Glossary

IMPARTIAL

Open-minded, without pre-determined ideas, and taking all views into account.

IMPERFECT COMPETITION

A market structure where many companies are competing, but each is selling a slightly different product.

IMPLIED TERMS

Contractual terms that exist even if they are not stated in the contract, i.e., the law of the land.

IN-HOUSE

Something conducted within an organization by its own workforce.

IN THE PUBLIC DOMAIN

Generally known either by the public at large, or a certain section of it; readily obtainable outside of the organization.

INCLUSIVE PRICE

Price for the whole amount, including taxes.

INCORPORATED COMPANY

A company that is treated in law as being distinct from its owner.

INCO TERMS

International commercial terms of sale that assign costs and responsibilities between the buyer and seller when delivering products.

INDEPENDENT DEMAND STOCK

Finished products whose demand (ordering levels) is not dependent on other items of stock.

INDEX

A collection of data that can be used for comparison, e.g., The Dow Jones Index.

INDIRECT COST/INDIRECT SPEND

Costs that are not directly incurred in the manufacture of a product or delivery of a service, e.g., insurance.

INDIRECT SUPPLIES

Services, tools and equipment that do not form part of the finished product but are required to maintain the business and production process, e.g., repairs, stationery, consultancy.

INDUCEMENT

Something offered to persuade or influence an individual to conduct themselves or business in a certain way.

INDUCTION

A person’s formal introduction to an organization and its procedures.

INFLATED

Higher than necessary.

INFORMAL SOLICITATION

A solicitation which does not require a sealed response.

INPUT

Resources used in the production of a product or creation of a service that lead to the desired ‘output’ (e.g., people, raw materials, information).

INSOLVENT

Unable to pay the money owed.

INSTITUTE OF CHARTERED ACCOUNTS OF SCOTLAND (ICAS)

The world’s first professional body of chartered accountants.

INSURANCE

A contract between an insurance company and a person or group which provides for a money payment in case of covered loss, accident or death.

INTANGIBLE

Something you cannot physically see or touch.

INTANGIBLE COST

A cost to an organization that is known but cannot be quantified.

INTEGRATED REPORT

A short document about an organization’s features and how this creates value in the short, medium and long term.

INTEREST RATE

The percentage of money that is required to be paid back in addition to money borrowed, or the percentage of money that is gained in addition to money saved.

INTERMODAL

Shipments that utilize different modes of transport, e.g., a shipping container carried by lorry to a dock where it is loaded aboard a ship.

INTERNAL RATE OF RETURN

The means by which an investment or project is evaluated financially. It is the interest rate at which the net present value of cash flows is equal to zero.

INTERNAL STAKEHOLDERS

People, groups or organizations with an inside interest in an organization, including shareholders and employees who own or work for the business.

INTERNATIONAL INTEGRATED REPORTING COUNCIL (IIRC)

A global coalition that promotes reporting about value creation.

INTERPERSONAL SKILLS

Skills used when communicating and dealing with people.

INVENTORY

The stock of goods, materials or products.

INVENTORY MANAGEMENT

The process of ensuring the safe and efficient storage and control of stock, including managing demand and movement.

INVITATION TO TENDER (OR INVITATION TO TREAT) (ITT)

Document inviting potential suppliers to quote for business.

INVOICE

A list of goods or services sent to a purchaser showing information including prices, quantities and shipping charges for payment.

INVOICES

Statements of what has been supplied and a request for payment.

ISO

International Organization for Standardization (www.iso.org).

ISO 14001

This sets out the international standards for an environmental management system.

ISO 26000

This is the international standard developed to help organizations in selecting and addressing their social responsibilities.

ISO 9000

A set of international quality management and quality assurance standards that help companies effectively document and maintain an efficient quality system. They are not specific to any one industry and can be applied to organizations of any size.

ISO 9001

ISO 9001 is a document describing the requirements an organization must fulfill to meet the ISO 9000 standards.

IT NETWORK

A computer network that allows computers or systems to share data.