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Encyclopedia of Business and Finance SECOND EDITION Editorial Board EDITOR IN CHIEF Burton S Kaliski Southern New Hampshire University, retired ASSOCIATE EDITORS G W Maxwell San Jose State University, retired Dorothy A Maxwell Sacopee Valley High School Mary Ellen Oliverio Pace University Allen D Truell Ball State University II Encyclopedia of Business and Finance SECOND EDITION VOLUME A–I Burton S Kaliski EDITOR IN CHIEF Encyclopedia of Business and Finance SECOND EDITION VOLUME J–Z Burton S Kaliski EDITOR IN CHIEF Encyclopedia of Business and Finance, Second Edition Burton S Kaliski, Editor in Chief © 2007 Thomson Gale, a part of The Thomson Corporation Thomson, Star Logo and Macmillan Reference USA are trademarks and Gale is a registered trademark used herein under license For permission to use material from this product, submit your request via Web at http://www.gale-edit.com/permissions, or you may download our Permissions Request form and submit your request by fax or mail to: Permissions Thomson Gale 27500 Drake Rd Farmington Hills, MI 48331-3535 Permissions Hotline: 248-699-8006 or 800-877-4253 ext 8006 Fax: 248-699-8074 or 800-762-4058 For more information, contact Macmillan Reference USA An imprint of Thomson Gale 27500 Drake Rd Farmington, Hills, MI 48331-3535 Or you can visit our Internet site at http://www.gale.com ALL RIGHTS RESERVED No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or information storage retrieval systems—without the written permission of the publisher Since this page cannot legibly accommodate all copyright notices, the acknowledgments constitute an extension of the copyright notice While every effort has been made to ensure the reliability of the information presented in this publication, Thomson Gale does not guarantee the accuracy of the data contained herein Thomson Gale accepts no payment for listing; and inclusion in the publication of any organization, agency, institution, publication, service, or individual does not imply endorsement of the editors or publisher Errors brought to the attention of the publisher and verified to the satisfaction of the publisher will be corrected in future editions LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Encyclopedia of business and finance / Burton S Kaliski, editor-in-chief.— 2nd ed p cm Includes bibliographical references and index ISBN 0-02-866061-7 (set hardcover : alk paper) — ISBN 0-02-866062-5 (volume : alk paper) — ISBN 0-02-866063-3 (volume : alk paper) Business—Encyclopedias Commerce—Encyclopedias Finance—Encyclopedias North America—Commerce—Encyclopedias Finance—North America—Encyclopedias I Kaliski, Burton S II Macmillan Reference USA HF1001.E466 2007 650.03—dc22 2006005185 This title is also available as an e-book ISBN 0-02-866081-1 Contact your Thomson Gale representative for ordering information Printed in the United States of America 10 Contents VOLUME Preface List of Articles Contributors ENCYCLOPEDIA OF BUSINESS AND FINANCE A-I VII IX XV VOLUME ENCYCLOPEDIA OF BUSINESS AND FINANCE J-Z 441 Index 779 V Editorial and Production Staff PROJECT EDITOR INDEXER COMPOSITION Miranda H Ferrara Barbara A Koch Evi Seoud Mary Beth Trimper EDITORIAL SYSTEMS IMPLEMENTATION SPECIALISTS PRODUCT DESIGN Luann Brennan Mike Weaver MANUSCRIPT EDITORS Heidi H Denler Amy L Unterburger Jennifer Wahi Tracey Rowens COMPOSITOR IMAGING MANUFACTURING Dean Dauphinais Lezlie Light Rhonda Dover PRODUCT MANAGER GRAPHIC ART PROOFREADERS Heidi H Denler John K Krol Gina Misiroglu Datapage Technologies International Christine O’Bryan RIGHTS ACQUISITION AND MANAGEMENT Margaret Abendroth Margaret Chamberlain-Gaston Jennifer Bernardelli Preface Business is the backbone of American society and is one of the keys to making our system work as well as it has for over two hundred years Yet as a body of knowledge, business is much younger, and in its brief history, there have been few attempts to present the discipline of business in a single place The major purpose of the Encyclopedia of Business and Finance, Second Edition is to summarize the body of knowledge that we know as business in one place and in language appropriate to the layperson This two-volume collection of over 315 articles presents a wealth of information about the major functional areas of business: accounting, economics, finance, information systems, law, management, and marketing Articles vary in length and depth, in bibliographic support, and in writing style Thus, the reader will encounter a variety of approaches to and perspectives about business Some articles are quantitative, since some aspects of business are numerically based Other articles tend more toward the qualitative to accommodate the more descriptive aspects of business Some of the articles present an historical perspective, incorporating long-validated knowledge, while other articles focus on current concepts and more recent data Other articles provide “how-to” advice Regardless of the approach, available data are accurate to the best of each writer’s knowledge as of 2006 All articles have the same goal: to provide useful knowledge about the business and financial world Because of their importance, special treatment has been given to two subject areas: careers and ethics In each area, an overview article is followed by an article about that topic in each functional area of business Thus, there are articles about careers in accounting, careers in economics, and so forth There is a similiar series of articles about ethics There is also a strong emphasis on organizations in the fields of business and government Wherever an organization is discussed, the article provides contact information about it, including a Web site Relevant business-related federal legislation is included in this work Articles on all acts that have had a major impact on business and the government agencies that regulate them are included in the Encyclopedia Encyclopedia of Business and Finance, Second Edition includes 32 new articles The major areas of these new contributions are in the applications of technology to business (such as cyber crime, e-marketing, identity theft, and online education), new areas of business knowledge (including agency theory, earnings management, forensic accounting, green VII PREFACE marketing, intellectual capital, and social marketing), international topics (such as international business and international marketing), and new organizations and legislation Further, all articles in the Encyclopedia have been thoroughly reviewed and updated in content and references to 2006 Entries are arranged in alphabetical order The Encyclopedia includes extensive crossreferencing of two types: “See” and “See Also” references “See” references fall within the body of the work and refer the reader to articles diuscussing that topic For example, if one wanted to find information about bait-and-switch advertising and looked under “Bait and Switch,” there would not be an article, but rather the instruction to “SEE Ethics in Marketing; Ethics in Law for Business; Government Role in Business.” “See Also” cross-references fall at the end of articles and direct the reader to one or more other articles that may shed more light on the topic At the conclusion of the article on Insurance, for example, you will find “SEE ALSO Investments; Personal Financial Planning.” At the end of Volume 2, there is an extensive Index to terms and concept in the articles Is the knowledge contained in this work the definitive and final word on each topic? The answer is “most certainly not!” In this day and age of dynamic and rapidly growing knowledge, a positive answer would be quite inappropriate However, this is not necessarily a negative The information contained in this edition of Encyclopedia of Business and Finance is valid and reliable and enables readers to further research by going to easily accessible sources Today’s technology offers a unique opportunity to extend one’s knowledge of every topic presented, an opportunity not available so easily to previous generations This work was designed for different types of users The middle school student may be looking for a starting point for a paper on careers The high school student may be seeking background information on a major research topic, such as international trade The businessperson may be seeking a summary of antitrust laws The business teacher may be preparing a lesson on the history of computing The interested layperson may simply want to learn something new about such topics as the No Child Left Behind legislation or investments Encyclopedia of Business and Finance, Second Edition can serve as a survey document for the many aspects of business or as a guide to those aspects It can be the starting point for a lengthy secondary research project, or the ending point for a specific item covered within its pages It can be used to help ask questions or to find answers It can be used as a summary of existing knowledge or the basis for acquiring new knowledge A number of individuals deserve special mention for their contributions to this project First I must thank the four associate editors: Dorothy Maxwell, Jim Maxwell, Mary Ellen Oliverio, and Allen Truell Without their tireless efforts at securing quality writers, we would have a very small work Second, great appreciation goes to Miranda Ferrara, the editor at Macmillan Reference USA/Thomson Gale in charge of this project, for her organization, efficiency, and human kindness throughout this entire project In addition special thanks go to Mike Weaver and Luann Brennan also at Thomson Gale, who handled many of the technical details of the Encyclopedia Lastly, I must thank all of the contributors for the best effort that each put forth to codify and record knowledge in each article Writing for an encyclopedia is hardly a financially rewarding activity; however, it is a contribution to posterity, so what each contributor has written is of great value to current and future scholars And, speaking for all of us, thanks to our families for their encouragement and support Burton S Kaliski VIII ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION List of Articles VOLUME A AMERICAN MARKETING ASSOCIATION Val Hinton Mary Jean Lush ACCOUNTING Harvey S Hendrickson ACCOUNTING CYCLE Allie F Miller ACCOUNTING INFORMATION SYSTEMS AMERICANS WITH DISABILITIES ACT OF 1990 Nikole M Pogeman ANALYTICAL PROCEDURES Jean C Bedard James J Maroney Theodore J Mock ACCOUNTING : HISTORICAL PERSPECTIVES Carol J Normand Charles W Wootton ADVERTISING Michael Milbier Allen D Truell AGENCY THEORY Barry C Melancon AMERICAN MANAGEMENT ASSOCIATION Nikole M Pogeman Allie F Miller Mary Ellen Oliverio BUDGETS AND BUDGETING Roger K Doost BUREAU OF LABOR STATISTICS Bernard H Newman David A Bowers Anand G Shetty Janel Kupferschmid ARTIFICIAL INTELLIGENCE Lisa E Gueldenzoph Mark J Snyder ASSOCIATION OF CERTIFIED FRAUD EXAMINERS BUSINESS MARKETING Thomas Baird BUSINESS PROFESSIONALS OF AMERICA Jewel E Hairston Bernard H Newman ASSURANCE SERVICES Don M Pallais AUDIT COMMITTEES Louis Braiotta, Jr AUDITING Mary Ellen Oliverio AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS BONDS BUSINESS CYCLE ADVERTISING AGENCIES John A Swope Scott Williams Marcia Anderson ANTITRUST LEGISLATION ACTIVITY- BASED MANAGEMENT Clifford Brown Lawrence A Klein BEHAVIORAL SCIENCE MOVEMENT Mohammad J Abdolmohammadi Jay C Thibodeau C CAPITAL INVESTMENTS Douglas R Emery John D Finnerty CAPITAL MARKETS Surendra K Kaushik CAREERS : AN OVERVIEW Judith Chiri B CAREERS IN ACCOUNTING BALANCE OF TRADE Gary P Tripp BANKRUPTCY Roy J Girasa Bernard H Newman Mary Ellen Oliverio CAREERS IN ECONOMICS Wendy Rinholen IX Writing Skills in Business • Long quotations follow: The mayor said: “…Never before have I experienced the joy of knowing that one of our citizens was elected governor…” Use quotation marks at beginning and end of: • Direct, exact quotations: “Holidays,’ said one speaker, “are students’ friends.” • Titles of book chapters, poems, or magazine articles: The chapter is entitled “Computers and Clocks.” • Terms possibly unfamiliar to readers, such as An IRA is an “Individual Retirement Account.” Rules for punctuation related to quotation marks include: • Periods and commas go inside quotation marks: “I am listening, Father,” said Robert, “I am listening.” • Colons, semicolons, exclamation points, and question marks go outside quotation marks unless part of the quoted material: You said, “No one can solve this puzzle”; I found three who could • Do not use quotation marks around indirect quotations: He said he’d leave before 3:00 p.m • Use single quotation marks for quotations within quotations: Virginia said, “I saw the movie ‘Titanic.’” • Use underscore, all capitals, or italics (but not quotation marks) for titles of books; pamphlets, long poems, magazines, or newspapers; or performing, musical, literary, or visual art pieces Apostrophes have two major rules: To show possession for nouns, not pronouns: The composer’s melody is beautiful To substitute for missing letters in “contractions”: You’re the winner! Some major rules for capitalization are: • Capitalize first words in sentences Eighty-five books were purchased • Capitalize names: Finally Marie visited Portland, Maine • Capitalize and abbreviate titles: Here’s Mr Blake EFFECTIVE SENTENCES AND PARAGRAPHS Writing effectively requires skillfully transforming correct grammar, spelling, and punctuation into sentences and paragraphs Effective Sentences Main ideas can be emphasized by placement in independent clauses at ends of sentences: From shrewd investments, Martin achieved overwhelming success Emphasis also comes by comparing or contrasting: He speaks with the force of a thunderbolt Connecting words emphasize ideas: She’s inexperienced; however, look at her sales reports Positive attitudes increase sentence effectiveness: We appreciate your thoughtful reply We will study it carefully (versus We cannot understand your reply.) Effective Paragraphs Place a central core thought in each paragraph Central core thoughts may come first followed by supporting sentences We’re concerned about declines in sales and profits Two years ago, sales reached $260 million Last year they dropped to $214 million Two years ago, our profit rate was 13 percent on sales This past year, it dipped to percent Ending paragraphs with central core thoughts are equally effective: Two years ago, sales reached $260 million Last year they dropped to $214 million Two years ago, our profit rate was 13 percent on sales This past year, it dipped to ercent We’re concerned about declines in sales and profits Skillful repetition makes a paragraph effective: Bosses forgive occasional tardies They even overlook mistakes But they never condone a negative attitude Climatic paragraphs can generate excitement by sequencing events in order of occurrence: On June 14, two girls carrying shopping bags entered our men’s furnishings department While one girl talked to a sales associate, the other slipped around quietly loading her shopping bag Soon, they left by the front door However, our security patrol spotted them When the two girls got outside, security nabbed them and called the police VISUAL ASPECTS Whether transmitted via letter, FAX, e-mail, or interoffice communication, appropriate formats create favorable impressions Business Letters Business letters are mailed to persons outside the writer’s company: • One-inch margins give clean, open appearances ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 777 Writing Skills in Business • Indent first lines of paragraphs five spaces • Use 10- or 12-point font sizes for most letters and memos • Except for extremely short letters, use single spacing • Most business stationery is 8.5 by 10 inches • On envelopes, place the return address at upper left and the addressee’s address in approximate vertical and horizontal center Business Memos Memos go to persons within the writer’s company Their format, which is often informal, is similar to that of business letters Facsimilies Business faxes (facsimiles), business letters, and memos have similar formats Faxes, however, have attached cover sheets listing name, title, organization, address of company, and fax number of both addressee and writer Also shown is number of pages, counting cover sheets E-Mail Formats for e-mail are less formal than for letters • Avoid capitalizing all words It is equivalent to shouting • When replying to an earlier e-mail, include a copy of the message you received • Always include subject lines • Make grammatical structures, typing, numbers, and technical information accurate and clear Compose lengthy messages off-line • Confidentiality cannot be guaranteed with e-mail 778 Good Impressions Always convey a good impression • Write sincerely and courteously • Avoid big words Do not try to impress • Aim communications to the reader’s level • Have appropriate-length messages Short messages may be curt; long messages may lose readers • Be correct If the meeting is Wednesday, November 30, not write Thursday, November 30 • Messages should flow smoothly from beginning to end and reach logical conclusions • Get to the point early • Do not pretend to know readers when you actually not • Avoid gender stereotyped communications • Correctly convey company policy Consult with colleagues if necessary Listening Skills in Business; Reading Skills in Business; Research in Business; Speaking Skills in Business SEE ALSO B I B L I O G R A PH Y Aaron, Jane E (2004) The Little, Brown Compact Handbook (5th ed.) New York: Pearson/Longman Ellison, Pat Taylor (2007) Business English for the 21st century (4th ed.) Upper Saddle River, NJ: Pearson Prentice Hall Sabin, William A (2005) The Gregg Reference Manual (10th ed.) Boston: McGraw-Hill G W Maxwell ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index This index is sorted word-by-word Bold page numbers indicate main entries Italic page numbers indicate photos or figures A “t” after a page number indicates a table A AAA See American Accounting Association AAAA See American Association of Advertising Agencies AAPA See American Association of Public Accountants AAUIP See American Association of University Instructors in Accounting Abuse of power, 179 Accessory equipment, 140 Accountants, 3–5, 80–83 See also CPAs (Certified Public Accountants) Accounting, 1–5 attestation services, 310–312 careers in, 80–83 compilation and review services, 132–134 ethics in, 261–264 financial, 3–4 Foreign Corrupt Practices Act, provisions of, 326 forensic, 327–329 fraud and crime, 179, 181 government, 112–114, 344–346, 344–351 history of, 1, 7–10 information systems, 10–13 legal practice, 93 management, 3–4 mergers and acquisitions, 513–514 professional organizations, 8–9 regulation, 3–5, 8–9 securities acts, 656–658 SMAs (Statements of Management Accounting), 696–699 standards, 307–309, 339–343, 349, 355–356, 548–549 systems, computerized, 6–7 women in, Accounting: historical perspectives, 7–10 Accounting cycle, 5–7 Accounting information systems, 10–13 Accounting Principles Board (APB), 1, 9, 307, 339, 341 Accounting Research Bulletins, 1, 340 Accounting scandals, 335 See also Sarbanes-Oxley Act Accounting standards, 307–309, 339–343, 349, 355–356, 548–549 Accounting Standards Executive Committee (AsCEC), 340–341 Accounting systems, 3, 6–7 ACFE See Association of Certified Fraud Examiners (ACFE) Acquired-needs theory, 525 Acquisitions See Mergers and Acquisitions Active listening, 463 Activity-based costing, 14–15 Activity-based management, 13–15 Ad Council, 21 ADA See Americans with Disabilities Act of 1990 Adams, J Stacy, 526 Advertising, 15–20 agencies, 20–23 approach, 18–19 careers in, 22, 99 ethics in, 273 forms of, 15–17, 500–501, 618, 619 frequency, 18–19 global, 22 history, 20–21 media, 19, 21–22 objectives, 17–18 public relations, compared to, 624 regulation, 22 specialties, 620 Advertising agencies, 20–23 Advocacy advertising, 15 Affirmative action, 455 AFL-CIO, 450–451 Agency theory, 23–24 Agents, 765–766 Aggregate income See Income AI See Artificial Intelligence AIA (American Insurance Association), 8, 396 AICPA (American Institute of Certified Public Accountants), 24–26 accreditation, 83 779 Index Code of Professional Conduct, 42–43 committees, 307–308 ethics, 262–264 GAAP and, 339–343 GAGAS and, 346 government accounting standards and, 349 history, 8, not-for-profit accounting, 549 PCAOB and, 623–624 role of, 2, 3, 42 SMAs and, 696–697 state societies of CPAs and, 695 Statements on Standards for Accounting and Review Services, 132 Aiken, Howard, 382 Alderfer, Clayton, 524 Allen, Tim, 608 AMA See American Management Association; American Marketing Association American Accounting Association, American Association of Advertising Agencies (AAAA), 20–21 American Association of Public Accountants (AAPA), American Association of University Instructors in Accounting (AAUIP), American Council of Life Insurance, 396 American Institute of Accountants (AIA), 8, 396 American Institute of Certified Public Accountants (AICPA), 24–26 American Management Association (AMA), 26 American Marketing Association (AMA), 26–27 American Society of Certified Public Accountants (ASCPA), Americans with Disabilities Act of 1990, 27–29, 28, 364 America’s Health Insurance Plans, 396 Analytical procedures, 29–30 Annuities, 438 Anticybersquatting Consumer Protection Act, 352–353 Antitrust legislation, 31–33, 93, 298–299, 598–599, 648–649, 665–666 See also Price fixing APB (Accounting Principles Board), 1, 9, 307, 339, 341 Applying agreed-upon procedures, 310–311 780 Apprenticeships, 159 Argyris, Chris, 54 ARPANET, 426 Artificial intelligence, 33–36, 384 AsCEC (Accounting Standards Executive Committee), 340–341 ASCPA (American Society of Certified Public Accountants), Ash, Mary Kay, 252 Assembly lines, 485 Association of Certified Fraud Examiners (ACFE), 36, 329 Assurance services, 36–39, 37 Atanasoff, John V., 382 Attestation services, 310–312 Audit committees, 39–42, 334–336 Auditing, 42–45 See also Audit Committees; PCAOB (Public Company Accounting Oversight Board) of accounting information systems, 12–13 analytical procedure, 29–31 CIA (Certified Internal Auditor), 103–104 compilations and reviews, comparison to, 132–133 government, 114, 346–348, 587–590 Institute of Internal Auditors (IIA), 391–392 internal control systems, 403–406 reports, 45 Single Audit Act of 1984 with amendments, 668–670 standards, 334–336 types of, 42 Auditing Standards Board, 1, 29 Audits of Institutions of Higher Education and Other Non-profit Organizations, 669 Audits of State and Local Governments, 668–669 Authority See Management: Authority and Responsibility B Babbage, Charles, 361, 382, 473, 476 Balance of payments, 49 Balance of trade, 47–49, 47t, 48t Balance sheet, 318 Bankruptcy, 49–52 Banks and banking, 87–88, 312, 515–516 Barth, Carl G L., 655 B2B (business to business), 230–232 B2C (business to consumer), 230–231 BCG (Boston Consulting Group), 611 Behavioral management, 469–470, 474 Behavioral science movement, 53–54 See also Motivation Benefits See Employee benefits Bernanke, Ben, 297 Berne Convention, 157 Berners-Lee, Tim, 384, 426, 427 Bernhard, Wolfgang, 121 Berry, Clifford, 382 Better Business Bureau, 138 Billboards, 16, 17, 280, 672 Binary system, 134, 135, 136 Blue Book (GAAFR), 351 Blue Ribbon Committee, 335 Board of directors meetings, 511 Boards of Accountancy, 695 Body language, 463 Bonds, 54–57 Boston Consulting Group (BCG), 611 Boycotts, 123, 152 BPA See Business Professionals of America (BPA) Brands, 99–100, 118–120 image, 144 Brands and branding, 18 Breach of contract, 155–156 Break-even analysis, 168–170, 169 Bretton Woods agreement, 419–420, 425 Bribery, 325–327 Brochures, 124 Brokers, 766 Budgets and budgeting, 58–60, 320–321 Bureau of Labor Statistics, 60–61 Burglary, 180 Burlington Industries, Inc v Ellerth, 663 Bush, George H W., 28, 741 Business, forms of, 453–454 corporations, 161–164 partnerships, 579–581 sole proprietorships, 679–682 Business cycle, 61–66, 62t, 216 Business economists, 84 Business law See Law in business Business marketing, 66–68 careers in, 100 Business performance measurement, 37 Business plans, 249–251, 680 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index Business process reengineering See Reengineering Business products and services, 139–141, 499 Business Professionals of America (BPA), 68–69 C Call centers, 503, 573, 727 Canada-U.S Free Trade Agreement, 425 Candler, Asa, 118–119 CAP (Committee on Accounting Procedure), 1–2, 9, 307 Capital asset pricing model (CAPM), 302–303 Capital budgeting, 279–300 Capital (factor of production), 224, 290–291 Capital (financial resources), 300 Capital investments, 71–74 Capital markets, 74–77 Capital (Marx), 290 Capitalism, 222 CAPM (Capital asset pricing model), 302–303 Careers: an overview, 78–80 See also Certifications, licensures, and designations; individual topics Careers in accounting, 80–83, 82t, 327–329 Careers in economics, 84–87, 85t Careers in finance, 87–90 Careers in information processing, 91–92, 91t Careers in law for business, 92–95 Careers in management, 92, 95–99 Careers in marketing, 99–102, 100t Careers in records management, 637–638 Case studies, 641 Catalog retailing, 645 Celler-Kefauver Antimerger Act, 31, 666 Centralized structure, 570, 571 Certificates of deposit, 438 Certifications, licensures, and designations, 81, 102–103, 104–105 See also CPAs (Certified Public Accountants) Certified Government Accountants, 81 Certified in Financial Management (CFM), 104–105 Certified Internal Auditors (CIA), 81, 103–104 Certified Management Accountant (CMA), 81, 104–105 Certified Public Accountants (CPAs) See CPAs (Certified Public Accountants) CFM See Certified in Financial Management (CFM) Chain of command, 572 Change process, 105–108, 567 Channels of distribution, 108–112, 418, 491, 501 Chapter liquidation, 50–51 Chapter 11 reorganization, 52 Chapter 13 consumer debt adjustment, 52 Chief Financial Officers Act of 1990, 112–114 Children’s Online Protection Act, 22 CIA (Certified Internal Auditors), 81, 103–104 Cigarette advertisements, 280, 281, 624 Circular flow, 115–117, 116 Civil Aeronautics Board, 430 Civil Rights Act of 1964, 117, 117–118, 353 See also Civil rights laws Civil rights laws, 27–29, 455, 662–663 Clark, J.M., 64 Clark, John Bates, 290 Classic brands, 118–120 Classical management, 469 Clayton Antitrust Act, 31, 430, 599, 648–649, 665–666 Closed corporations, 163 Closed management systems, 470 CMA See Certified Management Accountant (CMA) CMSAs (Consolidated Metropolitan Statistical Areas), 693 Cobb, Jonathan, 290 COBIT (Control Objectives for Information and Related Technology), 404–405 Coca-Cola, 118–119, 119, 508–509 CoCo (Criteria of Control), 404 Codes of ethics, 677 AICPA, 262–263 business and professional, 261, 264, 268 in information processing, 271 management and, 276 Collective bargaining, 120–123, 122t See also Negotiation Command systems, 221 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Commission merchants, 766 Committee of Sponsoring Organizations (COSO), 334–335, 403–404, 647–648 Committee on Accounting Procedure (CAP), 1–2, 9, 307 Commodity Futures Trading Commission, 76 Common law, 153 Common market, 742 Common stock, 162–163, 706–707 Communication channels, 124–126, 127, 368–369, 427–428, 721–723 Communications in business, 126–128 See also Communication channels human relations and, 368–369 as management skill, 468 public speaking, 682–685 technology and, 557, 678–679, 721–723 voice messaging, 760–762 writing skills, 775–778 Communism, 222–223 Comparative advertising, 15–16 Compensation and benefits, 242–245, 370–371 Competition, 18, 129–131, 130t, 522 Competitive pricing, 599, 600 Compilation and review services, 132–134, 310–312 Compliance audit, 42 Component parts, 140 Comprehensive annual financial report (CAFR), 350 Comprehensive risk assessment, 37 Computer Fraud and Abuse Act of 1986, 603 Computer graphics, 134–136 Computers crimes involving, 179 hardware, 361–363 history, 363, 381–384, 382–383 mainframe, 379, 387, 389 mini, 389 multimedia systems, 527–530 networked, 388, 541–543 office technology, 554–558 personal, 386, 387, 389 privacy and security, 542–543, 602–604 programming, 616–618 skills, 469 stress and, 713 time management and, 734–735 use of, 257–258 781 Index Conflict management, 481 Consolidated Metropolitan Statistical Areas (CMSAs), 693 Consolidation movements, 512 Consumer advocacy and protection, 136–138 Consumer and business products, 139–141, 498–499 Consumer behavior, 141–146, 142, 234–235, 294, 459–462, 718 Consumer Bill of Rights, 146–147 See also Consumer advocacy and protection Consumer Federation of America, 138 Consumer Price Index, 60, 61, 147–149 Consumer Product Safety Act of 1972, 149–150 Consumer Product Safety Commission (CPSC), 137, 147, 149–150, 354 Consumer Protection for New Californians bill, 137 Consumer protest, 150–153 Consumers Union of the United States, 138 Content analysis, 642 Contests and sweepstakes, 620 Contingency theory, 470, 478–479 Continuity advertising, 18 Contracts, 153–156, 273, 454 Control Objectives for Information and Related Technology (COBIT), 404–405 Controlling, 468 Convenience products, 139, 667 Cooperative advertising, 16 Cooperatives, 156–157 Copiers, 288 Copyright Office of the Library of Congress, 157–158 Copyrights, 93, 157–158, 456 Corporate bonds, 55–56, 438 Corporate education, 158–160, 159, 743–746 Corporate restructuring See Reengineering Corporations, 161–164, 453–454 COSO (Committee of Sponsoring Organizations), 334–335, 403–404, 647–648 Cost allocation, 164–167 Cost-benefit analysis, 167–168 Cost of capital, 302 Cost-of-living index, 147 782 Cost-volume-profit analysis, 168–170, 169 Costs, 170–173, 691–693 Cottage industries, 173–175, 174 Coupons, 601, 620 CPAs (Certified Public Accountants) AICPA, role of, 24–26 auditing and, 42 careers, 4–5, 80–81 education, 83 ethics, 261–264 exam, 751–753 firms, 44 National Association of State Boards of Accountancy (NASBA), 533–535 services, 36–39, 37 state societies, 694–696 CPSC (Consumer Product Safety Commission), 137, 147, 149–150, 354 Credit, consumer, 316 Credit bureaus, 374t Credit/debit/travel cards, 175–178, 177 Credit unions, 313 Crime and fraud, 178–182 bribery, 325–327 cyber crime, 187–188, 602–604 forensic accounting and, 327–329 fraudulent financial reporting, 334–336 identity fraud, 373–374 not-for-profit organizations, 548 Crimeware, 603 Crisis management, 626–627 Criteria of Control (CoCo), 404 Currency, 314 Currency crises, 184–185 Currency exchange, 182–185, 184 Current Population Survey, 61 Customer service, 185–187, 186 Customs Union, 742 Cyber crime, 187–188, 602–604 See also Ethics in information processing; Identity theft Debt, 49–52, 321 DECA, 192 Decentralization, 571, 571 Deceptive advertising, 279–280, 299 Decision-making, 192–194 accountants’ role in, 3–4 consumer, 146 economic analysis, 217–218 ethics and, 265–266 Decision support systems, 387, 556 Delphi method, 323, 641–642 Demand, 714–716 Deming, W Edwards, 484, 629–631, 630 Demographics, 487–488, 717 Denial of service (cyber crime), 187 Department stores, 644–645 Departmentalization, 572, 572 Deregulation, 194–195 Derivatives, 76, 195–198 Desktop publishing, 198–201, 199 Dickman, Donald, 254 Digital cameras, 289 Digital divide, 201 Digital whiteboards, 557, 757–758 Direct marketing, 16, 280–281 Directing, 468 Disclosure forms, 657–658 Discount rate, 516 Discount stores, 201–204, 204 Discounted cash flow valuation model (DCF), 302 Discrimination, 206 Discussion Memorandum, 308 Distribution, 281, 500–501 The Distribution of Wealth (Bates), 290 Diversity in the workplace, 205–207 Dividends, 161, 300 Division of labor, 207–210 DJIA (Dow Jones Industrial Average), 704, 704 Document processing, 210–212 Dow Jones Industrial Average (DJIA), 704, 704 Durable products, 139–140, 498 Dynamic pricing, 602 D Daly, Herman, 290 Dart, Justin, 28 Databases, 189–192, 190 Davis, Keith, 673 Davis v Monroe County Board of Education, 664 Debit cards, 176–177 E E-commerce See Electronic commerce E-mail See Electronic mail E-marketing, 234–235 See also Electronic commerce EAP See Employee assistance programs ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index Earnings management, 214–215 See also Fraudulent financial reporting eBay, 230–232, 459, 460 Eckert, John Presper, 382, 388 Econometric models, 324 Economic analysis, 215–218, 307 Economic choice, 225–226 Economic cycles See Business cycle Economic development, 218–220 Economic indicators, 66 Economic systems, 220–223 Economics, 223–227, 224 See also Factors of production; Monetary policy careers in, 84–87 education, 86 ethics, 264–266 professors, 84 Economics: historical perspectives, 227–229 Education and training accounting, 329, 695 auditing, 391 corporate, 158–160, 743–746 e-learning, 434, 560, 721–722 economics, 86 ethics, teaching of, 271–272 interactive technology and, 399, 401 Internet and, 428 No Child Left Behind legislation, 543–544 on-the-job training, 159 professional education, 614–616 school to career movement, 651–654 videoconferencing, 758 EEC (European Economic Community), 424 EEOC (Equal Employment Opportunity Commission), 205–206 EFTA (European Free Trade Association), 741 Elder care services, 39 Electronic commerce, 39, 229–232, 230, 231, 432, 722 See also Emarketing Electronic Communications Privacy Act, 603 Electronic Data Gathering Analysis and Retrieval System, 657, 658–659 Electronic mail, 124, 127, 187–188, 232–234, 235, 271, 427–428, 555, 595, 602, 635, 664 Electronic whiteboards, 557, 757–758 Embezzlement, 179 Emerging Issues Task Force (EITF), 309, 339, 340 Employee assistance programs, 236, 236–239 Employee benefits, 239–242 Employee compensation, 242–245, 243, 244 Employee discipline, 245–248 Employee evaluation, 246, 370 Employee motivation, 444–446 Employee Retirement Income Security Act, 659 Employee safety and health, 371 Employment and Earnings, 61 Employment law, 273–274, 454–455 Employment statistics, 60–61, 660t, 661t Employment tax, 720 ENIAC computer, 361, 382, 388–389 Enron, 41–42, 43, 335, 548, 624, 627, 675 Enterprise resource planning, 13 Enterprise Risk Management: Integrated Framework, 647 Entrepreneurship, 224, 248–252, 291 Environmental Protection Agency (EPA), 252–254, 353 Environmentalism, 274, 357 Equal Employment Opportunity Act of 1972, 254–255, 353 Equal Employment Opportunity Commission (EEOC), 205–206 Equal Pay Act of 1963, 255–256 Equilibrium, 715 Equity theory, 526 ERG theory, 524 Ergonomics, 256–259, 257, 365–366 Ethics See also individual topics in business research, 643 codes of, 675–677 public relations and, 625–626 Ethics: an overview, 259–261 See also individual topics Ethics in accounting, 261–264 Ethics in economics, 264–266 Ethics in finance, 266–269 Ethics in information processing, 269–272, 270t See also Cyber crime Ethics in law and business, 272–274 Ethics in management, 275–279 Ethics in marketing, 279–283 Euro, 284–285, 743 European Economic Community (EEC), 424 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION European Free Trade Association (EFTA), 741 European Union, 283–285, 284, 407–408, 742–743 Examination (accounting service), 310–311 Executive compensation, 244–245 Expectancy theory, 526 Experiments (business research), 642 Exports, 48, 409, 417, 492, 661t See also International trade Exposure Drafts, 308 External auditors, 42–43 External environment review, 710–711 Extranet, 433–435 F Facsimile reproduction, 287–289, 288 Factors of production, 224, 289–291 Fads, 292, 292–294 Fair Labor Standards Act of 1938, 452 Fair Packaging and Labeling Act of 1966, 294–295 Fair-trade laws, 599 Family and Medical Leave Act, 365 FAR (Foundation for Applied Research), 696 Faragher v Boca Raton, 663 FASB (Financial Accounting Standards Board), 307–309 described, 356 financial statement guidelines, 318–320 GAAP and, 1, 3, 5, 9, 339–343 not-for-profit organizations, 548–549 Fayol, Henri, 469, 474, 475 FCC (Federal Communications Commission), 352, 430 FDA See Food and Drug Administration (FDA) FDIC (Federal Deposit Insurance Corp.), 268, 354 Federal Accounting Standards Advisory Board See (FASB (Financial Accounting Standards Board) Federal Employment Compensation Act, 775 Federal Insurance Contribution Act (FICA), 720 Federal Management Act of 1994, 112–114 Federal Open Market Committee (FOMC), 296, 314 783 Index Federal Reserve System, 76, 295–298, 296, 314, 354, 519–521 See also Monetary policy Federal Trade Commission antitrust and, 31, 665 deceptive advertising and, 20–21 interstate commerce and, 430 role of, 298–299, 351–352 Federal Trade Commission Act of 1914, 298–299 FICA (Federal Insurance Contribution Act), 720 Finance, 266–269, 299–303, 301 Finance: historical perspectives, 303–307 Finance companies, 313 Financial accounting, 3–4 Financial Accounting Standards Board (FASB) See FASB (Financial Accounting Standards Board) Financial audits, 42 Financial forecasts and projections, 309–312 Financial institution, 312–315 Financial literacy, 315–317 Financial management and managers, 96, 104–105, 112–114 Financial plans, 251 Financial Report of the United States Government, 350 Financial Services Modernization Act of 1999, 315 Financial statement analysis, 317–318 Financial statements, 318–320 Financing decisions, 300 Firestone Tire Co., 627 Fiscal policy, 320–321 Flexible work plans, 241–242, 723–726 Follett, Mary Parker, 469, 474 FOMC (Federal Open Market Committee), 296, 314 Food, Drug and Cosmetic Act of 1938, 322–323 Food and Drug Administration (FDA), 321–322, 322, 352 For the Common Good (Cobb and Daly), 290 Ford Motor Co., 436, 483, 496–497, 627, 640 Forecasting in business, 323–325 Foreign Corrupt Practices Act of 1977, 325–327 Foreign direct investment, 414, 492 Foreign exchange market, 182–185 Foreign markets, 416–418 784 Foreign trade See International trade Forensic accounting, 327–329 Forward contracts, 196–197 Foundation for Applied Research (FAR), 696 Franchising, 330–333, 646 Fraudulent financial reporting, 214–215, 333–336 See also Audit committees; Auditing Free Trade Area of the Americas (FTAA), 741–742 Free trade areas, 739–740 Friedman, Milton, 277, 519, 673, 674 FTC (Federal Trade Commission), 137 Future Business Leaders of America, 336–337 Future value, 736 Futures trading, 76, 197 G GAAP (Generally Accepted Accounting Principles), 1, 339–343 See also AICPA (American Institute of Certified Public Accountants); FASB (Financial Accounting Standards Board) described, 1–2 financial statements and, 43, 318–320 hierarchy, 339–341 intellectual capital and, 397–398 SMAs and, 696 GAAS (Generally Accepted Auditing Standards), 44 GAGAS (Generally accepted government auditing standards), 346–348 Gantt, Henry, 474, 655 GAO (Government Accountability Office) See United States Government Accountability Office Gap theory, 186 GASB (Government Accounting Standards Board), 4, 344–345, 349–350, 355–356 Gates, Bill, 249, 249, 252 GATT (General Agreement on Tariffs and Trade), 342, 424 GDP (Gross domestic product), 64, 218–219, 358–359, 359t, 660, 660t Gender issues See Diversity in the workplace; Equal Employment Opportunity Act of 1972; Equal Pay Act of 1963; Sexual Harassment General Motors, 410, 493, 508 General partnerships, 579–580 Generally Accepted Accounting Principles (GAAP) See GAAP (Generally Accepted Accounting Principles) Geographic segmentation, 488, 717 Gettelfinger, Ron, 121 Gilbreth, Frank and Lillian, 469, 473–474, 474, 655 Global economy, 341–343 See also International business; International trade Gold, 438 Gooden, Nate, 121 Goods and services, 224–225, 343 Gortari, Carlos Salinas de, 741 Government Accountability Office (GAO) See United States Government Accountability Office (GAO) Government accounting, 81, 344–346 Government auditing standards, 25, 42, 346–348 Government bonds, 56 Government economists, 84 Government financial reporting, 348–351 Government role in business, 351–355, 395, 674 See also Legislation; Regulation GPK, 692–693 Green marketing, 357–358, 357 Grenzplankostenrechnung, 692–693 Gross domestic product (GDP), 64, 218–219, 358–359, 359t, 660, 660t Group support systems, 387 Groupware, 556 H Hacking, 187, 270 Hardware (computer), 361–363, 386, 527–530 See also Information processing: historical perspectives Harkin, Tom, 256 Harrassment, 205–206 See also Sexual harassment Harris v Forklift Systems, Inc, 663 Hawley-Smoot Tariff Act, 342 Hawthorne studies, 53, 367, 474, 523, 564 Health insurance, 239–240, 395 Health Insurance Portability and Accountability Act of 1996, 603–604 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index Health issues in business, 363–366, 364t, 712–714 Herzberg, Frederick, 54, 525 Hills, Carla, 741 History accounting, 36–38, 207–210 advertising agencies, 20–21 consumer protest, 150–153 discount stores, 202–203 economics, 227–229 employee assistance programs, 235 ethics, 259–261 European Union, 283 facsimile reproduction, 287–288 finance, 303–307 financial institutions, 313–314 globalization, 342 government financial reporting, 348–349 human relations movement, 367 information processing, 381–385 information technology, 388–389 insurance, 393–397 internal auditing, 391–392 International Monetary Fund, 419–420 Internet, 426–427 interstate commerce, 429–430 inventory control, 435–436 labor unions, 449 management information systems, 476 marketing, 109, 489–490, 495–498, 508–509 marketing research, 502–504 money, 517 retailing, 643–645 Statements on Management Accounting, 696 taxation, 375–378, 719 transportation, 432–433 Hollerith, Herman, 361, 382, 382, 476 Hollerith tabulator and sorter, 383 Home-based businesses, 173–175 Home Employment Resource, 175 Horizontal analysis, 317 Human relations, 366–369, 469 Human resource management, 96, 369–372 I IAAP See International Association of Administrative Professionals (IAAP) IABNY (Institute of Accountants and Bookkeepers of New York), IASB (International Accounting Standards Board), 356, 406–407 IASC (International Accounting Standards Committee), 411–412 Identity theft, 373–374, 373, 602 IFAC See International Federation of Accountants (IFAC) IFRIC (International Financial Reporting Interpretations Committee), 406 IFRS (International Financial Reporting Standards), 406–407 IGA Cooperative, 156 IHA (Independent Homeworkers Alliance), 175 IIA See Institute of Internal Auditors (IIA) IMF See International Monetary Fund (IMF) IMA See Institute of Management Accountants (IMA) Imports, 48, 409, 661t See also International trade Income, 374–375 Income statements, 319 Income tax, 376, 719–720 Income tax: historical perspectives, 375–378 Independent Homeworkers Alliance (IHA), 175 Indicator approach, 324 Industrial marketing See Business marketing careers in, 100 Inflation, 148 Information processing, 269–272, 378–381 careers in, 91–92 ethics in, 269–272 Information processing, consumer, 142–144 Information processing: historical perspectives, 381–385 Information-resource specialist systems (IRSS), 35 Information systems, 385–388 Information technology, 388–391 careers in, 91–92 division of labor, effect on, 209 reengineering and, 640 Informational advertising, 16 Initial public offerings, 75 Injunctions, 123 Installations, 140 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Instant messaging, 125, 232, 234 Institute of Accountants and Bookkeepers of New York (IABNY), Institute of Accounts, Institute of Internal Auditors (IIA), 43, 391–392 Institute of Management Accountants (IMA), 392–393, 696–699 See also Certified in Financial Management (CFM); Certified Management Accountant (CMA) Institutional advertising, 17 Insurance, 393–397, 394t, 395t, 774–775 Insurance companies, 313 Insurance industry careers, 88–89 Intellectual capital, 397–399 Intellectual property copyrights, 157–158 law, 455–456 patents, 581–583 theft of, 179 trademarks, 738–739 Intelligent project coaches (IPCs), 35 Intelligent simulations, 35 Intelligent support systems, 387 Interactive technology, 399–401 Interest rates, 401–403, 402t Intermediaries, 110–112 Internal auditors, 43, 81 Internal Control—Integrated Framework, 647 Internal control systems, 403–406 International accounting standards, 406–408 International Accounting Standards Board (IASB), 356, 406–407 International Accounting Standards Committee (IASC), 411–412 International Association of Administrative Professionals (IAAP), 408–409 International business, 409–411 disclosure requirements, 658 finance, 301 ISIC (International Standard Industrial Classification), 546 legal practice, 94 marketing, 492 International Federation of Accountants (IFAC), 407, 411–412 International Financial Reporting Interpretations Committee (IFRIC), 406 785 Index International Financial Reporting Standards (IFRS), 406–407 International investment, 412–415, 413t, 414t International marketing, 100, 415–419, 417t International Monetary Fund (IMF), 419–422, 425 International Organization of Consumers Unions, 138 International Organization of Securities Commissions (IOSCO), 407 International Standard Industrial Classification (ISIC), 546 International trade, 414t, 422–426 balance of trade, 47–49, 47t, 48t international investment, 412–413 services industries, 661, 661t trading blocs, 739–743 U.S trade policies, 409–411 International Trade Commission, 411 Internet, 426–428 consumer advocacy and, 138 described, 433 digital divide, 201 electronic commerce, 229–232, 646 marketing via, 22, 493 online education, 560, 615 as telecommunications resource, 721–722 Web pages, 555 Interstate commerce, 428–432, 429 Interstate Commerce Commission, 352, 430, 432–433, 688 Interview, employment, 79 Intranet/extranet, 433–435, 555 Inventory control, 435–437, 436 Investment Advisers Act of 1940, 658–659 Investment companies, 313 Investment Company Act of 1940, 658–659 Investments, 437–440 bonds, 54–57 capital investments, 71–74 derivatives, 195–198 mutual funds, 530–532 personal financial planning, 590–592 risk, 591 stocks, 705–709 IPOs (initial public offerings), 656 IRS auditing, 43 786 ISIC (International Standard Industrial Classification), 546 IT See Information technology J Japanese management methods, 481–482 Jensen, Michael, 23 Job analysis and design, 441–444, 442 Job descriptions, 443 Job enrichment, 444–446, 447, 566 Job satisfaction, 446–447 Jobs, Steve, 361, 362 Johnson, Lyndon, 117 Joint production allocations, 166 Joint ventures, 492 Jump$tart Coalition for Personal Financial Literacy, 316 Just-in-time inventory, 436–437 Just-in-time manufacturing, 484 K Kemp, Evan, 28 Keynes, John Maynard, 65, 228, 229, 420 Kickbacks, 179 King, Martin Luther, Jr., 117 Knowledge management systems, 386–387 Kozlowski, Dennis, 275 L Labeling See Packaging Labor (factor of production), 224, 290 Labor unions, 94, 120–123, 247, 371, 449–452, 450 LAN (local area network), 541–543, 555 Land (factor of production), 224, 290 Landrum-Griffin Act, 452 Law in business, 452–456 careers in, 92–95 e-mail issues, 234 e-marketing issues, 235 ethics in, 272–274 forensic accounting, 327–329 Leadership, 456–459 Legislation See also Government role in business; Regulation; individual laws antitrust, 31–33, 298–299, 598–599, 648–649, 665–666 auditing, 668–670 civil rights, 27–29, 117–118, 254–255, 353, 455, 662–663 computer crime, 603 consumer protection, 149–150, 294–295, 321–323 education, 543–544, 652 Federal Employment Compensation Act, 775 foreign trade, 342 international business, 325–327 patents, 581–583 pricing, 598–599 product labeling, 606 railroad, 687–688 securities, 656–658 union, 452 worker health and safety, 364–365 Leibniz, Gottfried, 382 Letters, business, 124 Life insurance, 395 Lifelong learning, 614–615 Lifestyles, 459–462 Limited liability corporations, 161, 163 Limited liability partnerships, 581 Limited partnerships, 581 Line-and-staff structure, 569, 569 Line structure, 568, 568 Listening skills in business, 462–464 Local area network (LAN), 541–543, 555 Lockouts, 123 Logistics management, 491 M MAC/FAR Committee, 696 Macroeconomics/microeconomics, 465–466 Magnuson-Moss Warranty Act, 147 Mail-order retailing, 645, 646 Maintenance, repair and operating supplies (MRO), 140 Management, 466–470 careers in, 92, 95–99 ethics in, 275–279 leadership and, 458 strategic, 709–712 Management: authority and responsibility, 470–472 Management: historical perspectives, 473–475, 654–656 See also Management Management accounting, 3–4, 81 Management information systems, 10, 385–386, 475–477 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index Management/leadership styles, 477–482 Management plans, 251 Management process, 474 Managerial grid, 480 Manufacturers, cost allocation, 165 Manufacturing, 483–486 MAP Committee (Management Accounting Practices), 696 Market economy, 115–117 Market research, 22, 323–324 Market segmentation, 487–489, 487, 490, 508, 717–718 Market share, 18 Market systems, 221, 227 Marketing, 489–493 See also Advertising; Ethics in marketing; Green marketing careers in, 99–102 channels, 108–112 electronic, 234–235 ethics, 279–283 global, 22 interactive, 22, 400 international, 492 managers, 96 mass, 507–508 packaging, 578–579 push and pull, 235 social, 672–673 target, 717–718 telemarketing, 726–728 to children, 281 to minorities, 281 Marketing: historical perspectives, 495–498 Marketing concept, 185, 493–495 Marketing mix, 491–492, 498–502 Marketing plans, 250–251 Marketing research, 100, 502–507, 505 Marshall, Alfred, 228, 291 Marx, Karl, 228, 290 Maslow, Abraham, 53, 53, 470, 524–525 Maslow’s heirarchy of needs, 524, 524 Mass marketing, 507–509, 508 Matrix structure, 569–571, 570 Mauchly, John, 382, 388 Mayo, Elton, 53, 367, 474, 523 McClelland, David, 525 McGregor, Douglas, 54, 467, 525 McLuhan, Marshall, 124, 400, 400 Meckling, William, 23 Media, 19, 124–126, 400–401 Mediation, 122–123 Meeting management, 125, 509–511 See also Videoconferencing Merchandisers, cost allocation, 165 Merchant wholesalers, 764–765 Mergers and acquisitions, 39, 299, 511–514 Meritor Savings Bank v Vinson, 663 Metropolitan Statistical Areas (MSAs), 693 Microeconomics See Macroeconomics/microeconomics Minorities in the workplace, 98, 205–207, 281–282 Mission statements, 710 Mixed economy, 223, 228 Monetary aggregates, 519–520 Monetary policy, 515–517 See also Economics; Federal Reserve System Monetary system, 314 Monetary union, 742 Money, 517–519, 518 Money management, 316 Money market, 74 Money market accounts, 439 Money supply, 519–521 Monopolistic competition, 131 Monopoly, 131, 521–522 Monthly Labor Review, 61 Mooney, James, 474 Morgan, John Pierpont, 665, 666 Motivation, 141–142, 522–527, 523, 613 See also Behavioral science movement Motivation-hygiene theory, 525 MSAs (Metropolitan Statistical Areas), 693 Mulroney, Brian, 741 Multimedia systems, 527–530, 556–557 Municipal bonds, 56–57, 439 Munsterberg, Hugo, 469 Mutual funds, 439, 530–532 Mutual reward theory, 613 Mutual savings banks, 313 Myers-Briggs Personality Test, 78 N NAA (National Association of Accountants), NACA (National Association of Cost Accountants), Nader, Ralph, 137, 151, 151, 152 NAFTA (North American Free Trade Agreement), 342, 425, 740–741, 741 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION NAICS (North American Industry Classification System), 544–547 Napier, John, 382 NASBA See National Association of State Boards of Accountancy (NASBA) NASDAQ, 40, 75, 306, 700–701, 703–705 Nash, John, 559 Nash equilibrium, 559 National Association of Accountants (NAA), National Association of Cost Accountants (NACA), National Association of State Boards of Accountancy, 533–535, 695 National Bureau of Economic Research (NBER), 63–64 National Business Education Association (NBEA), 535–536 National Consumers League, 138 National Institute for Occupational Safety and Health (NIOSH), 363–365 National Labor Relations Board (NLRB), 536 National Retail Federation (NRF), 536–537 National Transportation Safety Board (NTSB), 537–539, 538 NBEA SeeNational Business Education Association (NBEA) NBER (National Bureau of Economic Research), 63–64 Negotiation, 539–541 Net present value, 72 Networking (computers), 541–543 New York Stock Exchange (NYSE), 8, 40, 74–75, 75, 306, 335, 512, 700–702, 700, 703 NIOSH (National Institute for Occupational Safety and Health), 363–365 NLRB (National Labor Relations Board), 536 No Child Left Behind legislation, 543–544 Nondurable products, 139–140, 498 Norris-LaGuardia Act, 452 North American Free Trade Agreement (NAFTA), 342, 425, 740–741, 741 North American Industry Classification System See NAICS (North American Industry Classification System) 787 Index North American Product Classification System (NAPCS), 546–547 Not-for-profit accounting, 165, 319, 547–550, 669 Not-for-profit corporations, 163 NRF See National Retail Federation (NRF) NTSB See National Transportation Safety Board (NTSB) Nutrition Labeling and Education Act of 1990, 294–295 NYSE (New York Stock Exchange), 8, 40, 74–75, 75, 306, 335, 512, 700–702, 700, 703 O Objectives, management, 711 Oburota, Gozi Samuel, 252 Occupational Outlook Quarterly, 61 Occupational Safety and Health Administration (OSHA), 353, 363, 371, 551–552 OECD (Organization for Economic Cooperation and Development), 407 Office automation systems, 387 Office layout, 552–554 Office of Consumer Affairs, 147 Office Reading Exercises, 634 Office technology, 554–558 Oligopoly, 131, 558–559 OMB (Office of Management and Budget), 113–114, 349–350, 350, 668–669, 669 On-the-job training, 159 Oncale v Sudowner Offshore Services, Inc., 663–664 Online education, 560, 615 Online retailing, 646 Open management systems, 470 Open-market operations, 516–517 Operational audits, 42, 590 Operations management, 96, 560–563 Opportunity cost, 563–564 Options, 197 Oral contracts, 155 Organization charts, 443 Organization for Economic Cooperation and Development (OECD), 407 Organizational behavior and development, 564–568 Organizational structure, 568–572, 568–572 788 Organizing, 467–468 OSHA See Occupational Safety and Health Administration (OSHA) Other comprehensive income, 319 Outdoor advertising, 16, 17 Outsourcing in the business environment, 92, 573–575, 573 Owen, Robert, 469, 473 P Pacioli, Luca Batolomes, Packaging, 577–579, 578 Parol evidence rule, 155 Parrino, Sandra, 28 Partnerships, 453, 579–581 Pascal, Blaise, 382, 475, 476 Patents, 93, 455–456, 581–583, 582 Path-goal leadership theory, 480 Patronage rewards, 620 PCAOB (Public Company Accounting Oversight Board), 622–624 creation of, 335 ethics and, 263 external auditing and, 43–44 government auditing standards and, 348 quarterly review guidelines, 133 role of, 262 state societies of CPAs and, 695 Pemberton, John Smyth, 118–119 Penetration pricing, 600 Pennsylvania State Police v Suders, 664 Pension funds, 313 Pepsi, 120, 416, 508 Perfect competition, 130–131 Performance appraisal, 583–587, 583, 585, 586 See also Employee evaluation; Standard-based work performance Performance audits, 587–590 Perks, 241 Personal financial planning, 590–592 Personal selling, 501, 593–594, 593, 618 Persuasive advertising, 17 Pharming, 603 Phishing, 187, 233–234, 603 Pilferage, 180 Place, 491, 501–502 Planning, 467 Plant-Closing Notification Act of 1988, 452 PMSAs (Primary Metropolitan Statistical Areas), 693 Point-of-purchase advertising, 17, 621 Policy compliance, 39 Policy development, 595–597, 595 Political union, 743 Pornography, 271 Portfolio investment, 415 Preferred stock, 163, 300, 305, 707–708 Prejudice, 206–207 Preliminary views, 308 Premiums, 621 Prepayment, 601 Present value, 72, 170, 299, 402–403, 736 Prestige pricing, 599 Price fixing, 181, 299, 597–598 See also Antitrust legislation Pricing, 418, 491, 499–500, 598–602, 621 Primary Metropolitan Statistical Areas (PMSAs), 693 Principal/agent relationship, 23–24 Principles of Economics (Marshall), 291 The Principles of Political Economy and Taxation (Ricardo), 290 Printers, computer, 288–289 Privacy and security, 602–604 Privacy Protection Act of 1996, 603 Processed materials, 140 Producer Price Index, 60, 61, 149 Product, as element of marketing mix, 491, 498 Product advertising, 17 Product-benefit segmentation, 488 Product differentiation, 18, 131, 621–622 Product labeling, 604–607, 605 Product liability, 454 Product life cycle, 18, 292–294, 293 Product lines, 607–609, 608, 609–610 Product misrepresentation, 181 Product mix, 609–611, 609t, 610t Production management, 562–563 Production of Commodities by Means of Commodities (Sraffa), 290–291 Production possibilities curve, 563–564, 564 Productivity, 612–614 Professional corporations, 163 Professional education, 614–616, 743–746 See also Education and training Professional organizations See also Individual names accounting, 8–9, 24–26, 42, 392–393, 407, 411–412 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index administrative professionals, 408–409 auditing, 391–392 codes of ethics, 261–264 management, 26 marketing, 26–27 regulation, role in, 268 Professionals, 102–103 Profitability pricing, 599 Programming, 616–618 616 See also Software Promotion, 492, 500–501, 618–622 Propaganda, 624 Property/casualty insurance, 395 Proprietorships, 453 Psychographics, 488, 717–718 Public assistance, 747 Public Citizen, 138, 152 Public Company Accounting Oversight Board See PCAOB (Public Company Accounting Oversight Board) Public relations, 101, 501, 618, 624–626 Public Sector Committee of the International Federation of Accountants (IFAC-PSC), 356 Public speaking, 682–685 Public Utility Holding Company Act, 658–659 Publicity, 626–628 Publicly held corporations, 93 Puche, Julie, 741 Pull marketing, 235 Purchasing power parity, 183 Pure Food and Drug Act of 1906, 20 Push marketing, 235 Q Qualitative forecasting, 323–324 Quality assurance, 443 Quality management, 629–632 Quantitative forecasting, 324 R Rate of return, 56, 65, 71–72, 299–301, 532 Rating scales, 370, 583, 585, 585–586, 586 Ratio analysis, 318 Raw materials, 84, 111, 140, 310, 561 Reading skills in business, 633–635 Rebates, 620 Records management, 97, 557, 635–638, 636t, 637t Reengineering, 484–485, 566, 638–640 Reference cycle, 63 Regulation See also Deregulation; Government role in business; Legislation advertising, 22 auditing, 40 banking, 315, 515–516 capital markets, 77 consumer protection, 137–138, 146–147, 149–150, 150–153 corporations, 162 environmental, 252–254 financial institutions, 315 insurance, 396 interstate commerce, 432–433 legal practice and, 93 marketing, 279–283 monetary policy, 515–517 monetary practices, 354 mutual funds, 532 pricing, 500 railroad, 687–688 securities, 268, 305–306, 656–658, 700–701 transportation, 430 unions, 536 worker safety, 551–552 Reinforcement theory, 526 Reinsurance, 395–396 Relational databases, 189 Reminder advertising, 17 Report and Recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees, 335 Research in business, 640–643, 641 Reserve requirements, 515–516 Resources, economic, 224 Restatement of the Law of Contracts, 153 Restructuring See Reengineering Resumes, 78–79 Retail marketing careers, 101 Retailers, 201–204, 643–646 Return on investment, 167, 299–300, 612, 707 Review services, 132–134 Ricardo, David, 153, 290 Risk management, 313, 647–649 Robbery, 180 Robinson-Patman Act, 21, 31, 599, 648–649 Robot teams, 35 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Rosenker, Mark, 538 S S corporations, 164 Sabotage, 180 SAC (Standards Advisory Council), 406 Safety, worker, 551–552 Sales and sales promotion, 101–102, 501, 593–594, 620 Samples, product, 621 SAP (Statements of Position), 339–340 Sarbanes-Oxley Act of 2002 audit committees, 40–41 external auditors, 43–44 forensic accounting, need for, 329 fraudulent financial reporting, 335 origin of, 306–307 principle/agent relationships, 24 provisions of, 262–264 Section 13(j), 657 Section 404, 647 written communications, requirements for, 125 SAS No 56, 29–31 Savings and loan associations, 313 Savings bonds, 439 Scanners, 289 School to career movement, 651–654 Schumpeter, Joseph, 64, 291, 291, 305 Scientific management, 53, 367, 469; 473–474, 654–656 SCORE (Service Corps of Retired Executives), 175 Scott, Walter Dill, 469 Sculley, John, 364 Seasonal pricing, 601 SEC (Securities and Exchange Commission) financial statement guidelines, 43–44, 318–320 Foreign Corrupt Practices Act, requirements of, 325–326 role of, 3, 5, 9, 306, 354 securities exchange and, 76 Securities Acts: requirements for accounting, 656–658 Securities and commodities industry, 89–90, 268 See also Stock exchanges; Stocks Securities and Exchange Act of 1934, 657 789 Index Securities and Exchange Commission (SEC) See SEC (Securities and Exchange Commission) Security See also Privacy and security computer, 542–543 Segment pricing, 601 Segmentation See Market segmentation Selling See Personal selling Service department, cost allocations, 166 Service firms, cost allocation, 165 Service industries, 659–662 Sexual harassment, 255, 662–665, 662 SFAS 133 (Accounting for Derivative Instruments and Hedging Activities), 196 Shareholder meetings, 511 Sherman Antitrust Act of 1890, 31, 32, 351, 598–599, 665–666 Shewhart, Walter, 655 Shoplifting, 180 Shopping, 667–668 Shopping products, 139, 667 SIC (Standard Industrial Classification), 544 Single Audit Act of 1984 with amendments, 668–670 Situational analysis, 709 SkillsUSA, 670 Skinner, B.F., 526 SMAs See Statements on Management Accounting Small Business Administration, 251–252, 670–671, 682 Smart boards, 557 Smith, Adam, 153, 207, 227–228, 290, 313–314, 473 Sniffing (cyber crime), 188 Social marketing, 672–673 Social responsibility and organizational ethics, 266, 277–278, 673–677 Social Security tax, 720 Socialism, 222 Sociotechnical management, 470 Socrates, 260 Software, 556, 617, 677–679, 767–769 Sole proprietorships, 679–682 Southern Common Market, 741 Spam, 128, 188, 233 Speaking skills in business, 682–685 Specialization, 207–210 Specialty advertising, 17 Specialty goods, 139, 667 790 Spoofing, 188 Spreadsheets, 685–687, 685, 696 SQL (Structured query language), 190–191 Sraffa, Piero, 290–291 Staggers Rail and Motor Carrier Acts, 687–688 Standard & Poors (S&P) 500, 704–705 Standard-based work performance, 688–691 Standard costing, 691–693 Standard Industrial Classification (SIC), 544 Standard metropolitan statistical areas, 693–694 Standards Advisory Council (SAC), 406 State of the organization review, 709–710 State societies of CPAs, 694–696 Statement of cash flows, 319 Statement of stockholders’ equity, 319 Statements of Financial Accounting Standards, 309 Statements of Position (SAP), 339–340 Statements on Management Accounting, 696–699 Statute of frauds, 155 Stock exchanges, 74–75, 77, 306, 313, 699–702, 700 Stock indexes, 702–705, 704 Stocks, 705–709, 706–707 classes of, 162–163 corporations and, 161, 161 indexes, 702–705, 703–704 Strategic management, 709–712 Stratton, Hal, 149 Stress, 712–714 Strikes, 123 Structured query language (SQL), 190–191 Student organizations, 68–69, 192, 336–337, 670 Supply and demand, 714–716, 714t, 715, 716 competition and, 131 currency, 182–183, 183 described, 226 Surface Transportation Board, 688 Survey feedback, 566 Sustainable development, 219–220, 357 Swaps, 197 Switchback, 18 SWOT analysis, 709–710 Systems Auditability and Control (SAC), 404 Systems reliability, 39 Systems theory, 480 T Taco Bell, 330–331, 330 Taft-Hartley Act, 371, 451, 536 Target marketing, 717–718 Tariffs, 342, 423–424 Taxation, 320–321, 681, 719–721 Taylor, Frederick Winslow, 53, 367, 473, 523, 638, 654, 655 Teams in business, 566, 769–773, 771 Technical management, 560–563 Telecommunications, 721–723 See also Communication channels Telecommuting, 722–726, 724 Teleconferencing, 556, 757–758 Telemarketing, 726–728, 727 Telephone, use of, 125, 555–556, 722, 760–762 Telephone skills, 728–731 Temporary employment, 731–733 Term pricing, 601 Text messaging, 124–125 Theft, 179, 180–181 Theoretical economists, 84 The Theory of Economic Development (Schumpeter), 291 Theory X and Theory Y, 54, 479, 525 Theory Z, 479–480 Thompson, Sanford E., 655 Time and motion studies, 443, 473–474, 655 Time management, 179, 469, 733–735 Time-series methods, 324 Time value of money, 71–72, 735–736 Title VII, 662–663 Tobacco advertisements, 280, 281, 624 Total Quality Management (TQM), 484, 566, 629–632 Trade agreements, 342 Trade policies, 410 Trade shows, 621, 737–738 Trademarks and trade names, 93, 456, 738, 738–739 Trading blocs, 739–743, 740 Trading partner accountability, 39 Trading systems, 699–701 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Index Training and development, 371, 743–746, 744 See also Education and training Transaction processing systems, 385 Transactional leadership, 480–481 Transfer payments, 746–748 Transformational leadership, 480 Transportation, 428–432, 537–539, 687–688, 748, 748–750 Travel, business, 180 Travel cards, 177–178 Treadway Commission, 334, 403–404, 647 Treasuries, 440 Trial objective, 17–18 Triple bottom line reporting, 750 Trojan horses, Viruses, worms and, 187, 233, 543, 603, 678 Truth-in-Lending Act, 147 Turing, Alan, 33 U Unfair trade practices, 93, 299, 599 Uniform Certified Public Accountant Examination, 751–753 Uniform Commercial Code (UCC), 93, 153 United Auto Workers, 121 United Nations, 407, 546 United States Government Accountability Office (GAO), 43, 346, 587–590, 753–755 United States Treasury, 77 UNIVAC computer, 361, 382, 388–389, 389 Unsought products, 139, 667 U.S Office of Consumer Affairs, 137 V Valuation, 302–303 Value analysis, 14 Vandalism, 180 Venture capital, 75–76, 313 Vertical analysis, 318 Videoconferencing, 125, 434, 556, 757–760, 758 Virtual meetings, 125 Viruses, worms and Trojan horses, 187, 233, 543, 603, 678 Voice messaging, 127, 555–556, 760–762 Voice recognition, 556 Volume pricing, 599, 601–602 Vroom, Victor, 526 W Wage curve, 243 Wagner Act, 452 Wal-Mart, 202–204t, 429, 627, 644 WAN (wide area network), 541–542, 555 Warranties, 273, 454 Wealth of Nations (Smith), 290 Wealth-transfer tax, 720 Web pages, 124, 555 Weber, Max, 207, 208, 469 Wellness programs, 366 Wheeler-Lea Act of 1938, 21, 352, 606 White, Harry Dexter, 419, 420 Whiteboards, Digital/Electronic, 557, 757–758 Wholesalers, 763–767, 764, 765 Wicksell, Knut, 64–65 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION Wide area network (WAN), 541–542, 555 Wilke, Harold, 28 Wilson, Michael, 741 Wireless networks, 543 Women in business accountants, in advertisements, 282 discrimination, 207 leadership and, 458 management careers, 98 Word processing, 198–199, 211, 767–769 Work at home See Telecommuting Work groups (teams), 566, 769–773, 771 Work measurement, 773–774 Workers’ Compensation, 365, 774–775 Workplace violence, 238 World Bank, 421, 425 World trade organizations, 424–425 Worms, viruses and Trojan horses, 187, 233, 543, 603, 678 Wozniak, Steve, 361, 362 Writing skills in business, 775–778 Y Yellow Book (Government Auditing Standards), 25, 42, 346–348 Z Zero coupon bonds, 440 Zetsche, Dieter, 121 791 ... Ball State University II Encyclopedia of Business and Finance SECOND EDITION VOLUME A–I Burton S Kaliski EDITOR IN CHIEF Encyclopedia of Business and Finance SECOND EDITION VOLUME J–Z Burton S Kaliski... references and index ISBN 0- 02- 866061-7 (set hardcover : alk paper) — ISBN 0- 02- 8660 62- 5 (volume : alk paper) — ISBN 0- 02- 866063-3 (volume : alk paper) Business Encyclopedias Commerce—Encyclopedias Finance Encyclopedias... impact on business and the government agencies that regulate them are included in the Encyclopedia Encyclopedia of Business and Finance, Second Edition includes 32 new articles The major areas of these