| A | B |
|---|
| Industry | A group of businesses with a common interest. |
| Inflation | A general increase in prices and fall in the purchasing value of money. |
| Inventory | A complete listing of merchandise or stock on hand, work in progress, raw materials, finished goods on hand, etc., made each year by a business concern. |
| Lateral Thinking | Solving problems through an indirect or creative approach. (Ex. Thinking outside of the box.) |
| Marginal Benefit | Measures the advantages of producing one additional unit of a good or service. |
| Marginal Cost | Measures the disadvantages of producing one additional unit of a good or service. |
| Markdown | The amount of money taken off an original price (price * markdown percentage = $ markdown; price – markdown = sales price). |
| Market Analyis | Section of the business plan presents your research on the customer profile gathered from primary and secondary marketing research resources. |
| Market Opportunity | Newly identified need, want, or demand trend that a firm can exploit because it is not being addressed by the competitors. |
| Marketing Objectives | Goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. |
| Mission Statement | A declaration of the specific aspirations of a company, the major goals for which it will strive. |
| Operating Expenses | A category of expenditure that a business incurs as a result of performing its normal business operations. (Ex: Production cost (raw materials, utilities, man hours); Inventory (also, storage and transportation of inventory); Salaries and Benefits; and Advertising and Marketing |
| Opportunity Cost | The cost of choosing one opportunity or investment over another. |
| Overhead Expense | All costs on the income statement except for direct labor, direct materials, and direct expenses. (Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.) |
| PEST | Political, Economic, Social, and Technological Classic situational analysis headings, guaranteed to prompt nods of approval when used in business presentations. |
| Product Mix | All the products a company makes or sells. |
| Promotional Budget | A specified amount of money set aside to promote a business' or organization's products or beliefs. |
| Promotional Material | Any combination of media that provides participants with descriptive information regarding the learning activity. Materials can include brochures, email announcements, website and direct mail, to name a few. |
| Prospect List | Potential customer or client qualified on the basis of his or her buying authority, financial capacity, and willingness to buy. Also called sales lead. |
| Prototype | A working model used by entrepreneurs to determine what it takes to develop their products or services. |
| Publicity Plan | A strategy that is specifically designed to capture the media's attention. |
| Psychographics | Personality, opinions, and lifestyle elements, including activities and interests. |
| Raw Materials | The basic material from which a product is made. |
| Recession | Period of general economic decline, defined usually as a contraction in the GDP for six months (two consecutive quarters) or longer. Marked by high unemployment, stagnant (not increasing) wages, and fall in retail sales, a recession generally does not last longer than one year and is much milder than a depression. Although recessions are considered a normal part of a capitalist economy, there is no unanimity (unity) of economists on its causes. |
| Reverse Engineering | Examining a completed product with the intent of understanding the technology and process used in its design, manufacture, or operation. |
