Promotional advertising aimed at encouraging product sampling and brand switching to influence consumer behavior and increase market share.
The Peter Principle is a management theory that observes individuals tend to rise in every hierarchy through promotion until they reach a level at which they are no longer competent. This theory was formulated by Dr. Lawrence J. Peter and Raymond Hull in the book 'The Peter Principle: Why Things Always Go Wrong.'
A petition is a formal written request, typically one submitted to a court or a governing authority, which outlines facts and circumstances that seek judicial or legislative action. Petitions can also express political desires or intentions, often accompanied by signatures of supporters.
A legal document filed by an insolvent debtor to declare bankruptcy and seek protection from creditors.
A petitioner is the party requesting action in a court. In tax disputes, this role is frequently assumed by the taxpayer appealing an IRS position. However, if the government loses and appeals to a higher court, the IRS then assumes the role of the petitioner.
Petrodollars refer to the U.S. dollars paid to oil-producing countries and subsequently deposited in Western banks. The term gained prominence during the 1970s oil crisis when Middle Eastern oil producers accumulated substantial surpluses. These surplus funds were often lent to oil-importing countries, shaping global economic dynamics.
A tax designed to ensure the UK government obtains a share in the profits from oil and gas extraction, primarily focused on activities in the North Sea.
Petroleum Revenue Tax (PRT) is a tax levied on the profits made from the extraction of oil and gas in the UK continental shelf. It was introduced to ensure fair taxation on profits from oil and gas extraction.
Petty cash is the amount of money in the form of notes or coins that an organization keeps on its premises to pay for small expenses.
A Petty Cash Book is a ledger used to record small or minor financial transactions that occur within a business, typically managed through an imprest system.
A petty cash fund is a small reserve of cash that an organization uses for making small, unexpected payments. Petty cash vouchers document each transaction.
Phantom income refers to income that is taxable even though the taxpayer has not received equivalent cash or financial benefit. This situation often arises in leveraged real estate transactions where excess depreciation over mortgage amortization leads to a taxable gain without cash flow.
A Phantom Stock Plan is a type of deferred-compensation plan that uses the employer's stock as a basis for determining the value of the compensation payment. It provides employees with the benefits of stock ownership without actually awarding them any company stock.
Phantom withdrawals involve the unauthorized removal of funds from bank accounts through automated teller machines (ATMs) without the account holder's consent.
The Phillips Curve is an economic proposition stating that there is an inverse relationship between unemployment and inflation rates within an economy. As inflation increases, unemployment tends to decrease and vice versa.
A type of fraud in which victims are tricked into disclosing bank-account or credit-card details, passwords, or other sensitive information by bogus emails or text messages, usually purporting to be from a bank or other trustworthy source.
Physical capital maintenance is an accounting concept that focuses on preparing financial statements to ensure an enterprise's capacity to operate at its physical capital level is maintained over time.
A physical commodity refers to an actual, tangible commodity that is delivered to the buyer upon the completion of a commodity contract, whether it be in the spot market or futures market. Examples include agricultural products like corn and soybeans, and natural resources like gold and oil.
Physical depreciation or deterioration refers to the loss of value from all causes of age and action of the elements. It encompasses breakage, deferred maintenance, effects of aging on construction materials, and normal wear and tear.
Physical distribution involves the process of moving finished products from the producer to the consumer, including all activities concerned with the efficient movement and storage of goods.
A physical examination involves the direct physical inspection of an object or individual to ensure safety, functionality, or health. It includes structural inspections of objects like bridges and medical examinations of individuals.
Physical Inventory, also known as a physical stock check, is the process of counting the physical balance of stock items at a particular time to facilitate stocktaking under systems like inventory control or continuous stocktaking.
Physical life refers to the expected duration an asset, such as real estate improvements, can exist physically. It contrasts with useful life, which considers the period the asset remains functional and economically viable in its usage.
A physical stock check, similar to a physical inventory, involves manually verifying the quantities and condition of items in stock, ensuring accuracy between records and actual inventory.
Picketing is a practice used in labor and political disputes, involving patrolling, usually with placards, to publicize a dispute or to secure support for a cause. It is a constitutionally protected exercise of free expression when done in accordance with the law.
A pie chart is a circular statistical graphic that is used to illustrate numerical proportions in different categories by dividing a circle into wedge-shaped sectors.
A 'Piece' refers to an individual unit of a product that is part of a batch, typically used in shipping and logistics to describe the smallest standard unit being handled.
The charge incurred per individual piece of mail, distinct from distance-based charges. For example, mailing a first-class letter incurs the same cost regardless of the destination within the country.
Piece work refers to a system of payment based on the amount of work done rather than the time spent working, commonly used by contractors and individuals. Piece workers perform specific production services and are compensated for each piece completed.
Pier to house shipping refers to the transportation of goods from the storage location at the shipping port directly to the consignee's specified location, typically their home or business.
Piercing the corporate veil refers to the legal decision to hold shareholders or directors personally liable for the debts and obligations of the corporation. This process is invoked by a court to disregard the separate legal corporate entity status typically afforded to corporations.
The term 'pigeonholed' refers to people or things being categorized into compartments, often leading to them being dealt with perfunctorily and subsequently neglected.
A transportation method that involves carrying truck trailers and containers on rail cars, combining the efficiency of rail travel with the flexibility of road transport.
A piggyback loan is a financial arrangement involving two loans simultaneously to the same borrower, typically to eliminate private mortgage insurance (PMI) or to secure more favorable terms.
Piggybacking is a financial scheme in which an individual with poor credit history is added as an authorized user to a credit account held by someone with a strong credit rating, with the objective of improving the former's credit score. The legality and ethics of this practice are contentious, as it can potentially mislead lenders who base loan decisions on credit scoring.
The Pigou Effect refers to the stimulus in economic activities that arise due to changes in the real value of money balances directly impacting consumption levels. It was first demonstrated in 1943 by A. C. Pigou of Cambridge University.
An often derisive acronym referring to the heavily indebted Southern European nations of Portugal, Ireland, Italy, Greece, and Spain.
A small facility that produces a modest number of units, designed to prove or test methods that may be used in full-scale plants. A pilot plant reduces the investment risk in unproven production methods.
Pin money refers to a small sum of money set aside for incidental or discretionary expenses. Historically, it reflects the concept of a small cash advance or stipend associated with household or personal use, sometimes part of a larger financial arrangement.
Pink Sheets is a daily publication by Pink Sheets, LLC (formerly known as the National Quotation Bureau) that details the bid and asked prices of thousands of over-the-counter (OTC) stocks. Brokerage firms subscribe to the Pink Sheets, named for their color, because they provide current prices and list market makers who trade each stock.
A pipeline refers to a method or system used for the consistent and controlled delivery of goods, services, or information.
Piracy refers to the unauthorized use, reproduction, or distribution of software, digital media, and other intellectual property, which violates copyright laws and results in legal and financial consequences.
In typography, pitch refers to the number of characters per inch (cpi) in a particular size and style of type. It is only accurate for monospaced (fixed-width) fonts.
PITI is an acronym representing the four primary components that make up a borrower's monthly mortgage payments: Principal, Interest, Taxes, and Insurance. Understanding PITI is crucial for both lenders and borrowers to ensure accurate financial planning and loan repayment.
A pivot table is a powerful data analysis tool that allows users to summarize, sort, reorganize, group, count, total, or average data stored in a database. It is essential in data processing for its ability to multi-dimensionally analyze and curate data.
A pixel (short for "picture element") is one of the many tiny individual dots that collectively make up a graphical image on a screen, combining red, green, and blue (RGB) color components to display various colors.
PL/I (Programming Language One) is a highly versatile programming language developed by IBM in the early 1960s to support its System/360 mainframe computers. Renowned for its ability to handle scientific, engineering, and business applications, PL/I combines features from different programming paradigms, making it a powerful tool for various computational needs.
Place utility refers to the value added to products or services by making them available in locations convenient for consumers, thereby increasing the product's overall utility.
A placed deal is a financial transaction in which a bank or a group of banks commit to marketing an entire new issue of bonds or similar securities without guaranteeing the success of the issuance.
The term 'Placed in Service' refers to the date when property is in a state of readiness and is available for a specific use. This is a critical concept in accounting and taxation, as it determines the start of depreciation or amortization for the asset.
A placement test is an assessment tool designed to measure skills, intelligence, motivation, interests, needs, and goals of applicants to identify those most likely to succeed in specific occupations. Placement test scores are standardized and used for selecting the best candidates for particular jobs or educational programs.
The sale of shares by a company to a selected group of individuals or institutions as a means of flotation or raising additional capital.
Plain vanilla refers to financial instruments in their simplest, most straightforward form without any exotic features or complexities.
A plaintiff is the individual or entity who initiates a lawsuit by filing a complaint with a court of law, seeking remedies for an alleged injury or violation of rights.
An organized sequence of predetermined actions that management has chosen to complete future organizational objectives.
An alternative plan implemented if the principal plan of action is unsuccessful; serves as a backup strategy to mitigate risks and ensure objectives are met. Common in various fields such as business, project management, and strategic planning.
A plan sponsor is an entity that establishes and maintains a pension or insurance plan, ensuring compliance with government guidelines, financial transparency, and proper benefit allocation.
A planned economy is one where government planning dominates the direction of economic activity, and market forces play a minimal role. Typically associated with socialist and communist economies, as opposed to capitalist economies where market forces are more influential.
A zoning classification that allows flexibility in the design of a subdivision. PUD zones generally set an overall density limit for the entire subdivision, allowing the dwelling units to be clustered to provide for common open space.
A Planned Unit Development (PUD) is a type of building development and a regulatory process. It is a designed grouping of both varied and compatible land uses, such as housing, recreational, and commercial centers, all within one contained development.
The planning commission is a group of citizens appointed by local government officials to conduct hearings and recommend amendments to the zoning ordinance. They oversee the work of a professional planning department and may also be known as a planning board, zoning commission, or zoning board.
Planning variance refers to the difference between what was originally planned and what was actually achieved in a project or financial projection. It often serves as an indicator of the effectiveness of the planning process and helps identify areas for improvement.
A budgeting system developed particularly for use in non-profit organizations, such as national and local government. The system is based on the grouping together of activities with common objectives and a long-term plan relating to the objectives of the organization as a whole, which is subdivided into programs. Conventional annual expenditure budgeting procedures are applied within this framework.
PPBS is a comprehensive management framework used by organizations to integrate planning, programming, and budgeting processes to align resources with objectives and facilitate better decision-making.
Plant assets, also known as fixed assets, are composed of land, buildings, machinery, furniture, fixtures, and other equipment permanently employed in business operations. In some contexts, the term 'plant' may refer specifically to buildings or land and buildings.
Plant and equipment, often referenced as property, plant, and equipment (PP&E), are long-term assets essential to manufacturing, production, and operations. It includes real estate, machinery, vehicles, and significant fixtures integral to the business.
In tax law, plant and machinery refer to the equipment required to operate a business, qualifying for capital allowances which facilitate tax deductions on business investments in these assets.
A plat is a map or drawing that outlines legal subdivisions of land. Maps include boundaries, easements, and parcels' size and layout.
A public record containing maps of land that have been subdivided, showing the division of the land into streets, blocks, and lots, and indicating the measurements of the individual parcels, utility lines.
In computing, a platform is a collection of hardware and software standards that dictate the parameters for what a computing system can achieve. This term generally encompasses the microprocessor and operating system. Cross-platform refers to applications, formats, or devices that work on multiple platforms.
Plaxo is an online address book and social networking service that offers automatic updating of contact information stored on its servers. User edits appear in the address books of all those who also store the information.
A pleading is a formal document submitted to a court, outlining the facts and legal grounds that constitute a plaintiff's cause of action or a defendant's grounds of defense. This document delineates the dispute and serves as the foundation for the legal proceedings.
A pledge involves the deposit of personal property as security for a debt, typically entailing the delivery of goods by a debtor to a creditor until the debt is repaid. It is commonly defined as a lien or a contract that mandates the transfer of personal property only as security.
The term 'plot' can refer to a piece of land, a scheme with possible sinister motives, or the act of preparing charts or graphs, often with computer assistance.
A plot plan is a diagram showing the proposed or existing use of a specific parcel of land. It includes information about the layout, surroundings, and spatial characteristics of the property.
Plottage value refers to the increase in the value of land that results from the assemblage of smaller plots into a single, larger ownership entity. This amalgamation often makes the land more valuable and usable for various purposes, such as commercial or residential development.
A plotter is a computer output device that draws graphics on paper by moving pens based on instructions from the computer. It is commonly used in engineering, architecture, and other fields requiring precise and large-format drawings.
Ploughed-back profits, also known as retained earnings, are the portion of net income that is not distributed to shareholders as dividends but is kept within the company to reinvest in its core operations, pay off debt, or reserve for future use.
Plow back refers to the practice of reinvesting a company's earnings back into the business rather than distributing those profits as dividends to shareholders. Typically employed by smaller, fast-growing companies, plow back is a strategy aimed at fueling further growth and expansion.
Plug-and-Play (PnP) is a standard way of configuring PC-compatible computer hardware automatically. Developed by Microsoft and other companies in the mid-1990s, PnP simplifies the process of adding new hardware to a computer by allowing the operating system to detect and install devices automatically.
A 'Plus Tick' indicates a security transaction executed at a price higher than the preceding transaction. This term is often used in trading and market analysis to denote positive price movements.
In finance, a point has different implications depending on whether it is used in relation to bonds, real estate, commercial lending, or stocks. Understanding these distinctions is crucial for comprehending various financial metrics and transactions.
A Point of Sale (POS) is the location where a purchase transaction occurs between a consumer and a business, finalizing the sale of goods or services.
The place where a retail transaction is completed, forming a critical component of the sales and inventory management process in retail operations.
A point-of-purchase display is a promotional tool used to attract consumer attention and influence purchasing decisions at retail locations by providing detailed product information and advice.
A point-of-sale (POS) system is a combination of hardware and software that allows retail businesses to conduct and manage sales transactions effectively, often replacing traditional cash registers.
Point-to-Point Protocol (PPP) is a data link layer communication protocol used to establish a direct connection between two networking nodes, allowing the transmission of multi-protocol datagrams over various physical layers such as dial-up and leased-line connections.
A pointing device is an input device that allows users to manipulate a cursor in a graphical user interface. The most common example is a mouse, but other types include trackballs, graphics tablets, joysticks, and various pen-type devices.
A poison pill is a defensive strategy employed by a target company to thwart hostile takeover attempts by making the company's stock less attractive to the acquirer.
The Poisson distribution is a type of probability distribution that typically models the count or number of occurrences of events over a specified interval of time or space.
Police power refers to the inherent power of governments to impose restrictions on private rights that are reasonably related to the promotion and maintenance of the health, safety, morals, and general welfare of the public.
A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. It is a statement of intent, and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organization.
Policy cost refers to the expenditure incurred as a consequence of a policy determined by the management of an organization, such as insurance premiums based on policies like key-man insurance.
A policy loan is a loan issued by an insurance company that is secured by the cash surrender value of a life insurance policy. The amount available for such a loan is contingent upon various factors.
An individual or entity that owns an insurance policy and has the right to exercise the policy's privileges.
Polish Notation, also known as Reverse Polish Notation (RPN), is a mathematical notation in which every operator follows all of its operands, thereby eliminating the need for parentheses to indicate operation order.
A Political Action Committee (PAC) is a separate and segregated fund established by an organization for making political contributions. These funds were authorized by the Federal Election Campaign Act of 1971 and clarified through subsequent court decisions.
Donations for political or charitable purposes made by an organization. Under the Companies Act, a disclosure of such a donation has to be made by companies that are not wholly owned subsidiaries and have given in aggregate more than £200 in the financial year.
Political Credit Risk, also known as Sovereign Risk, emerges from actions by a foreign government that can influence the management of a foreign business, affect control over its assets, and impact its capacity to meet financial obligations towards its creditors.
A nominal lump-sum tax imposed on individuals who vote in public elections, historically used as a disenfranchisement tool and ruled unconstitutional under the Fourteenth Amendment.
