Business Acumen Flashcards
Ratio of net income (gross sales minus expenses and taxes) to net sales
Net profit margin
Document that defines the output customers can expect
Service level agreement
Money an organization’s customers owe the organization
Accounts receivable
Ratio of gross profit to net sales
Gross profit margin
Statement that reports revenues, expenses, and profits for a specified period of time
Income statement
Applications that can analyze data faster and in more ways than traditional relational databases, offering a multidimensional analysis of business data
Analytical processing
Organization’s debts and other financial obligations
Liabilities
Money an organization owes its vendors and suppliers
Accounts payable
The process by which an organization creates the product or service it offers to the customer
Value chain
Statement of an organization’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity
Balance sheet
Performance management tool that depicts an organization’s overall performance, as measured against goals, lagging indicators, and leading indicators
Balanced scorecard
Business management software, usually a suite of integrated applications that a company can use to collect, store, manage, and interpret data from many businesses activities
Enterprise Resource Planning (ERP)
The benefit created when an organization meets its strategic goals; measure of usefulness, worth, or importance
Value
Amount of shareholders‘ or owners’ portion of the business
Equity
Statement of an organization’s ability to meet its current and short term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing
Cash flow statement
