MrNeuron - Business Vocabulary

Question 1

Profit?

Answer 1

Profit is the amount of money left over after a company pays all of its bills. Revenue minus cost equals profit.

Question 2

Revenue?

Answer 2

Revenue is the amount of money a company collects from its customers.

Question 3

Cost?

Answer 3

Cost is the sum of all the expenses for a company.

Question 4

Stakeholders?

Answer 4

In business, those who will be impacted by the decisions we make, they’re called stakeholders. Customers, employees, owners, investors, upper-level managers, and other fellow employees. They’re all stakeholders that always need to be considered.

Question 5

Cross-functional teams?

Answer 5

Small, well-managed teams made up of very different people with very different skills.

Each of those functional experts brings different skills, different problem-solving techniques; each is creative in their own way, each judges success in a different way.

Question 6

Procurement and materials management.

Answer 6

Procurement and materials management are the segments to the company that finds suppliers, purchase the materials and then make sure that this inventory is stored and used effectively.

Question 7

Logistic Manager.

Answer 7

Logistics managers are tasked with making all sorts of decisions that balance cost, speed, and customer satisfaction.

Question 8

Reverse logistics.

Answer 8

Reverse logistics deals with returned items, items requiring repair that need to be sent to a repair center, and reusable and recyclable packaging.

Question 9

Target Market.

Answer 9

People that you’re capable of satisfying while still earning a profit. That way they’re happy and you’re happy.

Question 10

Debt Financing.

Answer 10

Options for borrowing the money. Common types of debt financing include loans and bonds.

Question 11

A Loan.

Answer 11

A loan is a transaction where a borrower gets money from a lender and agrees to repay the money in a certain amount of time. The lender could be a bank, a friend, a family member, or even a credit card company.

Question 12

Secured Loan.

Answer 12

The Loan in which borrower pledges some asset as collateral as the loan.

Question 13

Bond.

Answer 13

Bonds are essentially small-scale loans from investors.*

Question 14

Whose responsibility is it to keep track of the money flow?

Answer 14

Keeping track of the money flow is the job of accounting. They’re responsible for tracking money coming in from customers, money going out to employees and suppliers, and they’re also responsible for keeping track of money flowing inside the organisation from one department to another.

Question 15

Managerial Accountant.

Answer 15

Managerial accounting keeps track of where all the money goes. This is important to people inside the company. This helps with budgeting. It helps us keep track of departments that are using money wisely, and it also tells us where there might be waste. Managerial accounts are the ones that tell us how much it costs to make and deliver a $2,000.00 television to the consumer. So, managerial accountants help managers inside the organisation measure costs of production, marketing, and everything else that goes on inside the company.

Question 16

Financial Accountant.

Answer 16

Financial accountants are tasked with developing reports for people outside of the organisation.Why is this important? It informs people about our company’s financial status. That’s important for anyone considering investing in the company, and for organisations that might consider lending money to us. Plus, government agencies, special interest groups, employee unions, law enforcement, and sometimes even customers are interested in knowing about the financial activities as well as the financial stability of the organisation.

Question 17

Assets.

Answer 17

Cash, savings, retirement accounts, your home, your car, and other property. We’d total it up. Those would be your* assets.

Cash and investments, machines and furniture, buildings and land, and also vehicles. For the most part, those are tangible assets, but you’d also include intangible assets, like patents, trademarks, and copyrights.

Question 18

Liabilities.

Answer 18

Now, for most of you, you’d also owe money. Bills, power, water, cellphone. We’d also add in credit cards, car loans, student loans, your mortgage. Those are your liabilities.

Companies have bills. They pay off loans like you and I, but they might also have to make payments on bonds they issued to investors.

Question 19

Owner’s Equity.

Answer 19

Corporate assets minus corporate liabilities. That gives us owner’s equity. Again, just like with our net worth, sometimes companies have positive owner’s equity.

Question 20

Income Statement.

Answer 20

In order to measure and report their annual profit, companies will develop an income statement. An income statement adds up all sales and then subtracts all sorts of costs and taxes. One important thing to remember is that an income statement is an annual statement.

Question 21

Business Plan.

Answer 21

A business plan is a formal statement defining your business goals, the reasons you think they can be achieved, and how you’re going to achieve them.

Question 22

Financial Model.

Answer 22

The purpose of a financial model is to set short-term targets to keep you focused, track costs, monitor cash, and to see if you have a viable business.

Question 23

Burn Rate.

Answer 23

This is how much cash you use each month, and know your runway, or how long you have before you need to shut down.

Question 24

Trade Secrets.

Answer 24

These are defined as confidential information that gives a business its competitive edge.

Question 25

Trademarks.

Answer 25

Trademarks can be names, words, slogans, pictures, graphics, or sounds that distinguish a product.

Question 26

Copyright.

Answer 26

Copyright law does not protect titles, slogans, names, or common expressions. Copyright protection only extends to original works of authorship fixed in a tangible medium of expression, giving you the exclusive rights to copy, sell, distribute, perform, and display a work.

Question 27

Patent.

Answer 27

A patent is a set of exclusive rights granted to an inventor in exchange for detailed public disclosure of an invention. A patent can be obtained for inventions that are new, useful, and non-obvious.

Question 28

Lead Generation.

Answer 28

The process of converting visitors on your website into leads.

Question 29

A Freelancer.

Answer 29

A freelancer is essentially a one-person business. A person who primarily works on a particular part or phase of a larger project. They often maintain anonymity as they provide a necessary component, such as a series of spot illustrations or an extra hand in production.

Question 30

Change Order.

Answer 30

Means it is an amendment to the existing contract.

Question 31

Purchase Order.

Answer 31

P.O. is a legal document issued to the designer in lieu of a signed contract. It indicates the scope of the work, an agreed-upon fee, and the terms of the payment.

Question 32

Homophily.

Answer 32

The fact that people tend to be friends with similar others.

Question 33

Remarkability

Answer 33

Worthy of remark.

Question 34

A Trigger.

Answer 34

A trigger is any stimulus in the environment it could be a sight, it could be a sound, it could be anything related really at all that reminds you of, of something else.

Question 35

Affiliate marketing is

Answer 35

Sometimes referred to as performance-based marketing, Affiliate marketing is a context within which independent marketers called affiliates or publishers, promote an advertisers product or service, and get paid for every qualified customer referral.

Question 36

Advertiser naïveté.

Answer 36

Or absence of defensive behaviors and adaptations needed to deal with predators.

Question 37

Search Volume

Answer 37

Search volume is the number of searches per month for a particular keyword. If you use a tool like the Google Keyword Planner, it’s represented as the average number of searches for the last 12 months.

Question 38

Negotiation

Answer 38

Negotiation is a conversation leading to agreement. Many of us come to the negotiation table believing that negotiation is a contentious process, an attempt to persuade our bargaining partner to do something they don’t want to do or to convince them to stop doing something they want to continue doing.