| A | B |
|---|
| Depression | A state of the economy resulting from an extended period of negative economic activity as measured by GDP. It is often described as a more severe form of a recession that leads to extended unemployment, a spike in credit defaults, broad declines in income and production, currency devaluation and a deflationary economy. |
| Direct Channel | The means of delivering a service or product directly to the customer, such as via a Web site. |
| Direct Competitors | Another company that offers the same products and services aimed at the same target market and customer base, with the same goal of profit and market-share growth. |
| Distribution Channel | The means by which a product or service is delivered to the customer. |
| Economic Crisis | A situation in which the economy of a country experiences a sudden downturn brought on by a financial crisis. An economy facing an economic crisis will most likely experience a falling GDP, a drying up of liquidity and rising/falling prices due to inflation/deflation. An economic crisis can take the form of a recession or a depression. Also called real economic crisis. |
| Economic Factors | Relates to changes such as costs and prices of goods, interest rates, wage rates, exchange rates and the rate of inflation. These all affect the ability of businesses to generate profits and need close monitoring. |
| Economic Sanctions | Domestic penalties applied unilaterally by one country (or multilaterally, by a group of countries) on another country (or group of countries). Economic sanctions may include various forms of trade barriers and restrictions on financial transactions. |
| Economy | Activities related to the production and distribution of goods and services in a particular geographic region; The correct and effective use of available resources. |
| Entrepreneurial Discovery | The process of systematically scanning for technological, political and regulatory, social, and demographic changes to discovery opportunities to produce new goods and services. |
| Environmental Factors | Includes everything that changes the local environment. This includes natural forces like weather and human effects like non-biodegradable litter. Some environmental changes are visible, such as a landslide caused by heavy rains. Other changes are not as easy to see. For example, some geologic change, like sediments becoming sedimentary rock, is too slow for the eye to see. Occasionally, only the effects of environmental change are visible and we have to search to find the cause, as in the receding of glaciers caused by climate change. |
| Environmental Scanning | An analysis and evaluation process that businesses use to understand their current environment. |
| Ethical Behavior | Knowing the difference between right and wrong and consciously choosing to do right. |
| Ethics | Guidelines for human behavior; the study of moral choices and values; choosing between right and wrong. |
| Executive Summary | A brief recounting of the key points contained in a business plan. |
| Feasibility Analysis | The process used to test a business concept. |
| Feature | A physical characteristic or quality of a product. |
| Financial Plan | Presents past and current finances and financial forecasts and explains the assumptions made when calculating forecast figures. |
| Fixed Costs | Costs that must be paid regardless of how much of a good or service is produced. (Ex: Lease, Insurance, salaries) |
| Free Economic System | An economic system where few restrictions are placed on business activities and ownership. In this system, governments generally have minimal ownership of enterprises in the market place. This system aims for limited restrictions on trade and minimal government intervention. |
| Government | The governing body of a nation, state, or community; the system by which a nation, state, or community is governed. |
| Gross Margin | The difference between revenue and cost of goods sold, or COGS, divided by revenue, expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (production or acquisition costs, essentially). |
| Gross Profit | A company's revenue minus its cost of goods sold. |
| Growth Plan | Looks at how the business will expand in the future. |
| Incorporation Fees | The fee you must pay to the state or government to corporate a business. |
| Indirect Channel | The means of delivering a service or product indirectly to the customer, such as through a wholesaler. |
