Terms
T
tacit
collusion: collusion that takes place without creation
of a cartel
tangible: Having physical substance.
tariffs: taxes put on imports
Taxable income: The net income figure used
to determine taxes payable to governments.
T-bill: U.S. Treasury bond that matures
in less than one year, typically three and six months.
T-bond: U.S. Treasury bond that has a maturity
greater than ten years.
Technical Analysis: A type of analysis
that attempts to predict future stock or market price movements
by using historical data such as past prices/ trading volume/
number of advancing shares, and short-selling activity.
technically efficient: a production process
in which no other process exists that can produce the same
output with smaller quantities of some input(s) and no more
of other inputs
technological progress: the development
of new methods of converting inputs into outputs
technology: methods for combining resources
to produce outputs
Temporary differences: Differences between
pretax accounting income and taxable income caused by reporting
items of revenue or expense in one period for accounting
purposes and in an earlier or later period for income tax
purposes.
term loan: Money loaned for a five to ten-year
term, corresponding to the length of time the investment
will bring in profits.
theoretical investigation: analysis based
in abstract thought
threat point (or fall-back position): in
bargaining theory, what each actor will get if the parties
fail to make an agreement
time series data: observations of how a
numerical variable changes over time
Time Spread: The simultaneous sale of a
near-term option and purchase of a longer-term option. If
the striking prices are the same, it is considered a horizontal
spread; if different, it is called a diagonal spread.
time use survey: a survey designed to find
out how much time people spend in various activities, including
paid work, household production, and leisure
Time Value of Money: Claim to one dollar
in the present is valued differently to a claim to one dollar
in the future because the former can be reinvested at the
prevailing interest rate.
Time Value: The total option premium less
the option's intrinsic value.
Times interest earned: See Summary of financial
ratios.
T-note: U.S. Treasury bonds that mature
in ten years or less.
Total asset turnover: See Summary of financial
ratios.
total cost curve: a curve showing the total
cost associated with producing various levels of output
total cost: fixed cost plus the variable
cost
total product curve: a curve showing the
total amount of output that can be produced using various
quantities of one input (other inputs held fixed)
transaction cost economies: savings on
the costs associated with market transactions, which may
lead to organizing production within a single enterprise
transaction costs: the costs of arranging
economic activities
transfer prices: the prices used by subsidiaries
of a multinational corporation when making transactions
with each other
transfer: to give something, with nothing
specific expected in return
transition economies: economies that gave
up administrative state socialism during the late 20th century
and are (presumed to be) on a path toward more market-oriented
economic systems
Treasury stock: Shares of a company's stock
that are repurchased by the company and not retired.
Trend analysis: Evaluation of financial
data over several accounting periods.
trust: Arrangement under which the owners
of several companies transfer their decision-making powers
to a small group of trustees, who then make decisions for
all the companies in the trust.
type A ideas: Startup ideas centered around
providing customers with an existing product not available
in their market.
type B ideas: Startup ideas, involving
new technology, centered around providing customers with
a new product.
type C ideas: Startup ideas centered around
providing customers with an improved product.
