| A | B |
|---|
| Bequests | gifts made in a will. |
| Cost | the expense required to acquire or produce something. |
| Endowment | a pool of donated money that is usually invested. The investment earnings are used to fund an organization’s goals. |
| not-for-profit organization | an organization formed to provide a public service not operated solely for the purpose of making a profit. |
| Profit | money earned after expenses are subtracted from revenue. |
| profit margin | a measure of a company’s profitability usually measured as a percentage which is calculated by dividing profit by revenue. |
| Revenue | Total sales from goods and services before expenses and taxes. |
| Accountant | A professional who measures and assesses financial information for an individual or firm. |
| cash flow cycle | The cycle of purchasing inventory and then converting that inventory back into cash through sales. |
| chief financial officer (CFO) | The corporate officer responsible for financial risks record keeping and financial reporting in a firm. |
| Expenses | All business costs. These are deducted from revenue to determine net income (profit or loss). |
| financial manager | An analyst who studies financial information for a firm ranging from cash flow analysis to profit forecasting. |
| intangible product | Something bought and sold that cannot be touched—example: legal advice. |
| net income | A firm’s profit or loss for a period—calculated by subtracting expenses from revenue. |
| product development cycle | The process of bringing a new product to market including engineering and market research. |
| Obsolescence | The decline of a product in the market due to the introduction of better competitor products or rapid technology developments. |
| Revenue | Total sales from goods and services before expenses and taxes. |
| tangible product | Something bought and sold that can be touched—example: a computer. |
| Tax | “A charge (expense) imposed by tax jurisdictions, including city, county, state, and federal. |
| Utility | “The satisfaction one receives from a good (a product, service or combination) |
| Bond | A long-term debt instrument that is issued by a government or corporation for a specific amount of time for the purpose of raising capital. |
| business life cycle | “The stages that a business moves through , from an idea through startup, growth or takeoff, maturity, decline, and closing down (cessation of operation).” |
| Buyout | A transaction in which an employer makes a lump-sum payment to compensate an employee for leaving or retiring early from a job. |
| Capital | “Any form of wealth that can be used to create more wealth |
| cessation of operation | The final stage of the business life cycle, in which owners either sell or close down the company.” |
| Corporation | A legally recognized form of organizing a business that protects its owners from being personally responsible for business debts. |
| Debt | “Owing money, goods or services to someone else" |
| Entrepreneur | “A person who takes initiative in business, organizes and manages business resources and operations, and assumes the risks of the business.” |
| Finance | The science of the management of money and the allocation of assets and liabilities. |
| intangible product | Something bought and sold that cannot be touched—for example: legal advice |
| intellectual property | “Intangible property that is a result of something created by the mind—for example: trademarks and patents |
| Interest | “ money paid for the use of another person’s money" |
| interest (ownership interest) | Ownership of all or part of a business or property. |
| Liability | Legal responsibility for damage or for debt. |
| limited liability company (LLC) | A legal form of organizing a business that limits the owner’s personal liability for business debts. |
| Liquidation | Selling a business capital item such as machinery in order to have access to ready cash. |
| Marketplace | “The world of business, trade, and economics." |
| market share | The percentage of total industry sales that a single company makes on a particular product. |
| Partnership | A legal form of organizing a business in which owners share profits and are personally responsible for debts of the business. |
| Principal | The money originally invested or the amount borrowed on which interest is calculated. |
| Prototype | An experimental model of a product. |
| sole proprietorship | A legal form of business organization in which a single individual is personally liable for business debts. |
| Stock | A share of the ownership of a corporation. Companies sell stock (or shares) to raise money to expand. Generally companies that are sold on the public stock exchanges will increase in value as the firm performs better—and will decrease in value if the firm does poorly. |
| Strategy | Top management’s game plan for achieving targeted, long-term objectives. |
| Valuation | Estimating the value or worth of something (such as a building or machinery owned by a business). |
| venture capital firm | A firm with access to a great amount of capital and expertise to help your firm in exchange for a substantial ownership stake. It only invests in firms that offer the prospect of becoming very profitable. |
