Top Business Terminologies

Absolute Advantage: Occurs when a country uses the same level of resources to produce more goods than another country

 

Accounting: The recording, analysis and reporting of financial transactions of a business

 

Accounts Payable: Money owed by a company for goods and services purchased on credit from vendors

 

Accounts Receivable: Money owed by customers for goods or services purchased on an open account

 

Accrued Interest: Interest that has accumulated and is added to a loan

 

Adjustable Rate Mortgage (ARM): A mortgage in which the interest rate is adjusted periodically based on a preselected index

 

Advertising: Placement of announcements and persuasive messages (in time or space) communicated through media or non-media forms; used to inform or persuade members of a target market or audience about a good, service, organization or idea

 

Advertising Campaign: Series of coordinated advertising vehicles in various media, scheduled for a certain time period, and related by verbal and/or visual themes or common objectives

 

Advertising Strategy: An overview of the competitive frame, target market and message to be used in an advertising campaign

 

Affiliate Marketing: An on-line marketing strategy that shares revenue between on-line advertisers/merchants and on-line publishers/salespeople; compensation is usually based on performance (sales, clicks, registrations)

 

Agents: Intermediaries who negotiate the purchase or sale of goods for their clients, but who do not take title to the goods

 

Amortization: Payment of a debt that allows the borrower to reduce debt through regular payments over a certain period of time

 

Annual Percentage rate (APR): An interest rate that reflects the cost of a loan as a yearly rate

 

Appreciate: To increase in value or price

 

Asset: Everything owned that has value, including tangible items like cash, accounts receivable, inventory, land, buildings, equipment

 

Audit: An examination and verification of a business's accounting records and procedures by a trained accountant or CPA (certified public accountant)

 

Awareness: First stage in the process of learning about a new good or service that the consumer has gotten information about but not yet formed an opinion on

 

Back order: An item not currently in stock but to be sold or delivered when it becomes available

 

Balance of trade: The difference between a country's total imports and exports

 

Balance sheet: A summary of a company's financial condition at a specific period of time; indicates the company's assets, liabilities and net worth

 

Bankruptcy: A legal process in which a company (or person) owes more than its assets and is relieved from payment of debts by transferring those assets to a trustee

 

Banner ad: A graphical Internet advertising tool; users click on the graphic to be directed to another Web site

 

Behavioral Analysis: An evaluation and control method used to monitor sales force performance; involves evaluating the behavior of salespeople and sales performance

 

Benchmark: Something that serves as the standard to which all other items can be measured or compared

 

Beneficiary: A person who is designated to receive benefits, profits or advantages

 

Beta: A measure of an asset's risk in relation to the market

 

Bill of Lading: A contract between shipper and carrier, detailing what is being shipped, how it is being shipped, and terms of delivery

 

Bill of Materials: Document used by a company to authorize a set of purchases to be made or to be taken from inventory to fulfill an order

 

Blended Payment: A loan payment, consisting of principal and interest, that is the same amount every month

 

Blog: An Internet communication that combines a diary, column and directory; short articles on various subjects with links to other

resources; updated often

 

Blue-Chip Stocks: Common stock of well-known companies with a history of growth and dividend payments

 

Board of Directors: individuals elected by shareholders responsible for managing the president and high-level managers

 

Body Copy: The section of a print ad that contains text and more detailed information than the headlines and subheads

 

Bond: A government- or corporation-issued certificate of debt guaranteeing payment of the original investment plus interest in a certain future date

 

Bond Mutual Fund: Investment Absolute Advantage: Occurs when a country uses the same level of resources to produce more goods than another country

 

Book Value: Total assets minus intangible assets and liabilities; can be more or less than market value

 

Bottom Line: An accounting term for the net profit or loss

 

Brand: A mark, symbol, word or combination that separates one company's product from another's

 

Brand Awareness: Having knowledge that a brand exists; considered first step in the sale process

 

Brand Category: Generic classification of goods or services; like goods or services are in the same brand category

 

Brand Extension: Addition of a new product to an already established line of products under the same brand name; new product benefits from the older products' established reputation

 

Brand Loyalty: Loyalty a consumer has to a specific brand over a period of time

 

Branding: A method of identifying products and differentiating them from competing products

 

Break-Even Point: The level of sales where revenue equals total costs; can also be expressed in terms of units of product

 

Budget Deficit: Point at which spending exceeds revenues

 

Business Cycle: Period of time composed of a business upswing or expansion, peak, downturn, trough and recovery

 

Business Plan: A document fully describing and analyzing a particular business; provides complete, detailed information about

short and long term plans

 

Bylaws: A set of regulations used by an organization to conduct its business company that invests its shareholders' monies in bonds

 

Book Value: Total assets minus intangible assets and liabilities; can be more or less than market value

 

Bottom Line: An accounting term for the net profit or loss

 

Brand: A mark, symbol, word or combination that separates one company's product from another's

 

Brand Awareness: Having knowledge that a brand exists; considered first step in the sale process

 

Brand Category: Generic classification of goods or services; like goods or services are in the same brand category

 

Brand Extension: Addition of a new product to an already established line of products under the same brand name; new product benefits from the older products' established reputation

 

Brand Loyalty: Loyalty a consumer has to a specific brand over a period of time

 

Branding: A method of identifying products and differentiating them from competing products

 

Break-Even Point: The level of sales where revenue equals total costs; can also be expressed in terms of units of product

 

Budget Deficit: Point at which spending exceeds revenues

 

Business Cycle: Period of time composed of a business upswing or expansion, peak, downturn, trough and recovery

 

Business Plan: A document fully describing and analyzing a particular business; provides complete, detailed information about short and long term plans 

 

Bylaws: A set of regulations used by an organization to conduct its business

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