Business glossary

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Random sampling - An unbiased sampling technique in which every member of the population has an equal chance of being included in the sample. Based on probability theory, random sampling is the process of selecting and canvassing a representative group of individuals from a particular population in order to identify the attributes or attitudes of the population as a whole.

Random Walk - A process in which instantaneous changes in exchange rates are normally distributed with a zero mean and constant variance.

Rate of interest - A percentage charged on a loan or paid on an investment for the use of the money.

Rate of return - An accounting ratio of the income from investment to the amount of investment, used to measure financial performance.

Ratio - The relationship of one thing to another. A "ratio" is a short-cut way of comparing things, which can be expressed as numbers or degrees.Business glossary.

Rebating - A sales promotion technique in which the customer is offered a rebate for reaching volume targets.

Receivable - Ready for payment. When you sell on credit, you keep an "accounts receivable" ledger as a record of what is owed to you and who owes it. In accounting, a receivable is an asset.

Recession - A stage of the business cycle in which economic activity is in slow decline. Recession usually follows a boom, and precedes a depression. It is characterized by rising unemployment and falling levels of output and investment.

Reconsignment - In shipping, it is the change in either the name of the consignee, the place of delivery, or relinquishment of the shipment by the carrier at the point of origin.

Recourse - The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse. Business glossary.

Recurring payments - An electronic payment facility that permits a merchant to process multiple authorizations by the same customer either as multiple payments for a fixed amount or recurring billings for varying amounts.

Red Clause - A banking term which refers to a special clause in a letter of credit allowing the seller of goods to obtain an unsecured advance from the issuing bank to finance the manufacture or purchase of the goods.

Redemption - The purchase by a company of its own shares from shareholders.

Redundancy - Dismissal from work because a job ceases to exist. Redundancy occurs most frequently when an employer goes out of business necessitating a cutback in the workforce, or relocates part, or all, of the company.

Refinance - To replace one loan with another, especially at a lower rate of interest.

Refund - The reimbursement of the purchase price of a good or service, for reasons such as faults in manufacturing or dissatisfaction with the service provided.

Reinsurance - A method of reducing risk by transferring all or part of an insurance policy to another insurer. Business glossary.

Repatriation - The act of remitting cash flows from a foreign affiliate to the parent firm.

Replevin - A legal action which entitles the rightful owner of property that has been wrongfully kept from him or her to recover it.

Request For Proposals - A document outlining a government agency's requirements and the criteria for the evaluation of offers.

Rescind - To void or cancel a contract.

Resources - Anything that is available to an organization to help it achieve its purpose.

Response marketing - In e-marketing, the process of managing responses or leads from the time they are received through to conversion to sale.

Response rate - The proportion of subjects in a statistical study who respond to a researcher's questionnaire.  Business glossary.

Retail - Selling directly to the consumer.

Retailing - Businesses and individuals engaged in the activity of selling products to final consumers.

Return On Equity (ROE) - A measure of a corporation's profitability, specifically its return on assets, calculated by dividing aftertax income by tangible assets.

Return On Investment (ROI) - The amount of profit (return) based on the amount of resources (funds) used to produce it. Also, the ability of a given investment to earn a return for its use.

Revaluation - An increase in a currency value relative to other currencies in a fixed exchange rate system. Business glossary.

Revenue - Total sales during a stated period.

Risk Profile - A graph with the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in value (contrast with payoff profile).

Royalty - Payment made for the use of a person or business’s property based on an agreed percentage of the income arising from its use.