Page 684 - Introduction to Business

G-10 GLOSSARY

information systems controls The policies, procedures, and internal control structure A set of devices and procedures
technical measures used to protect information systems designed to prevent unintentional errors and intentional
and to assure the accuracy and reliability of these sys- irregularities from occurring and to identify errors and
tems (Ch 17) irregularities after they occur so that corrective action
information systems development The activities involved in may be taken; The control environment, the accounting
the creation of an information system (Ch 17) system, and the control procedures that help ensure the
initial public offering (IPO) The first public sale by a firm of integrity of information output and the safety of the firm’s
its common stock; The first time a firm issues stock to the assets (Ch 11; Ch 12)
public in financial markets (Ch 4; Ch 13) internal controls A system of rules and procedures designed
innovation planning Planning to instill more of an entrepre- to ensure the accuracy and reliability of financial and
neurial spirit into an organization (Ch 5) accounting information (Ch 11)
innovators The first 2.5 percent of adopters of new products internal recruiting Considering present employees as candi-
who are respected for their opinions and are sought out dates for available jobs (Ch 6)
for these opinions by the market (Ch 9) internal sources Sources for new products that are located
in-pack A premium enclosed with a product (Ch 10) within a firm (Ch 9)
input devices Computer system devices such as the keyboard International Accounting Standards (IAS) Accounting stan-
or mouse that are used to collect and transform data into dards issued by the Board of the International Accounting
an electronic form that the computer can use (Ch 17) Standards Committee, and subsequently adopted by the
inputs Factors of production (land, labor, capital, and tech- International Accounting Standards Board (Ch 11)
nology), that is, commodities or services that are used by International Accounting Standards Board (IASB) A
firms in their production processes (Ch 1) London-based organization that issues International
inside directors Corporate board of directors members Accounting Standards (Ch 11)
employed full-time by the company, for example, the CEO International Auditing and Assurance Standards Board
or other corporate officers (Ch 3) (IAASB) The board that works to improve the uniformity
inside information Private information about individuals or of auditing practices and related services throughout the
business firms obtained by financial institutions (Ch 14) world by issuing pronouncements on a variety of audit
insider trading Stock trading based on material nonpublic and assurance functions and by promoting their accept-
information (Ch 3) ance worldwide (Ch 11)
institutional investors Large, professionally managed sources International Federation of Accountants (IFAC) An organi-
of capital; Large financial institutions, including insurance zation of national professional accountancy organiza-
companies, pension funds, and investment companies, tions that represent accountants employed in public
that trade securities in financial markets (Ch 3; Ch 13) practice, business and industry, the public sector, and
instructional-based programs Teaching and learning ap- education, as well as some specialized groups that inter-
proaches to employee development (Ch 6) face frequently with the profession (Ch 11)
insurance An arrangement in which an individual pays a fee International Financial Reporting Standards (IFRS)
(premium) and in return, if the individual suffers a desig- Accounting standards issued by the International
nated loss, the insurance company compensates him or Accounting Standards Board that have three goals:
her (Ch 15) Increasing harmonization of accounting standards and
insurance companies Financial institutions that offer various disclosures to meet the needs of the global market; pro-
kinds of protection from financial losses to individuals viding an accounting basis for underdeveloped or newly
and business firms (Ch 14) industrialized countries to follow as the accounting pro-
insurance premium A payment to an insurance company on fession emerges in those countries; and increasing the
a monthly or periodic basis for insurance coverage (Ch 4) compatibility of domestic and international accounting
integrated marketing promotion The consideration of all requirements (Ch 11)
relevant promotion alternatives when developing a pro- international joint venture A business that is jointly owned
motion mix, employing those that provide the best (implies shared equity) and operated by two or more
opportunity for achieving the company’s promotion firms (usually one from the host country and the other
objectives and coordinating the activities required to put from another country) that pool their resources (capital,
into motion the agreed-on promotion mix (Ch 10) technology, and management) to penetrate host country
interest The amount that a borrower must pay a lender in markets, generate (and share) profits, and share the
addition to the principal value, as compensation for the commercial risk (Ch 2)
declining time value of money (Ch 13) international markets Markets for products and services that
interest cost The cost that is incurred by having money exist in foreign countries (Ch 8)
invested in inventory (Ch 16) international skills Abilities to understand foreign cultures,
interest rate risk The risk of bond prices moving down as the markets, politics, languages, and so on (Ch 5)
general level of interest rates moves up, and vice versa; International Standards on Auditing (ISAs) The basic princi-
The risk that interest rates will rise, resulting in a decrease ples and essential procedures for auditing, along with
in the value of the investment (Ch 13; Ch 15) related guidance in the form of explanatory and other
intermediate targets The primary monetary targets in the material (Ch 11)
financial marketplace, which are money supply, long- international trade The import or export of goods or services
term interest rates, and bank credit (Ch 14) from or to other countries by individuals, firms, or gov-
internal auditing Chiefly concerned with evaluating the ernments (Ch 2)
economy and efficiency with which scarce resources are Internet An international network of networks containing
utilized, but may include other objectives such as evalu- hundreds of thousands of private and public networks in
ating the effectiveness of internal controls (Ch 12) more than 150 countries (Ch 18)

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