Business glossary

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Umbrella Rate - In shipping, the umbrella rate is a rate system designed to protect less competitive carriers by setting artificially high minimum rates.

Unbalanced growth - The result when not all sectors of an economy can grow at the same rate.

Unbiased Expectations Hypothesis - The hypothesis that forward exchange rates are unbiased predictors of future spot rates (see forward parity).

Unbundling - Dividing a company into separate constituent companies, often to sell all or some of them after a takeover.

Uncertainty analysis - A study designed to assess the extent to which the variability in an outcome variable is caused by uncertainty at the time of estimating the input parameters of the study.

Uncertainty Avoidance - The extent to which a society tolerates uncertainty and ambiguity. Business glossary.

Undelivered Orders - The amount of orders for goods and services outstanding for which, the liability has not yet accrued. For practical purposes represents obligations incurred for which goods have not been delivered or services not performed.

Undervalued - Used to describe an asset that is available for purchase at a price lower than it is worth.

Underwrite - To assume risk, especially for a new issue or an insurance policy.

Underwriter - A person or organization that buys an issue from a corporation and sells it to investors.

Unearned income - Income received from sources other than employment.

Unemployment Rate - The ratio of the total number of unemployed persons to the total number of persons in the labor force.

Unfair Labor Practice - Action by either the employer or union which violates the provisions of EO 11491 as amended.

Uniform Commercial Code - Codification of uniform laws concerning commercial transactions. In SBA parlance generally refers to a uniform method of recording and enforcing a security interest or charge upon existing or to be acquired personal property.

Unit - A collection of securities traded together as one item.

Unit of trade - The smallest amount that can be bought or sold of a share of stock, or a contract included in an option.

Unlimited liability - Full responsibility for the obligations of a general partnership. Business glossary.

Unlevered Beta - The beta (or systematic risk) of a project as if it were financed with 100 percent equity. Also known as systematic business risk.

Unlevered Cost of Equity - The discount rate appropriate for an investment assuming it is financed with 100 percent equity.

Unsecured debt - Money borrowed without supplying collateral.

Unsystematic Risk - Risk that is specific to a particular security or country and that can be eliminated through diversification.

Upsell - To sell customers a higher-priced version of a product they have bought previously.

Used credit - The portion of a line of credit that is no longer available.

Usury - Interest which exceeds the legal rate charged to a borrower for the use of money.