Appendix A: Talking the Talk

AuthorBert Spector
ProfessionProfessor of Strategy at Northeastern University
Pages135-149
Talking the Talk 135
APPENDIXA
TALKING THE TALK
Every profession relies on its own specialized vocabulary. For attorneys—
both in-house and outside counsel—familiarity with the “talk” of ma nagers
should help immeasurably in understanding interactions. Here, therefore,
is a list with definitions of key words.
A
Accounting equation—assets = liabilities + shareholders’ equity.
Accrual accounting—an approach to accounting followed in the United
States that records the economic impact of a transaction when that
transaction is agreed to rather than when the cash is received.
Acquisition—a transact ion in which one corporation buys assets or shares
of another corporation.
Acquisition premium—the difference between the price per share the
bidder offers for the target’s stock and the pre-acquisition price of that
stock.
AIO dimensions—a segmentation of customers based on lifestyle: activi-
ties, interests, and opinions.
Asset—a holding of a corporation that can be either converted to cash or
put to productive use.

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