Incomes regardless of size.

promotional tools: material used in promotion, such as dis­play material and sales literature.

prospectus: a statement containing pertinent financial infor­mation published when a corporation is about to issue new securities.

protective tariff: tariff levied to protect a domestic industry from foreign competition (see revenue tariff).

proxy: a written authorization transferring voting rights to another at a stockholders* meeting.

public utilities: privately owned firms that provide an essen­tial public service and are subject to government regula­tion.

purchasing power: value of money.

push strategy: attempt by a manufacturer to push the prod­uct towards the customer.

put: an option to sell a certain amount of stock at a specific price during a specific time.

Q

qualification: something such as a degree or a diploma that . you get when you successfully finish a course of study.

quality circles: small, voluntary groups of employees who meet regularly to identify and solve work problems.

quality control: maintaining acceptable and dependable lev­els of quality in production.

quotas: restrictions on the number of goods that can enter the country from abroad.

_R

raise: collect money for a particular purpose, get a loan from a bank.

rate of exchange: the price at which a particular currency sells in terms of other currencies. \

rate of inflation: annual percentage increase in the general level of prices.

rate of return: the amount of interest or dividends stated as a percentage of the principal of an investment.

rational appeals: rely on logic or reason to convince the con-- sumer to buy a product.

raw materials: raw as in unfinished. The stuff finished prod­ucts are made of.

real GNP: GNP adjusted for changes in the price level; the value of goods and services produced in the nation in a given year.

recession: the bottom of the business cycle; a period of low business activity and high unemployment. A time when business is slow, people lose jobs and sitting presidents worry about their re-election prospects as people tend to blame them for economic woes. Technically speaking, six months or more of a decline in the gross domestic product.

regional exchanges: national securities exchanges (not in New York City). These exchanges are registered with the U.S. Securities and Exchange Commission. Chicago has one.

regressive tax: one that takes a higher percentage of a low income and a lower percentage of a high income.

rent: return paid to those who supply the factor of production known as land.

research and development (R&D): activity directed toward

discovering new products and processes, reserve ratio: the proportion of a bank's deposits that must be

kept on reserve at the Federal Reserve bank or in its own

Vaults.

reserve requirements: set by the Federal Reserve, these rules require member banks to keep a certain amount of cash and other liquid assets on hand or at a nearby Federal Reserve bank. The amount is stated as a percentage of deposits. The rules help the Fed control lending and the nation's money supply.

reserves: fixed portion of bank's deposits that cannot be loaned.

resources: anything used as an input in the creation of goods and services.

retail margin: the difference in price between what retailers pay for a product and what they sell the product at.

retailer: person who runs a retail business, selling goods direct to the public.

retail price: price at which the retailer sells to the final cus­tomer.

retained earnings: undistributed profits, often used to finance major projects. What's left of earnings after div­idends are paid. These are cumulative; they're additions to capital earned since a company's birth, return on owners' equity: a measure of profitability. Net