Banking directive: One of several directives of the European Union (EU) intended to remove impediments to the provision of banking services across borders in Europe. The Second Banking Directive (1989) allows banks to offer services anywhere in the EU provided they are authorised in their home state (the principle of mutual recognition).
Call plan: The sequence of sales visits that a salesperson makes. Because sales calls are so costly, a key issue in salesforce management is the optimization of call plans so as to minimize costs and maximize sales revenue. Marketing decision-support systems exist to assist in this process.
Dawn raid (UK): The acquisition of a large block of shares on the stock exchange, sometimes as a prelude to a take-over bid. Usually purchases are carried out simultaneously by a number of brokers first thing in the morning.
Early stage investments: Investment by venture capital institutions in the provision of seed capital (funds to finance research and development[R&D] before a business is operating) and start-up finance for new companies.
Facultative reinsurance: a reinsurance arrangement under which the reinsurer can opt to accept, or not to accept, any risk offered; contrast treaty reinsurance (reinsurance treaty).
Gap analysis: A planning technique. It compares projections of current activities assuming that present circumstances continue. Divergences are then analysed, and measures implemented to bridge the gap. For example, a firm may project sales will continue at the current level for the next five years, but it also projects that costs are likely to rise at current rates causing a gap between income and expenditure. Measures that could be taken to reduce the gap could be to: (a) increase prices (b) increase sales volume, or (c) reduce costs.
Hammer, Michael: Joint author with James Champy of the bestselling ‘Re-engineering the Corporation: a manifesto for business revolution’ (1993). Re-engineering was the management fad of the mid 1990s, creating new work for management consultants who were called in to re-examine all business processes and often redesign companies as a result. Re-engineering forces companies to look anew at functional departments which may cut across and slow down essential processes.
IBNR claims reserve: A fund (usually the claims outstanding reserve) set aside by an insurance company to meet claims that have arisen but not yet presented to the company, i.e. incurred but not reported (IBNR).
Joint and several liability: A liability that falls at the same time one each one of two or more parties, and on all together. A plaintiff can choose to sue one or more of the parties (severally), or all together (jointly).
Source: Penguin Int’l Dictionary of Business & Finance
Author can be reached on: ousafrik@yahoo.com, +220 5221982/7345313
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