Glossary

A   |   B   |   C   |   D   |  E   |   F   |  I   |   L   |   M   |  N   |  O   |  P   |   R   |  S   |  T   |   V   |  W

A

asset: An item belonging to a company that has a cash value.

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B

balance sheet: A summary of a business' assets and liabilities at any given point in time.

bookkeeping: The work of keeping written records of business transactions.

break-even: The point in a business where revenue from sales exactly equals the fixed costs.

budget: A careful plan that controls spending by allotting specific amounts of money to certain expenses.

business: Voluntary trade; the selling of goods or services for a profit as a means of producing a livelihood.

business plan: A written plan of action for starting and operating a business.

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C

capital: Money or property used to start or grow a business.

cash flow: Money coming in and going out of your business; funds that are available for operating the business.

client /customer: Someone who buys goods or services from you, especially one who buys regularly.

competitor: A business rival who offers similar products or services.

consumer: A person who buys goods for his own needs and not to sell to others.

corporation: A business owned by one or more people who own shares (stock) in the company; this legal entity assumes all responsibility for the business.

cost of goods: Direct expenses to produce, manufacture, or purchase the merchandise or services you sell to customers.

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D

debt financing: A loan that has to be paid back.

display: An exhibit that shows products for sale.

distribute: To deliver products; to buy large quantities of product from a manufacturer and sell to retailers.

diversify: To introduce variety; to branch off into other business interests, products, or investments.

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E

entrepreneur: A person who sees a money-making opportunity, makes a plan, takes the risk, and does the work necessary to start a business.

equipment: Tools or machinery used to do work or create a product.

equity: The monetary value of a property or business after all debts are paid off.

estimate: To make a general guess about size, cost, or value.

evaluation: Careful judgment or an examination of facts for the purpose of improvement or assessment.

expense: Any money spent to operate a business undertaking.

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F

financing: The act of providing funds for business activities, making purchases or investing.

financial: Having to do with money matters and money management.

fixed costs: Business expenses, such as rent and utilities, that are paid each month; operating expenses.

flyer: An inexpensive one-sheet advertisement.

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I

income: Any money received from sales; pay or wages.

income statement: A report that summarizes the revenue, expenses, and profit on a business enterprise.

inventory: Stock of products or goods on hand.

investor: A company or individual who lends or gives money to start or operate a business and expects to earn a profit from the investment.

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L

lender: A company or individual who allows someone to borrow money for a period of time.

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M

manufacturer: A person or company that makes goods or products from raw materials.

marketing: Everything you do to tell customers about your business.

mentor: A wise advisor who meets with you regularly and wants to help you succeed in business.

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N

net profit: The amount of profit left after all the business expenses and taxes have been paid.

networking: Socializing with other businesspeople for the purpose of helping each other achieve goals.

nonprofit: A business with no owners that is operated by a group of people in order to accomplish a worthy cause; a charity.

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O

operating expense: Ongoing expenses to run a business, such as rent or phone.

opportunity: A time that is right; a chance.

organization: A systematic arrangement or plan for a business structure.

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P

partnership: Two or more people who own a business together and share responsibilities.

product: Merchandise or service that your business sells.

profit: The money you have gained from a sale after expenses are paid.

promotion: A sales campaign that attracts customers and contributes to the growth of your business.

proprietor: An owner of a store or business.

prototype: A model of a product or invention.

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R

receipt: A written statement that goods or services have been received and paid for.

retailer: A business that sells products directly to the consumer.

return on investment: The percentage of profit earned by investing in a business.

revenue: All money that comes into your business; income.

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S

sales price: The amount of money the consumer pays for a product.

sales tax: Taxes owed to the city, province, or country on every sale of certain goods and services.

service: Work or labour performed for others in return for a fee.

shareholder: The owner of one or more shares in a company.

skill: An ability gained by experience to do tasks or work.

social entrepreneurship: Act of recognizing a social problem and using entrepreneurial principles to organize, create, and manage a venture to achieve social change.

sole proprietorship: A business owned by one person only.

start-up costs: Expenses or cash investment to start a business.

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T

target customer: Top business prospect who is the main focus of attention.

tenacity: The quality of being persistent and determined.

trade show: An event in which a group of businesses creates temporary advertising displays for viewing by the public.

transaction: Business activity of buying, selling, or exchanging goods.

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V

variable costs: Cost of goods; costs to purchase or manufacture the merchandise or service you sell.

venture: A business or social undertaking in which the outcome is unknown.

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W

wholesaler: A business that buys large quantities of products from manufacturers and sells smaller quantities to retailers for resale.

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