Finance Business Terms

Question 1

Incentivize

Answer 1

Provide an incentive (a motivation) for using a product or service.

Question 2

Monetize

Answer 2

Make money from a product or activity.

Question 3

Deliverable

Answer 3

The quantifiable goods or services that must be provided upon the completion of a project. Deliverables can be tangible or intangible in nature.

Question 4

Margin

Answer 4

Profit from a product or service after all expenses have been covered. Often referred to as a percentage.

Question 5

Accounts Payable

Answer 5

A record of the money you owe to the people and businesses that helped you create your product or service.

Question 6

Accounts Receivable

Answer 6

A record of the money that other people and businesses owe to you.

Question 7

Capital

Answer 7

Capital often refers to money, but it can also be used to refer to everything your business owns and uses to function (e.g., equipment, vehicles, buildings, land, etc.).

Question 8

Fixed Costs

Answer 8

Costs you must pay whether your business is doing well or not. Expenses such as utilities, rent, and employee salaries are considered fixed costs.

Question 9

Variable Costs

Answer 9

Variable costs are expenses that fluctuate based on your volume of business. They include:

Shipping
Commissions
Supplies
Hourly wages

Question 10

Gross

Answer 10

Gross refers to the total amount or quantity BEFORE deductions or expenses.

Question 11

Net

Answer 11

Net refers to the amount or quantity AFTER deductions or expenses.