Steven Silbiger's international bestseller, The Ten-Day MBA, has already helped thousands master the skills taught at America's top-ten business schools—and at a fraction of the time and staggering cost that acquiring an MBA typically demands. This newly revised fourth edition contains the most up-to-date information available for understanding the intricacies of today's complex global business world. Distilling the material contained in most popular business courses presently offered at Harvard, Stanford, the University of Pennsylvania, the University of Chicago, Northwestern, and the University of Virginia—including leadership, corporate ethics and compliance, financial planning, real estate, and all the latest topics.
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The Ten-Day MBA Lexicon

The Ten Day MBA is filled with MBA information as taught at top business schools.  This is is just a lexacon of popular MBA terms. The book includes these as well as many more in context of  their discipline, such as marketing or finance, and how they are taught, including diagrams, examples and templates that are easy to understand and apply to your own business situation.  

Accounting Standards Codification ASC
New system of accounting standards organization

Accrual basis accounting
recording transactions that matches revenues and expenses regardless of cash movement

Activity based costing ABC
Costing of products based on actual usage patterns

After tax cost of borrowing
Borrowing rate x ( 1 - tax rate )

Active listening
listening to gain insight.

AIDA buying process
Awareness, Intention, Desire, Action

Ansoff matrix
Diversification strategy based on the maturity of product and maturity of the intended market.

balance sheet
the accounting statement that summarized assets, liabilities and owners’ equity accounts

behavioral economics
the study of economics to explain ordinary situations such as cheating

bell curve
a probability function graph characterized by a smooth bell shape

evaluating production based on standards and goals

A measure of risk based on its variance from the market return.

Binomial distribution
A probability distribution with only two possible outcomes.

Black Swan investing
Investing to make huge gains in rare market crashes.

Black-Scholes option pricing model
A computer model for pricing options based on a variety of factors

Blue Ocean strategy
A strategy of creating opportunity in completely new areas of competition

Buyer’s remorse
Consumer regret after making a purchase

Callable bond
A bond that the issuer can buy the bond back before maturity

Call option
An option to buy an asset for a period in the future at a certain price

Six M’s of Capacity
Methods, Materials, Manpower, Machinery, Money, Messages

Capital asset pricing model CAPM
A financial model of determining the value of assets based on cash flows and market and risk discounts rates.

Capital lease
A lease that is essentially a purchase agreement

Cash basis accounting
Recording transactions only when cash changes hands.

Case law
Framework for a legal judgment based on the decisions of prior cases.

Cash cow
A business that generates cash with low level of additional investment required

Cash flow statement
Financial statement of  a business’s sources and uses of cash for a period of time

Central Limit Theorem
The idea that after multiple independent events, the results will tend to a central average and graph in a bell shaped figure

Chain management
Management of the entire process of procurement or sales

Channel intermediary
An company that handles a product between product’s production and consumer sales

Cloud computing
Computing in a central processing hub over the internet

Clayton Act
Laws that attempts to prevent monopolies

Collateralized mortgage obligation CMO
A bond that is composed of a bundle of mortgages

Commercial paper
Short-term obligations of corporations

Common law
Another name for case law, verdicts are based on prior case decisions

Comparative advantage
A country’s advantage versus another based on a special talent or resources

Conservatism in accounting
A concept that values used in accounting are based on objective, conservative values for use in financial accounitng

Continuous quality improvement CQI
The concept that process of quality improvement never ends

Cost of Goods Sold COGS

Cost per Thousand CPM
Marketing term for the marketing cost per thousand prospects

Credit default swaps CDS
A security that insures a bond against the default of the issuer.

An offence against society, breaking a law, like speeding.

Cultural relativism
Acceptance of objectionable behavior because the culture in the host country allows it

Cumulative distribution function CDF
A statistical graph of a cumulative probability of events that adds up to 100%

Customer Relationship Management CRM
a system to monitor and optimize all contacts with customers aimed at retention and profit maximization

Current asset
An asset that is quickly converted to cash or is cash

Adding to an asset or subtracting from income with an expense

Decision tree
A method of analyzing and valuing the multiple possibilities of a decision

Recognizing the expense of using an asset over time, like the use of a machine

An asset that derives its value based on the value of another asset.

A fixed periodic distribution of income to shareholders

Dividend Growth model
A model to value stocks- Dividend / (Discount Rate - Dividend Growth Rate)

Dodd-Frank law
Financial industry regulation overall after the 2008 meltdown

Du Pont chart
A chart that explains the most important financial statement ratios.

The time it takes for a bond to pay back half of an investor’s initial investment.  It is a measure of risk.

Earnings before interest and taxes EBIT
A basic definition of earning before non-operating expenses.

Earnings before interest, taxes depreciation and amortization EBITDA
A basic definition of earnings before non-operating expense and basic non-cash using expenses

Economic Order quantity EOQ
The optimal amount of inventory to purchase each time to minimize holding, ordering and financing costs.

Efficient frontier
In a perfect world, investors are compensated for the investment risk they take, no more.  This graph shows that line at which investors are fully compensated for risk, no more or less.

Efficient market hypothesis EMH
The theory that the market perfectly reflects all public information known and that an individual cannot consistently “beat the market” with intuition and research.

Elasticity of demand
The flexibility of demand of a product based on changes in price, temperature of other variables.

Enterprise value EV
The market value of a company as measured by the sum of the “market” value of its equity, debt, unfunded liabilities less its cash and equivalents..

The organizational unit that is used to create financial statements such as a company, division or store.

Enterprise resource planning ERP
A comprehensive software package that manages resources from a global basis in the organization, tying all the stages of purchasing and use together for planning purposes.

Expected monetary value EMV
The statistical, probabilistic value of a future economic event.

Expectancy Theory
Employee motivation is a function of how actions translate into rewards.

FIFO First In First Out
Valuation of inventory costs by valuing the most recently sold goods at the oldest costs.

FASB Financial Accounting Standards Board
The rule setting board for accounting

Five C’s of (extending) Credit
Capacity, Character, Capital, Collateral, Conditions

Five Forces Theory
Michael Porter’s theory of what determines the level of competition in an industry: thread of substitutes, threat of new entrants, bargaining power of suppliers, bargaining power of buyers and intensity of rivalry between competitors.

Fiscal policy
Government spending and taxing policy

Fixed costs
Costs that do not vary based on the level of activity within a relevant range

Fixed exchange rates
Currency exchange rates that are fixed relative to one another regardless of market forces.

Four P’s of marketing
Place, Product, Price, Promotion

Free Cash Flow
Defined in many ways in finance, but it basically means the excess cash generated by a business that can be used for other purposes, such as additional debt payments or dividends to shareholders.

Free standing inserts FSI
The self-contained coupon section of the newspaper.

Force Majeure
Legal term used to describe causes beyond man’s control, such as a hurricane or flood, that is used as a clause to get out of liability.

A finance mnemonic for making company financing decisions:  Flexibility, Risk, Income, Control, Timing, Other.  How much debt is prudent to assume?

Fundamental Accounting Equation
Assets = Liabilities + Owners’ Equity

Game Theory
The economic and quantitative study of market behavior based on the experimentation and theories developed about gaming behavior.

Gantt chart
A type of bar chart that illustrates project scheduling developed by Henry Gantt.

Going Concern
The accounting assumption that company financial statements are based on the company continuing to operate.  Assets are not valued at fire sale prices as if they needed to be sold immediately. 

Gross margin
Accounting term to describe the basic profit measure of sales.  Sales less the cost of goods sold without the costs of selling and overheads..

Making one investment to offset the risk of another investment or cost of sales..  

Horizontal integration
Business expansion to businesses at the same level of production, such as an airline combining with another airline, not an airplane manufacturer.

Hurdle rate
The projected return rate at which you would invest in a project to compensate for the level of taken risk in the project.

Inelastic demand
The demand of a product that is very sensitive to price changes.  If the price goes above a level, people are not interested in buying.

Independent variable
A statistical term that describes the variable in an equation that independently drives the value of the equation.  Weather independently drives the sales of ice cream.

Initial public offering IPO
The first sale of stock in a company to the public.

Internal rate of return IRR
The rate of return at which a project’s initial investment yields the projected cash flows. 

International Accounting Standards Board IASB
Balance of payments

Inventory flow diagram
A diagram that displays the conversion of raw materials into finished goods in a graphical way over time.

IS/LM curve
The graph of aggregate supply and demand in an economy.

Journal entries
Entries in the accounting ledger, debits on the left, credits on the right.  Debits increase asset values and expenses.  Credits decrease assets values and increase revenues.

Junk bonds
Risky, lower rated bonds.

Just in time inventory JIT
A production and inventory method of keeping a supply chain of inventory so that you minimize the cost of holding inventory against the cost of being out of stock of the inventory.

Japanese term for constant improvement.

Laffer Curve
A graph that in theory says that a certain point lower taxes creates more revenue for the government.  Or conversely, raising taxes will generate lower government revenues at a certain point.

Learning curve
The theory that a company becomes more efficient the more of an item or process that a factory makes.

Leverage buyout LBO
Financing the purchase a company by having the target company take on debt to pay current owners..

Limited partnership
A partnership structure in which the limited partners’ liability is limited to their investment in the partnership, no more.

Another name for cash and short term investments available to pay for short-term needs.

Marginal propensity to consume MPC
Based on price movements, how motivated are consumers willing to buy.  I am willing to buy a beer for $5, but at $20?

Market risk premium MRP
The general risk that an investment yield to compensate for just being invested in the stock market.

The economic science that studies entire economies of a city, country or the world.

the economic science that studies the supply and demand of individuals, companies and industries.

Market share leverage
The concept that the larger the market share that you have the more power you have to set prices and get lower costs.

Mass customization
A modern operational term where the manufacturing process allows for mass production efficiencies but efficient customization of individual items..

An accounting term that judges the significance of an amount in the financial statements in relation to interpretation to the financial statements as a whole.

Material resource planning MRP
An integrated, comprehensive corporate system for tracking, ordering, production and sales.

Mean, median, mode averages
Mean = Total Value/ Number of Items, Median = middle item when ordered by size, Mode = most of.

Mind mapping
A graphical technique to generate creative ideas.

Monetarist thought
A school of economics that believes that economies are driven by regulating the supply of money.

Monte Carlo simulation
A statistical computer program that provides answers to questions by running many scenarios of a situation to create a probabilistic answer.

Multinational corporation MNC

Multiplier effect
The economic concept that when you spend a dollar it has more affect on the economy than the dollar because that dollar circulates multiple times in the economy.

Multivariable analysis
Statistical modeling technique that attempts to explain a set of data by trying to determine the main variables that drive the data’s behavior.

Naked options
Options that are written by a speculator that does not own the underlying asset of the options.

Net operating profit after tax  NOPAT

Net present value NPV
A dollar held today is worth more than a dollar received in the future.

Net working capital
Current assets less current liabilities

Normal distribution
A statistical graph of data that resembles a bell curve that has predictable shape and statistical significance showing all possible outcomes.

Legal term that means assigning the duties and obligations of a contract to a third party.

Okun’s law
A theory that increases of 2.2% GNP causes unemployment to fall 1%.

A monopoly of a few.

Operating lease
A standard lease where you are renting an asset for a shorter period time that does not qualify as a capital lease, where the lease is really a disguised purchase.

Open market operations
Federal Reserve activities in the open market to either buy or sell bonds.

Optimal capital structure
The optimal combination of equity and debt to finance a company.

Owners equity
The sum of the contributions of shareholders and retained earnings of a company.

Payback period
The amount of time it takes in a project to recoup the initial investment.

Pearson Tukey method
A short cut statistical method to estimate expected values.

PEG ratio
The PE ratio divided by the projected earnings growth rate.

Perceptual mapping
A graphical method of comparing brands based on two criteria such as reliability and stylish.

Phillips curve
A graph showing the relationship of inflation and employment.  Higher inflation to a point is accompanied by higher employment according to Phillips.

I diagram of the shelves at a store showing the products being stocked.

Portfolio strategies
Strategies to juggle the ownership of multiple businesses by a corporation/

Purchase price variance
The variance from budget caused by the variance of the selling price of a product.

Price earnings ratio PE
Price of a stock divided by the earnings per share of a stock, a rough indication of value.

Prime rate
The banking loan interest rate charged to high quality borrowers..

Priority of claims
In a bankruptcy proceeding there is a hierarchy of claims for the assets of the bankrupt company’s assets.

Product life cycle PLC
The life cycle that a product travels from Introduction, Growth, Maturity and Decline.  Depending on where the product is in its life cycle determines how you market the product.

Product involvement
Consumers are highly involved with products that have emotional involvement, investment and other

Privity rules
The parties that actually are named in a contract can bring a lawsuit about a contract.

Sole Proprietorship
The structure of a small business owned by a single owner like a dentist.

The segmentation of consumers based on their psychological variables such as lifestyle and personality descriptions.

The marketing of a product by means of non-paid media attention.

Push strategy
Marketing a product to the channels of distribution to carry a product and promote it on the shelves.

Pull strategy
Marketing a product to consumers and having their demand pull the product through the distribution channels.

Put option
The right to sell and asset or stock at a set price for a fixed period of time.

Quality circles
A Japanese developed method in which production workers gather to improve the production process.

Quantitative easing
A technique used by the Federal Reserve to pump money into the economy by buying Federal debt on the open market.

Queuing theory
The study of lines and waiting times for services so that it can minimize the wait at the least cost with an acceptable waiting time.

Squared measure
A statistical term that tells us what percentage of the variation of the data is explained by a regression equation.

Regression analysis
A statistical method of developing a line equation that explains the behavior of a set of data.

Retained earnings RE
The total of the current and past earnings of a company that have not been distributed to shareholders.

Return on Assets ROA
A measure of productivity of assets.

Return on Sales ROS
A measure of productivity of sales.

Robinson Patman Act
A law that prevents a company from charging different customers different prices, except for the difference in the cost of making and selling to that customer.

An ethics concept that there is no right or wrong, it all relative to the situation the business person finds him or herself.

Sarbanes Oxley Act
A law from 2002 that attempts to legislate ethical behavior in corporations.

Search engine marketing SEM
Marketing on the Internet by purchasing ads.

Search engine optimization SEO
Markeitng on the Internet by optimizing the way a product or service is listed in the search engine results.

Joseph Schumpeter
A famous economists that described the brutal nature of a free market economy as “creative destruction.”

Security market line SML
A graphical concept that says that for a given risk of an investment, there is a required rate of return.  If the market is providing an excess return, the investment is underpriced.

Seven S Strategy
Michael Porter’s theory of an organization’s strategy based on a company’s Structure, Systems, Skills, Style, Staff, Superordinate Goals and Strategy.

Short selling
An investment strategy to sell a stock that you do not own, speculating that the price will decline, and you can profit by buying it at a lower price.

Signaling strategy
A method by which a company communicates with a competitor thought its pricing behavior.

Simplex method
A rather complicated method to solve s series of equations to make business decisions.

Six Sigma
A quality measure regime that attempts to reduce errors and mistakes to a super low rate of occurrence.

Slack time
When planning production, they are the steps of the process that are not extending the length of the whole project’s completion.

Slotting fees
Payments to players in the distribution channels to carry your product, often for space on the shelf.

Adam Smith
A free market economist that believed that supply and demand are the “invisible hand” that drives economies.

Span of control
How many employees a manager directly controls

Payments or incentives paid to sales people to promote and sell your product in the sales channels.

Stakeholder analysis
An ethics related technique to analyze a situation from all the relevant stakeholders points of views, not only the company’s best interests.

Standard Deviation
The measure of dispersion or width of a normal distribution.

Statistical process control SPC
A method of production control that monitors production based on statistical measures of what is acceptable.

Statute of frauds
For important types of contract to be valid they have to be in writing.

Sunk costs
Costs that are incurred regardless of a change in the fact situation.

Supply side economics
The theory of economics that increasing the supply of private capital through reduced taxation expands the economy rather than increased government spending.

SWOT analysis
A marketing strategy technique that considers: strengths, weaknesses, opportunities, and threats.

Systemic risk
The risk of the market as a whole/

Terminal value
The value of an asset created at the end of the projection period.

Three Panel Diagram
An interdependent group of three graphs that explain international economics.

Theory X
Management theory that holds that employees are lazy and management needs to push them and control them to get the most productivity.

Theory Y
Management theory that holds that employees are self-motivated given a chance to participate in management.

An offence against another person or property

Type A personality
The highly motivated, excitable personality.

Type B personality
The mellow, more calm personality

Uniform Commercial Code UCC
A body of case and statutory law that govern business dealings that is recognized in all states.

Unique selling proposition USP
A marketing theory that holds to be successful your product needs to have a unique aspect of differentiation.

Variable costs
Costs that directly vary based on activity level.

Velocity of money
The speed at which money changes hands in an economy.

Vertical integration
Business expansion to businesses closer to the consumer or source of product components such as a computer maker buying a computer reatailer.

Viral marketing
Marketing a product or service by encouraging spontaneous consumer interactions on the Internet.

Weighted average cost of capital WAAC
The average cost of financing a company with debt and equity.

Word of mouth WOM

Yield curve
The graphical representation of interest rates from short term to long term rates.

Z value
A tool to measure probabilities of specific situations and points along a normal distribution curve.