Fixed Cost

Refers to the production costs which tend to be unaffected by variations in the volume of output.

Franchise

A type of licensing arrangement in which an organization sells a package containing a trademark, equipment, materials, services owned by another organization.

Dumping

Means the sale of a good in a foreign market at a price below its marginal cost.

Dividend Warrant

A draft issued by a limited company and made payable to a shareholder for the amount of dividend due to him for a stated period.

Del Credere Agent

An agent who, in return for a higher rate of commission, guarantees that his principal will receive payment for the goods he has sold on his behalf.

Departmentalization

Division of a company into departments that are similar and logically connected.