An acronym is a word formed from the first (or first few) letter of each word in a compound term. Periods are not used within acronyms.
LAN - Local Area Network
radar - radio detecting and ranging
RICO - Racketeer Influenced and Corrupt Organizations (Act)
scuba - self-contained underwater breathing apparatus
Note: Spell out an acronym the first time you use it, followed by its abbreviation in parentheses. Once the acronym has been identified in this way, you may use just the abbreviation.
(From Write for Business, page 215, and Proofreader's Guide PDF, page 27)
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