Definition of following terms Essay

Time value of moneyThis refers to the principle that a dollar on hand today has much value than a dollar received sometime in the future. Keown, A. J., Martin, J. D., & Titman, S. (2014). Financial concern Principles and Applications (12th ed.). Pearson Education, Inc.. Efficient marketRefers to the type of market where everyone receives the same time of selective information and prices are reflected based on this information. Business Dictionary.com. (n.d.). Retrieved from http//www.businessdictionary.com/definition/efficient-market.html Primary versus auxiliary marketPrimary market refers to the securities a company sells for the first time for the enjoyment of raising money. Securities traded after initial investment are done through the secondary market. In the primary market, the issuing firm receives the money in the secondary market if the shareholder of the firm decides to sell he receives the money. Keown, A. J., Martin, J. D., & Titman, S. (2014). Financial Management Principles and Applications (12th ed.). Pearson Education, Inc.. Risk-return tradeoffThis principle is based on the risk that investors are willing to publication for a promise of higher returns on investments. Keown, A. J., Martin, J. D., & Titman, S. (2014). Financial Management Principles and Applications (12th ed.). Pearson Education, Inc..Agency (principal and agent problems)Refers to the problem companies face in motivating their managers who act as agents in pursuing the interests of the owners (shareholders). Keown, A. J., Martin, J. D., & Titman, S. (2014). Financial Management Principles and Applications (12th ed.). Pearson Education, Inc.. Market information and security prices and information asymmetry Security prices change as information is provided to all investors. In credit line in information Asymmetry one party may benefit from having more sources of information and therefore making better decisions. What is Information Asymmetry. (2014). Retrieved from http //www.investorwords.com/2461/information_asymmetry.html Keown, A. J., Martin, J. D., & Titman, S. (2014). Financial Management Principles and Applications (12th ed.). Pearson Education, Inc.. Agile and lean principlesThe lean principle in Finance refers to the production practice that companies use in which they target to minimize waste and use the the to the lowest degree amount of resources to meet the customers needs. Organizations that use agile type of processes allow to work on smaller projects to revamp production, maximize collabo proportionalityn and allow for more pliable schedules. What is Project Management. (2014). Retrieved from http//www.villanovau.com/resources/project-management/what-is-project-management/.VFKo2vldWSo Return on investmentIts a form of investment measurement that shows how efficiently a company is using its resources. This ratio is usually expressed as a percentage. http//www.businessdictionary.com/definition/return-on-investment-ROI.htmlCash flow and a source of valueThis is the money a company has after it has gainful its bills and after it has used the money necessary to operate the business. The value of a companys investment lies in the amount of cash flow on hand(predicate) to spend. The Free Dictionary. (2009). Retrieved from http//financial-dictionary.thefreedictionary.com/cash+flowProject managementThis refers to the processes that involves all aspects of a project, ensuring that it is done well, on time and within budget. Processes in Project management accept initiating, planning, executing, monitoring, controlling, and closing. What is Project Management. (2014). Retrieved from http//www.villanovau.com/resources/project-management/what-is-project-management/.VFKo2vldWSo Outsourcing and offshoringOutsourcing happens when a company contracts the services of a third party to do the work for the purpose to increase efficiency and lower costs. As opposed to offshoring this does not have to happen out of the country. Offshoring happens when a company moves abroad to reduce the costs of running its operations. What is the Difference between Outsourcing and Offshoring. (2003-2014). Retrieved from http//www.wisegeek.com/what-is-the-difference-between-outsourcing-and-offshoring.htmInventory swageInventory turnover is a form of measurement of how frequently a company sells and replenishes its inventory. The Free Dictionary. (2009). Retrieved from http//financial-dictionary.thefreedictionary.com/ Inventory+TurnoverJust-in-time inventory (JIT)JIT inventory system maximizes the gelt by just keeping enough inventory as needed and making more frequent orders, saving space and the money associated with keeping up with large inventories. Wise Geek. (2013-2014). Retrieved from http//www.wisegeek.org/what-is-a-just-in-time-inventory.htm Vendor managed inventory (VMI)It is the type of inventory model where the manufacturer is responsible for keeping up with the levels of the companys inventory. Vendor Manag ed Inventory. (2014). Retrieved from http//www.vendormanagedinventory.com/definition.php