American Business English

7 Cost-Effective Ways for Business Leaders to Improve Communication and Collaboration

2009-04-02T14:07:00.003-04:00

The Silo Effect

Some business leaders may argue that it's not important for every employee to be involved in, or even informed about the company's business strategy, financial position or other seemingly "executive-exclusive" information. But, my experience tells me that when companies strangle, or in some cases, sever the critical lines of communication and collaboration amongst its employees, the result can be catastrophic.

Poor communication and collaboration causes employees to become disconnected from the business altogether, which places a company at a severe disadvantage. What's truly unfortunate is that those same employees, who are robbed of vital information and opportunities to collaborate, generally prefer to have more involvement, empowerment and accountability.

Employees are often found entangled in a web of silos and barriers when denied open lines of communication. As a result, those talented and skillful employees have very little, if any, knowledge of what actually happens outside of their specific area; they become true victims of the Silo Effect! Although many companies acknowledge silos exist, they often struggle in breaking down the barriers.

Costly Work-A-Rounds

In the case of most silos, departments tend to develop their own unique set of 'work-a-rounds' and creative processes to get the job done. When this occurs, it generally takes employees more time and resources to complete the work (greater operating costs). In addition, it often takes departments much longer to realize internal problems, errors and missed opportunities, which lead to increased costs and negative impacts on customer and client satisfaction.

Narrow-Focused Leadership

Some business leaders believe that the extent of their responsibility is to ensure their department runs well. They believe that it's up to their peers to achieve the same level of success within their department. This couldn't be further from the truth! In fact, it's that kind of narrow-focused leadership mentality that cripples 'great' companies, brings 'good' companies to their knees, and literally stops promising 'startup' companies in their tracks. Business leaders beware!

Here's the good news; it's not too late for business leaders to open the lines of communication and collaboration, here are seven cost-effective ways to improve communication and collaboration to get you started.

7 Ways To Improve Communication and Collaboration

1. Develop a "top-down" culture that encourages and rewards open communication and collaboration.

This is where the C-level executives come in! It starts at the top, and then must be driven down throughout the entire organization. Without sustainable top executive commitment and support, steps 2 through 7 will be difficult to achieve.

2. Share the corporate strategy and vision with every employee.

Don't just send one email... create posters, add it to company newsletters, etc. For employees to truly catch on, and most importantly, believe that their company is serious about success, the message has to become ingrained within the culture.

3. Regularly communicate corporate initiatives, expectations, and results to every employee.

Don't just limit this vital information to employees within a particular department. Share it with every employee. Develop a corporate scorecard; one that lists the top 3-5 goals or initiatives, and then share it. Insure middle managers are helping hourly employees connect their job and goals with the corporate initiatives.

4. Align division and department goals with your corporate strategy.

This is a vital step, and one that requires some quality time and focus. In some cases, you may realize that some department-level goals must be modified or eliminated all together. Remember, if your department is focusing on the wrong goals, your company will have a tough time realizing its full potential.

5. Share financial results (both good and bad) with all employees.

Many leaders are afraid to share financial information with employees at all levels. However, if you truly want your workforce to perform less like employees and more like entrepreneurial-minded, strategic partners, then share your financials and explain how they apply!

6. Create and deploy a department-level balanced scorecard.

The balanced scorecard must effectively align merit, bonuses and other monetary reward systems to performance, quality assurance, operational efficiencies and customer delight results...at a minimum. Explain the connection, and then share the results on a consistent basis.

7. Celebrate successes (both big and small)!

This helps to reinforce the company's commitment to the strategy as well as its importance. Be sure to promote a culture that encourages learning from mistakes, and rewards calculated risk-taking.

Closing

In today's competitive global marketplace, business survival depends upon the effort, commitment and drive of the entire organization. That organization, fueled by every employee, every division, every goal, every objective and every strategy, must encourage and maintain a constant flow of information to truly realize its full potential.

With so many businesses downsizing, outsourcing, and running excessively lean operations, it's often utter chaos and seems virtually impossible to get employees together. And, with department leaders and hourly employees wearing so many hats just to keep the business running, making the transition to providing greater communication and collaboration won't be easy. But, business leaders can, and must overcome these barriers to remain competitive, increase customer satisfaction, and meet the growing demands of today's marketplace.

Author
Greg Jerralds is the author of the book, "The Leader's Guide to Performance Management" and co-author of "The Best Kept Profit Secret."

© 2009 ProfitInnerCircle.com - All World Rights Reserved

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American Business English BLOG URL
http://usa-business-english.blogspot.com/
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Company Survival Depends on Bad Debt Detection

2009-02-04T08:57:00.009-05:00

Timely Cashflow Tips

The early identification and control of potential bad debt losses is important to the very survival of a company.

During a recent phone conversation with the CEO of a national distribution company we were told about how one of their branch offices in Calif. had taken a $97,000.00 hit from a customer who was unable to secure needed financing in order to continue in business. The company's sales were down 18% in 2008 and the branch manager had exceeded the customer's credit line of $25,000 in his attempt to keep his sales figures up.

The CEO went on to say that at a 5% pre-tax profit the company will have to make close to $2,000,000.00 in new sales just to break even, and that's if they all pay on time. This company can survive one $97,000.00 hit but if any more like it are hiding in the woodwork it may prove too much to bear.

As to the branch manager, he's history along with the branch and all those who were once employed by the branch.

We are faced with a down stock market, reduced consumer spending, dropping wholesale prices and low business confidence levels. Financing is hard to get for everyone; manufactures, wholesalers, and the businesses that buy from them are all in the same boat when it comes to securing short term money while they make sales and wait for their customers to pay. Customers who use to pay on time are now paying 30, 60 or more days late...if at all.

Again and again companies hear from past due customers that once their customers pay them what they owe...if ever...they will pay.

A delay in getting paid has always existed due to nature of customers needing time to add value to whatever product or service they buy and then needing more time to sell to and to be paid by their own downline customers; now a growing problem is that those downline sales are down, they're not happening and the effect of that is being felt throughout the entire length of supply chain.

The house is on fire, or in the case of wholesalers the warehouse is on fire. This is not the time to form a committee to determine who's to call the fire department, it's time to man the buckets and for all hands to work together like never before...and this includes CEOs/MDs and senior managers.

A/R, accounts receivable, short term money due from the sale of products/services based on payment at a later date often represents one of the largest and most liquid assets of a business. On average the A/R is 40% or more of the total assets of a company. In addition to its size and liquidity, the management of A/R means dealing directly with customers and if not properly carried out can result in the painful loss of customer goodwill and a major reduction in repeat orders.

It's critically important to properly manage accounts receivable because keeping customers current leads to repeat sales. Companies can't afford to lose customers during tough times, and one way to keep them is by making sure they stay current on their accounts.

During an economic downturn, collecting on accounts receivable becomes more important than ever. At the same time, it also becomes more difficult as customers experience cash flow crunches of their own.

Strategies for improving your cashflow and repeat sales rate:

Start early. Contact all delinquent accounts within three to five days of becoming overdue. Waiting 60 or 90 days before contacting past due customers will have a strong negative effect on cash flow and repeat sales.

Call the largest accounts first. Most companies call their delinquent accounts in alphabetical order. However, 20 percent of your accounts usually represent 80 percent of the dollars. Forget about the alphabet, go after the customers that owe you the most money, then work your way down to the smaller accounts.

Keep a systems log to track process problems. Not only does this make it easier to collect your money, it also allows you to constantly upgrade your business processes and become more efficient.

Call at the right time. The best time to call commercial accounts is on Monday morning. Start calling personal customers on Thursday and go through Friday, when people usually get paid.

Get the right person for the job. Most companies hire accountant-types to handle collections. Unfortunately, those types tend to prefer holing up in their cubicles and working with numbers rather than people. Instead, hire outgoing people who enjoy interacting with others and talking on the phone.

Closing the sale. Contact the decision-maker, determine the type of customer, make your presentation based on the type, and close the "sale" and follow up. Get a firm commitment from the customer on when they will pay you and use a good contact management system to track.

And remember...

During this stressful time, we must all remember the importance of maintaining strong relationships with customers and with fellow employees who are also having to deal with painful external and internal challenges. Remember that many companies are asking fewer employees to accomplish more with fewer resources. We all must show more appreciation for the greater pressure and growing demands made on employees. We all must remember that customers, even past due customers, are our business partners and we must all work hard not to let our frustrations have a negative impact on our internal and external relationships.

Authors

Abe WalkingBear Sanchez and Davy J. Tyburski of Profit InnerCircle, LLC. © 2008 Profit InnerCircle™, LLC (more info at: www.profitinnercircle.com)

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American Business English BLOG URL
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It's official We're in a Recession

2009-01-31T18:16:00.007-05:00

It never fails. As soon as the economy takes a downward turn and annual revenue projections are lowered, the first place, after lowering headcount projections, companies search to reduce operating cost is employee development initiatives.

I can't tell you how often during my 20 plus years in corporate leadership I have been challenged by executive leaders to reduce the employee training and development dollars for my department or division. And, each time I am tasked with such an outlandish request, I prepare for battle.

Need to Reduce Your Operating Costs? Increase Your Employee Development Spending!

Don't get me wrong - I don't enjoy confrontation! As a matter of fact, on most issues, I'd rather search for compromising alternatives. But I am a firm believer in the value of continuous employee education and development. So when it comes to cutting costs needed for development initiatives, my strong convictions usually have me reaching for the latest advancements in corporate battle gear. Let the jousting begin!

In a desperate quest to lower operating cost, senior executives search for ways to reduce headcount expense. If it is not reduced headcount, then it is to significantly slow its current rate of growth. Of course, senior executives target other budget categories, but headcount generally has the greatest influence on a company's operating expenses, particularly in large production-oriented businesses.

But, here's where the friction occurs most often. In contrast with senior executives, middle managers are constantly lobbying for additional resources. They never seem to have enough employees to meet the demands of the business. So, their motivation is to retain current headcount levels, while justifying the need for additional resources. As a result, requests for headcount reductions are generally met with resistance from middle managers. Therefore, to avoid cutting headcount, managers often sacrifice their budgeted dollars allocated in other areas, particularly employee development. When that happens, the entire business suffers!

An $80,000 Investment Delivered a $200,000 Return!

Lauren, a contact center director for a growing manufacturing company, was asked by the department vice president to reduce her expense forecast for the upcoming budget year. Her VP explained, "Although we continue to realize significant growth, our average sales are slightly down for the third straight quarter. This is primarily due to fluctuating trends in consumer buying. So, to insure we meet our profit projections for the upcoming year, our combined operating budget must be lowered by one million dollars. I am looking for $100 thousand of that to come from your contact center budget." Without hesitation, Lauren's VP stated, "I see you forecasted $80 thousand in employee development initiatives. Cut that, and you'll only need to cut your headcount projection by one Full-Time Employee (FTE) to meet the target!"

Seems so simple, right? Wrong! And here's why!

Like most department leaders, Lauren was asked to trim her budget forecast -- what she already considered to be aggressively tight -- even more. Understanding she was on the hook for $100K in reductions and her employee development dollars were at risk, Lauren had to get creative!

Lauren realized the value of providing ongoing development to her employees. She had seen favorable results in the past, particularly with her leadership team members. But now, she faced a tough dilemma. Either reduce her headcount forecast by three FTE (equivalent to $120K), or postpone her employee development initiatives for full a year. With the exception of headcount, which contributed the lion's share of her annual operating expenses, the $80K allotted for employee development stood out like a tall, ugly weed begging to be chopped by her VP's financial sling blade. And, it was no doubt her VP was prepared to swing!

After intense thought and planning, Lauren submitted her revised budget. Lauren's VP called after reviewing the revisions and said, "I noticed you reduced your headcount growth projection by five FTE, but retained your employee development allocation of $80,000. How do you propose to handle next year's growth in business?" Lauren replied, "My $80,000 allocation will be used to create and implement two employee development programs: one designed to improve process efficiencies, and the other to improve quality. The efficiencies my department will gain after completing our new process improvement training programs will enable us to increase productivity by 10% - equivalent to the production of two employees." Lauren went on to say, "In addition, our new quality assurance program will enable us to reduce data entry errors and rework by 15% - equivalent to three more employee."

It's all about synergy...where the whole of a system is greater than the sum of its parts; being powerful in effect with little waste of effort results in more being done by fewer people. The objective is to leverage your resources to effectively capitalize on the full potential of the entire unit; a common goal, a common message, and a common direction!

The Economics of Continuous Improvement!

Lauren's $80,000 investment in employee development programs resulted in total efficiency gains equivalent to five FTEs. With an average annual salary of $40,000 per employee, Lauren's programs realized $200,000 in cost avoidance (5 FTEs x $40,000). This not only delivered a $120,000 ($200K benefit - $80K expense) Return On Investment (ROI) to the bottom-line, but also slowed Lauren's annual employee growth rate by five FTEs. In other words, she absorbed new business growth without adding additional employees. Most importantly, the new programs had an extremely positive impact on customer satisfaction and quality assurance ratios.

So often, knee-jerk decisions to lower operating expenses by delaying or eliminating employee development and incentive programs, are met with substantial increases in customer dissatisfaction, decreases in product and service quality, as well as downward trends in employee satisfaction and productivity. All of which, result in higher operating costs and less profit.

Employee cost is often the largest cost of doing business and if through constant and on-going small improvements, such as new efficiencies, employee cost can be reduced by just by 2% without any lose of production, an additional 5% to 10% in profit will result. And, an additional 5 to 10% in profit may well mean a two-fold improvement in the bottom line.

Unfortunately, many businesses do a poor job of anticipating these added costs, and an even worst job measuring them. Often, the true risk of their financial impact is overlooked during the budget planning and approval stages. But, one thing's for sure; the negative impact eventually shows on the bottom-line.

For businesses to truly realize their full profit potential, they must stop looking at their employees as negotiable financial control devices and begin viewing them as the valuable resources they are! When properly trained, led and inspired, employees have the potential to save companies far more than they actually cost them. Combine an effective strategic plan with modest investments in employee development and technology, and you will find healthy companies that realize sustainable gains in customer delight and retention as well as profitability.

Businesses must focus on continuous improvement to survive in today's competitive marketplace. If companies control the costs associated with the successful delivery of products and services by seeking constant improvement, they can be both competitive and profitable. As stated by Abe WalkingBear Sanchez, Co-Founder of Profit InnerCircle, LLC, "A business manager not focused on improvement becomes an administrator at best and a bureaucrat at worst."

"What Top Business Executives Don't Know and How It Can Hurt Your Business!"

At a time when the economy is slow and sluggish, many companies find that they have to cover the same fixed expenses out of fewer sales. However, by reducing the cost of production (the people part) through constant and on-going small improvements, profitability can be sustained or even enhanced.

So, as the current economic climate continues to resonate in the minds of consumers, businesses will need to become even more efficient, financially savvy, and customer-oriented to effectively:

- Increase new sales
- Grow repeat sales
- Improve cash flow
- Raise customer delight and customer retention levels
- Drive down the cost of doing business (for themselves and their customers)

For a FREE Special Report at www.profitinnercircle.com titled, "What Top Business Executives Don't Know and How It Can Hurt Your Business."

About the Author:

Greg Jerralds is COO of Profit InnerCircle with more than 20 years of customer service/contact center leadership experience. © 2008 Profit InnerCircle™, LLC
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American Business English BLOG URL
http://usa-business-english.blogspot.com/

ESL English schools throughout the USA teach English as a second language to new immigrants, visitors, students and international students. ESL includes conversation, writing, pronunciation, reading, listening, grammar, vocabulary, academic and business English.

Links to additional USA Blogs
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Business English Definitions Explanations

2009-01-19T11:08:00.002-05:00

Some Definitions for "Business English"

- Language for business situations

- English in business usage, especially the styles and forms of business correspondence

- Useful language for getting a job

- Business English is a form of international English

- useful language and phrases to improve your spoken/written communication skills in English in different business situations

- a specialism within the English language

The various definitions for Business English means different things to different people. For some, Business English focuses on the vocabulary used in the universe of commerce, trade, finance, professions, politics and international relations.

Many people refer to "BE" as the language for commerce topics such as government and corporate policy, programs, functions and procedures. These topics can include employment standards, taxes, and retirement benefits.

For others "BE" refers to the many communication skills used in the workplace, and focuses on the language and skills needed for typical business communication such as multi-media presentations, negotiations, meetings, small talk, socializing, all the written correspondence of emails, letters and report writing.

Some people have expanded the phrase to "BE" Communication. "BE" Communication is any communication used to promote a product, service, or organization; relay information within or outside the business; or deal with public, legal or government issues.

Business English Communication includes a variety of functions: Marketing, Branding, Customer relations, Consumer behaviour, Advertising, Public relations, Media relations, Corporate communication, Community engagement, Research & Measurement, Reputation management, Interpersonal communication, Employee engagement, Online communication, and Event management.

The Business Communication message can be transmitted through various channels of communication, including Internet broadcasts, web-based social networks, meetings, conventions, Print, Radio, Television, Outdoor displays, and Word of mouth.

When looking for Business English one has to understand that for some it is just vocabulary, others have added skill componants, others have included communication topics, methods and formats.

Your definition of business English can also depend on your goals.

Original Post
http://www.eslincanada.com/businessenglish.html

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

ESL English schools throughout the USA teach English as a second language to new immigrants, visitors, students and international students. ESL includes conversation, writing, pronunciation, reading, listening, grammar, vocabulary, academic and business English.

Links to additional USA Blogs
USA Immigration --Career Training in USA-Jobs in the USA--University in USA--ESL in the USA--English Schools in USA--College in USA--Career Training in USA--

Looking for Business English

2009-01-15T11:43:00.003-05:00

My internet search for "Business English" has yielded a few surprising results.

When using several online dictionaries looking for the definition of "business English" several queries showed no definitions available. Here are some I did find.

Some Example Definitions for Business English

- Language for business situations

- English in business usage, especially the styles and forms of business correspondence.

- Useful language and practical tips for getting a job

- Specific language and explanations for performing a job

- It is a specialism within English language related to international trade

- vocabulary and topics used in the worlds of business, trade, finance, and international relations

- communication skills used in the workplace

- language and skills needed for typical business communication

- a form of international English

- communication used to promote a product, service, or organization; relay information within the business or to external entities; or deal with legal and similar issues.

We will continue to explore the definitions and content used to describe Business English. Come back again.

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

ESL English schools throughout the USA teach English as a second language to new immigrants, visitors, students and international students. ESL includes conversation, writing, pronunciation, reading, listening, grammar, vocabulary, academic and business English.

Links to additional USA Blogs
USA Immigration --Career Training in USA-Jobs in the USA--University in USA--ESL in the USA--English Schools in USA--College in USA--Career Training in USA--

US. Professional Financial English Workshop

2008-11-06T11:41:00.005-05:00

US. Professional Financial English Workshop Course Content

This course consists of two parts: the first part focuses on the delivery of American professional accounting in English with a view to improve and consolidate students' professional knowledge while accumulating their financial English vocabulary; The second part concentrates on increasing students' ability to apply the financial knowledge into practice

This course can be divided into five modules
Financial accounting
Financial English writing
Case Exercises
Financial English talk show
excel meets finance and English

Module one: financial accounting
Financial Statement-Income Statement、 Balance Sheet、 Cash Flow
Interpretation of American GAAP
Interpretation of American FASB rules
Interpretation of key accounting concepts,
Interpretation of SEC regulations
US Taxation In-depth Analysis

Module two: financial English writing
Appreciation of original edition of financial email and thorough dissection
How to write standard and appropriate English emails in pure English
How to write a financial analysis report

Module three: Financial talk show in English
American office English Slang and daily expressions
Group discussions about financial topics
Presentation and debate to practice impromptu speech and making statements

Module four: when excel meets finance and English
Standard, professional and beautiful excel tables
The methods of excel description in Standard English
English description of the operation of excel
Training courses of describing different kinds of tables in a virtual situation

Module five: Financial Case Analysis
Strengthen the foundation of accounting knowledge
telephone meetings to improve listening and speaking
Increase students' writing ability

Registration fax 021 6270 8511

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

ESL English schools throughout the USA teach English as a second language to new immigrants, visitors, students and international students. ESL includes conversation, writing, pronunciation, reading, listening, grammar, vocabulary, academic and business English.

Links to additional USA Blogs
USA Immigration --Career Training in USA-Jobs in the USA--University in USA--ESL in the USA--English Schools in USA--College in USA--Career Training in USA--

American Business Terms for Software Products

2008-10-22T11:35:00.004-04:00

The following is a glossary of business terms used in the various software products offered by Business Resource Software, Inc.

Accessory Goods - products required by commercial operations to conduct business, such as: office copiers, automobile wheel balancers, auxiliary power supplies, air compressors, etc.

Accounts Payable - short term debts incurred as the result of day-to-day operations.

Accounts Receivable - monies due your enterprise as the result of day-to-day operations.

Accrual Based Accounting - an accounting method that enters income and expenses into the books at the time of contract versus when payment is received or expenses incurred.

Assets - all real or intellectual property owned by the enterprise that has a positive financial value.

Balance Sheet - a statement of assets and liabilities.

Barriers to Entry - conditions that create difficulty for competitors to enter the market. For example, copyrights, trademarks, patents, dedicated distribution channels and high initial investment requirements.

Break-Even Point - the point at which revenues are equal to expenses.

Business Services - services offered to commercial enterprises, such as: equipment maintenance, supplying of part time personnel, engineering, design and management consulting, etc.

Capital - the financial investment required to initiate and/or operate an enterprise.

Cash Based Accounting - an accounting method that enters income and expenses into the books at the time when payment is received or expenses incurred.

Cash Flow - the transfer of monies into and out of an enterprise.

Collateral - assets that can be pledged to guarantee a loan.

Convenience Goods - goods often used by the consumer, but the consumer is unwilling to spend "shopping time" to acquire them. This covers a broad spectrum of products including candy, cigarettes, drugs, newspapers, magazines and most grocery products.

Corporate Image Advertising - a "corporate image" ad is designed to primarily promote the enterprise and secondarily promote the products or services of the enterprise.

Cost of Goods - the direct costs involved in producing a product or service which usually includes labor and materials.

Cost of Sales - the cost of goods plus the expenses involved in selling and delivering the product or service.

Current Assets - Assets that can be converted quickly to cash.

Current Liabilities - All debts incurred in the normal day-to-day business and due within one calendar year.

Debt Service - the regular payments required to keep a loan current.

Depreciation - The gradual erosion of the usability and value (possibly due to obsolescence) of an enterprise's fixed assets. In some cases depreciation can be declared as a tax deduction.

Direct Sales Method - selling direct to the end user with promotional efforts using advertising, direct mail or telephone sales.

Distributor - an enterprise that purchases your products for resale to their customers who are usually retail outlets. The distributor expects to receive a significant price discount for providing the distribution service.

Distribution Channel - the path your product follows to be delivered to the end user. This may be through distributors, retail outlets, self service outlets, vending machines, telephone sales, direct mail sales, etc.

Equity - a percentage ownership of an enterprise, usually in the form of stock.

Fashion Goods - goods where style is important and price is secondary. These products could include clothing, jewelry, furniture, draperies, and dishes, but can sometimes be stretched into other areas such as umbrellas, walking canes, cigarette holders, etc.

Fixed Assets - (sometimes called long term assets) these are usually non-liquid assets that are integral to the enterprise's day-to-day business operations such as plants, equipment, furniture and real estate.

Fixed Costs - The day-to-day cost of doing business that is pre-committed, such as salaries, insurance, lease expenses, utilities, etc.

Full Service Retail Sales Method - selling from a sales outlet directly to the end user at retail prices with sales personnel who can explain the purpose and value of the product or service.

Gross Profit - revenues less cost of sales.

Impersonal Service at Customer's Site - this service usually involves working with the customer's property and seldom deals with factors that the customer deems confidential. Examples of this type of service would be: lawn service, typewriter repair, office cleaning, trucking service, etc.

Impersonal Service at Servicer's Site - this service usually involves working with the customer's property and seldom deals with factors that the customer deems confidential. The service is traditionally provided at the servicer's enterprise. Examples of this type of service would be: auto mechanic, TV repair, etc.

Impersonal Service, Volume - this type of service is usually designed such that the same service will satisfy the needs of all customers. It is often the case that the servicer and the customer never meet. Examples of this type of service would be: classified ads, storage lockers, money changers, etc.

Income Statement - (sometimes called Profit & Loss statement) a statement of revenues and expenses.

Installation Goods - products requiring large and expensive capital investments that will have a long life. This could include homes, office buildings, manufacturing facilities, and other types of commercial facilities or equipment such as tractors, printing presses, cranes and robotic assembly line processors.

Intangible Assets - non-physical assets such as patents, trademarks, a customer base, brand recognition of your products, etc. This is sometimes called goodwill.

Inventory Turnover - a ratio for evaluating sales effectiveness. For a given accounting period divide total revenue for the product by the average retail value of the product inventory.

Licensing agreement - an agreement between two enterprises allowing one to sell the other's products or services and to use their name, sales literature, trademarks, copyrights, etc. in a limited manner.

Liquidity - the percentage of an enterprise's assets that can be quickly converted into cash.

Long Term Assets - (sometimes called fixed assets) these are usually non-liquid assets that are integral to the enterprise's day to day business operations such as plants, equipment, furniture and real estate.

Long Term Liabilities - all debts that are not current liabilities, that is, debts that are not due until at least one calendar year in the future.

Market Life Cycle - the period of time that a substantial segment of the buying public is interested in purchasing a given product or service form.

Market Penetration Pricing Strategy - if near term income is not critical and rapid market penetration for eventual market control is desired, then you set your prices very low.

Market Share - the percentage of the total sales (from all sources) of a service or product represented by the sales made by your enterprise. i.e. your sales divided by total sales

Material Goods - normally raw or processed materials such as coal or steel that will become part of the purchaser's end product.

Net Profit - total revenues less total expenses.

Net Worth - assets minus liabilities.

On-Site Sales Method - selling directly to the end user using a sales force that calls on the prospect at their home or place of business.

Partnership - a legal relationship between two or more individuals to conduct a specifically defined business.

Parts/Sub Assembly Goods - 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.

Personal Service at Customer's Site - 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 - 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 - 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.

Pro forma - financial forms (invoices, P&L statements, balance sheets, etc.) based on future expectations.

Product Benefits Advertising - 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 - 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 - 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.

Production Capacity - the volume of products or services that can be produced by an enterprise using current resources.

Profit Margin - total revenues less total expenses

Proprietary Technology - 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.

Pull Promotional Strategy - 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 - 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.

Retained Earnings - profits retained by the enterprise rather than disbursing to the shareholders. Retained earnings are used to improve the value of the enterprise through development and or promotional programs.

ROI - Return on Investment - Net Profit divided by Net Worth. A financial ratio indicating the degree of profitability.

Service/Product Mix - this business, while involving both service and product, is distinct in that the quality of the service is often more important than the product received. Examples of this type of service would be: fast food, catering, telephone, etc.

Self-Service Retail Sales Method - selling from a sales outlet directly to the end user, usually at prices lower than full retail price. There are usually no sales personnel to explain the purpose and value of the product or service.

Service Goods - goods viewed by the consumer as competitive products offering a standard "service" and are basically similar, so they will "shop" to get the best price. This would include such products as lawnmowers, refrigerators, television sets, automobiles, etc.

Skimming Pricing Strategy - if you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high (this is sometimes called "skimming").

Sole Proprietorship - an enterprise that is owned by a single individual.

Specialty Goods - goods that appeal to a large segment of the buying public and are considered "special" enough that the consumer will specifically ask for the product.

Strategic Relationships - an agreement between two or more enterprises to conduct specified business processes in a joint manner. Usually related to technology development and/or marketing and distribution efforts.

Supplies Goods - production support products that will not become a part of the purchaser's end product. Examples are drill bits, machine lubricants, wiping rags, etching chemicals, pencils, paper, paper clips, etc.

Trademark - the name of a product or service that has been legally registered as the property of an enterprise.

Unsought Goods - products that are usually purchased due to adversity rather than desire. For example, coffins, crutches, and medicine are all unsought goods. Another form of unsought goods are products such as life insurance and encyclopedias. They are products that the consumer seldom goes out looking for, therefore, a constant, aggressive selling process is required.

Vertical Integration - the potential within an enterprise to incorporate all aspects of management, production, sales and distribution into their business operations. In theory, the greater the vertical integration, the less vulnerable an enterprise is to outside forces.

Wholesale Sales Method - selling to distributors at significantly discounted prices who in turn sell to full service or self service retail outlets.

Working Capital - the cash available to an enterprise for day-to-day operations.

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American Business English BLOG URL
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ESL English schools throughout the USA teach English as a second language to new immigrants, visitors, students and international students. ESL includes conversation, writing, pronunciation, reading, listening, grammar, vocabulary, academic and business English.

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Acceptance and Commitment Equal Improvement

2008-09-14T18:20:00.003-04:00

Henry Ford, the founder of Ford Motor Co. was not a real well educated man in the traditional sense of the word, but he was smart enough and he was rich enough to have top experts at his beck and call.

In our business lives, if we are lucky, we encounter people, mentors, who share their knowledge and experience thus allowing us to stand on their shoulders, to see further than we have before.

The word mentor comes from a character in Homer's "Odyssey", one of the very first and very great adventure stories. The main character Odysseus, the king of Ithaca,and his men spent ten years fighting the Trojans and then another ten years trying to get home. During their return voyage they encountered a one eyed giant who was also a cannibal, the sirens who called sailors to their deaths upon the rocks...indeed the only one to survive and return to Ithaca was Odysseus.

In the meantime, back in Ithaca , Odysseus' beautiful wife Penelope and son Telemachus, who was only one month old when Odysseus left, had to content with a group of over 100 suitors. Thinking Odysseus dead these men hope to win Penelope as their wife and acquire the riches of the kingdom. While waiting for Penelope to decide who she will marry the suitors make themselves at home, devouring food and wine and abusing the servants.

During this time the goddess Athena , who had always looked out for Odysseus , appears to Telemachus in the form of an old man named Mentor who then advises him.

There are several ways to enhance profitability in a business.

First there is the Enron Model which consists of cooking the books. One of the possible downsides to the Enron Model is that you may end up with a room mate named Bruno or Loco or Scratch who insists that you wear a little apron....don't do it. There are no happy guys in jail much less the smartest guys in the room..

You can also improve on profitability by selling more and taking advantage of the economy of scale. In production, the reduction in unit cost resulting from increased utilization of the method of production leads to efficiencies as the cost of producing each additional unit falls. The same is true of sales. Sell more without increasing fixed expenses and the unit cost per sale drops.

Another method for enhancing profitability is to reduce the cost of doing business and while there are several ways of reducing costs such as downsizing people,the best way is by constant and ongoing improvement . The bathtub, the ocean is filled one drop at a time.

Nobel Prize winner Ronald Coase , of Coase's Law , writes that there is friction/costs involved with being in business. There is the original friction or acquisition cost of starting or buying a business. There's the on-going friction or transactional costs, and then there's the greatest friction/cost of all...the friction/the cost of failure and of missed opportunities.

On average 25% of the Total Cost of Doing Business is tied to inefficiencies...the waste of time, energy or materials, of missed opportunities, and many CEOs will tell you that they think that 25% is on the low end..

The credit function while approving credit and managing past due a/r interfaces with new potential customers, existing customers, sales, finance, the warehouse, accounting, operations, attorneys, transportation companies and others within as well as outside the organization. The credit function is in a prime location to identify and communicate areas of opportunity for improvement which lead to reducing the cost of doing business for seller and customer alike.

It may not be so in your company , and if it's not be happy, but in too many businesses employees and business managers repeat how things are done over and over again until it becomes ingrained. And all too often CEOs and top management are complicit if not directly responsible.

If you are a business manager pull out your job description, if you're a CEO pull out your managers' job descriptions and check to see if it/they say anything about "Constant Improvement".

A business manager not focused on improvement becomes an administrator at best and a bureaucrat at worst.

Your expectation and inspection

What do you expect of your credit function, of that area of business which creates and manages the A/R? All human activity must have a starting point and a direction...all human activity. What is your starting point for your credit area?

Do you believe that the role of credit is risk mitigation ,that it's about avoiding bad debt losses and making sure customers pay when they're due? If so you most probably inspect for DSO (days sales outstanding) and % bad debt.

Use of risk mitigation measurements communicates to the credit staff or to the credit part of your brain if you are a one man band without a separate credit function , that the job of credit is to qualify new potential customers based on risk and to stop selling to those who fail to pay when due.

Or do you expect that the credit staff or the credit part of your brain to take into consideration :
1) customer's profile (Who they are and How they do business)
2) their past performance (credit report)
3) your product value at time of sale (margin, demand, capacity)
And then find a way to make a profitable sale while remaining confident of payment through the creative use of terms and conditions of sale?

If you expect your credit people to take a wide and profit driven view of the job and then you measure for risk...DSO and Bad Debt...you're kidding yourself and confusing the staff.

Acceptance

For change, for improvements in business to take place requires an acceptance that a business doesn't have to be sick in order to get better , that there is always room for improvement.

Instead of seeing credit approval as a fear/risk based activity start thinking of it as a pending sale. Consider the investment you've made to finally get a potential customer to the point where they want to buy.
Your whole reason for being in business is represented by that Customer Credit Application, or better still a New Customer Information Form...someone wants to buy.

Tell your credit guys, or that part of your brain, that the goal for credit approval is to find a way to say yes to Profitable Sales while remaining confident of payment via creative terms and conditions of sale.

Tell them that you will be inspecting for the % of applied for dollars approved or exceeded.

Tell your credit staff, or yourself that most past due customers are not trying to avoid payment, that the job of past due a/r management is not collections (the enforcement of payment) but rather its the completion of the sale .
Tell your credit staff, or yourself that the goal is to find out what's keeping a customer from paying and then to resolve the issue so that the customer can buy again.

And yes there will be a small % of past due customers that represent a potential for loss so tell your guys or yourself that the secondary goal of past due a/r management is to identify that small % early on and to improve on your position for payment, or if the customers refuse to cooperate refer them to a "collector"...an enforcer of payment.

Tell them that you will be inspecting for the % of the total A/R current to 30 days past due and also for the % of the Total Credit Line being used. Total Credit Line? The total dollar amount of the combined lines of credit (never credit limit) for all credit customers.

If you inspect for risk management chances are good that's what you'll get. If you inspect for profit chances are going to be much better that that's what you'll get.

Commitment

Acceptance is one thing but putting energy into change for the better is the true test of desire for change, for improvement.

Where is your credit department located? Who within the organization do they report to? If you are using the accounting part of your brain or organization to house the credit function you need to consider moving it to the sales area. Why?

1) the reason why the costs of credit are incurred (a) additional administrative expense b) time value of money in carrying a/r c) potential loss ) is to get profitable sales that would otherwise be lost.

2) past due a/r management is the completion of the sale .

The financial part of your brain or organization must still maintain oversight of the credit function as part of its role of safeguarding business assets , but credit is a sales support function and should be found in and reporting to sales and not accounting.

Change Management

For change/improvement to take place there must be a commitment made as to who will do what, why, how and when...and then the efforts must be tracked and measured.

Change, even for the better generates resistance...expect it in others and in yourself. Keep changes small so as not to overwhelm others or yourself but once a change is in place bring in another small change/improvement.

Pay for what you want...measure the correct performance and pay your staff to achieve the goal.

A small increase in sales or a small improvement in how business processes are carried out will have a dramatic impact on profitability.

Consider a Friday afternoon "Improvement Meeting" and at the end of the meeting list improvements/changes to be made and organize and prioritize what has to be done starting t on Monday...this should be done for all business functions.

Before improvement/change for the better can take place two thing must happen; first there must be an acceptance or acknowledgment that a business doesn't have to be sick in order to get better. And then someone, a profit leader, must step forward and do something about it.

Things to change or questions to ask

When I read something I highlight those parts of what I'm reading that make sense or give me a new insight and I also write down questions that have come to me as I read. And there is always room for improvement!

The Author

Abe WalkingBear is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com , WalkingBear can be reached through:
A/R Management Group, Inc.
P.O. Box 457 Canon City, CO 81215
email: abe@armg-usa.com www.armg-usa.com

*************

American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

A Advertising Terms with Simple definitions

2008-04-12T14:35:00.004-04:00

Above the Fold:
In reference to ad placement on the web, this portion of the screen is viewed without scrolling.

Advertisement or Ad:
Banners, buttons, towers, boxes, logos and text words are all examples of online advertisements. Advertisements can be text, static graphic, animated graphic, video, audio or other.

Advertiser:
Company or advertising agency, agency media buyers, OEM media buyers, and sole proprietors providing ads for use on publisher's website.

Ad Network:
The functions of the modern internet advertising network include: transactions, place, track and report the distribution of advertisements from advertisers to publishers using an efficient, interactive marketplace.

Ad Rotation:
Different ads and different ad sources are often rotated in the same space on a webpage. Ad rotation can be static (one ad per page view) or dynamic (more than one ad per page view cycled based on elapsed display time). This is usually done automatically by software on the website.

Ad server:
Name for the organization, hardware, and software that deliver advertisements to the user’s browser. The ad server typically is responsible for selecting the appropriate ad to select by frequency control and targeting. The ad server also performs a variety of other administrative tasks including the counting of impressions and clicks, and report generation.

Ad Space:
The space on a webpage reserved to display advertising.

Affinity Marketing:
Marketing efforts aimed at consumers on the basis of established buying patterns or memberships.

Advertising Agency:
An organization that designs, produces and manages the media placement of the advertising for its customers.

Affiliate:
Typical term for a website that drives traffic to another website in exchange for a percent of sales from users driven to the site.

Alias:
A URL that points to another website. Many websites use aliases to differentiate traffic.

Alternate text:
Text that provides a written description of an image.

Application Service Provider (ASP):
Entities that manage and distribute software services and solutions to customers across a wide area network from a central data center.

Applet:
A small software application intended to provide an enhanced web user experience, comparable to a plug-in.

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

American Business English for MBA Studies

2008-04-08T14:14:00.002-04:00

Why study at an MBA school?

Earning a Masters of Business Administration (MBA) degree, can provide management theory and business evaluations expertise that opens new career opportunities to you.

If you are working in business and are looking for a promotion or to move from your current area of expertise into a another one, an MBA program can help you achieve your promotion or career change.

An MBA program should put you into the much higher pay range that upper level managers and executives enjoy.

Many MBA programs provide training that goes beyond general business management and business theory to provide subject area expertise. Subjects include e-commerce, media relations, marketing, accounting, engineering.

Many MBA programs will allow you to earn joint degrees, so you can graduate with business administration training and training in another field, like law or health.

To be admitted into an MBA Program

Your GMAT score is probably the most important factor in determining whether you will be admitted to a top business school. The median score is about 680 - half are higher and half are lower.

One major objective in assembling a business school class is to put together people who can share unique experiences from their industries. The more experienced candidates get selected even with slightly lower GMAT or GPA scores.

The interview is the third most important factor. You can ace your application, go down in flames, or let your GPA, GMAT and work experience do the talking and maybe be allowed to avoid the interview.

All three MBA application componants require skill with American Business English.

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

You need American Business English for Google

2008-03-17T15:38:00.003-04:00

You need American Business English for Google

Google has lots of products and services. When you subscribe to any of them you have to be able to read and agree to the TOS.

Do you know TOS?

It is now part of the vocabulary for business in the USA especially if you need to use Google or Yahoo or any of 1000 other software or web suppliers.

How many of the following terms do you know?

A/B Testing - Admin Level - Authentication - Average Page Depth - Bandwidth - Browsers - Byte - Cache - CGI Script - Click - Clickthrough Rate - Code - Content - Campaign Tracking) - Content-targeted advertising - Conversion - Cookie - Cost-per-click (CPC) - Cost source - Cron Job - Daemon - Default Page - Directory - DNS - Lookup - Domain - Domain Name System - Download - E-commerce - Encryption - End User - Error - Error Code - Exclude - File Type - Filter - Filter Field - Filter Name - Filter Pattern - Filter Type - Firewall - Form - Frame - FTP - GET Method - GIF - Goal Conversion Rate - Graphic User Interface - Hardware - Hit - Hostname - HTML - HTTP - Hyperlink - IIS - Impression - Include - IP Address - ISP - Java - JavaScript - Keyword - Log file - Medium (Campaign Tracking) - Meta Tag - Navigation - NCSA - Network - No Referral - Online - OS - Page - Pageview - Password - Pay-per-click - PDF - Platform - POST - Profile - Protocol - Query - arameter - Query Token - Query Variable - Referral Errors - Referrals - Referrer - Regular Expression - Repeat Session - Returning Sessions - Return on Investment - (ROI) - Revenue - Reverse DNS - Scalable - Script - Search Engine - Session - Site Domains - Source - Status Code - Subdirectory - Term - Top-Level Domain - Tracking Code - Unique Visitors - Unique Visitor Session - Untrackable Session - URL - User - User Agent - View Total - Visit - Visitor - Visitor Session - W3C

If you want to see the links to the definitions - send us an email

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

Advertising Metrics Vocabulary

2008-03-08T23:00:00.004-05:00

Advertising Metrics Vocabulary

click-through - the process of clicking through an online link to the advertiser's destination.

click-through-rate (CTR) - The average number of click-throughs per hundred impressions, expressed as a percentage.

conversion rate - the percentage of visitors who click, complete a form or buy.

cost-per-action (CPA) - online advertising payment model in which payment is based solely on sales or registrations.

cost-per-click (CPC) - the cost or cost-equivalent paid per click-through.

CPM - cost per thousand impressions.

customer acquisition cost - the calculated cost of acquiring a new customer.

hit - a file request from a Web server.

hybrid model - a combination of two or more online marketing payment formats.

impression - a single online advertisement being displayed.*

page view - request to load a single HTML page.

pay per click (PPC) - online advertising payment format in which payment is based solely on qualifying click-throughs.

pay per lead (PPL) - online advertising payment format in which payment is based solely based on qualifying leads.

pay per sale (PPS) - online advertising payment format in which payment is based solely based on qualifying sales.

site stickiness - the amount of time spent at a site over a given time period.

unique visitors - individuals who have visited a Web site.

Web site traffic - the amount of visitors and visits a Web site receives.

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

Consultants Validation and Security Definitions

2008-02-19T15:44:00.007-05:00

Not A Consultant?

When I first went into consulting in 1982 I avoided calling myself a "consultant" in part because of the definitions of a "consultant". A consultant is a man between jobs, a consultant is a man who comes into your business and picks your brain for your knowledge and when he leaves he takes that knowledge with him and sells it to the next guy and the worse definition, a consultant is a man that can tell you all about sex but doesn't know any women. I was determined that I wouldn't be a run of the mill consultant.

After several years of working with many small clients, of teaching them what I knew about turning credit and a/r management into a profit center, I got a referral from a sales V.P. of a huge international firm who was based in Denver. He suggested that I contact the company's regional CFO and explain how I could help.

Over the next two weeks I left 3 messages for the CFO and finally got a return call from the CFO's assistant . I started to explain that I had been referred by the sales V.P. in Denver because he could see where I could help the company improve on how they managed credit and a/r ...he cut me off.

"We just had the very prestigious consulting firm from the U.K., "Find'em, Beat'em, Cheat'em and Howe" come in and do an evaluation of our credit and A/R management business practices and with the exception of a few minor points they validated how we do things.", explained the assistant CFO.

On hearing the word "validation" what comes to my mind is finding the right guy to stamp your parking ticket or calling your mama for some kind words, if you are lucky enough to still have her; but to pay a consultant to come in and tell you how great you are..no way!

I believe that the job of a consultant is to share what they know and to push clients out of their comfort zone; to force thinking. But I kept my thoughts to myself and instead said to the man, "That's great that you have an outside party
come in and evaluate how you do things", and then I started to ask how my firm could participate in the next evaluation...he cut me off.

"We have already contracted with the same firm to come back next year." he said and then he went on to explain that his boss, the CFO, had worked at the consulting firm before she'd joined the company and that I was wasting my time calling her. More corporate inbreeding.

One Size Does Not Fit All

Every person on the planet sees things differently, His Holiness, The Dali Lama says that there are six and a half billion of us and six and a half billion versions of reality; it's the same with companies. Businesses are a collection of many different people, none of whom define the business but collectively they make up the business. And what works at one company may not work at another..every company and it's people are unique . The process for best business practices must be based on each company's understanding of what is is.

5 Organizational P's

Purpose: Every business function must have a clearly stated purpose which answers the question, "Why incur the costs that go with the function?" Seven, eight out of ten business managers can't give a clear and concise "purpose" for the business function they manage.

Policies: Goal driven guidelines for each major component within the function. Every business function can be broken down to it's major components.

Process: The step by step method for achieving the goals established by the policies. Ask the experts, the people who carry out the process, and it will differ from company to company.

People Requirements: The right people for the job based on the process.

Process Monitoring and Performance Measurements: Monitor key steps in the process to ensure quality and measure against the goals established by the policies.

In Closing

If the goals established by the policies are possible but go unmet...you either
have the wrong process or the wrong people for the job.

The lesson?

"Those firmly seated in authority soon learn to think security and not progress." James Russell Lowell

To which I would add "and the security they come to think of is their own."

The Author

Abe WalkingBear Sanchez is an International Speaker Trainer Consultant on the subject of cash flow and sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles. A hard hitting and fast paced speaker, he brings life and energy to a critical business function whose true potential has yet to be realized by most businesses.

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

American Business English Vocabulary for Fixed Income Investments

2008-02-08T21:29:00.003-05:00

American Business English Vocabulary for Fixed Income Investments

Accrued Interest - The accumulated interest paid to a seller of a bond by the buyer. This payment will compensate the seller for holding the security between the last coupon date and the settlement date.

Amortization - The process of incrementally reducing debt through installment payments of principal and interest.

Arbitrage - The simultaneous sale and purchase of the same security in such a way as to take advantage of a price difference in the markets.

Arrears - Interest or dividends that were not paid when due and are still owed.

Ask Price - The lowest price a seller is willing to accept.

Balloon Payment - A large principal repayment due in the later years of some serial bonds.

Bank Rate - The minimum interest rate at which the Bank of Canada will make short-term advances to the chartered banks and money-market dealers.

Basis Point - One one-hundredth of a percentage point is quoted as the most common measure of changes in bond yields

Bear Market - When the prices of bonds are decreasing and yields are rising.

Bid Price - The highest price a prospective buyer is willing to pay.

Bull Market - A period of rising bond prices and declining yields.

Call - Issuer repays the principal of bond prior to the stated maturity date.

Collateral - Assets pledged by a borrower until a loan is repaid.

Commission - A fee paid when the dealer acts as an agent in a securities transaction.

Coupon - The amount of interest that will be paid on annual basis.

Current Yield - A simple measure of an investor's return on a fixed income investment calculated by dividing the annual interest by the market price.

Default - A term used when a company fails to make a scheduled interest payment.

Discount - The difference between a bond's current market price and its face value or issue price.

Flat - A fixed income investment that is trading without accrued interest.

Initial Offering Price - New issues are usually sold at par or a slight discount.

Interest - Payment for borrowed funds expressed as a percentage.

Liquidity - The ability of the market to absorb the pressures of buying and selling without substantially affecting the price of the fixed income instrument.

Market Price - The price at which a fixed income investment trades either at par, a discount or a premium.

Par Value - The stated face value or principal amount of a fixed income investment which the issuer pays back at maturity.

Premium - When a fixed income investment is priced over its par value.

Prospectus - A legal document that describes securities being offered for sale to the public.

Security Types - refers to different categories of fixed income securities.

Example categories include:
· Commercial Paper
· Corporates
· Municipals
· Residuals
· Strips
· Treasury Bills
· Zeros

Settlement Day - The date on which a fixed income buyer must pay for the security plus any accrued interest.

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American Business English BLOG URL
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There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

American Business English for Resume Writing

2008-02-06T14:28:00.003-05:00

Introductions to Resumes

A resume is a tool with one specific purpose

A resume is a sales document designed for a very precise audience.

A resume is a one or two page summary of your education, skills, accomplishments, and experience.

A very good resume is placed in the short list that survives the first cut.

An excellent resume convinces the employer that you have what it takes to be successful in the position or career.

A superb resume motivates the employer to pick up the phone and ask you to come in for an interview.

Types of Resumes

The chronological resume focuses on the experience section of the resume; each job is listed and described in some detail with sections of skills or accomplishments later in the resume.

The functional resume begins with highlights of major skills and accomplishments and focuses attention on what you can do for them.

A combined resume includes elements of both the chronological and functional formats.

Sections of Resumes

The Summary is sometimes labelled as a profile. - This should be four to six lines of text. This section should indicate the position you are looking for, experience and abilities that will be of interest to your next employer.

Career Summary also called your job history starts with your most recent job and lists backwards in time. Basic career summaries only include the year you started, the year you finished, job title and employer's name.

Career overviews includes job history, brief overview of the companies and responsibilities for each position that you have held.

Achievement differentiates you from anyone else doing your job because what you actually achieved will be a indication of performance.

Education or Academic Qualifications should include recent relevant training.

Personal Details includes your date of birth, marital status, driving licence, languages, volunteer and community groups and interests.

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.

American Business English Vocabulary for Writing Letters

2008-02-06T14:17:00.003-05:00

This is some but not all of the American Business English Vocabulary for Letters required to understand how business letters are formatted.

attachment: extra document or image that is added to an email

block format: most common business letter format, single spaced, all paragraphs begin at the left margin

body: the content of the letter; between the salutation and signature

bullets: dots used to set off items in an unnumbered list

certified mail: sender pays extra postage in order to receive a notice of receipt

coherent: logical and easy to understand

concise: summary illustrates points quickly

confidential: for personal or specific company use only

diplomacy: demonstrating consideration and kindness

double space format: one blank line is left between lines of text

enclosure: extra document, pages or image included with a letter

formal style: set formatting and business language, opposite of casual

format: the organization of the letter

heading: a word or phrase that indicates what the text below will be about

indent: 1 tab or 5 extra spaces at the beginning of a paragraph

informal: casual formatting and business language, opposite of formal

inside address: recipient's mailing information

justified margins: straight and even text, always begins at the same place

letterhead: specialized paper with a company logo, name and address printed at the top

logo: symbol or image that identifies a specific organization

margin: a blank space that borders the edge of the text

modified block format: left justified as block format, but date and closing are centered

on arrival notation: notice to recipient that appears on an envelope (ie. "rush")

postage: the cost of sending a letter through the Post Office

proof read: read through a finished document to check for mistakes

recipient: the person who receives the letter

salutation: the greeting in a business letter (e.g. "Dear Mr Jones")

semi-block format: paragraphs are indented, not left-justified

single spaced format: where no blanks lines are left in-between lines of text

spacing: blank area between words or lines of text

tone: the feeling created by the language

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American Business English BLOG URL
http://usa-business-english.blogspot.com/

There over 6000 universities in the USA. There is a mixture of private universities, public universities, corporate sponsored and church sponsored universities. We will present information for prospective university students interested in USA universities.