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Transportation and Business Terms

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1. operating assets: Long-term, or non-current, assets acquired for use in the business rather than for resale; includes property, plant, and equipment; intangible assets; and natural resources.

2. operating expenses: Those expenses incurred in the normal operation of a business, excluding interest expense and one-time charges. Also referred to as Overhead. Note that operating expenses are not included in the cost of goods sold.

3. operating lease: A simple rental agreement.

4. operating performance ratio: An overall measure of the efficiency of operations during a period; computed by dividing net income by net sales.

5. operating ratio: A measure of profitability based on operating expenses as a percentage of gross revenues.

6. option: Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Buyers of call options bet that a stock will be worth more than the price set by the option (the strike price), plus the price they pay for the option itself. Buyers of put options bet that the stock's price will drop below the price set ...

7. organizational structure:  Lines of authority and responsibility.

8. other revenues and expenses:  Items incurred or earned from activities that are outside, or peripheral to, the normal operations of a firm.

9. outstanding stock:  Issued stock that is still being held by investors.

10. overage:  Excess freight over the quantity believed to have been shipped, or more service.

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