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FINANCIAL DICTIONARY & GLOSSARY: PRI -
- the amount of a loan, which the borrower has to pay back when the
loan matures; a person who engages a broker to buy and sell for him.
private limited companies - (in Britain) cannot offer shares to the public; their owners can only raise capital from friends, banks or venture capital institutions (see also public limited company).
private sector - businesses owned by private investors (as opposed to the government).
privatize or denationalize - to sell a publicly owned industry to private investors.
process cost accounting - is used to determine the cost of continuously processed products, over a given time period.
producer market - see industrial market.
production function - the mathematical relation between the maximum output of a good and the amount of inputs needed to produce it.
productivity - the amount of output produced in a certain period, using a certain amount of inputs.
profit - the difference between the price received for a product and its cost (the price of the factors of production used to make it); excess of revenues over expenses; an entrepreneur's reward for using factors of production in economic activity.
profitability - the ability of a business to earn profits (to be profitable).
profit and loss account - (in Britain) financial statement which shows the profit or loss made by a company during the accounting period.
profit margin - see return on sales.
profit motive - the belief that the function of business is to make as much profit as possible.
profit sharing - system in which an agreed proportion of a company's profits is paid to employees (as well as wages and salaries).
progressive taxation - is levied at a higher rate on higher incomes.
pro-forma invoice - an invoice sent to a customer so that it can bc paid before the goods are supplied.
proprietary ratio - see gearing.
prospectus - document inviting -the public to buy shares, stating the terms of sale and giving information about the company.
protectionism - the practice of restricting imports in order to increase the sales of domestic products.
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FINANCIAL DICTIONARY & GLOSSARY
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