Tải bản đầy đủ

Encyclopedia of business and finance 2nd edition vol 1and vol 2

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

1

A–I

Burton S. Kaliski
EDITOR IN CHIEF


Encyclopedia of Business and Finance
SECOND EDITION
VOLUME

2

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 1 : alk.
paper) — ISBN 0-02-866063-3 (volume 2 : alk. paper)
1. Business—Encyclopedias. 2. Commerce—Encyclopedias. 3. Finance—Encyclopedias. 4.
North America—Commerce—Encyclopedias. 5. 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 9 8 7 6 5 4 3 2 1


Contents

VOLUME 1

Preface
List of Articles
Contributors
ENCYCLOPEDIA OF BUSINESS AND
FINANCE
A-I

VII
IX
XV

1

VOLUME 2

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 do 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 1

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


LIST OF ARTICLES

CAREERS IN FINANCE

COMPILATION AND REVIEW
SERVICES

Mark D. Wilson
CAREERS IN INFORMATION

CAREERS IN LAW FOR BUSINESS

Craig A Bestwick
G. W. Maxwell
CAREERS IN MANAGEMENT

Thaddeus McEwen
CAREERS IN MARKETING

Randy L. Joyner
DESIGNATIONS

Randy L. Joyner
Charles H. Calhoun
ACCOUNTANT ( CMA )/ CERTIFIED
IN FINANCIAL MANAGEMENT

(CFM)

Denise Woodbury

Laurie Collier Hillstrom
CONSUMER AND BUSINESS
PRODUCTS

Thomas Baird
Earl C. Meyer
Sharon K. Slick
Lauren G. Block
Patricia Williams
Val Hinton
Mary Jean Lush

CUSTOMER SERVICE

Thomas Baird
Barry L. Reece
CYBER CRIME

Jensen J. Zhao

D
DATABASES

Gary Hansen
Dorothy A. Maxwell
DECA

Robert G. Berns
Jewel E. Hairston

G. W. Maxwell
CONSUMER PRODUCT SAFETY ACT
OF 1972

Laurie Barfitt
Phyllis Bunn

Priscilla Payne
CHANGE PROCESS

DECISION MAKING

Marcy Satterwhite
DEREGULATION

Jeffrey J. Pompe
James R. Rinehart

CONSUMER PROTEST

Cheryl L. Noll
CHANNELS OF DISTRIBUTION

Mary Jean Lush

DERIVATIVES

Patrick Casabona

CONTRACTS

Louis E. Pelton
David Strutton
Allen D. Truell

Keith A. Bice

DESKTOP PUBLISHING

COOPERATIVE

CHIEF FINANCIAL OFFICERS ACT OF
AND FEDERAL FINANCIAL

MANAGEMENT ACT OF

1994

Jean E. Harris

Marcy Satterwhite

Roger L. Luft

1964

Lawrence F. Peters, Jr.
CLASSIC BRANDS

Karen J. Puglisi
COLLECTIVE BARGAINING

Paula Lee Luft
COMMUNICATION CHANNELS

Marie E. Flatley
COMMUNICATIONS IN BUSINESS

Ray L. Young
DIGITAL DIVIDE

COPYRIGHTS

Dorothy A. Maxwell

Randy L. Joyner
CORPORATE EDUCATION

CIRCULAR FLOW

X

CURRENCY EXCHANGE

CONSUMER PRICE INDEX

CERTIFIED MANAGEMENT

Marcy Satterwhite

Michael Milbier
Allen D. Truell

CONSUMER BILL OF RIGHTS

CERTIFIED INTERNAL AUDITOR

COMPETITION

CONSUMER ADVOCACY AND
PROTECTION

CONSUMER BEHAVIOR

CERTIFICATIONS , LICENSURES , AND

Heather Bigley
Jerry S. Evans
Sharon Lund O’Neil

CRIME AND FRAUD

Marty Maxwell

Lisa E. Gueldenzoph
Mark J. Snyder

CIVIL RIGHTS ACT OF

Burton S. Kaliski

COMPUTER GRAPHICS

PROCESSING

1990

Vicky B. Hoffman

CREDIT / DEBIT / TRAVEL CARDS

DISCOUNT STORES

Thomas Baird
Winifred L. Green
Earl C. Meyer

Diane M. Clevesy
Lisa E. Gueldenzoph
Mark J. Snyder
CORPORATIONS

DIVERSITY IN THE WORKPLACE

Patrick J. Highland

G. W. Maxwell
COST ALLOCATION

Clifford Brown
Lawrence A. Klein

DIVISION OF LABOR

Donna L. McAlister-Kizzier
DOCUMENT PROCESSING

K. Virginia Hemby-Grubb

COST- BENEFIT ANALYSIS

Mary Michel
Mary Ellen Oliverio
COST- VOLUME - PROFIT ANALYSIS

G. Stevenson Smith
COSTS

Roman L. Weil
COTTAGE INDUSTRIES

Julie A. Watkins

E
EARNINGS MANAGEMENT

Robert J. Sack
ECONOMIC ANALYSIS

Ralph D. Wray
ECONOMIC DEVELOPMENT

Ellen Jean Szarleta

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


LIST OF ARTICLES

ECONOMIC SYSTEMS

ETHICS IN MANAGEMENT

Denise Woodbury
ECONOMICS

John A. Swope

ECONOMICS : HISTORICAL
PERSPECTIVES

EUROPEAN UNION

Michael Alles
Miklos A. Vaserhelyi

Roger L. Luft
FOREIGN CORRUPT PRACTICES ACT

F

ELECTRONIC COMMERCE

OF

Dorothy A. Maxwell

FORENSIC ACCOUNTING

FACTORS OF PRODUCTION

Marsha L. Bayless

Michael Brun

E - MARKETING

Richard O. Hanson
FRANCHISING

FADS

Jensen J. Zhao

Patricia A. Spirou

Jennifer L. Scheffer

EMPLOYEE ASSISTANCE PROGRAMS

Patrick J. Highland

FRAUDULENT FINANCIAL
FAIR PACKAGING AND LABELING
ACT OF 1966

Laurie Barfitt
Phyllis Bunn

EMPLOYEE BENEFITS

Marcy Satterwhite
EMPLOYEE COMPENSATION

Lee Wonsick Lee
Marcia Anderson
Robert G. Berns
Jewel E. Hairston

FINANCE

ENVIRONMENTAL PROTECTION
AGENCY

Val Hinton
Mary Jean Lush
EQUAL EMPLOYMENT
OPPORTUNITY ACT OF

Surendra K. Kaushik
Lawrence M. Krackov
Massimo Santicchia
FINANCE : HISTORICAL
PERSPECTIVES

1972

Lawrence F. Peters, Jr.

1963

Lawrence F. Peters, Jr.
ERGONOMICS

Patricia R. Graves
ETHICS : AN OVERVIEW

Keith Goree
ETHICS IN ACCOUNTING

Jan Sweeney
ETHICS IN ECONOMICS

Roger L. Luft
ETHICS IN FINANCE

Anand G. Shetty
ETHICS IN INFORMATION
PROCESSING

Melanie A. Meche
Annette Vincent
ETHICS IN LAW FOR BUSINESS

Gerard A. Lange
FUTURE BUSINESS LEADERS OF
AMERICA

Jill T. White

Melvin Morgenstein

Laurie Barfitt
Phyllis Bunn

ENTREPRENEURSHIP

REPORTING

FEDERAL RESERVE SYSTEM

FEDERAL TRADE COMMISSION ACT
OF 1914

EMPLOYEE DISCIPLINE

1977

Charles H. Calhoun

FACSIMILE REPRODUCTION

ELECTRONIC MAIL

1938

FORECASTING IN BUSINESS

Lawrence F. Peters, Jr.

Roger L. Luft

Carson Varner

OF

Laurie Barfitt
Phyllis Bunn

ETHICS IN MARKETING

Roger L. Luft

EQUAL PAY ACT OF

FOOD , DRUG , AND COSMETIC ACT

Thomas Haynes

Mary Ellen Oliverio
FINANCIAL ACCOUNTING
STANDARDS BOARD

Dennis R. Beresford
FINANCIAL FORECASTS AND
PROJECTIONS

Bernard H. Newman
FINANCIAL INSTITUTIONS

Surendra K. Kaushik
FINANCIAL LITERACY

Betty J. Brown
FINANCIAL STATEMENT ANALYSIS

Mary Brady Greenawalt
FINANCIAL STATEMENTS

Victoria Shoaf
FISCAL POLICY

G. W. Maxwell
FOOD AND DRUG ADMINISTRATION

Val Hinton
Mary Jean Lush

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION

G
GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES

Edmund L. Jenkins
Cheri Reither Mazza
GLOBAL ECONOMY

G. W. Maxwell
GOODS AND SERVICES

Matthew F. Hazzard
Earl C. Meyer
GOVERNMENT ACCOUNTING

Mary L. Fischer
GOVERNMENT AUDITING
STANDARDS

Bernard H. Newman
Mary Ellen Oliverio
GOVERNMENT FINANCIAL
REPORTING

Robert J. Muretta, Jr.
GOVERNMENT ROLE IN BUSINESS

Michael Milbier
Allen D. Truell
GOVERNMENTAL ACCOUNTING
STANDARDS BOARD

Jesse W. Hughes
GREEN MARKETING

Allen D. Truell
GROSS DOMESTIC PRODUCT ( GDP )

Gregory P. Valentine

XI


LIST OF ARTICLES

H
HARDWARE

Armand Seguin
Cynthia Shelton (Anast) Seguin

INTERNATIONAL ASSOCIATION OF
ADMINISTRATIVE PROFESSIONALS

Dorothy A. Maxwell
INTERNATIONAL BUSINESS

HUMAN RELATIONS

INTERNATIONAL FEDERATION OF
ACCOUNTANTS

Frederick D.S. Choi

Patrick J. Highland
HUMAN RESOURCE MANAGEMENT

INTERNATIONAL INVESTMENT

Masaaki Kotabe

Christine Jahn

INTERNATIONAL MARKETING

I

Shaheen Borna

IDENTITY THEFT

Jensen J. Zhao
INCOME

Gregory P. Valentine
INCOME TAX : HISTORICAL
PERSPECTIVES

Jean E. Harris

INTERNATIONAL MONETARY FUND

Bernard H. Newman
INTERNATIONAL TRADE

Michael Milbier
Allen D. Truell
INTERNET

Lisa E. Gueldenzoph
Mark J. Snyder

INDEPENDENCE STANDARDS BOARD

C. Richard Baker

INTERSTATE COMMERCE

Patricia A. Spirou

INFORMATION PROCESSING

Mary Nemesh
INFORMATION PROCESSING :
HISTORICAL PERSPECTIVES

INTERSTATE COMMERCE
COMMISSION

Val Hinton
Mary Jean Lush

Ronda B. Henderson
INFORMATION SYSTEMS

INTRANET / EXTRANET

Armand Seguin
Cynthia Shelton (Anast) Seguin

Douglas C. Smith
INFORMATION TECHNOLOGY

Charlotte J. Boling

INVENTORY CONTROL

Mark Lefebvre

INSTITUTE OF INTERNAL AUDITORS

Trish W. Harris

INVESTMENTS

Joel Lerner

INSTITUTE OF MANAGEMENT
ACCOUNTANTS

Robert F. Randall
Kathy Williams
INSURANCE

Edward J. Keller, Jr.
Anand G. Shetty

VOLUME 2

JOB ANALYSIS AND DESIGN

Richard F. Bortz
JOB ENRICHMENT

Marcy Satterwhite
JOB SATISFACTION

INTERACTIVE TECHNOLOGY

G. W. Maxwell

Philip D. Taylor
INTEREST RATES

Henry H. Davis
INTERNAL CONTROL SYSTEMS

Audrey A. Gramling
INTERNATIONAL ACCOUNTING
STANDARDS

Mahendra Gujarathi

XII

LISTENING SKILLS IN BUSINESS

Jan Hargrave

M
MACROECONOMICS /
MICROECONOMICS

Lisa S. Huddlestun
MANAGEMENT

Roger L. Luft
MANAGEMENT: AUTHORITY AND
RESPONSIBILITY

Cheryl L. Noll
MANAGEMENT: HISTORICAL
PERSPECTIVES

Roger L. Luft
MANAGEMENT INFORMATION
SYSTEMS

Lloyd W. Bartholome
MANAGEMENT / LEADERSHIP STYLES

Thomas Haynes
MANUFACTURING

Thomas Haynes
MARKET SEGMENTATION

Patrick M. Graham
Earl C. Meyer
MARKETING

Allen D. Truell
MARKETING CONCEPT

Thomas Baird
Winifred L. Green
Earl C. Meyer
MARKETING : HISTORICAL
PERSPECTIVES

James E. Stoddard

J

INTELLECTUAL CAPITAL

Bernard H. Newman

Michelle Voto

Dorothy A. Maxwell

HEALTH ISSUES IN BUSINESS

Brenda J. Reinsborough

LIFESTYLES

L

MARKETING MIX

Allen D. Truell
MARKETING RESEARCH

Christine F. Latino
MASS MARKETING

Lori A. Dailey
Earl C. Meyer
MEETING MANAGEMENT

LABOR UNIONS

G. W. Maxwell
LAW IN BUSINESS

Carson Varner
LEADERSHIP

Lee Wonsick Lee

Brenda J. Reinsborough
MERGERS AND ACQUISITIONS

Bernard H. Newman
Mary Ellen Oliverio
MONETARY POLICY

Edward Wei-Te Hsieh

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


LIST OF ARTICLES

MONEY

OFFICE TECHNOLOGY

Denise Woodbury
MONEY SUPPLY

OLIGOPOLY

Hassan Mohammadi
MONOPOLY

George A. Mundrake
MUTUAL FUNDS

Anand G. Shetty

Carol Larson Jones

NATIONAL ASSOCIATION OF STATE
BOARDS OF ACCOUNTANCY

Louise Dratler Haberman
NATIONAL BUSINESS EDUCATION
ASSOCIATION

Dorothy A. Maxwell
NATIONAL LABOR RELATIONS
BOARD

Tod W. Rejholec
NATIONAL RETAIL FEDERATION

Val Hinton
Mary Jean Lush
NATIONAL TRANSPORTATION
SAFETY BOARD

Val Hinton
Mary Jean Lush
NEGOTIATION

Donna L. McAlister-Kizzier
NETWORKING

Dennis J. LaBonty
NO CHILD LEFT BEHIND
LEGISLATION

Dorothy A. Maxwell
NORTH AMERICAN INDUSTRY
CLASSIFICATION SYSTEM

Mary Michel
NOT- FOR - PROFIT ACCOUNTING

Janet S. Greenlee
G. Stevenson Smith

O
OCCUPATIONAL SAFETY AND
HEALTH ADMINISTRATION
(OSHA)

Val Hinton
Mary Jean Lush
OFFICE LAYOUT

Zane K. Quible

John W. Hansen
Sharon Lund O’Neil
PROFESSIONAL EDUCATION

Connie Anderson

OPERATIONS MANAGEMENT

Janel Kupferschmid

PROGRAMMING

Ronda B. Henderson

OPPORTUNITY COST

Denise Woodbury

PROMOTION

Michael Milbier
Allen D. Truell

ORGANIZATIONAL BEHAVIOR AND
DEVELOPMENT

Cheryl L. Noll

N

PRODUCTIVITY

ONLINE EDUCATION

Patricia R. Graves
MULTIMEDIA SYSTEMS

Michael Milbier

Rajeev K. Goel

G. W. Maxwell
MOTIVATION

PRODUCT MIX

Anna Nemesh

ORGANIZATIONAL STRUCTURE

PUBLIC COMPANY ACCOUNTING
OVERSIGHT BOARD

Bernard H. Newman

Christine Jahn
OUTSOURCING IN THE BUSINESS
ENVIRONMENT

Carolyn H. Ashe

PUBLIC RELATIONS

Jensen J. Zhao
PUBLICITY

Jennifer L. Scheffer

P
PACKAGING

Thomas Baird

Q
QUALITY MANAGEMENT

Roger L. Luft

PARTNERSHIPS

Anna Nemesh
PATENTS

Randy L. Joyner
PERFORMANCE APPRAISAL

Lee Wonsick Lee
PERFORMANCE AUDITS

Mary Ellen Oliverio
PERSONAL FINANCIAL PLANNING

Joel Lerner
PERSONAL SELLING

Joseph D. Chapman
POLICY DEVELOPMENT

Marie E. Flatley
PRICE FIXING

Patricia A. Spirou

R
READING SKILLS IN BUSINESS

B. June Schmidt
RECORDS MANAGEMENT

Carolyn H. Ashe
REENGINEERING

Nashwa George
RESEARCH IN BUSINESS

Jensen J. Zhao
RETAILERS

Patricia A. Spirou
RISK MANAGEMENT

C. Richard Baker
ROBINSON - PATMAN ACT OF

PRICING

Michael Milbier
Allen D. Truell
PRIVACY AND SECURITY

Lisa E. Gueldenzoph
Mark J. Snyder
PRODUCT LABELING

Thomas Baird
Michael Milbier
PRODUCT LINES

Michael Milbier

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION

1936

Laurie Barfitt
Phyllis Bunn

S
SCHOOL TO CAREER MOVEMENT

Jill T. White
SCIENTIFIC MANAGEMENT

Marcia Anderson
SECURITIES ACTS : REQUIREMENTS
FOR ACCOUNTING

Samir Fahmy
Laurence Mauer

XIII


LIST OF ARTICLES

SECURITIES AND EXCHANGE

STANDARD METROPOLITAN
STATISTICAL AREAS

COMMISSION

Val Hinton
Mary Jean Lush

Val Hinton
Mary Jean Lush

STANDARD - BASED WORK
PERFORMANCE

SERVICE INDUSTRIES

Amy Lynn DeVault
Alan G. Krabbenhoft

Wanda L. Stitt-Gohdes
STATE SOCIETIES OF CPAS

SEXUAL HARASSMENT

Kathleen Simons

Clarice P. Brantley
Rita Shaw Rone
SHERMAN ANTITRUST ACT OF

1890

STATEMENTS ON MANAGEMENT
ACCOUNTING

TIME VALUE OF MONEY

Roman L. Weil
TRADE SHOWS

Winifred L. Green
Earl C. Meyer
TRADEMARKS

Randy L. Joyner
TRADING BLOCS

Masaaki Kotabe
TRAINING AND DEVELOPMENT

David J. Hyslop

B. Douglas Clinton

TRANSFER PAYMENTS
STOCK EXCHANGES

Phyllis Bunn

Ian Domowitz
Anand G. Shetty

SHOPPING

Audrey E. Langill

STOCK INDEXES

SINGLE AUDIT ACT OF

1984

Joel Lerner

WITH

AMENDMENTS

Michael Nelson
TRANSPORTATION

Betty J. Brown
TRIPLE BOTTOM LINE REPORTING

John Vann

STOCKS

Mary L. Fischer

Joel Lerner

SKILLSUSA

Dorothy A. Maxwell
SMALL BUSINESS ADMINISTRATION

Val Hinton
Mary Jean Lush

STRATEGIC MANAGEMENT

Norman S. Wright

U
UNIFORM CERTIFIED PUBLIC
ACCOUNTANT EXAMINATION

Bernard H. Newman
Mary Ellen Oliverio

STRESS

Jim D. Rucker
SUPPLY AND DEMAND

John L. Conant

SOCIAL MARKETING

UNITED STATES GOVERNMENT
ACCOUNTABILITY OFFICE

Jean E. Harris

Allen D. Truell
SOCIAL RESPONSIBILITY AND
ORGANIZATIONAL ETHICS

Thomas Haynes

Tatum Krause
Jeffrey L. Jacobs

Douglas C. Smith
SOLE PROPRIETORSHIP

G. W. Maxwell
Jan Hargrave

Mary Nemesh
Carol Larson Jones
TELEMARKETING

SPREADSHEETS

Betty J. Brown
STAGGERS RAIL AND MOTOR

1980

Laurie Barfitt
Phyllis Bunn
STANDARD COSTING

Bernard H. Newman
Mary Ellen Oliverio

V
VIDEOCONFERENCING

James E. Miles
VOICE MESSAGING

Christine M. Irvine

TELECOMMUNICATIONS

TELECOMMUTING

SPEAKING SKILLS IN BUSINESS

XIV

TARGET MARKETING

TAXATION

SOFTWARE

CARRIER ACTS OF

T

Thomas Baird
Winifred L. Green
Earl C. Meyer
TELEPHONE SKILLS

Dorothy A. Maxwell
TEMPORARY EMPLOYMENT

Dorothy A. Maxwell
TIME MANAGEMENT

Carrie Foley

W
WHOLESALERS

Patricia A. Spirou
WORD PROCESSING

Ray L. Young
WORK GROUPS ( TEAMS )

Tena B. Crews
WORK MEASUREMENT

Nashwa George
WORKERS ’ COMPENSATION

Dorothy A. Maxwell
WRITING SKILLS IN BUSINESS

G. W. Maxwell

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


Contributors

Mohammad J. Abdolmohammadi
Bentley College
AUDITING

Michael Alles
Rutgers University
ELECTRONIC COMMERCE

Connie Anderson
PROFESSIONAL EDUCATION

Marcia Anderson
Southern Illinois University,
Carbondale
BEHAVIORAL SCIENCE MOVEMENT
EMPLOYEE DISCIPLINE
SCIENTIFIC MANAGEMENT

Carolyn H. Ashe
University of Houston Downtown
OUTSOURCING IN THE BUSINESS
ENVIRONMENT
RECORDS MANAGEMENT

Thomas Baird
Ball State University

C. Richard Baker
Adelphi University
INDEPENDENCE STANDARDS BOARD
RISK MANAGEMENT

Laurie Barfitt
Delta State University
CONSUMER PRODUCT SAFETY ACT
OF 1972
FAIR PACKAGING AND LABELING
ACT OF 1966
FEDERAL TRADE COMMISSION ACT
OF 1914
FOOD, DRUG, AND COSMETIC ACT
OF 1938
ROBINSON-PATMAN ACT OF 1936
STAGGERS RAIL AND MOTOR CARRIER ACTS OF 1980

Lloyd W. Bartholome
Utah State University
MANAGEMENT INFORMATION SYSTEMS

Marsha L. Bayless
Stephen A. Austin State University
ELECTRONIC MAIL

BUSINESS MARKETING
CONSUMER AND BUSINESS PRODUCTS
CUSTOMER SERVICE

Jean C. Bedard
Bentley College
ANALYTICAL PROCEDURES

DISCOUNT STORES
MARKETING CONCEPT
PACKAGING
PRODUCT LABELING
TELEMARKETING

Dennis R. Beresford
University of Georgia
FINANCIAL ACCOUNTING STANDARDS BOARD

Robert G. Berns
Bowling Green State University
DECA
ENTREPRENEURSHIP

Craig A. Bestwick
San Francisco, California
CAREERS IN LAW FOR BUSINESS

Keith A. Bice
Bingham McHale LLP
CONTRACTS

Heather Bigley
University of Houston
COMMUNICATIONS IN BUSINESS

Lauren G. Block
Baruch College
CONSUMER BEHAVIOR

Charlotte J. Boling
University of Western Florida
INFORMATION TECHNOLOGY

Shaheen Borna
Ball State University
INTERNATIONAL MARKETING

Richard F. Bortz
Southern Illinois University,
Carbondale
JOB ANALYSIS AND DESIGN

David A. Bowers
Case Western Reserve University
BUSINESS CYCLE

XV


CONTRIBUTORS

Louis Braiotta, Jr.
SUNY, Binghampton
AUDIT COMMITTEES

Clarice P. Brantley
Pensacola, Florida
SEXUAL HARASSMENT

Betty J. Brown
Ball State University
FINANCIAL LITERACY
SPREADSHEETS
TRANSPORTATION

Clifford Brown
Bentley College
ACTIVITY-BASED MANAGEMENT
COST ALLOCATION

Michael Brun
Illinois State University
FACTORS OF PRODUCTION

Phyllis Bunn
Delta State University
CONSUMER PRODUCT SAFETY ACT
OF 1972
FAIR PACKAGING AND LABELING
ACT OF 1966
FEDERAL TRADE COMMISSION ACT
OF 1914
FOOD, DRUG, AND COSMETIC ACT
OF 1938
ROBINSON-PATMAN ACT OF 1936
SHERMAN ANTITRUST ACT OF 1890
STAGGERS RAIL AND MOTOR CARRIER ACTS OF 1980

Charles H. Calhoun
Englewood, Colorado
CERTIFIED INTERNAL AUDITOR
FOREIGN CORRUPT PRACTICES ACT
OF 1977

Patrick Casabona
St. John’s University

Diane M. Clevesy
CORPORATE EDUCATION

B. Douglas Clinton
Northern Illinois University
STATEMENTS ON MANAGEMENT
ACCOUNTING

John L. Conant
Indiana State University
SUPPLY AND DEMAND

Tena B. Crews
University of South Carolina
WORK GROUPS (TEAMS)

Lori A. Dailey

Carrie Foley
Baldwin School, Hiram, Maine
TIME MANAGEMENT

Nashwa George
Montclair State University
PUBLIC OVERSIGHT BOARD
REENGINEERING
WORK MEASUREMENT

Roy J. Girasa
Pace University
BANKRUPTCY

Rajeev K. Goel
Illinois State University
OLIGOPOLY

MASS MARKETING

Henry H. Davis
Eastern Illinois University
INTEREST RATES

Amy Lynn DeVault
Roosevelt University
SERVICE INDUSTRIES

Ian Domowitz
Investment Technology Group, Inc.,
STOCK EXCHANGES

Roger K. Doost
Clemson University

Keith Goree
St. Petersburg College
ETHICS: AN OVERVIEW

Patrick M. Graham
MARKET SEGMENTATION

Audrey A. Gramling
Georgia State University
INTERNAL CONTROL SYSTEMS

Patricia R. Graves
Eastern Illinois University
ERGONOMICS
MOTIVATION

BUDGETS AND BUDGETING

Douglas R. Emery
University of Miami
CAPITAL INVESTMENTS

Jerry S. Evans
University of Houston
COMMUNICATIONS IN BUSINESS

Winifred L. Green
DISCOUNT STORES
MARKETING CONCEPT
TELEMARKETING
TRADE SHOWS

Mary Brady Greenawalt
Greensboro, North Carolina
FINANCIAL STATEMENT ANALYSIS

Samir Fahmy
St. John’s University
SECURITIES ACTS: REQUIREMENTS
FOR ACCOUNTING

Janet S. Greenlee
University of Dayton
NOT-FOR-PROFIT ACCOUNTING

DERIVATIVES

Joseph D. Chapman
Ball State University

John D. Finnerty
Fordham University
CAPITAL INVESTMENTS

PERSONAL SELLING

Judith Chiri
Colorado Springs, Colorado
CAREERS: AN OVERVIEW

Frederick D.S. Choi
New York University
INTERNATIONAL FEDERATION OF
ACCOUNTANTS

XVI

Mary L. Fischer
University of Texas at Tyler
GOVERNMENT ACCOUNTING
SINGLE AUDIT ACT OF 1984

Marie E. Flatley
San Diego State University
COMMUNICATION CHANNELS
POLICY DEVELOPMENT

Lisa E. Gueldenzoph
North Carolina A&T State University
ARTIFICIAL INTELLIGENCE
CAREERS IN INFORMATION PROCESSING
CORPORATE EDUCATION
INTERNET
PRIVACY AND SECURITY

Mahendra Gujarathi
Bentley College
INTERNATIONAL ACCOUNTING
STANDARDS

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


CONTRIBUTORS

Louise Dratler Haberman
NASBA
NATIONAL ASSOCIATION OF STATE
BOARDS OF ACCOUNTANCY

Jewel E. Hairston
Virginia State University
BUSINESS PROFESSIONALS OF AMERICA
DECA
ENTREPRENEURSHIP

Gary Hansen
Brigham Young University
DATABASES

John W. Hansen
PRODUCTIVITY

Richard O. Hanson
Southern New Hampshire University
FORENSIC ACCOUNTING

Jan Hargrave
Jan Hargrave & Associates
LISTENING SKILLS IN BUSINESS
SPEAKING SKILLS IN BUSINESS

Jean E. Harris
Pennsylvania State University,
Harrisburg
CHIEF FINANCIAL OFFICERS ACT OF

1990 AND FEDERAL FINANCIAL
MANAGEMENT ACT OF 1994
INCOME TAX: HISTORICAL PERSPECTIVES
UNITED STATES GOVERNMENT
ACCOUNTABILITY OFFICE

Trish W. Harris
The Institute of Internal Auditors
INSTITUTE OF INTERNAL AUDITORS

Thomas Haynes
Illinois State University
ETHICS IN MANAGEMENT
MANAGEMENT/LEADERSHIP STYLES
MANUFACTURING
SOCIAL RESPONSIBILITY AND ORGANIZATIONAL ETHICS

Matthew F. Hazzard

Ronda B. Henderson
North Carolina A&T State University
INFORMATION PROCESSING: HISTORICAL PERSPECTIVES
PROGRAMMING

Harvey S. Hendrickson
Florida International University
ACCOUNTING

Patrick J. Highland
Iowa City Community School District
DIVERSITY IN THE WORKPLACE
EMPLOYEE ASSISTANCE PROGRAMS
HUMAN RELATIONS

Laurie Collier Hillstrom
Northern Lights Writers Group
CONSUMER ADVOCACY AND PROTECTION

David J. Hyslop
Bowling Green State University
TRAINING AND DEVELOPMENT

Christine M. Irvine
VOICE MESSAGING

Jeffrey L. Jacobs
Quinnipiac University
TAXATION

Christine Jahn
University of Bamberg
HUMAN RESOURCE MANAGEMENT
ORGANIZATIONAL STRUCTURE

Edmund L. Jenkins
Norwalk, Connecticut
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Val Hinton
Delta State University
AMERICAN MARKETING ASSOCIATION
CONSUMER BILL OF RIGHTS
ENVIRONMENTAL PROTECTION
AGENCY
FOOD AND DRUG ADMINISTRATION
INTERSTATE COMMERCE COMMISSION
NATIONAL RETAIL FEDERATION
NATIONAL TRANSPORTATION
SAFETY BOARD
OCCUPATIONAL SAFETY AND
HEALTH ADMINISTRATION
(OSHA)
SECURITIES AND EXCHANGE COMMISSION
SMALL BUSINESS ADMINISTRATION
STANDARD METROPOLITAN STATISTICAL AREAS

Vicky B. Hoffman
University of Pittsburgh
COMPILATION AND REVIEW SERVICES

Edward Wei-Te Hsieh
California State University, Los
Angeles
MONETARY POLICY

Lisa S. Huddlestun
MACROECONOMICS/MICROECONOMICS

Carol Larson Jones
California State Polytechnic
University, Pomona
ONLINE EDUCATION
TELECOMMUTING

Randy L. Joyner
Wilkesboro, North Carolina
CAREERS IN MARKETING
CERTIFICATIONS, LICENSURES, AND
DESIGNATIONS
COPYRIGHTS
PATENTS
TRADEMARKS

Burton S. Kaliski
Southern New Hampshire University
CREDIT/DEBIT/TRAVEL CARDS

Surendra K. Kaushik
Pace University
CAPITAL MARKETS
FINANCE
FINANCIAL INSTITUTIONS

Edward J. Keller, Jr.
INSURANCE

Lawrence A. Klein
Bentley College
ACTIVITY-BASED MANAGEMENT
COST ALLOCATION

GOODS AND SERVICES

K. Virginia Hemby-Grubb
Middle Tennessee State University
DOCUMENT PROCESSING

Jesse W. Hughes
Old Dominion University, emeritus
GOVERNMENTAL ACCOUNTING
STANDARDS BOARD

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION

Masaaki Kotabe
Temple University
INTERNATIONAL INVESTMENT
TRADING BLOCS

XVII


CONTRIBUTORS

Alan G. Krabbenhoft
Roosevelt University
SERVICE INDUSTRIES

Lawrence M. Krackov
FINANCE

Tatum Krause
University of Hartford
TARGET MARKETING

Janel Kupferschmid
Bloomington, Illinois
ANTITRUST LEGISLATION
OPERATIONS MANAGEMENT

Dennis J. LaBonty
Utah State University
NETWORKING

Gerard A. Lange
St. John’s University
FRAUDULENT FINANCIAL REPORTING

Audrey E. Langill
SHOPPING

Christine F. Latino
Atkinson, New Hampshire
MARKETING RESEARCH

Lee Wonsick Lee
Central Connecticut State University
EMPLOYEE COMPENSATION
LEADERSHIP
PERFORMANCE APPRAISAL

Mark Lefebvre
INVENTORY CONTROL

Joel Lerner
Monticello, New York
INVESTMENTS
PERSONAL FINANCIAL PLANNING
STOCK INDEXES
STOCKS

Paula Lee Luft
Black Hawk College-East Campus
COLLECTIVE BARGAINING

Roger L. Luft
Eastern Illinois University, retired
CIRCULAR FLOW
ECONOMICS
ECONOMICS: HISTORICAL PERSPECTIVES
ETHICS IN ECONOMICS
FORECASTING IN BUSINESS

XVIII

MANAGEMENT
MANAGEMENT: HISTORICAL PERSPECTIVES
QUALITY MANAGEMENT

Mary Jean Lush
Delta State University
AMERICAN MARKETING ASSOCIATION
CONSUMER BILL OF RIGHTS
CONSUMER PROTEST
ENVIRONMENTAL PROTECTION
AGENCY
FOOD AND DRUG ADMINISTRATION
INTERSTATE COMMERCE COMMISSION
NATIONAL RETAIL FEDERATION
NATIONAL TRANSPORTATION
SAFETY BOARD
OCCUPATIONAL SAFETY AND
HEALTH ADMINISTRATION
(OSHA)
SECURITIES AND EXCHANGE COMMISSION
SMALL BUSINESS ADMINISTRATION
STANDARD METROPOLITAN STATISTICAL AREAS

James J. Maroney
Northeastern University
ANALYTICAL PROCEDURES

Laurence Mauer
St. John’s University
SECURITIES ACTS: REQUIREMENTS
FOR ACCOUNTING

Dorothy A. Maxwell
Sacopee Valley High School, Hiram,
Maine
DATABASES
DIGITAL DIVIDE
FACSIMILE REPRODUCTION
INTERNATIONAL ASSOCIATION OF
ADMINISTRATIVE PROFESSIONALS
INTERNATIONAL BUSINESS
NATIONAL BUSINESS EDUCATION
ASSOCIATION
NO CHILD LEFT BEHIND LEGISLATION
SKILLSUSA
TELEPHONE SKILLS
TEMPORARY EMPLOYMENT
WORKERS’ COMPENSATION

G. W. Maxwell
San Jose State University, retired
CAREERS IN LAW FOR BUSINESS
CONSUMER PRICE INDEX
CORPORATIONS
FISCAL POLICY

GLOBAL ECONOMY
JOB SATISFACTION
LABOR UNIONS
MONOPOLY
SOLE PROPRIETORSHIP
WRITING SKILLS IN BUSINESS

Marty Maxwell
Creative Composition, Inc.
COMPUTER GRAPHICS

Cheri Reither Mazza
Fordham University
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Donna L. McAlister-Kizzier
Morehead State University
DIVISION OF LABOR
NEGOTIATION

Thaddeus McEwen
North Carolina A&T State University
CAREERS IN MANAGEMENT

Melanie A. Meche
University of Louisiana, Lafayette
ETHICS IN INFORMATION PROCESSING

Barry C. Melancon
American Institute of CPAs
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Earl C. Meyer
Eastern Michigan University, retired
CONSUMER AND BUSINESS PRODUCTS
DISCOUNT STORES
GOODS AND SERVICES
MARKET SEGMENTATION
MARKETING CONCEPT
MASS MARKETING
TELEMARKETING
TRADE SHOWS

Mary Michel
Manhattan College
COST-BENEFIT ANALYSIS
NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM

Michael Milbier
San Jose, California
ADVERTISING
CRIME AND FRAUD
GOVERNMENT ROLE IN BUSINESS
INTERNATIONAL TRADE
PRICING
PRODUCT LABELING

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


CONTRIBUTORS

PRODUCT LINES
PRODUCT MIX
PROMOTION

James E. Miles

PUBLIC COMPANY ACCOUNTING
OVERSIGHT BOARD
STANDARD COSTING
UNIFORM CERTIFIED PUBLIC
ACCOUNTANT EXAMINATION

VIDEOCONFERENCING

Allie F. Miller
Drexel University
ACCOUNTING CYCLE
BONDS

Theodore J. Mock
University of Southern California
ACCOUNTING INFORMATION SYSTEMS

Hassan Mohammadi
Illinois State University
MONEY SUPPLY

Melvin Morgenstein
Plainview, New York
FEDERAL RESERVE SYSTEM

George A. Mundrake
Ball State University
MULTIMEDIA SYSTEMS

Robert J. Muretta, Jr.
Touro University International
GOVERNMENT FINANCIAL REPORTING

Michael Nelson
TRANSFER PAYMENTS

Anna Nemesh
University of Maryland
OFFICE TECHNOLOGY
PARTNERSHIPS

Mary Nemesh
Anne Arundel County Public Schools
INFORMATION PROCESSING
TELECOMMUNICATIONS

Bernard H. Newman
Pace University
ASSOCIATION OF CERTIFIED FRAUD
EXAMINERS
BUREAU OF LABOR STATISTICS
CAREERS IN ACCOUNTING
FINANCIAL FORECASTS AND PROJECTIONS
GOVERNMENT AUDITING STANDARDS
INTELLECTUAL CAPITAL
INTERNATIONAL MONETARY FUND
MERGERS AND ACQUISITIONS

Cheryl L. Noll
Eastern Illinois University
CHANGE PROCESS
MANAGEMENT: AUTHORITY AND
RESPONSIBILITY
ORGANIZATIONAL BEHAVIOR AND
DEVELOPMENT

Carol J. Normand
University of Wisconsin–Whitewater
ACCOUNTING: HISTORICAL PERSPECTIVES

Mary Ellen Oliverio
Pace University
AGENCY THEORY
BONDS
CAREERS IN ACCOUNTING
COST-BENEFIT ANALYSIS
FINANCE: HISTORICAL PERSPECTIVES
GOVERNMENT AUDITING STANDARDS
MERGERS AND ACQUISITIONS
PERFORMANCE AUDITS
STANDARD COSTING
UNIFORM CERTIFIED PUBLIC
ACCOUNTANT EXAMINATION

Sharon Lund O’Neil
Univeristy of Houston
COMMUNICATIONS IN BUSINESS
PRODUCTIVITY

Don M. Pallais
Richmond, Virginia
ASSURANCE SERVICES

Priscilla Payne
Institute of Management Accountants
CERTIFIED MANAGEMENT
ACCOUNTANT (CMA)/CERTIFIED
IN FINANCIAL MANAGEMENT
(CFM)

Louis E. Pelton
University of North Texas
CHANNELS OF DISTRIBUTION

Lawrence F. Peters, Jr.
Sacopee Valley High School, Hiram,
Maine
CIVIL RIGHTS ACT OF 1964
EQUAL EMPLOYMENT OPPORTUNITY
ACT OF 1972

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION

EQUAL PAY ACT OF
EUROPEAN UNION

1963

Nikole M. Pogeman
AMERICAN MANAGEMENT ASSOCIATION
AMERICANS WITH DISABILITIES ACT
OF 1990

Jeffrey J. Pompe
Francis Marion University
DEREGULATION

Karen J. Puglisi
CLASSIC BRANDS

Zane K. Quible
Oklahoma State University
OFFICE LAYOUT

Robert F. Randall
IMA
INSTITUTE OF MANAGEMENT
ACCOUNTANTS

Barry L. Reece
CUSTOMER SERVICE

Brenda J. Reinsborough
Yarmouth, Maine
HEALTH ISSUES IN BUSINESS
MEETING MANAGEMENT

Tod W. Rejholec
NATIONAL LABOR RELATIONS
BOARD

James R. Rinehart
Francis Marion University, emeritus
DEREGULATION

Wendy Rinholen
Black Hawk College, East Campus
CAREERS IN ECONOMICS

Rita Shaw Rone
Gulf Breeze, Florida
SEXUAL HARASSMENT

Jim D. Rucker
Fort Hays State University
STRESS

Robert J. Sack
University of Virginia
EARNINGS MANAGEMENT

Massimo Santicchia
Standard & Poor’s
FINANCE

XIX


CONTRIBUTORS

Marcy Satterwhite
Lake Land College
COMPETITION
COOPERATIVE
DECISION MAKING
EMPLOYEE BENEFITS
JOB ENRICHMENT

Jennifer L. Scheffer
Manchester, New Hampshire
FADS
PUBLICITY

B. June Schmidt
READING SKILLS IN BUSINESS

Armand Seguin
Emporia State University
HARDWARE
INTRANET/EXTRANET

Cynthia Shelton (Anast) Seguin
Emporia State University
HARDWARE
INTRANET/EXTRANET

Anand G. Shetty
Iona College
BUSINESS CYCLE
ETHICS IN FINANCE
INSURANCE
MUTUAL FUNDS
STOCK EXCHANGES

Victoria Shoaf
St. John’s University
FINANCIAL STATEMENTS

Kathleen Simons
Bryant College
STATE SOCIETIES OF CPAS

Sharon K. Slick
CONSUMER AND BUSINESS PRODUCTS

Douglas C. Smith
University of Kentucky
INFORMATION SYSTEMS
SOFTWARE

G. Stevenson Smith
West Virginia University
COST-VOLUME-PROFIT ANALYSIS
NOT-FOR-PROFIT ACCOUNTING

Mark J. Snyder
MSA Consulting Group
ARTIFICIAL INTELLIGENCE
CAREERS IN INFORMATION PROCESSING

XX

CORPORATE EDUCATION

INTERNATIONAL TRADE

INTERNET

MARKETING

PRIVACY AND SECURITY

MARKETING MIX

Patricia A. Spirou
Southern New Hampshire University

PRICING
PROMOTION
SOCIAL MARKETING

FRANCHISING
INTERSTATE COMMERCE
PRICE FIXING

Gregory P. Valentine
University of Southern Indiana

RETAILERS

GROSS DOMESTIC PRODUCT (GDP)

WHOLESALERS

INCOME

Wanda L. Stitt-Gohdes
University of Georgia
STANDARD-BASED WORK PERFORM-

John Vann
Ball State University
TRIPLE BOTTOM LINE REPORTING

ANCE

James E. Stoddard
Appalachian State University
MARKETING: HISTORICAL PERSPECTIVES

David Strutton
University of North Texas
CHANNELS OF DISTRIBUTION

Jan Sweeney
Baruch College
ETHICS IN ACCOUNTING

John A. Swope
East Carolina University
ADVERTISING AGENCIES
ETHICS IN MARKETING

Ellen Jean Szarleta
Indiana University Northwest
ECONOMIC DEVELOPMENT

Philip D. Taylor
Wesleyan College
INTERACTIVE TECHNOLOGY

Carson Varner
Illinois State University
ETHICS IN LAW FOR BUSINESS
LAW IN BUSINESS

Miklos A. Vaserhelyi
Rutgers University
ELECTRONIC COMMERCE

Annette Vincent
University of Louisiana, Lafayette
ETHICS IN INFORMATION PROCESSING

Michelle Voto
Hesser College
LIFESTYLES

Julie A. Watkins
Brownfield, Maine
COTTAGE INDUSTRIES

Roman L. Weil
University of Chicago
COSTS
TIME VALUE OF MONEY

Jay C. Thibodeau
Bentley College
AUDITING

Jill T. White
University of West Florida
FUTURE BUSINESS LEADERS OF

Gary P. Tripp
Southern New Hampshire University
BALANCE OF TRADE

Allen D. Truell
Ball State University
ADVERTISING

AMERICA
SCHOOL TO CAREER MOVEMENT

Kathy Williams
IMA
INSTITUTE OF MANAGEMENT
ACCOUNTANTS

CHANNELS OF DISTRIBUTION
CRIME AND FRAUD
GOVERNMENT ROLE IN BUSINESS
GREEN MARKETING

Patricia Williams
University of Pennsylvania
CONSUMER BEHAVIOR

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


CONTRIBUTORS

Scott Williams
Burlington, NC
ADVERTISING AGENCIES

Mark D. Wilson
Ohio State University
CAREERS IN FINANCE

Denise Woodbury
Southern Utah University
CURRENCY EXCHANGE
ECONOMIC SYSTEMS
MONEY
OPPORTUNITY COST

Charles W. Wootton
Eastern Illinois University
ACCOUNTING: HISTORICAL PERSPECTIVES

Ralph D. Wray
Bloomington, Indiana
ECONOMIC ANALYSIS

Ray L. Young
Brigham Young University
DESKTOP PUBLISHING
WORD PROCESSING

Jensen J. Zhao
Ball State University
CYBER CRIME
E-MARKETING

Norman S. Wright

IDENTITY THEFT

Brigham Young University

PUBLIC RELATIONS

STRATEGIC MANAGEMENT

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION

RESEARCH IN BUSINESS

XXI


A
ACCOUNTING
Accounting is a field of specialization critical to the functioning of all types of organizations. Accounting often is
referred to as “the language of business” because of its role
in maintaining and processing all relevant financial information that an entity requires for its managing and
reporting purposes.
Accountants often have a specific subspecialization
and function at one of several levels. Preparation for the
field is provided by secondary schools, postsecondary
business schools, community colleges, and four-year colleges and universities.
WHAT IS ACCOUNTING?

Accounting is a body of principles and conventions as well
as an established general process for capturing financial
information related to an entity’s resources and their use
in meeting the entity’s goals. Accounting is a service function that provides information of value to all operating
units and to other service functions, such as the headquarters offices of a large corporation.
Origin of Accounting. Modern accounting is traced to
the work of an Italian monk, Luca Pacioli, whose publication in 1494 C.E. described the double-entry system,
which continues to be the fundamental structure for contemporary accounting systems in all types of entities.
When double-entry accounting is used, the balance sheet
identifies both the resources controlled by the entity and
those parties who have claims to those assets.

Early histories of business identify the bookkeeper as
a valuable staff member. As businesses became more complex, the need for more astute review and interpretation of
financial information was met with the development of a
new profession—public accounting. In the United States,
public accounting began in the latter part of the nineteenth century. The first organization was established in
1887; the first professional examination was administered
in December 1896.
In the early days of the twentieth century, numerous
states established licensing requirements and began to
administer examinations. During the first century of public accounting in the United States, the American Institute
of Certified Public Accountants (and its predecessor
organizations) provided strong leadership to meet the
changing needs of business, not-for-profit, and governmental entities.
Generally Accepted Accounting Principles (GAAP). No
single source provides principles for handling all transactions and events. Over time, conventional rules have
developed that continue to be relevant. Additionally,
groups have been authorized to establish accounting standards. The Financial Accounting Standards Board (FASB)
assumed responsibility for accounting standards and principles in 1973. It is authorized to amend existing rules and
establish new ones. In 1992, the Auditing Standards
Board established the GAAP hierarchy. At the highest
level of the hierarchy are FASB statements and interpretations; APB opinions were issued from 1959 to 1973 by
the Accounting Principles Board (APB), and Accounting
Research Bulletins, issued until 1959 by the Committee
1


Accounting

Luca Bartolomes Pacioli (ca. 1445–ca. 1517). Fra Luca Pacioli’s 1494 publication described the double-entry system of
accounting. © ARCHIVO ICONOGRAFICO, S.A./CORBIS

on Accounting Procedure (CAP); both the APB and CAP
were committees of the American Institute of Certified
Public Accountants (AICPA).
What type of unit is served by accounting? Probably no
concept or idea is more basic to accounting than the
accounting unit or entity, a term used to identify the
organization for which the accounting service is to be provided and whose accounting or other information is to be
analyzed, accumulated, and reported. The entity can be
any area, activity, responsibility, or function for which
information would be useful. Thus, an entity is established to provide the needed focus of attention. The information about one entity can be consolidated with that of
a part or all of another, and this combination process can
2

be continued until the combined entity reaches the unit
that is useful for the desired purpose.
Accounting activities may occur within or outside the
organization. Although accounting is usually identified
with privately owned, profit-seeking entities, its services
also are provided to not-for-profit organizations such as
universities or hospitals, to governmental organizations,
and to other types of units. The organizations may be
small, owner-operated enterprises offering a single product or service, or huge multi-enterprise, international conglomerates with thousands of different products and
services. The not-for-profit, governmental, or other units
may be local, national, or international; they may be small
or very large; they may even be entire nations, as in
national income accounting. Since not-for-profit and

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION


Accounting

governmental accounting are covered elsewhere in this
encyclopedia, the balance of this article will focus on
accounting for privately owned, profit-seeking entities.
What is the work of accountants? Accountants help entities be successful, ethical, responsible participants in society. Their major activities include observation,
measurement, and communication. These activities are
analytical in nature and draw on several other disciplines
(e.g., economics, mathematics, statistics, behavioral science, law, history, and language/communication).
Accountants identify, analyze, record, and accumulate facts, estimates, forecasts, and other data about the
unit’s activities; then they translate these data into information that can be useful for a specific purpose.
The data accumulation and recording phase traditionally has been largely clerical; typically and appropriately, this has been called bookkeeping, which is still a
common and largely manual activity, especially in smaller
firms that have not adopted state-of-the-art technology.
But with advances in information technology and userfriendly software, the clerical aspect has become largely
electronically performed, with internal checks and controls to assure that the input and output are factual and
valid.
Accountants design and maintain accounting systems, an entity’s central information system, to help control and provide a record of the entity’s activities,
resources, and obligations. Such systems also facilitate
reporting on all or part of the entity’s accomplishments for
a period of time and on its status at a given point in time.
An organization’s accounting system provides information that (1) helps managers make decisions about
assembling resources, controlling, and organizing financing and operating activities; and (2) aids other users
(employees, investors, creditors, and others—usually
called stakeholders) in making investment, credit, and
other decisions.
The accounting system must also provide internal
controls to ensure that (1) laws and enterprise policies are
properly implemented; (2) accounting records are accurate; (3) enterprise assets are used effectively (e.g., that idle
cash balances are being invested to earn returns); and (4)
steps be taken to reduce chances of losing assets or incurring liabilities from fraudulent or similar activities, such as
the carelessness or dishonesty of employees, customers, or
suppliers. Many of these controls are simple (e.g., the
prenumbering of documents and accounting for all numbers); others require division of duties among employees
to separate record keeping and custodial tasks in order to
reduce opportunities for falsification of records and thefts
or misappropriation of assets.

An enterprise’s system of internal controls usually
includes an internal auditing function and personnel to
ensure that prescribed data handling and asset/liability
protection procedures are being followed. The internal
auditor uses a variety of approaches, including observation
of current activities, examination of past transactions, and
simulation—often using sample or fictitious transactions—to test the accuracy and reliability of the system.
Accountants may also be responsible for preparing
several types of documents. Many of these (e.g., employees’ salary and wage records) also serve as inputs for the
accounting system, but many are needed to satisfy other
reporting requirements (e.g., employee salary records may
be needed to support employee claims for pensions).
Accountants also provide data for completing income tax
returns.
What is the accountant’s role in decision making?
Accountants have a major role in providing information
for making economic and financial decisions. Rational
decisions are usually based on analyses and comparisons of
estimates, which in turn, are based on accounting and
other data that project future results from alternative
courses of action.
External or financial accounting, reporting, and
auditing are directly involved in providing information for
the decisions of investors and creditors that help the capital markets to efficiently and effectively allocate resources
to enterprises; internal, managerial, or management
accounting is responsible for providing information and
input to help managers make decisions on the efficient
and effective use of enterprise resources.
The accounting information used in making decisions within an enterprise is not subject to governmental
or other external regulation, so any rules and constraints
are largely self-imposed. As a result, in developing the data
and information that are relevant for decisions within the
enterprise, managerial accountants are constrained largely
by cost-benefit considerations and their own ingenuity
and ability to predict future conditions and events.
But accounting to external users (financial accounting, reporting, and auditing) has many regulatory constraints—especially if the enterprise is a “public”
corporation whose securities are registered (under the
United States Securities Acts of 1933 and 1934) with the
Securities and Exchange Commission (SEC) and traded
publicly over-the-counter or on a stock exchange. Public
companies are subject to regulations and reporting
requirements imposed and enforced by the SEC; to rules
and standards established for its financial reports by the
FASB and enforced by the SEC; to regulations of the
organization where its securities are traded; and to the regulations of the AICPA, which establishes requirements

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION

3


Tài liệu bạn tìm kiếm đã sẵn sàng tải về

Tải bản đầy đủ ngay

×