Business Terms to use in structures

Question 1

QA Team

Answer 1

Quality Assurance team - used for ensuring quality during things like switching to automation, or launching a new product.

Question 2

Churn Rate

Answer 2

Annual % rate at which subscribers stop subscribing; important to consider in cases involving businesses with subscription business models.

Question 3

Financing from reserves, debt?

Answer 3

A question to ask when we consider financials of an investment. Do we have financing available?

Question 4

Opportunity Cost

Answer 4

Important question in Investment Cases; is there a better use of capital?

Question 5

Common Fixed Costs

Answer 5

Depreciation
Interest
Amortization
Insurance
Salaries
Overhead
Rent
Storage
Equipment

Question 6

Common Variable Costs

Answer 6

Direct materials
Labor
Credit card fees
Fuel
Food/drinks

Question 7

Amortization

Answer 7

The deduction of capital expenses over a period of time over an intangible asset

Important to consider with cases that involve Patents.

Question 8

Depreciation

Answer 8

How much an assets value has been used up for tangible assets

Important in cases that might involve equipment, machinery, and buildings

Question 9

Severance

Answer 9

In firing someone, the action of ending that relationship

Consider in cases that involve layoffs through automation or other means