DEFINITIONS OF TERMS

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business format franchise

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299 Terms

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business format franchise

the type of franchise which includes not only a product, service and trademark, but also the complete method to conduct the business itself, such as the marketing plan and operations manuals

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2

product distribution franchise

a franchise where the franchisee simply sells the franchisor's products without using the franchisor's method of conducting business

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3

manufacturing franchise

franchise which is licensed by the parent company to produce and distribute its products, using supplies bought from the franchiser

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4

UFOC

Uniform Franchise Offering Circular, a format for the disclosure which provides information about the franchiser and franchise system to the prospective franchisee

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5

disclosure statement

the disclosure document which provides information about franchiser and franchise system

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6

franchise

a license that describes the relationship between the franchiser and franchisee including use of trademarks, fees, support and control

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7

franchise agreement

the legal, written contract between the franchiser and franchisee which tells each side what to do

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8

franchisee

the person or company that gets the right from the franchiser to do business under the franchiser's trademark or trade name

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9

franchising

a method of business expansion characterized by a trademark license, payment of fees and significant assistance and/or control

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10

franchiser

the person or company that grants the franchisee the right to do business under their trademark or trade name

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11

royalty

the regular payment made by the franchisee to the franchiser, usually based on a percentage of the franchisee's gross sales

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12

area franchise

the type of relationship which allows the franchisee to open multiple locations, usually in a defined territory within a pre-agreed upon timeline

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13

encroachment

term describing a situation where any franchisee or the franchiser attempting to sell products or services within an area of territory that has been assigned to another owner

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14

breakaway franchisee

a franchisee who has unilaterally terminated their franchise agreement

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15

conversion franchising

the process by which existing independent businesses or dealers within an industry become franchisees when they assume the trade name and trade dress of the franchiser

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16

to solicit

to contact possible customers (e.g. franchisees) in order to sell something (e.g. franchise)

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17

rental

the amount of money paid for renting something

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18

fixtures

items that are permanently attached to the land, a home, or a commercial building an are considered the property of the land, home or building owner

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19

franchise fee

one-time payment to the franchiser when you sign up to become a franchisee

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20

bulk buying

buying in large amounts, often at a reduced price

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21

kicker

a hidden and disadvantageous factor, such as a clause in a contract

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22

rebate

an amount of money that is taken away from the cost of something, before you pay for it; a discount

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23

trunk

the large main stem from which the branches grow

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24

bark

the tough material that covers the outside of a tree

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25

legwork

active physical work (as in gathering information) that forms the basis of more creative or mentally exacting work (such as writing a book)

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26

proliferation

a rapid and often excessive spread or increase

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27

rebuttal

a refusal to accept that something is true

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28

terms of a contract

the conditions that are part of the contract

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29

breach of contract

an action that your contract does not allow

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30

daunting

discouraging; dismaying; unnerving

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31

lessor

a person who owns something such as a house or piece of land and leases it to a lessee

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32

assigner

a person who assign (= transfers/conveys) something or some right (usually a contract right) to an assignee

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33

emerging markets

markets of countries that are just starting to have influence in trade

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34

linkage

connecting systems to work together, the action of linking or the state of being linked

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35

conglomerate

a large organization consisting of several different companies joined by contract

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36

extractive industry

industry that obtains its materials by drilling, mining etc. from underground

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37

intermediate goods

goods that are partially processed but are not finished

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38

cross-border

adjective used for organizations in two or more countries

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39

green-field investment

direct investment in new facilities involving a big financial risk

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40

foreign direct investment

long term investment by a foreign investor in an enterprise residing in an economy other than the one in which the foreign direct investor is based

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41

vertical FDI

FDI with an industry abroad that provides inputs/distribution/further processing for the product of buyers domestic business

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42

horizontal FDI

FDI with a company abroad that does the same business as the buyer

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43

downstream operation

operation on which the other operations depend or that happened before other operations

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44

upstream operation

operation that happens after another operation

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45

book profit

a profit as shown in a company's accounts

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46

paper profit

an increase in the value of an investment, which is not an actual amount of money unless the investment is sold

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47

distributable profit

the amount of a company's profit that is available to pay dividends to shareholders in a particular period

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48

attributable profit

a company's profit for a particular period that is owned to shareholders and is either paid as dividends or kept as reserves

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49

consolidated profit

in a group of companies, the total profit from all the companies in the group for a particular period of time

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50

operating profit

profit relating to company's normal activities of providing goods and services

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51

gain

the financial profit that a person or company makes

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52

windfall

a profit gained from an unexpected or unusual event

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53

proceeds

all the money that you get from selling something

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54

return

the total profit that you get as a result of putting your money to a bank, company etc

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55

surplus

the amount of money that remains after a company has paid all its costs, wages etc.

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56

yield

the exact amount of profit that you get as a result of lending money to a company, government etc. (the rate of income an investor receives from a security)

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57

debt burden

amount of debt that a country has, seen as a problem

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58

debt service

making repayments on a debt

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59

debt justice

the idea that people should be treated fairly and equitably

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60

debt restructuring

process wehre lenders agree that a debt can be repaid in a different way or at a different time

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61

debt forgiveness

situation when lenders agree that a debts do not need to be repaid

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62

debt collection

the activity of making individuals and business pay debts, usually ones that they have not paid on time or that they are refusing to pay

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63

debt consolidation

the process of taking out a new loan (often secured on one's property) in order to pay off a number of existing debts

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64

Treasury

the government department responsible for a country's financial matters

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65

secured debt

debt that is supported by particular assets of the borrower

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66

bad debt

a sum of money that has been lent but is not likely to be repaid

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67

outstanding debt

not yet paid debt

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68

toxic debt

loan and other types of debt that have a low chance of being repaid with interest

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69

revolving debt

credit that you can continuosly draw on as long as your accounts are open and you haven't hit you limit

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70

installment debt

debt which you typically repay in regular monthly installments featuring a fixed amount

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71

external debt

money that a country owes to lenders abroad

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72

public debt

money owned by a local or national government

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73

corporate debt

money owed by businesses, rather than governments or individuals

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74

import tariff

tariff on goods coming into a country from abroad, often used as a way of reducing imports and protecting local industries

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75

ad valorem tariff

a tariff that varies depending on the value of goods

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76

punitive tariff

an extra tariff charged on goods going into or out of a country introduced because a country has done business in an illegal way

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77

multiple tariff

a tariff with different rates that depend on a country the goods are coming from

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78

compound tariff

a tariff with two parts that depends on the parts, one that depends on the value, and one that is a fixed amount

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79

protective tariff

the tariff aimed at controlling the amount of foreign goods entering a country, protecting home producers from foreign competition

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80

patent cliff

sharp decline in revenue or profitability when a firm's patents expire, opening them up to competition

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81

conglomeration

two companies that have a common business areas

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82

premium

an additional amount of money above standard amount or rate reduction

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83

consolidation

reduction in companies in a sector through merger increase

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84

streamlining

increase in efficiency often resulting in cost savings

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85

market capitalization

the total value of all shared on a stock market at a particular time

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86

vertical integration

joining of a customer and company or a supplier and company

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87

forward integration

a merger with the acquisition of one's marketing outlets

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88

backward integration

a merger with the acquisition of one's suppliers

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89

stock swap

a merger that only involves the exchange of company's shares

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90

market-extension merger

two companies that sell the same product in different markets

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91

junk bond

a bond that has high rate of interest but a high risk of not being repaid

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92

outstanding shares

all of company's shares that currently exists and are held by shareholders

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93

due diligence

when a company thinking of buying another looks carefully at its accounts as it must do by law before the deal can be agreed

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94

product-extension merger

two companies selling different but related products in the same market

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95

horizontal merger

two companies that are in direct competition and share te same product lines and markets

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96

raid

buying another company's shares on the stock exchange, hoping to persuade enough other shareholders to sell to take control of the company

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97

synergy

term used to describe that combined production is greater than the sum of the separate parts

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98

takeover bid

a public offer to a company's shareholders to buy their shares, at a particular price during a particular period, so as to acquire a company

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99

target company

a company that is the subject of an attempted acquisition by a potential buyer

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100

tender offer

situation when an acquiring company offers to by stocks from shareholders at a premium over the market price with the intention of purchasing enough shares to control equity interest in the target company

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