Basic Business Terms Flashcards
Accounts Payable
Outstanding business obligations owed to others.
Accounts Receivable
Outstanding obligations owed to business by others
Accounting
A system that provides quantitative finance information.
Assets
Value of everything a company owns and uses to conduct business
Business
Organization that operates with intention of making profit
Business Plan
Ability to create business goals, how they are to be attained and plan to achieve them.
Business to Business (B2B)
One business sells goods/services to another business
Business to Consumer (B2C)
A business sells goods/services directly to the end user/consumer
Cash Flow Statement
Picture of all cash inflows and outflows within the business
Company
Considered a business that has employees
Contract
Formal agreement to do work for pay.
Delivery
When product is delivered to customer completely finished.
Depreciation
Degrading value of an asset over time
E-Commerce
Buying/selling over the internet
Employee
A person working for a company
Entrepreneur
Someone who organizes, manages and takes on risk of starting a new business.
Expense
Money spent on supplies, equipment or other investments.
Finance
Management and allocation of money and other assets
Fixed Cost
One-time expense that DOES NOT vary with business volume.
Gross Profit
Percentage of business income before expenses.
Industry
A category of like/similar businesses.
Just In Time (JIT)
Strategy to improve business return on investment (ROI) by creating new plan to obtain better return and reduce inventory and cost.
Also by eliminating or improving areas of poor performance.
Liabilites
Value of what a business owes to someone else
Management (verb)
Act of organizing and conducting a business to accomplish goals and objectives.
Marketing
Process of promoting, selling and distributing a product or service.
Net Income/ Profit
Revenues minus expenses
Net Worth
Total value of a business
Payback Period
Amount of time it takes to recover the initial investment of a business.
Payroll Taxes
Monies required by law to be withheld from an employee paycheck each pay period.
Includes Social Security, Medicare, federal income tax, state unemployment tax and state income tax.
Product/Good
Something produced or manufactured to be sold
Profit Margin
Ratio of profit divided by revenue displayed as a percentage.
Quality Assurance
Management of materials and services quality for keeping high standard of performance (Ex: Acquiring proper data collection from patients, including history and insurance information)
Return On Investment (ROI)
Measurement of project success (the percent of profit earned on an investment).
Revenue
Entire amount of income before expenses are subtracted
Sales Prospect
Potential customer
Service
Work done for pay that benefits another.
Supplier/ Vendor
Person or company that provides goods/services needed to do a job
Target Market
Specific group of customers at which a company aims its products/services
Variable Cost
Expenses THAT CHANGE in proportion to the activity of a business
