| A | B |
|---|
| Aptitude | The ability to learn a particular kind of job. |
| Brainstorming | A creative problem-solving technique that involves generating a large number of fresh ideas. |
| Employees | People who work for someone else. |
| Entrepreneurs | People who own, operate, and take risk of a business venture. |
| Entrepreneurship | The process of running a business of one's own. |
| Ideas | Thoughts or concepts that come from creative thinking. |
| Opportunities | Possibilities that arise from existing conditions. |
| Problem-Solving Model | Six steps that help people resolve issues in a logical manner. |
| Self-Assessment | Evaluation of your strengths and weaknesses. |
| Trade Shows | Special meetings at which companies display their products. |
| Business Plan | A document describing the steps for opening and operating a business. |
| Cover Letter | A document introducing an accompanying document or set of documents. |
| Executive Summary | A short restatement of a report. |
| Pro Forma Financial Statement | A statement based on projected revenues and expenses. |
| Service Corps of Retired Executives (SCORE) | Former business leaders who provide entrepreneurs with advice. |
| Small Business Administration (SBA) | An agency of the federal government that helps Americans start, build, and grow businesses. |
| Small Business Development Centers (SBDC) | Provides management assistance to current and prospective small business owners. |
| Statement of Purpose | A brief explanation of why you are asking for a loan and how you will use the money. |
| Trade Associations | Organizations made up of professionals in a specific industry. |
| Board of Directors | Group of people who meet several times a year to make important decisions affecting the company. |
| Business Broker | A person who sells businesses for a living. |
| Corporation | A business with the legal rights of a person. |
| Dividends | Distributions of profits to shareholders by corporations. |
| Franchise | A legal agreement that gives an individual the right to market a company's products or services in a particular area. |
| Franchise Fee | The fee the franchise owner pays in return for the right to run the franchise. |
| Liability | The amount owed to others. |
| Partnership | A business owned by two or more people. |
| Royalty Fee | Weekly or monthly payment made by the owner of the franchise to the seller of the franchise. |
| Share of Stock | A unit of ownership in a corporation. |
| Sole Proprietorship | A business owned exclusively by one person. |
| Valuator | An expert on determining the value of a business. |
| Advertising | Paid form of communication by a business about a product or service. |
| Channels of Distribution | Routes that products and services take from the time they are produced to the time they are consumed. |
| Direct Competition | Competition from a business that makes most of its money selling the same or similar products. |
| Indirect Competition | Competition by a business that makes only a small amount of its money selling the same or similar products or services as another business. |
| Market Research | A system for collecting, recording, and analyzing information about customers, competitors, goods, and service. |
| Market Share | Percentage of a market owned by a business. |
| Marketing | A set of processes-planning, pricing, promoting, distributing, and selling-used to satisfy the needs of customers. |
| Marketing Mix | A blending of the four marketing elements of product, price, distribution, and promotion used to reach a target market. |
| Marketing Plan | A written document that defines a business's market, identifies its customers and competitors, outlines a strategy for attracting and keeping customers, and identifies and anticipates change. |
| Marketing Strategy | A plan that identifies how a business's goals will be achieved. |
| Product Mix | The different products and services a business sells. |
| Publicity | A nonpaid form of communication that calls attention to your business through media coverage. |
| Target Market | Individuals or companies that are interested in a particular product or service and are willing and able to pay for it. |
| Bonus | A financial reward made in addition to a regular wage or salary. |
| Commission | A percentage of a sale paid to a salesperson that varies from month to month, depending on how much of a product or service is sold. |
| Delegate | To let other people share workloads and responsibilities. |
| Job Analysis | The process of determining the tasks and sequence of tasks necessary to perform a job. |
| Job Description | A written statement listing the tasks and responsibilities of a position. |
| Organizational Structure | The relationship between various jobs in an organization. |
| Performance Appraisal | A management control tool that helps determine whether the objectives for a particular job are being met. |
| Profit Sharing | A compensation arrangement in which employees are paid a portion of the company's profits. |
| Recruit | To look for people to hire and attract them to your business. |
| Salaries | Fixed payments for labor or services stated on an annual basis. |
| Wages | Payments for labor or services that are made on an hourly, daily, or per-unit basis. |
| Assets | Items of value owned by a business. |
| Collateral | Property that a borrower forfeits if he or she defaults on a loan. |
| Debt Capital | Money loaned to a business with the understanding that the money will be repaid, with interest, in a certain amount of time. |
| Depreciation | The lowering of the value of an asset to reflect its current value. |
| Equity Capital | Money invested in return for a share of the business's profits. |
| Liabilities | The amount owed to others. |
| Operating Expenses | Expenses incurred by a business every month. |
| Owner's Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| Shoplifting | The act of knowingly taking items from a business without paying for them. |
| Startup Costs | One-time only expenses that are paid to establish a business. |
| Venture Capitalists | Individuals or companies that make a living investing in startup companies. |
| Workers' Compensation | A type of insurance that covers medical expenses incurred as a result of work-related injuries. |
