| A | B |
|---|
| Profit | Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid |
| Resources | Any item that is used to accomplish another activity, such as producing/providing goods and services |
| Return on equity | Financial ratio calculated by dividing net income by book value |
| Return on investment | Financial ratio calculated by dividing net profit by investment |
| Risk management plan | A business document that involves the planning, controlling, preventing, and procedures involved in limiting business losses; optimizes the relationship of potential loss to gain |
| Royalties | A percentage of actual sales that a licensee pays to a licensor; usually anywhere from 5 to 15 percent |
| Sales volume | The amount of a firm’s sales; usually expressed in dollars |
| Strategic plan | Long-range plan for the company as a whole; usually three to five years out |
| Table of contents | The portion of a document in which the sections are listed with their page numbers for easy access |
| Strategy | Plan of action for achieving goals and objectives |
| Target market | The particular group of customers a business seeks to attract |
| Venture | A business or business project, usually new |
