cram words 1- 105 Flashcards
focus group
a controlled group interview of a target audience demographic, often led by a facilitator. A set series of questions or topics are covered and the results are used to guide marketing efforts
Down payment
A good faith deposit made by a buyer to underline his or her commitment to complete the deal.
Buying on margin
Purchasing an asset by making a down payment (called the margin) and financing the balance amount through a loan by using the asset as the collateral.
downsizing
intentional reduction in the size of a workforce at all staffing levels, to survive a downturn, improve efficiencies.
marginal cost
Cost to produce an extra unit.
Marginal Benefit
Benefit to produce an extra unit
Rationalization
Selling off or closing down some plants or units to reorganize a firm’s operations to be more in line with its core competencies, in the interest of efficiency or as a cost cutting measure. Often used as a euphemism for firing employees.
footprint rationalization
removal of redundant and inefficient operation
asset rationalization
matching a firm’s investment in various types of assets to its projected requirements, for achieving optimum returns on the sums invested.
core product
Dominant intangible benefit or satisfaction a customer expects from a good or service he or she buys.
absorption
integration of an account (called absorption account) into related accounts in preparation of a financial statement. INtegration of change and innovation into an organization’s culture and operations.
general ledger
Central repository of the accounting information of an organization in which the summaries of all financial transactions (culled from subsidiary ledgers) during an accounting period are recorded. Also called the book of final entry, it provides the entire data for preparing financial statements for the organization.
Financial statement
summary report that shows how a firm has used the funds entrusted to it by its stockholders and lenders and what is its current financial position. (Balance sheet, income statement, and cash flow statement)
Augmented product
core product to which additional products and services may be added to generate multiple revenue streams.
Platform product
Appliance or equipment whose basic design and some components are used in several products of a product family.
Balance Sheet
Condensed statement that shows the financial position of an entity on a specified date. (It states what assets the entity owns, how it paid for them, what it owes, and what is the amount left after satisfying the liabilities.
Asset
Something valuable that an entity owns, benefits from, or has use of, in generating income.
Intangible assets
They derive their value from intellectual or legal rights, and from the value they add to the other assets. (Limited-life intangible assets, such as patents, copyrights, and goodwill. /Unlimited-life intangible assets, such as trademarks.)
Tangible assets
Cash, equipment, machinery, plant, property– anything that has long-term physical existence or is acquired for use in the operations of the business and not for sale to customers.
corporeal ownership
ownership of tangible assets such as land, buildings, and money
Cashout
paying-off an existing loan on a property by taking another (usually larger) loan against it.
Amortization
Gradual repayment of a loan in equal (or nearly equal) installments which include portions of interest and principal amounts.
Drag on return
Reduction in returns from an investment (such as in a mutual fund) due to management expenses, charges or fees, and capital gains tax.
Cash flow statement
Summary of the actual or anticipated incomings and outgoings of cash in a firm over an accounting period. It answers the questions Where the money came from? Where it went (will go)?
Indirect cash flow statement
Begins with the net income figure taken from the income statement and then makes several adjustments which fall under three main headings (expenses not involving cash outflows, cash outflows not recorded as expenses, revenues not involving cash inflows.)
Direct cash flow statement
Begins with cash provided by the sales from which cash paid for operating expenses is deducted to arrive at the net cash flow from operating activities.
S corporation
Type of the US corporate structure in which the firm’s income is passed through its stockholders (shareholders) in proportion of their investment, and taxed at personal income tax rates. S corporations (s stands for small) can have only one type of stock and only a limited number of stockholders. Also called subchapter S corporation.
C corporation
US business organization structure that provides several non-tax benefits (such as limited liability for the owners) and is popular as a staging base for raising large amount of investment capital by going public. Unlike in a S corporation, however, the entity’s income is taxed twice– first as a corporate income, then as a shareholder income.
Memorandum
Document used generally in syndicate financing of projects to define the work and to detail its financing arrangements.
Proprietorship
Type of business organization where one person or a family owns the firm.
Sole proprietorship
Simplest, oldest and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise. Most popular, least record keeping, minimal regulatory controls, and avoidance of double taxation.
Limited liability
Relatively recent type of US business structure that combines the limited personal liability feature of a corporation with the single taxation feature of a partnership or sole-proprietor firm. Its profits and tax benefits are split any way the stockholders/shareholders choose.
“A” round
a financing event whereby venture capitalists become involved in a fast-growth company that was previously financed by founders and/or angels.
Accredited investor
A person or legal entity such as a company or trust fund, that meets certain net worth and income qualifications and is considered to be sufficiently sophisticated to make investment decisions in complex situations. Regulation D of the Securities Act of 1933 exempts accredited investors from protection under the Securities Act.
After-tax operating income
A company’s total operating income after taxes. This non-GAAP measure excludes any after-tax benefits or charges such as effects from accounting changes.
