of money borrowed in a debt agreement and the amount upon which interest is calculated.

Pro Forma   Dico Tools
Financial forms (invoices, P&L statements, balance sheets, etc.) based on future expectations.

Pro-forma   Dico Tools
A projection or estimate of what may result in the future from actions in the present. A pro forma financial statement is one that shows how the actual operations of the business will turn out if certain assumptions are achieved.; a document issued before all relevant details are known, usually followed by a final version.

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Pro-forma Invoice   Dico Tools
An invoice that does not include all the details of a transaction, often sent before goods are supplied and followed by a final detailed invoice.

Probability   Dico Tools
The quantitative measure of the likelihood that a given event will occur.

Probation   Dico Tools
A trial period in the first months of employment when the employer checks the suitability and capability of a person in a certain role, and takes any corrective action.

Producers   Dico Tools
The components of the organizational market that acquire products, services that enter into the production of products and services that are sold or supplied to others.

Product   Dico Tools
Anything capable of satisfying needs, including tangible items, services and ideas.

Product Benefits Advertising   Dico Tools
A "product benefits" ad is designed to acquaint the prospect with the strengths of the product or service and the benefits resulting from those strengths.

Product Comparison Advertising   Dico Tools
A "product comparison" ad compares the features of your product or service with those of one or more competitive products or services with the intent of showing yours to be more feature rich than the competition.

Product Family Advertising   Dico Tools
A "product family" ad is designed to convince the prospect that they have a wide range of functionality to choose from today and after they buy they will not be locked into a single product or service environment in the future.

Product Life Cycle (PLC)   Dico Tools
The stages of development and decline through which a successful product typically moves.

Product Line   Dico Tools
A group of products related to each other by marketing, technical or end-use considerations.

Product Mix   Dico Tools
All of the products in a seller's total product line.

Production Capacity   Dico Tools
The volume of products or services that can be produced by an enterprise using current resources.

Professional Risk Manager   Dico Tools
  Professional Risk Manager : A professional designation which concerns people who has qualification and cover financial theory, financial instruments and markets, mathematical foundations of risk measurement, risk management practices and case studies, best practices, conduct, ethics and by laws. 

Profit   Dico Tools
Financial gain, returns over expenditures.

Profit And Loss Statement   Dico Tools
A list of the total amount of sales (rev enues) and total costs (expenses). The difference between revenues and expenses is your profit or loss.

Profit Margin   Dico Tools
The difference between your selling price and all of your costs.

Promotion   Dico Tools
The communication of information by a seller to influence the attitudes and behavior of potential buyers.

Promotional Pricing   Dico Tools
Temporarily pricing a product or service below list price or below cost in order to attract customers.

Proprietary Technology   Dico Tools
Technology that is unique and legally owned by an enterprise. The technology may be integral to the product or service being offered or it may be used in the production of the product or service.

Psychographics   Dico Tools
The system of explaining market behavior in terms of attitudes and life styles.

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Publicity   Dico Tools
Any non-paid, news-oriented presentation of a product, ser vice or business entity in a mass media format.

Pull Promotional Strategy   Dico Tools
A process that requires direct interface with the end user of the product or service. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to "pull" the prospects into the various channel outlets creating a demand the channels cannot ignore.

Push Promotional Strategy   Dico Tools
A process of maximizing the use of all available channels of distribution to "push" the product or service into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the product or service, thus minimizing your need for advertising.

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