Appendix A: Talking the Talk

• Author: Bert Spector
• Profession: Professor of Strategy at Northeastern University
• Pages: 135-149

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.