Premium Essay

Definition

In: Business and Management

Submitted By uop201412
Words 1424
Pages 6
Time value of money :A time value of money calculation is one which solves for one of several variables in a financial problem. In a typical case, the variables might be: a balance (the real or nominal value of a debt or a financial asset in terms of monetary units); a periodic rate of interest; the number of periods; and a series of cash flows (in the case of a debt, these are payments against principal and interest; in the case of a financial asset, these are contributions to or withdrawals from the balance). More generally, the cash flows may not be periodic but may be specified individually. Any of the variables may be the independent variable (the sought-for answer) in a given problem. For example, one may know that: the interest is 0.5% per period (per month, say); the number of periods is 60 (months); the initial balance (of the debt, in this case) is 25,000 units; and the final balance is 0 units. The unknown variable may be the monthly payment that the borrower will need to pay. http://en.wikipedia.org/wiki/Time_value_of_money Efficient market: In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient". In consequence of this, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis, given the information available at the time the investment is made. http://en.wikipedia.org/wiki/Efficient-market_hypothesis Primary versus secondary market: Primary vs. secondary market says that the primary market deals with the newly issued securities while the secondary market deals with already traded securities. When the companies issue securities in the primary market, they collect funds directly from the investors through the securities sales. But, in the secondary market the money earned from selling a security does not go to the company. The money thus earned goes to...

Similar Documents

Free Essay

Definition

...Definitions A definition is a statement that gives the meaning of a concept. For simple and relatively concrete concepts such as ‘Table’ we can understand them without definitions by simply seeing them. But most concepts are abstract and complex and to understand them definitions are important tool of knowledge. A definition does the following functions: a. It clarifies the boundaries of a concept. b. It clarifies the relationships among concepts. c. It clarifies the referents of the concepts. Vagueness and Ambiguity A term is ‘vague’ means it is hazy obscure and imprecise for example the words love, happiness, rich or poor are vague. We can rarely tell whether they apply to a given situation or not. How rich one has to be in order to be called rich? An ‘ambiguous expression’ is one that can be interpreted as having more than one clearly distinct meaning in a given context for example: words such as proper, light, critical, bank can be used ambiguously. If one were to describe an action as proper, does this mean proper in moral sense or proper in the sense of being socially acceptable? The difference between ambiguity and vagueness is that vague terminology allows for a relatively continuous range of interpretations, where as ambiguous terminology allows for multiple discrete interpretations. A vague expression creates a blur of meaning where as ambiguous expression mixes up otherwise clear meanings. Definitions and their purposes Definition is a......

Words: 1936 - Pages: 8

Free Essay

Definition of Marketing

...The definition of marketing has evolved and changed throughout time and will continue to do so, as our environment changes and our knowledge improves. Kotler defines marketing as ‘the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large’ (Kotler, Adam, Denzie, Armstrong 2007 pg 7). This being the most current definition best reflects marketing in today’s environment. Through looking at the 1935 and 1985 AMA’s definitions plus the 2004 article definition it is clear that they are not suitable for today’s time. The American Marketing Association (1935), first defined ‘marketing as the performance of business activities that direct the flow of goods and services from producers to consumers’ (Darroch, Miles, Jardine, Cooke 2004 pg. 31). This first official definition of marketing was seen to be restricted, concentrating on 3 main focal points; ‘the managerial function of coordinating demand and supply, production of goods and services and marketing as a business activity’ (AMA 2004 pg. 31). It had little reflection to either promotions or pricing( Dann 2008 pg. 226). For a Definition to be viable in today’s environment it must include promotions & pricing. The AMA (1985), later modified their definition of marketing stating that it was ‘the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and......

Words: 847 - Pages: 4

Premium Essay

Definition of Poverty

...Poverty is the Constant Fear of the Future As society moves forward in their pursuit of the American dream, less and less attention is given to the impoverished. The actual definition of a person in poverty is often times debated. Sometimes, there are entire political platforms formed on the basis that the impoverished are not really suffering and that the people have nothing to worry about. In Robert Rector’s article regarding the effectiveness of the poverty safety net, he states that the lower end of society does not need any more help, but their his definition does not include the various problems that poverty entails. He solely focuses on the financial aspect. So, it is important to know the exact definition and parameters of poverty. Poverty is when a person or people live in fear of the inability to provide basic needs for themselves and their loved ones. With the advancements in the modern era, there is a misunderstanding of what actual poverty is. Although many believe that the lowest levels of society, those who have the lowest incomes and/or no income at all, have the ability to get food stamps and other avenues of aid through the government, they fail to see that the aid is either not sufficient nor does it help sustain a family for the future. Rector says “When the aid an impoverished family is given does not give them comfort for the near future, then the family is in poverty. The same applies to those people that do not get aid in 3rd world countries. I......

Words: 375 - Pages: 2

Premium Essay

Definition of Organization

...'What are the four definitions of organization? An organization can be define by four main factors including: the group of people, persons, acting together in synergy for a common and specific purpose; the economic actors following economic goals and the economic impact on their environment; the accumulation of knowledge and learning of the different actors composing the organization; and the bundle of the different type of resources available for it. As a collection of people, stakeholders are the ones directly or indirectly connected to the organization. These actors have an interest in all its activities. The internal ones, directly involved in the organization (such as employees for example) are implicated in organizational politics and submitted to a hierarchy usually well define. As an economic actor, organization involve buyers and sellers of products or services. This concept induce the fact that the organization must be profitable and generate revenue producing what it sells, and so at an acceptable price and cost. To be able to do this, its different costs and efficiency must be well controlled to adapt, in its industry, to its market conditions. As an accumulation of knowledge and learnings, the organization is also define as a history of way of doing things, adapting its processes to ameliorate the work which have to be done, by putting in place some routines for example. And what enrich the organization is also all the tacit knowledge coming from......

Words: 330 - Pages: 2

Premium Essay

Extended Definitions

...has been class separation. This is very important when trying to understand the complexity of the noun poverty. If there was no social class manipulation there would be no poverty. Poverty is not a straightforward term to define. It can have many different interpretations affecting every race or social class. Whether it’s the most severe case of poverty of not being able to obtain life’s essential needs, healthcare or falling trapped into living at a lower standard of life, the word poverty carries a gloomy cloud that rains negativity. But like anything it is always possible to persevere. No one ever wishes to live in poverty or have to deal with its effects. But with the understanding of the word, maybe we can work to give it a new definition. References: Merriam Webster Dictionary, retrieved from...

Words: 297 - Pages: 2

Premium Essay

Sociology Definition of Race

...with one another than with other humans. a group of tribes or peoples forming an ethnic stock: the Slavic race. any people united by common history, language, cultural traits, etc.: the Dutch race. the human race or family; humankind: Nuclear weapons pose a threat to the race. (http://dictionary.reference.com/browse/race?s=t) This is the definition given by the online dictionary I found, while the definition given by the sociological board for race is that although the essential characteristics of race are biological in origin, it is their transformation into a social variable by society that gives it its explanatory power during social situations. In this essay I shall be showing how these two different definitions of race contrast with one another in many different ways. First of all the dictionary definition of race and ethnicity defines them more on physical characteristics that certain groups of people would have in common when compared to others or are also of common descent. A prime example of this would be the physical differences between white and black people. While on the other hand, the sociological definition describes race and ethnicity as more of a thing we come...

Words: 660 - Pages: 3

Premium Essay

Market Definition Paper

...Definition of marketing One could pose a simple request like “Define Marketing” and you would have a barrage of answers as unique as the individual defining the word. For this paper I will present two definitions, as well as present my personal definition or understanding of the marketing. To begin, Merriam-Webster Dictionary defines marketing as “the process or technique of promoting, selling, and distributing a product or service” (Merriam-Webster, 2012). This definition is clear and pretty simple to comprehend. Next, the class textbook, Marketing Management, defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals” (Kotler, 2012). This definition lends a more academic view, but still is comprehendible and simply stated. After reading and reviewing the above definitions, I have come to my own personal definition. Marketing, as defined by Carla Posey, is the process which encompasses everything involved with the purchasing and selling of services and goods. This includes all work and research to effectively satisfy the needs and wants of the consumer. Importance of Marketing Marketing is important because it is the little voice to the consumer that says “hello, I know you need me and I want to give it to you”. A successful company has caught your attention and you have shown appreciation by buying into that brand. This......

Words: 921 - Pages: 4

Free Essay

The Definition of Bullying

...The Definition of Bullying Jonathan C Howell ITT Technical Institute October 7, 2015 The Definition of Bullying Bullying is when a person or persons uses words, emotions and/or actions to intentionally harm another person. News reports have reported that it is expanded to social media on the internet. It is all about intimidation or making the person feel inferior to another person. Defining bullying accurately is important. Bullying can be mistaken for other behavior. If it is a one-time event, do we punish that person? I think there must an established pattern of this behavior, before it is defined as bullying. Because a person has a bad day, that is not bullying. We must be cautious moving toward defining bullying. I think it is important to examine the root cause of bullying; then we are better equipped to treat the offenders. Punishment should fit the crime. I believe that prison is not the answer. Prison doesn’t correct the problem, it only exacerbates the behavior. By sending a person to prison affects that person, their family and the person bullied. Only one person benefits, the person that was bullied. The military generally retrains offenders; they are provided an opportunity to correct bad behavior. My understanding of the definition of bullying has changed. As I got older, with children of my own, I know that bullying comes in a variety of forms. My definition is very specific because I am able to identify the behavior. I feel it’s our......

Words: 273 - Pages: 2

Premium Essay

Outline and Evaluate Definitions of Abnormality

...Outline and evaluate definitions of abnormality The first definition of abnormality is deviation from the social norm. This means that the person is not conforming to the expected and accepted patterns of behaviour in society. There are two types of social norms which can be broken by ‘not normal’ patterns of behaviour, Implicit and Explicit. Implicit rules are those which are implied, for example using cutlery to eat a roast dinner. Whilst there is no law stating that this must be done, it would be deemed unusual by other members of society. The other rule, explicit, refers to stated rules, for example the law. One example of an individual breaking an explicit rule would be committing Murder. There are however several issues with using deviation from social norm to determine abnormality. The first being cultural relativism, meaning social norms vary between cultures. For example in many African-American tribes, hearing the voices of the recently deceased is seen as a blessing. In the west, it is diagnosed as schizophrenia. Further to this, the definition does not allow for eccentric behaviour, which does not necessarily mean a person is mentally ill, ie. A rugby streaker may not be abnormal, but may just seek attention. A final drawback to this approach is that it does not define the difference between a criminal and a person with a mental health issue. A burglar, for example, may simply have a criminal mind but not be abnormal. The second definition of abnormality is......

Words: 631 - Pages: 3

Premium Essay

Explain and Assess Murdock's Definition of the Family

...Explain and Assess Murdock's Definition of the Family George Peter Murdock was a researcher in the 1940s and 1950s in the USA and defined the family as characterised by six main factors; common residence (living in the same home), economic cooperation (sharing money or helping one another with work or children etc.), reproduction, at least two adults of the opposite sex maintaining a socially approved sexual relationship and one or more biological or adopted children of the cohabiting adults. Murdock advanced the thesis in Social Structure that the family was a universal social institution found in all societies. His claim was based on his study of two hundred and fifty societies of all kinds - from small hunting communities to industrial societies and believed that the children were the 'corner stone' of the family, and was not a family if there were no children. According to Murdock the nuclear family was the smallest. However, many sociologists of today's society disagree with his view and are able to point out limitations. This definition, despite excluding many modern day families and being seemingly a very traditional old fashioned approach to the family, is an extremely useful starting point for defining the family. Due to his vast research he cannot be criticized for being ethnocentric, because his studies were world wide and this allowed him to acquire a thorough understanding of the diversity families at the time. His definition is just wide enough to include......

Words: 736 - Pages: 3

Free Essay

By Definition, Miracles Can Never Happen. Discuss.

...“By definition a miracle can never happen.” Discuss. The known definition of a miracle is “an extraordinary and welcome event that is not explicable by natural or scientific laws and is therefore attributed to a divine agency.” However, Peter Vardy in The Puzzle of God gave four different definitions provided by many different scholars, including Aquinas and Hume, with Hume believing they are impossible but cannot be disproved compared to Aquinas believing they are completely possible even within the system of natural activity. What a miracle is can be debated forever due to the many different interpretations of who and why they come about, with psychologists such as Freud arguing they are just an illusion and Wiles arguing that miracles do exist but not as a result of God’s will. The real question is whether the laws of nature can ever be broken and to that affect – do miracles define themselves into non-existence? The definition of a miracle provided by Hume is “a transgression of the laws of nature brought about by the volition of a deity.” He believes that miracles are simply an interposition by some invisible agent, but he however goes on to challenge this definition with his theoretical case miracles which argued that the laws of nature we experience are constant and therefore cannot be changed, In response to this, as the laws of nature cannot be defied, (if they could be broken they would not be laws), by Hume’s definition, miracles can never happen, as laws of......

Words: 1617 - Pages: 7

Free Essay

Critically Consider Definitions of Abnormality

...‘Critically consider definitions of abnormality’ Abnormal psychology (or psychopathology) deals with sets of behaviors or symptoms that produce a functional impairment in people’s lives. There are many definitions to consider in Abnormality, and below i have stated them. Statistical Infrequency.In this definition of abnormality, behaviors which are seen as statistically rare, are said to be abnormal. However this definition obviously has limitations, it fails to recognize the desirability of the particular behavior. This definition also implies that the presence of abnormal behavior in people should be rare or statistically unusual, which is not the case. Instead, any specific abnormal behavior may be unusual, but it is not unusual for people to experience some form of prolonged abnormal behavior at some point in their lives. Deviation from Social Norms defines the departure or deviation of an individual, from society's norms. For example if some was to witness a man running around nude on the streets, the man would be perceived as abnormal, as he has broken society's norms about wearing clothing. There are also a number of factors to be examined before reaching a judgment as to whether someone has deviated from society's norms. The first of these factors being culture. What may be seen as normal in one culture, may be seen as abnormal in another. The second factor being the situation & context the person is placed in. For example going to the toilet is a......

Words: 448 - Pages: 2

Free Essay

A Universal Definition of Small Enterprise World Bank

...A Universal Definition of Small Enterprise: A Procrustean bed for SMEs? SUBMITTED BY KHRYSTYNA KUSHNIR ON WED, 2010-08-11 11:43 Editor's Note: Khrystyna Kushnir is a consultant on micro, small and medium-sized enterprises with the Enterprise Analysis Unit of the World Bank Group. At the G-20 summit in Pittsburgh last year, the assembled authorities agreed to "scale up successful models of small and medium-sized enterprise (SME) financing." The G-20 assigned the IFC and other international organizations to launch a G-20 Financial Inclusion Experts Group and asked the private sector to come up with ideas through G-20 SME Finance Challenge. This increased attention to micro, small and medium-sized enterprises (MSMEs) begs the question -- what, exactly, should be considered an MSME? With the issue of MSMEs playing out on an international level, it is tempting to try to find a universal MSME definition. A universal MSME definition would ease the design of loans, investments, grants and statistical research. One such effort is IFC’s SME Definition Deep-dive Analysis and Recommendations, although it's currently on hold because of internal restructuring. As part of the G-20 follow-up work, IFC is currently working on a 2010 update of the Micro, Small, and Medium Enterprises: A Collection of Published Data. While recording the various definitions of MSME used in 120+ of the most populous world economies, I was struck by the wide range of approaches governments take to define what...

Words: 780 - Pages: 4

Premium Essay

Leadership

...answer. When first working with a client, I ask, “What is your definition of your leadership?”   Invariably, a pause follows. The eventual response is sometimes tentative, confused, or incomplete.  This happens with new and experienced leaders, in large companies and in start-ups.  Only a few people have a solid answer. Not many leaders have a clear, concise, concrete definition of what being a leader means to them. The eminent leadership scholar Ralph Stogdill observed, “There are nearly the same number of leadership definitions as there are people who have attempted to define it.”  Here are just a few perspectives: * “The first job of a leader is to define a vision for the organization…the capacity to translate vision into reality.” (Warren Bennis) * “Leadership is a series of behaviors rather than a role for heroes.” (Margaret Wheatley) * “Leadership: the art of getting someone else to do something that you want done because he wants to do it.” (Dwight D. Eisenhower) It is no wonder then, that a ready answer is not on the lips of every leader. But the lack of a compelling, individual definition can be a serious defect. Why Define Your Leadership? When asked, “Why should I have a definition for my leadership?” I answer, “What is the cost of not understanding the foundation of your leadership?  What is the cost of not knowing your core?  If you do not define your leadership, who will?” A definition provides meaning; meaning reveals purpose; and meaning and......

Words: 736 - Pages: 3

Free Essay

Culture and Poverty

...populations than those of developed countries. There are many definitions and explanations to define poverty. Many factors such as, income, non-materialist, feminist are examples of the poverty defined factors, with their own unique way of explanation. However, there is much scholar has ever discussed about culture as one factor of poverty. In other word, cultural factor seems to be the last thing people talk about poverty. In this paper, we shall discuss how culture influence to poverty progress. The paper will briefly discuss about some theories of poverty such as absolute poverty, relative poverty, and UN definition of poverty. The analysis will lead to the answer to the following question: 1, Should definition of poverty include culture as one factor? 2, Can culture contribute to the reducing in poverty? 3, How should definition of poverty be best defined? II, Body Absolute poverty is defines that, “a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services.” (Absolute and overall poverty) In other word, absolute poverty refers to the basic need people required in order to survive. As similar to this, UN definition of poverty, which uses globally, defines that a person is in poverty when he cannot earn an income of more than 1$ per day. The definitions are good in their own way; however, they......

Words: 1111 - Pages: 5