Business can generally be defined as an organization or enterprise that engages in commercial, industrial, or professional activities. In other words, it is the activity of providing goods and services to customers in exchange for money. Businesses can be small mom and pop shops, or they can be large multinational corporations. Businesses can be operated by a single individual, or they can have thousands of employees.

What is Business?

The word “business” is often used as a catchphrase for any activity in the modern world. This is because business involves an exchange of goods or services for money. A business can be either for profit or not-for-profit, depending on its motive. Publicly owned or stock-listed organisations may also fall under the category of business. The word “business” is derived from the Latin word ‘busy’, which means “occupied”. The term ‘business’ is also defined as a productive activity.

Businesses can be of two types: the day-to-day operations of a business, or the overall formation of a company. In either case, the business is an important part of society and must play a role in social, environmental, and economic sustainability. In addition, it has the power to change the world around it. For instance, ExxonMobil conducts business by providing oil, while Apple has an important role in society by creating innovative products and services.

Businesses have many different purposes, but they all have one thing in common: they strive to make their customers’ lives better. Every business market their offerings with the promise of adding value to their lives, and the purpose of a business is to deliver on that promise. To ensure this, businesses should have a clear and purposeful corporate vision. Businesses should use the purpose of the business to create the best possible future for everyone. For example, Uber began as an aggregation of taxi drivers under one brand. The concept was then turned into a strategic business plan. Another important aspect is the business objective. Profit making is the primary objective of a business, but there are other important reasons too.

Table of Contents

Accounting Period

An accounting period is a specific time frame used by businesses to track and report their financial performance. The most common accounting periods are quarterly and annual, but some businesses use monthly or even daily accounting periods. The specific time frame set for an accounting period can vary depending on the type of business and the reporting requirements of its regulators. Generally, an accounting period will begin on the first day of a given month or fiscal quarter and end on the last day of that month or fiscal quarter.


An account refers to a record of financial transactions. The account will list the date, the amount, and the description of the transaction. The account can be used to track expenses, income, or assets. The account can also be used to monitor changes in the balance of the account.

Accounts payable

Accounts payable refers to the total amount of money that a company owes to its suppliers. This money is usually owed for goods or services that have been provided to the company, but have not yet been paid for. The accounts payable balance will usually be listed on the company’s balance sheet, and it is important to remember that this figure represents a liability, meaning that the company is legally obligated to pay its suppliers.

Accounts receivable

An account receivable (AR) is an asset account that represents money owed to a company for products or services that have been delivered but have not yet been paid for. The AR balance represents the total amount of money that the company is currently owed by its customers. The goal of Accounts Receivable Management (ARM) is to optimize the company’s cash flow by accelerating the collection of receivables while minimizing bad debt expenses.

Accrual-based accounting

Accrual-based accounting is a system of bookkeeping in which revenue and expenses are recognized when they are incurred, rather than when the cash is exchanged. This system is preferred because it provides a more accurate picture of a company’s financial health. It also allows companies to smooth out their income over time, making it easier to predict future cash flow.

Accumulated depreciation

Accumulated depreciation is an account on a company’s balance sheet that shows the total amount of depreciation expense that has been recorded for a particular asset over its useful life. This account allows companies to track the cumulative depreciation expense for each asset and ensures that the total amount of depreciation expense matches the amount of cash that has actually been paid out to date.

Acid test

The acid test is a measure of a company’s liquidity and its ability to repay its liabilities. The acid test measures a company’s ability to repay its short-term liabilities with its most liquid assets. The acid test is also known as the quick ratio or the working capital ratio. A company’s acid test ratio should be greater than 1.0, meaning that the company has more than enough liquid assets to repay its short-term liabilities.


Acquisition refers to the process of obtaining something, usually through purchase or by taking possession of it. In the business world, acquisition is often used to describe the purchase of another company or its assets.

Acquisition costs

Acquisition costs are the costs of obtaining an asset. This includes the purchase price, legal fees, broker’s fees, and other related expenses. The cost of acquiring an asset is a important consideration for businesses, as it affects the amount of cash that is available for operations.


An actuary is a business professional who specializes in the mathematical analysis of risk and financial uncertainty. They use their expertise to help organizations understand and manage the risks that they face. This often includes helping to set premiums for insurance products, predicting the likelihood of events occurring, and estimating the financial impact of those events. Actuaries must have a deep understanding of mathematics, statistics, and financial theory.

Adaptive firm

An adaptive firm is a company that can rapidly adapt to changes in its environment. This can include changes in technology, the economy, and customer preferences. An adaptive firm is able to do this by constantly learning and evolving. It has a strong culture of innovation and is willing to experiment with new ideas.


The term “administration” refers to the process of managing and organizing a company or institution. This involves creating and implementing policies, overseeing day-to-day operations, and ensuring that the organization meets its goals. Administrators must be able to think strategically, make decisions quickly, and effectively manage people and resources. They must also be able to stay up-to-date with changes in the business world and be able to adapt their strategies accordingly.

Adventure capital

Adventure capital refers to the investment of money in an activity or venture that presents some risk but also offers the potential for a large return. The term is often used when referring to investments in startup companies, as the potential for a large return is high but the risk is also greater. Investors in adventure capital are often willing to accept a lower return on their investment in order to participate in a high-risk, high-reward venture.

Advertising opportunity

The advertising opportunity is the potential to reach a large number of people with a marketing message. The opportunity arises when a company has something to sell and there is a way to reach potential customers. Advertising can provide a way to reach a large number of people quickly and efficiently. It can also be an effective way to create awareness for a new product or service.

Affiliate marketing

Affiliate marketing is a process by which a company rewards affiliates for each customer or visitor brought to the company’s website by the affiliate’s own marketing efforts. Affiliate programs are common on the Internet, where websites and bloggers can earn commissions by referring customers to commercial websites. Affiliate marketing has become a popular way for small businesses to promote their products online.

Annual equivalent rate (aer)

The annual equivalent rate (aer) is a metric used to measure the return on an investment over a period of one year. It takes into account the interest earned on the investment as well as the effect of compounding. The aer can be used to compare different investments or to evaluate the effectiveness of different savings plans.

Annual percentage rate (apr)

The annual percentage rate, or APR, is a calculation that attempts to capture the full cost of borrowing money. It takes into account the interest rate on a loan, as well as any fees or other costs associated with taking out the loan. The APR is expressed as a percentage, and it can be helpful for comparing different loans to see which one is the most affordable.


An annuity is a series of payments that are made at fixed intervals. The payments can be for a fixed amount of time, or for the life of the person receiving them. Annuities can be used to provide a steady income stream, or to save for retirement.


Arbitrage is the simultaneous purchase and sale of the same security or commodity in different markets to exploit price discrepancies. This can be done by taking advantage of different prices in different markets, or by taking advantage of the time it takes to complete a transaction. For example, suppose that ABC stock is selling for $10 per share on the New York Stock Exchange (NYSE) but is selling for $11 per share on the London Stock Exchange (LSE).

Asset turnover

Asset turnover measures the efficiency with which a company uses its assets to generate sales. It is calculated by dividing sales by average total assets. A high asset turnover ratio indicates that a company is using its assets efficiently to generate sales, while a low ratio indicates that the company could be using its assets more productively. Asset turnover can be used to measure the performance of a company as a whole or of individual business segments.


The term “assets” can be used to describe a variety of different things depending on the context. In business, it typically refers to things such as cash, investments, and property that are owned and have value. These assets can be used to generate income, provide security, or support other business activities. They are important for companies to track and manage in order to ensure that they are able to meet their financial obligations and grow their business.


Auditing is the process of valuating and verifying the financial statements of a company. An auditor will look at everything from the company’s revenue to its expenses in order to get a full understanding of the company’s financial health. This information is then compiled into a report that is presented to the company’s board of directors.


Business-to-business (B2B) is a term used in business to describe the type of transaction in which one business sells products or services to another. Transactions of this type are often more complex than those between a business and a consumer, as they typically involve longer sales cycles, more detailed product specifications, and larger order sizes.


B2c is an abbreviation for business to consumer. It is a term used in marketing to describe the process of selling products or services to individual consumers. This type of marketing is typically done through online channels, such as websites or social media platforms. B2c marketing can be highly effective because it allows businesses to personalize their messages and connect with consumers on a more intimate level.

Balance sheet

A balance sheet is a snapshot of a company’s financial condition at a specific moment in time. It lists the company’s assets on one side and its liabilities and shareholders’ equity on the other. The balance sheet shows how much money the company has available to pay its debts and how much it owes.

Base rate

Base rate is a term used in statistics to describe the probability that an event will occur. This probability is determined by the frequency of the event occurring in a given population. For example, if you toss a coin, the base rate would be 50% because there is a 50% chance of it landing on heads or tails.


A benchmark is a point of reference against which the performance of something can be measured. In the context of investing, a benchmark is an index or other collection of investments used as a standard to which the performance of an investment or fund is compared. For example, a mutual fund might be marketed as having returned 10% over the past year, but investors would want to know how that compares to the returns of similar funds or to the returns of an appropriate benchmark.


Benchmarking is a process that allows organizations to compare their performance to others in order to identify areas where they may be able to improve. This process can be used to compare everything from the efficiency of different production processes to the effectiveness of different marketing campaigns. By measuring themselves against others, organizations can identify potential areas of improvement and make changes in order to become more competitive.

Bid-offer spread

A bid-offer spread is the difference between the price at which a security is offered for sale and the price at which it can be purchased. The spread is usually expressed in terms of percentage points. For example, if a security is being offered at $90 per share and someone wants to buy it, they would have to pay $92 per share. This would be a 2% spread.

Black swan

A black swan is a rare event or occurrence that is difficult to predict and has a major impact. Black swans are typically considered to be outliers, meaning that they are not part of the normal distribution of events. Many phenomena that are now considered commonplace were once considered black swans, including the Internet, global financial crises, and the Arab Spring.

Blue chip

A blue chip is a term used in finance to describe the most financially secure and stable investments. The term comes from poker, where a blue chip is a high-value chip. These investments are typically large companies with a long history of profitability and strong financial stability. They are also usually quite diversified, meaning that they operate in many different industries. This reduces their risk profile and makes them less susceptible to downturns in any one sector.


Bonds are a type of security that allow an investor to loan money to a company or government in return for regular interest payments and the promise to repay the principal amount of the loan at a set future date. Bonds are typically issued by companies or governments to finance large projects, such as building new factories or roads, and can be bought and sold on the secondary market. The interest payments on a bond are fixed, meaning that they will not change regardless of what happens to the underlying project.


Bootstrapping is a term used in business and economics that describes a self-funding process of growing a company or enterprise. The term “bootstrapping” was derived from the phrase “pulling oneself up by one’s bootstraps,” which means to use one’s own resources to improve one’s situation. Bootstrapping in business usually refers to starting a company with little or no outside funding.


A brand can be defined as a name, term, design, symbol, or other feature that distinguishes one seller’s product from those of other sellers. Brands are used to create differentiating value for products and to build strong customer relationships. Branding is the process of creating these distinguishing features.

Brand equity

Brand equity is the value of a brand name in the marketplace. It is created through a combination of factors, including the perceived quality of the product or service, the strength of the brand’s associations, and the amount of loyalty it inspires. Brand equity can be thought of as a measure of how much a brand is worth to its owners.

Brand extension strategy

Brand extension is a marketing strategy employed by companies to increase their sales and profits. This strategy involves using the power of an existing brand to create new products or services. The goal is to tap into the brand’s equity, or the positive associations consumers have with the brand, in order to convince them to buy the new product or service. Brand extension can be a successful strategy if it is done correctly.

Brand recognition

Brand recognition is the ability of a consumer to identify a particular brand of product or service. This can be due to many factors, including advertising, exposure to the product, and word-of-mouth recommendations. When a consumer is familiar with a brand, they are more likely to purchase that product or service because they trust the name. Brand recognition is often considered an important factor in marketing and business strategy.

Break-even analysis

A break-even analysis is a financial planning tool that calculates the point at which a company’s revenue equals its costs. The analysis can help businesses determine whether they are making a profit and how much they need to sell to cover their expenses. It also provides insights into how changes in costs or revenue will affect profits. To perform a break-even analysis, businesses need to know their fixed and variable costs.

Break-even point

The break-even point is the point at which a company’s total revenue equals its total costs. This occurs when a company’s sales volume reaches a level that covers all of the fixed and variable costs associated with producing and selling its products or services. The break-even point can be determined by using a number of formulas, including the contribution margin approach and the margin of safety approach.

Bridging loan

A bridging loan is a type of short-term loan that is used to cover the gap between the purchase of a new property and the sale of the old one. It is typically used by home buyers who need to finance the purchase of a new home before they have sold their old one. Bridging loans are also sometimes used by business owners who need to finance a new acquisition before they have sold their old one.


A broker is an intermediary who facilitates the buying and selling of securities. Brokers typically work for a brokerage firm, which is a company that specializes in the buying and selling of securities. Brokers are licensed by the government and must pass a series of exams in order to be licensed. They are also required to maintain a certain level of capital in order to protect their clients. Brokers are compensated through a variety of means, including commissions, fees, and spreads.


Bundling is the process of combining multiple items, usually services, into a single package that is sold as a unit. This can be done for a number of reasons, including to make it easier for customers to purchase multiple items at once, to offer discounts for buying multiple items, or to increase profits by selling items together. Bundling can also be used to attract new customers by offering them a deal on a package of services that they may not have been interested in purchasing individually.

Burden rate

The burden rate is the percentage of a company’s sales that must be reinvested in the company in order to maintain its current level of operations. This rate is important to calculate because it can help a company determine how much it needs to grow its sales in order to maintain its current level of operations. The higher the burden rate, the more a company needs to grow its sales in order to maintain its current size.

Business angel

A business angel is an affluent individual who provides capital to a startup in exchange for an equity stake in the company. Business angels typically have more experience in business than the average investor, and they often provide mentorship and guidance to the companies they invest in. They are often motivated by a desire to help young businesses grow and succeed, and they typically have a large network of other business contacts that they can draw on for support.

Business cycle

The business cycle refers to the fluctuations in economic activity that occur over time. These fluctuations can be both short-term and long-term, and they can affect different parts of the economy at different times. The business cycle is often tracked using indicators such as gross domestic product (GDP) and unemployment rate.

Business mission

The business mission is a statement that outlines the purpose of the company. It usually includes a description of the company’s products and services, as well as its target market. The mission statement should be clear and concise, and it should inspire employees to work towards common goals. A well-crafted mission statement can help a company attract new customers and investors, and it can also help to guide decision-making.

Business plan

A business plan is a document that describes how a new business will achieve its goals. The plan usually contains a description of the business, its products and services, its target market, how it will generate revenue, and its marketing and financial projections. A business plan is an important tool for any new business, and it should be updated regularly to reflect the progress of the business.

Buy-sell agreement

A buy-sell agreement is an agreement between two or more parties that regulates the circumstances under which one party may purchase the other party’s interest in a business. The agreement typically includes provisions specifying the price at which the interest may be sold, the events that will trigger a sale, and the procedures for completing the sale. A buy-sell agreement can help businesses avoid disputes over the ownership of the business and provide a mechanism for resolving those disputes expeditiously.

C corporation

A C corporation is a business entity that is taxed as a separate entity from its owners. It can have an unlimited number of shareholders, and they can be individuals, other businesses, or foreign entities. C corporations are subject to corporate income tax on their profits, and they can also issue stock to raise capital.


Cannibalization is the process of one product or service consuming the demand for another product or service. It can refer to products within a company, such as when a new product steals market share from an existing product, or it can refer to products in different industries, such as when a new technology creates a new market that cannibalizes an existing market.


The term capital refers to the physical or financial resources used to produce value in an economy. These resources may be invested in tangible assets such as factories, land, or businesses, or in intangible assets such as intellectual property or technological innovations. The purpose of capital is to provide a flow of goods and services that can be used to improve the standard of living for society as a whole.

Capital assets

The most common definition of a capital asset is an item with a useful life that extends beyond one year. The definition of a capital asset can vary depending on the context in which it is used. Generally, capital assets are considered to be more important than other types of assets and are often used in financial reporting to measure a company’s performance and financial position.

Capital expenditure

A capital expenditure is an investment in long-term assets, such as land, buildings, or equipment. These assets are used to produce goods or services and generate profits for a business. Capital expenditures can be funded through cash flow, debt, or equity. They are often recorded as expenses in the period in which they are incurred, even though the benefits of the asset may not be realized for many years.

Capital input

The term capital input refers to the physical or financial resources that are used to produce goods and services. These resources can include land, buildings, equipment, and financial capital. Capital inputs can be used to produce a wide variety of goods and services, including agricultural products, manufactured goods, and services. In order to be productive, capital inputs must be allocated in an efficient manner.


Cash is a physical representation of value that can be used to purchase goods and services. It is created through the minting of coins or printing of banknotes by a government, and can also be deposited into a bank account. Cash is generally considered to be a more liquid form of money than other assets, such as investments, because it can be used immediately to complete transactions.

Cash basis

A cash basis accounting system records revenue when it is received and expenses when they are paid. This system is simple and easy to use, but it does not provide a complete picture of a company’s financial health because it does not account for outstanding invoices.

Cash flow

Cash flow is the measure of how much cash a company has available to spend. This can be calculated by taking the company’s net income and subtracting from it the company’s depreciation, amortization, and interest expenses. The cash flow calculation can also be further adjusted to reflect changes in working capital.

Cash flow budget

A cash flow budget is a projection of future cash inflows and outflows. It can be used to plan for future expenses, such as investments or debt payments, or to track actual spending against budgeted amounts. A cash flow budget can help businesses and individuals make informed financial decisions by providing a detailed view of their current and future financial situation.

Cash flow statement

A cash flow statement is a financial statement that shows how much cash a company has generated and used during a particular period. The statement separates cash flows into three categories: operating, investing, and financing. Operating cash flows are generated from the company’s normal business activities, investing cash flows are from activities such as buying or selling property or investing in other companies, and financing cash flows come from activities such as issuing or repaying debt.

Cash sales

A cash sale is a sale for which the purchaser pays the vendor in cash. The main advantage of a cash sale is that it is relatively simple and efficient. There are no third-party intermediaries, such as credit card companies, to delay the transaction or increase the cost. For the purchaser, a cash sale is also more secure, since there is no risk of the vendor not delivering the goods or providing fraudulent services.

Cash spending

Cash spending is the act of spending cash, as opposed to using a credit or debit card. This can be done in a number of ways, such as by withdrawing cash from an ATM, or by paying for something in cash. Cash spending can be helpful for budgeting, as it allows you to see exactly how much money you have available to spend. It can also be a more secure way to pay for things, as credit and debit cards can be stolen or compromised.

Central driving forces model

The central driving forces model is a tool that can be used to understand how different factors interact with one another to influence the behavior of a system. It takes into account the complex interactions between elements in a system and allows for the examination of how changes in one factor can affect the others. This makes it a valuable tool for predicting the outcomes of changes in a system.

Channel conflicts

Channel conflicts can arise when different parts of an organization try to communicate through the same channels. This can be a problem because it can lead to confusion and miscommunication. For example, if the marketing department is trying to send a message to the sales department, but the sales department is also trying to send a message to the marketing department, there could be a conflict. This can lead to confusion and frustration on the part of employees, and it can also lead to mistakes being made.

Channels of distribution

The channels of distribution refer to the various routes that a product takes from the manufacturer to the consumer. There are a number of different channels that a company can use, including direct sales, agents, distributors, and retailers. The choice of channels depends on the product and the market. Some products lend themselves to direct sales, while others require a more complex distribution network.

Click-through rate

Click-through rate (CTR) is a metric typically used by digital marketers to measure the success of an online advertising campaign. It is calculated by dividing the number of times a user clicks on an ad by the number of impressions (the number of times the ad is displayed) it receives. The higher the CTR, the more successful the campaign is considered to be.


Co-branding is a marketing strategy that involves two or more brands working together to create a single offering. In most cases, co-branded products are created by two companies that have a shared target market. By pooling their resources, the two brands can create a product that is more appealing to consumers than either brand could produce on its own. Co-branding can also be used to strengthen the image of one of the brands involved.


Collateral is a term used in finance to describe any asset that is pledged as security against a loan. The collateral serves as a guarantee that the lender will be able to recoup their losses if the borrower defaults on the loan. The most common type of collateral is real estate, but companies can also use equipment, inventory, or other assets as collateral.

Collection period (days)

The collection period is the number of days it takes a business to turn its receivables into cash. This is typically measured from the date of sale to the date of receipt by the creditor. The shorter the collection period, the more quickly a business can convert its sales into cash and vice versa. A longer collection period can indicate that a company is having trouble collecting payments from its customers, which could be a sign of financial trouble.


A commission is a group of people who are appointed to a position by a higher authority in order to carry out a specific task or tasks. The commission is usually given broad powers to carry out their work, and they are typically held accountable to the higher authority that appointed them rather than to the general public. Commissions are often used in government to carry out policy decisions, and they can also be used in the private sector to carry out specific tasks such as marketing or product development.

Commission percent

A commission percent is a fee that is paid to a salesperson as a percentage of the total sale. This fee compensates the salesperson for their time and effort in making the sale. Generally, commission percentages range from 2-10% of the total sale amount.


A commodity is a physical item that is produced to be sold or traded. Commodities can include natural resources like oil and minerals, as well as manufactured items like cars and computers. In order to be classified as a commodity, the item must have a set price and be able to be traded on an open market.

Community interest company

Community interest companies (CICs) are businesses that are set up to benefit the community, as opposed to making a profit for their shareholders. They are regulated by the government, and must meet certain conditions in order to qualify as a CIC. These include having a social purpose, being owned by the community, and reinvesting any profits back into the company. CICs can be used to provide a wide range of services and products, from social housing to renewable energy.

Competitive advantage

A company’s competitive advantage is what allows it to stand out from its competitors and make more money than them. It can be due to a number of factors, such as the quality of the products or services offered, the prices charged, the way the company is run, or the marketing techniques used. A strong competitive advantage can help a company to become successful and stay ahead of its rivals.

Competitive analysis

A competitive analysis is a process that identifies the strengths and weaknesses of an organization’s competitors. This analysis can help an organization understand how to capitalize on its strengths while minimizing the impact of its competitors’ strengths. Additionally, a competitive analysis can help an organization understand how its rivals are performing and what strategies they are using to succeed.

Competitive entry wedges

Competitive entry wedges are a business strategy used to prevent new competitors from entering a market. There are several ways to create a competitive entry wedge, but the most common is to build a strong brand that is difficult to replicate. Other methods include establishing a dominant market position, developing unique technology, and implementing complex regulations that are difficult to comply with. By creating these barriers to entry, a company can discourage new competitors from entering the market and protect its market share.

Completed store transactions

The completed transactions are the finalization of the sale, which is when the customer receives the product and pays for it. The store processes the payment and records it in the system. This also includes returns, exchanges, and refunds.

Compound Annual Growth Rate (CAGR)

The compound annual growth rate (CAGR) is a measure of the rate of return on an investment over a period of time. It takes into account the effect of compounding interest, making it a more accurate measure than the simple annual growth rate. To calculate CAGR, you need to know the beginning and ending values of the investment, as well as the number of years over which it was invested.

Compound average growth rate

The compound average growth rate (CAGR) is a mathematical calculation used to measure the average growth rate of an investment over a specified period of time. To calculate the CAGR, the individual annual rates of return are first compounded together. The resulting figure is then divided by the number of years in the investment period. This calculation provides a more accurate representation of an investment’s growth than using simple annual rates of return.

Concentrated target marketing

Concentrated target marketing is a technique that businesses use to focus their advertising and marketing efforts on a specific group of consumers. This approach allows companies to more efficiently allocate their resources and better target their messages to the consumers who are most likely to be interested in their products or services. By narrowing their focus, businesses can also more effectively measure the effectiveness of their marketing campaigns and make necessary adjustments to improve their results.


A contribution is an amount of money that is given to a political campaign. This money can be used to help the candidate pay for things like advertising, travel, and staff. The contribution limit is set by the government and it is illegal to donate more than this amount.

Contribution margin

The contribution margin (CM) is the difference between sales revenue and the variable costs associated with producing that revenue. It is used as a measure of profitability because it takes into account only the costs that vary with production. Fixed costs, such as rent or depreciation, are not included in the calculation. This makes the CM a useful tool for comparing products or services that have different fixed costs.

Conversion rate

Conversion rate is the percentage of website visitors that take a desired action, such as filling out a form or purchasing a product. This metric is important to track because it can help you determine whether your website is effective at achieving its goals. To calculate it, simply divide the number of conversions by the number of unique visitors.

Copyright is a form of legal protection that allows an author to control the use of their work. The copyright holder has the exclusive right to reproduce, distribute, perform, and display the work. Copyright protection lasts for a specified period of time, after which the work falls into the public domain. Copyright law is governed by federal statute, and is administered by the Register of Copyrights.

Core marketing strategy

A company’s core marketing strategy is the foundation of its marketing plan. It is the strategy that guides all of the company’s marketing activities and helps it achieve its overall marketing objectives. A well-designed core marketing strategy should be based on a clear understanding of the company’s strengths, weaknesses, opportunities, and threats. It should also identify the target market segments that the company plans to focus on and the strategies it will use to reach those segments.

Corporate social responsibility

The concept of corporate social responsibility (CSR) refers to the obligation of businesses to act in a way that benefits society as a whole. This can include things like promoting sustainable practices, investing in the local community, and protecting the environment. CSR is often considered to be an important part of a company’s overall strategy, as it can help to create a positive image and build goodwill with consumers.


A corporation is a legal entity created by the state that enjoys many of the same rights as a person. Corporations are often used to shield the individuals who own them from personal liability for the corporation’s debts and other obligations. Corporations can also engage in business activities, make contracts, and own property.

Corridor principal

A corridor principal is a school administrator who is responsible for the academic progress of students in a hallway or cluster of classrooms. They work with teachers to create learning goals and interventions for students who are struggling, and they also monitor student progress to ensure they are making adequate academic growth. Corridor principals may also be responsible for budgeting and purchasing resources for their hallway or cluster of classrooms.

Cost of goods sold

Cost of goods sold (COGS) is a financial metric used in managerial accounting to reflect the direct costs associated with producing and selling a product. COGS includes the cost of the materials used in production, the wages of the workers involved in production, and other costs incurred in bringing a product to market, such as shipping and advertising expenses.

Cost of sales

The cost of sales is the total amount of money that a company spends in order to produce and sell its products. This includes the cost of the products themselves, as well as the cost of marketing, shipping, and other associated expenses. The cost of sales can be a significant expense for companies, and it is important to track it closely in order to ensure that profits are maximized.


A creditor is a person or organization to which money is owed. The term usually refers to a lender, such as a bank, which has made a loan that is now due and payable. When a debtor fails to make a payment on time, the creditor may take steps to recover the money, such as by filing a lawsuit or by seeking to seize the debtor’s assets.

Critical success factor

Critical success factors are important factors that need to be present in order for an organization to achieve its desired outcome. There can be many critical success factors, but they usually fall into a few key categories such as finance, marketing, and operations. Organizations typically identify their critical success factors and then put in place strategies to ensure they are met.

Cross elasticity of demand

The Cross Elasticity of Demand measures the degree to which the demand for a good changes in response to a change in the price of another good. This is used to help determine how substitutable two goods are. If the cross elasticity is high, it means that people are very likely to substitute one good for the other when the price changes. If the cross elasticity is low, it means that people are not likely to substitute one good for the other when the price changes.

Cross elasticity of demand

Cross elasticity of demand is a measure of how much the demand for one good changes in response to a change in the price of another good. If the cross elasticity is positive, then demand for the first good increases when the price of the second good increases. If the cross elasticity is negative, then demand for the first good decreases when the price of the second good increases.

Current debt

Current debt refers to the total amount of money that a government or individual owes at a given point in time. This can include loans, credit card balances, and other forms of debt. The total amount of current debt can be difficult to track and manage, especially if the debt is spread out among multiple creditors. In order to reduce the overall burden of debt, it is important to understand exactly how much money is owed and work towards paying off the balances as quickly as possible.

Current liabilities

Current liabilities are obligations that a company owes in the near future. This can include anything from accounts payable to short-term loans. The total amount of current liabilities will vary depending on the company’s operations, but it is typically a significant portion of a company’s overall liabilities. Current liabilities are important because they need to be paid off relatively quickly, and can impact a company’s ability to continue operating effectively.

Debt and equity

Debt and equity are two different ways companies can raise money. Debt is when a company takes out a loan from a bank or another institution. The company agrees to pay back the loan with interest. Equity is when a company sells shares of its stock to investors. The company gets money from the sale, and the investors become part of the company. They own a part of it and have a say in how it is run.


A debtor is someone who owes money to another person or organization. A debtor may be a business or an individual. A creditor is the person or organization to whom the money is owed. In most cases, if a debtor does not pay back the money they owe, the creditor can take legal action to try to recover the money.


Depreciation is the decrease in an asset’s value over time. This decrease can be caused by a number of factors, such as wear and tear, technological advancements, or obsolescence. Depreciation is typically calculated using a formula that takes into account the asset’s original cost, its salvage value (the amount it could be sold for at the end of its useful life), and its estimated lifespan.

Differentiated target marketing

Differentiated target marketing is a technique used by businesses to identify and target specific market segments with products or services that appeal to their specific needs. This approach allows businesses to tailor their marketing efforts to specific groups of consumers, increasing the chances that they will be successful in reaching these customers and generating sales. By identifying the needs and wants of different market segments, businesses can create products and services that are more likely to meet the needs of these consumers, increasing their chances of success.


Differentiation is the process of taking a function and breaking it into pieces that can be more easily understood and manipulated. This is often done by taking the derivative of a function, which is a measure of how one variable changes as another variable changes. This allows us to understand how different aspects of the function are related and how they change over time.

Direct cost of sales

The direct cost of sales is the amount of money that a company spends to produce and sell its products. This includes the cost of the raw materials, the labor costs, and any other expenses related to making and selling the products. The direct cost of sales can be a significant expense for companies, and it is important to track these costs closely in order to ensure that they are not too high.

Direct mail marketing

Direct mail marketing is a form of advertising where businesses send advertisements, usually in the form of a letter, to potential or current customers. This type of marketing is often used to target specific demographics or customers who have shown an interest in the company or product. The letters can be sent through the mail, but more and more businesses are using email to send their direct mail marketing messages.


A directory is a collection of information about files and folders stored on a computer. Directories are often organized in a hierarchical manner, with the root directory at the top and subdirectories below it. Each directory can contain files and folders, as well as other directories.

Distinctive competency

Distinctive competency refers to the unique skills or attributes that set an individual or organization apart from its competition. These competencies can be tangible (such as a strong product offering) or intangible (such as excellent customer service). They are often what allow a company to differentiate itself in the marketplace and build a competitive advantage.

A distinctive competency can be a major source of competitive advantage for a company, as it gives it a unique selling point that its rivals cannot replicate.


One of the most important decisions an investor can make is how to allocate their money across different types of investments. One strategy for accomplishing this is diversification, which involves spreading your money out among a variety of different investments in order to reduce your risk. For example, if you invest all your money in a single stock, and that stock goes bankrupt, you will lose all your money.


A dividend is a payment made by a corporation to its shareholders out of its profits. It usually occurs when a company declares a dividend, which is a statement that it will pay a certain amount of money to its shareholders on a specific date. The dividend payout is typically in the form of cash, but can also be in the form of stock or other assets.

Dual distribution

Dual distribution is the process of distributing a product to two different types of markets. This can be done in a number of ways, but the most common is to offer a product to both consumers and businesses. By doing this, a company can reach a larger audience and increase its market share. Dual distribution can also be used to target different types of customers. For example, a company might offer a low-priced product to consumers and a premium product to businesses.

Early adopters

One of the most important concepts in marketing is the idea of diffusion of innovation, which describes how new products or ideas are spread through a population. The first group to adopt a new product or idea is known as the early adopters, and they are often important in helping to spread the word about a new product. They are typically more willing to take risks than other groups, and they are often more socially connected, which allows them to spread information about new products more quickly.

Early majority

The early majority is a group of people who adopt new technologies, products, or ideas after the innovators and early adopters. They are not as quick to change as the early adopters, but they are more willing to change than the late majority. This group is typically more risk-averse than the early adopters and is more likely to be influenced by others before making a decision.


Earnings are the profits generated by a company during a particular period of time. These profits can be distributed to shareholders in the form of dividends, or they can be reinvested in the company to help it grow. Earning per share is a measure of how much profit a company generates for each share of its stock that is outstanding. This figure is important for investors, because it tells them how much money they can expect to receive if they own shares in the company.

Earnings before interest and taxes

Earnings before interest and taxes, or EBIT, is a measure of a company’s profitability that takes into account only its operating profits. This figure excludes the impact of interest payments and income taxes, both of which can reduce a company’s profitability. By excluding these items, EBIT provides a more accurate measure of a company’s operating performance. This metric is especially useful for comparing different companies, as it removes the impact of their differing levels of debt and tax rates.

Earnings Before Interest and Taxes (EBIT)

EBIT is a measure of a company’s profitability that takes into account only its operating income, before any interest payments or taxes are taken into account. This makes it a good measure of how much cash a company is generating from its core operations. It can be used to compare different companies in different industries, or to track a company’s performance over time.

Economic growth

Economic growth is a sustained increase in a country’s production of goods and services. This can be measured by looking at things like GDP, which is the total value of all the goods and services produced in a country over a given period of time. Economic growth is often driven by things like innovation, entrepreneurship, and investment. It’s important for countries to have strong economic growth in order to create jobs and raise living standards.

Economies of scale

Economies of scale are the cost advantages that firms enjoy as their production levels increase. These cost advantages may come from increased specialization and division of labor, from the use of more efficient technology, or from other sources. The key point is that as a firm’s production level rises, its average cost per unit falls. This is why larger firms tend to be more efficient and have lower costs than smaller firms.

Effective demand

Effective demand is defined as the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period. This definition takes into account both the willingness and ability of consumers to purchase a good or service. The willingness of consumers is determined by their income and prices of related goods, while the ability of consumers is determined by their wealth and credit availability.

Effective tax rate

The effective tax rate is the percentage of income that a taxpayer pays in taxes. It is calculated by dividing the total amount of taxes paid by the total amount of taxable income. The effective tax rate can be different for different taxpayers, depending on their income level and the type of taxes they pay.

Enterprise value

The enterprise value (EV) of a company is the total value of all its outstanding shares, minus the value of its net liabilities. It is used as a measure of how much it would cost to buy a company outright, and is often used in comparisons between companies. The EV takes into account both the company’s equity and its debt, which is why it is sometimes also called the enterprise value to equity (EVE) ratio.


An entrepreneur is an individual who has the ability and initiative to create something new and valuable, usually a business. They are typically driven by a need to solve a problem or capitalize on an opportunity. Entrepreneurship is about taking risks and being creative, and they often have a strong belief in their own abilities and vision.

Entrepreneur in heat

An entrepreneur in heat is an individual who is motivated to start a new business venture due to excitement and passion for the idea. They are often characterized by their intense drive and willingness to take risks in order to see their vision become a reality. This type of entrepreneur is often in a hurry to get their business off the ground and may not have the patience to do things the traditional way.


Equity refers to the idea that everyone in society should have an opportunity to achieve their full potential. This includes ensuring that everyone has access to the same basic resources, such as education, health care, and a livable wage. It also means creating structures and institutions that enable everyone to participate in society equally, regardless of their race, gender, or socioeconomic status.

Equity financing

Equity financing is a type of financial transaction in which an entity sells new shares of ownership in the company to investors. This can be done in a variety of ways, including issuing new equity directly to investors, or by selling equity to investment banks or other financial intermediaries who will then sell it to investors.

Ethical investment

Ethical investment is a way to invest money that considers the social and environmental impacts of the companies involved in the investment.

Many people believe that it is important to consider the social and environmental impacts of the companies involved in an investment, not just the financial returns. Ethical investment takes this into account, and tries to invest money in companies that have a positive social and environmental impact.

Ethical trade

Ethical trade is a movement that aims to improve the working conditions of workers in developing countries. It does this by promoting fair trade practices, which ensure that workers are paid a fair wage and have safe working conditions. Ethical trade also encourages companies to adopt sustainable business practices, which reduce the environmental impact of their operations.

Evaluating ideas and opportunities

The process of evaluating ideas and opportunities involves assessing the merits of each potential venture and determining whether or not it is worth pursuing. This involves considering a number of factors, including the potential for financial gain, the feasibility of the idea, and the amount of risk involved. It is important to remember that not every opportunity is a good fit for every business, so it is important to carefully evaluate each one before making a decision.

Everett rogers

Rogers’ theory of diffusion of innovations states that individuals adopt new ideas at different rates, depending on their characteristics. He identified five groups of adopters: early adopters, opinion leaders, early majority, late majority, and laggards. Rogers’ theory has been used to explain the success or failure of products and services ranging from the Apple iPhone to the Edsel automobile.

Exclusive distribution

Exclusive distribution is a type of distribution where the product is only available through a select number of retailers. This type of distribution is often used for high-end products or products that are only available in certain geographic areas. Exclusive distribution can help to create a sense of exclusivity around the product and can help to drive demand. It can also help to ensure that the product is available in high-quality retail environments.

Exit strategy

An exit strategy is a plan to get out of a position, investment, or venture. This may be done for financial or strategic reasons. In order to create an effective exit strategy, one must first understand their goals and the possible outcomes of various actions. Once a goal has been established, it is important to consider the timing and feasibility of executing the plan.


The cost of goods and services used in the production of a good or service is an expense. Expenses can be classified into two categories: direct and indirect. Direct expenses are those that are specific to the production of a good or service, while indirect expenses are those that are not specific to a particular product or service. For example, the cost of electricity used to power a manufacturing plant is a direct expense, while the salary of the plant manager is an indirect expense.

Experience curve

The experience curve is a phenomenon that occurs in business where the cost of producing a good or service falls as the company produces more of that good or service. This is because the company gains experience and becomes more efficient in its production process as it produces more. The experience curve can be explained using economic theory, where it is said that firms face increasing returns to scale in the short run and diminishing returns to scale in the long run.


Export is the process of sending goods or services from one country to another. This can be done either through exporting them directly from the country of origin, or through exporting them from a third country that has been appointed as a middleman. Exporting can be a very lucrative business, as it allows companies to reach new markets and sell their products and services at a higher price than they would be able to in their home country.


Fairtrade is a system of certification and labeling that guarantees farmers in developing countries a fair price for their products. Fairtrade-certified products must meet certain social and environmental standards, and the proceeds from the sale of these products are used to support Fairtrade projects in the countries where they were grown.

Fatal 2% rule

The Fatal 2 Rule is a guideline that is used to help prevent the spread of infectious diseases. The rule states that before entering a school or other public place, all individuals must have had no contact with anyone who has been diagnosed with a contagious disease within the past two days. By following this rule, it helps to minimize the chances of an outbreak of a contagious disease.

Fighting brand strategy

Fighting brand strategy is a technique used to protect a company’s market share from competitive brands. The strategy consists of using aggressive marketing tactics and price reductions to beat the competition. Additionally, the company will often increase its advertising budget to outspend the competition.

Financial management

The process of financial management is the system by which a company ensures that it has the cash available to finance its operations, meet its obligations, and make the investments it believes will generate future profits. This system begins with forecasting a company’s future cash needs. The next step is allocating the cash among short-term and long-term investments, making sure to have enough on hand to cover expenses in the short term while still investing in opportunities that will pay off over the long term.

First mover

First mover is an expression used in business and economics to describe a company or individual who is the first to introduce a new product or service to the market. Being the first to enter a new market can provide several advantages, such as establishing a leadership position, capturing market share, and earning higher profits. However, first movers also face several risks, such as the possibility of competitors copying their innovations and/or entering the market before them.

First mover advantage

The first mover advantage is the ability to establish a market position before competitors enter the market. This can be due to a number of factors, such as being the first to develop and introduce a new product or service, or being the first to establish a dominant market share. Once a company has gained a first mover advantage, it can be difficult for competitors to unseat them.

First mover disadvantage

The first mover disadvantage is the idea that a company that is the first to enter a market will have a harder time succeeding than companies that enter later. This is because the first mover will have to invest in building up the market, while later entrants can learn from the first mover’s mistakes and build on the groundwork that they have laid. Additionally, the first mover may be locked into certain prices or products that are no longer desirable by the time other companies enter the market.

Fiscal year

A fiscal year is a 12-month period used by governments and businesses for accounting purposes. The fiscal year is typically designated by the calendar year in which it ends, for example, the fiscal year ending December 31, 2016 is known as Fiscal Year 2016. Governments use the fiscal year to track their financial performance and plan for the upcoming year. Businesses use the fiscal year to track revenue and expenses, and make decisions about how to allocate their resources.

Five forces model

The five forces model is a framework for understanding the competitive environment within which a company operates. The model identifies five forces that affect competition: supplier power, buyer power, threat of new entrants, threat of substitutes, and rivalry among existing competitors. Each force can have a positive or negative effect on competition. For example, supplier power can create a downward pressure on prices as suppliers try to maximize their profits.

Fixed cost

A fixed cost is a recurring cost that does not change regardless of the level of production or sales achieved. It is a cost that must be paid in order to maintain output at a certain level, such as rent or insurance. For a business, fixed costs are important to track because they represent money that must be spent regardless of whether the company is making a profit or not.

Fixed liabilities

Fixed liabilities are a company’s long-term obligations that are due within one year or more. They typically include items such as bond payments, loan repayments, and lease payments. Fixed liabilities are important to track because they can have a significant impact on a company’s financial stability. For example, if a company has a lot of debt that is coming due in the near future, it could be at risk of defaulting on its loans.

Floating liabilities

A floating liability is a debt or other financial obligation that has no fixed maturity date. This means that the creditor can demand repayment at any time, and the debtor must then either pay the debt or find new financing. Floating liabilities are typically short-term in nature, and they can be a major source of vulnerability for businesses and other organizations.

Focus group

A focus group is a qualitative research method used to explore a particular topic or issue. In a focus group, a small group of people come together to discuss a specific topic or issue. The aim of a focus group is to generate ideas, opinions, and insights from the participants. The moderator of a focus group will typically ask questions to stimulate discussion, and the participants will share their thoughts and ideas.

Forms of market research

There are many different types of market research, but generally they can be divided into two categories: primary and secondary research. Primary research is research that is conducted specifically for the purpose of understanding a target market, while secondary research uses information that has already been published by someone else. This can include both industry reports and consumer surveys.

Frequency marketing

Frequency marketing is a type of marketing that focuses on delivering a message to a customer multiple times. This type of marketing can be used to create brand awareness, promote a product, or increase customer loyalty. Frequency marketing typically involves using multiple channels, such as television, radio, email, and social media, to reach customers.

Ftse 100 index

The Ftse 100 Index is a measure of the performance of the largest 100 companies listed on the London Stock Exchange. It is calculated using a weighted average of the prices of the shares of the companies included in the index. The index is used as a benchmark for investment funds and other financial products.

Full-cost price strategies

Full-cost pricing is a pricing strategy that takes into account all of the costs associated with producing and selling a product or service. This includes the cost of materials, labor, shipping, and any other associated costs. Full-cost pricing is often used by businesses that sell products or services that have a high cost to produce or that are customized to meet the needs of individual customers.

Future value projections

Future value projections are a way of estimating what a particular asset or investment will be worth at a specific point in the future. This information can be helpful in making financial decisions such as whether or not to invest in a particular asset. Generally, future value projections are based on historical trends and expected future changes in those trends.


The futures market is an exchange where contracts are bought and sold for future delivery of a commodity or security. Futures contracts obligate the buyer to purchase the underlying asset at a specific price on or before a certain date in the future. The seller of the contract is obligated to sell the underlying asset to the buyer at the same price on or before that date.

Golden hello

A golden hello is a sign of appreciation given to an employee upon joining a company. It can take the form of a monetary bonus or additional benefits, such as paid time off or a gym membership. Golden hellos are intended to provide a financial cushion for new employees as they get up to speed in their new positions.

Golden share

The golden share is an equity stake in a company that gives the holder veto power over certain corporate actions. Typically, the holder of the golden share is the company’s founder or the government of the country in which the company is based. The purpose of the golden share is to ensure that the company does not stray too far from its core mission or values, or make decisions that are not in the best interests of its shareholders.

Golden share

The golden share is an equity stake in a company that gives the holder veto power over certain corporate actions. Typically, the holder of the golden share is the company’s founder or the government of the country in which the company is based. The purpose of the golden share is to ensure that the company does not stray too far from its core mission or values, or make decisions that are not in the best interests of its shareholders.


Goodwill is an intangible asset that results from an organization’s ability to generate more revenue than its costs. This excess revenue can be attributed to a number of factors, including the organization’s name, reputation, customer base, and employee skills. goodwill represents the future economic benefits that are expected to flow from these factors. When an organization is sold, the buyer typically pays more for the company than the fair market value of its net assets because of the expected benefits of goodwill.

Grey knight

A Grey Knight is a type of Space Marine that is a part of the Adeptus Astartes chapter known as the Grey Knights. They are a unique and specialized force that is used only when the situation is most dire. They are experts in combating daemons and Chaos forces, and are some of the most powerful warriors in the Imperium. Their armor is different than other Space Marines, as it is silver and has markings on it to indicate their allegiance to the Grey Knights.


The word “gross” is often used to describe something that is unpleasant or unsightly. In the context of accounting, gross refers to the total revenue generated by a company before any costs or expenses are deducted. This figure can be used to measure a company’s overall performance and profitability. The gross profit margin is calculated by dividing the gross profit by the total revenue, and is a measure of how efficiently a company is generating profits from its sales.

Gross domestic product (gdp)

Gross domestic product is a measure of the total value of all final goods and services produced within a country in a given year. It includes both the value of goods and services produced by domestic firms and the value of goods and services produced by foreign firms operating within the country. To calculate GDP, economists add up the market values of all final products and services produced in the economy.

Gross margin

Gross margin is calculated as sales revenue minus cost of goods sold, divided by sales revenue. The gross margin percentage measures the percentage of each dollar of sales that is left after subtracting the cost of goods sold. This metric is used to measure a company’s ability to cover its overhead and generate profit. A higher gross margin percentage usually indicates that a company is more efficient in its use of resources.

Gross margin percent

Gross margin percent is a metric used to measure a company’s profitability. It is calculated by dividing a company’s gross profit by its total sales. Gross profit is calculated by subtracting the cost of goods sold from total sales. This metric is important because it measures how much money a company makes after accounting for the cost of the products it sells. A high gross margin percentage indicates that a company is profitable and has a lot of room to grow.

Gross national product (gnp)

Gross national product is an economic measure of the value of all the goods and services produced in a country in a given year. It is calculated by adding together the value of all the products produced by domestic companies and then subtracting the value of all the products exported. It is important to note that gnp does not take into account the effect of inflation, so it can be used to compare economies over time even if the prices of goods and services have changed.

Guerrilla marketing

Guerrilla marketing is a form of advertising that uses unconventional methods to promote a product or service. These methods can include stunts, flash mobs, and guerrilla tactics like street art and graffiti. Guerrilla marketing is designed to grab attention and create a buzz around a product or service, and it can be a very effective way to reach consumers who are not normally reached by traditional advertising methods.

Half year

A half year is a period of time that is six months long. A half year is typically split into three months of winter, three months of spring, and three months of summer. Many schools operate on a semester schedule, where the academic year is divided into two halves, with the first half ending around winter break and the second half ending around spring break.


Harvesting is the process of gathering crops from the field. The most common harvesting method is to use a tractor to pull a harvester machine over the crops. The harvester machine cuts the crops and then blows them into a trailer attached to the machine.

Hedge funds

Hedge funds are a type of investment fund that is typically open to a limited number of investors and requires a high minimum investment. Hedge funds are often used by investors to reduce risk in their portfolio. Hedge funds use a variety of investment strategies, including buying and selling stocks, bonds, and other securities.

Horizontal merger

A horizontal merger refers to the consolidation of two companies that produce or sell similar products or services in the same geographic market. The purpose of a horizontal merger is typically to increase market power and efficiency, which can lead to lower prices and improved quality for consumers. Horizontal mergers are typically subject to scrutiny by antitrust regulators, who are concerned about potential anticompetitive effects, such as decreased competition and higher prices.

Hostile takeover

A hostile takeover, in business terms, is the acquisition of a company by another company against the will of the target company’s board of directors. It is accomplished by making a public offer to purchase a majority of the outstanding shares of the target company at a premium over the current market price. The offer is usually funded by debt or equity financing. A hostile takeover can be either friendly or unfriendly.


Hyperinflation is a situation where prices increase rapidly and out of control. This can be caused by a number of factors such as war, natural disasters, or economic instability. When prices are rising so quickly, it becomes difficult for people to afford basic goods and services, which can lead to social and political unrest.

Ideas versus opportunities

Ideas are the foundation of opportunities. However, an opportunity cannot be taken advantage of if there is no way to act on it. This is where ideas become important. They provide a pathway from where we are to where we want to be. But, it is not enough to simply have an idea, it is also important to take action on it. This is what separates those who achieve their goals from those who only dream about them.


The term import refers to the process of bringing goods or services into a country from another country for sale or use. Imports can be either physical goods, such as cars or clothing, or services, such as tourism or banking. Generally, imports are seen as a positive thing for a country, as they bring new products and services into the market and can help to stimulate economic growth.


An impression is a mental picture or memory that is formed as the result of an experience. Our impressions are often based on our first impressions, which can be influenced by a number of factors, such as our mood, the setting, and the people we are with. Impressions can also be shaped by our expectations and by what we have been told about a person or place.

Income statement

The income statement is a financial statement that shows a company’s financial performance over a specific period of time. It shows the company’s revenues and expenses, and it can be used to track a company’s profitability over time. The income statement can also be used to calculate a company’s net income, which is the amount of money that the company has earned after accounting for all of its expenses.

Industrial output

Industrial output is a measure of the amount of goods and services produced by factories and other producers in an economy. This figure is usually expressed as a percentage of the country’s total economic output. Industrial output is used to gauge a country’s economic health and to determine whether it is growing or contracting.


Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. It is measured by calculating the percentage change in prices over a given period. Inflation can be caused by factors such as an increase in the money supply, rising costs of production, or increased demand for goods and services. The main impact of inflation is that it reduces the purchasing power of money, which can have a negative effect on economic growth.

Initial public offering

An initial public offering (IPO) is the first time a company offers its stock to the public. Companies typically use an IPO to raise money to grow their business. Investors can buy shares of the company in the IPO, and once the stock starts trading on a stock exchange, they can sell those shares at a higher price if they want to make a profit.

Initial Public Offering (IPO)

An initial public offering (IPO) is the process of selling new shares of a company to the public for the first time. The company typically hires an investment bank to help them sell the shares, and the investment bank typically charges a commission for their services. The company also typically agrees to pay the investment bank a “underwriting fee” for taking on the risk of being able to sell the shares.


Innovation is the process of introducing new or improved ideas, products, processes or services. It can be a change in thinking or behaviour that creates value for an individual, group or organisation. Innovation can be incremental, such as improving an existing product or service, or it can be radical, such as introducing a completely new product or service.


Innovators are individuals who create, introduce and develop new ideas, products, services or processes. They are often at the forefront of change and play a key role in driving innovation within their organizations. While not all innovators are academics, many use complex academic jargon to describe their work and ideas.

Insider trading

Insider trading is the buying and selling of securities by individuals who have access to material, nonpublic information about the security. The Securities and Exchange Commission (SEC) defines insider trading as the purchase or sale of a security by someone who has access to material, nonpublic information about that security. Insider trading can be illegal or legal, depending on whether the person who has access to the information is allowed to trade on it.


Insolvency is a state of being unable to pay debts. It occurs when a company’s liabilities exceed its assets. This can happen when the company is not able to generate enough revenue to cover its expenses, or when it has too many debts that it cannot repay. If a company is insolvent, it will likely go bankrupt, which means that it will have to liquidate its assets and dissolve.

Institutional investor

An institutional investor is a type of investor that typically manages large sums of money on behalf of other people or organizations. These investors can include banks, pension funds, insurance companies, and other types of financial institutions. They may also include investment firms, which manage money for individual investors.

Integrated marketing communications

Integrated marketing communications (IMC) is a strategic process that uses various communication channels to deliver a unified message to a target market. The goal of IMC is to create a consistent and integrated brand experience across all channels, which will ultimately increase sales and brand loyalty. Some of the most common channels used in IMC include television, radio, print ads, online ads, social media, and direct mail.

Intellectual property

Intellectual property (IP) is a legal term used to describe creations of the mind, such as inventions; literary and artistic works; and symbols, names, images, and designs used in commerce. IP is protected by law and can be licensed to others.

Intensive distribution

Intensive distribution is a marketing technique that focuses on delivering a product or service to as many customers in a given area as possible. This can be done through a variety of methods, such as using distributors to reach a large number of retailers or using mass media to advertise to a large audience. Intensive distribution can be an expensive strategy, but it can be very effective in reaching a large number of potential customers.

Interest expense

Interest expense is the amount of money a company pays to borrow money. This can be in the form of a loan from a bank, or through the sale of bonds. The interest expense is calculated by multiplying the amount of debt by the interest rate. This expense can impact a company’s profitability, as it reduces the amount of money that is available for investments or dividends.

Interim profit statement

Interim profit statements are an important tool for investors and analysts to track a company’s performance over time. They show the company’s profits over a specific period of time, usually a quarter or six months. This information can help investors decide whether to buy or sell stock in the company, and analysts can use it to make predictions about the company’s future performance.


Intrapreneurship is the process of creating and implementing change within an organization, often originating from a single individual. Intrapreneurship is often associated with creativity, risk-taking, and innovation, and can be a powerful tool for driving growth and change within an organization. While the term “intrapreneur” is most commonly used in the business context, the concept can be applied in any organization or context where individuals are seeking to create change.


Inventory is a list of the items that a business owns. The inventory can be divided into two categories: raw materials and finished goods. Raw materials are the items that are used to make a product, and finished goods are the products that are ready to sell to customers. The inventory can be tracked using a system called perpetual inventory. This system updates the inventory every time an item is sold or bought.

Inventory turnover

Inventory turnover is a measure of how quickly a company sells its inventory. It is calculated by dividing the cost of goods sold by the average inventory. A higher inventory turnover means that a company is selling its inventory more quickly. This can be a sign of a healthy company, as it means that it is able to generate sales from its existing inventory.

Inventory turns

Inventory turns is a metric that is used to measure how often a company’s inventory is sold and replaced. This metric is important to track because it can give businesses an idea of how efficiently they are using their resources. In order to calculate inventory turns, you first need to know the amount of inventory that a company has and the cost of goods sold. Once you have those two figures, you divide the cost of goods sold by the amount of inventory.

Investment trust

An investment trust is a type of mutual fund that pools money from a large number of investors to purchase securities. Unlike other mutual funds, investment trusts are not regulated by the Securities and Exchange Commission (SEC). Instead, they are regulated by the state in which they are incorporated. Investment trusts can be either open-end or closed-end. Open-end trusts issue new shares to investors on a continuous basis, while closed-end trusts do not.

Invoice factoring

Invoice factoring is a type of debt financing where a company sells its accounts receivable (invoices) to a third party (the factor) in exchange for immediate cash. The factor then collects the payments from the customers on the invoices. This can be a useful tool for companies that have a lot of invoices outstanding but need cash immediately to cover expenses.


A jobber is a financial trader who executes orders to buy and sell stocks, bonds, and other securities for clients. Jobbers typically work for brokerages and banks, but there is a small number of independent jobbers who trade for their own account. Jobbing is a term that originated in the late 19th century when stockbrokers would take orders from customers over the phone and then call a jobber on the floor of the New York Stock Exchange to execute the trades.

Key performance indicator

A key performance indicator (KPI) is a metric used to track and measure the success of an organization or individual. KPIs can be used to track a variety of factors, such as financial performance, customer satisfaction, or employee productivity. Many organizations use KPIs to make decisions about where to allocate resources and how to improve their operations.

A KPI can be a very complex metric with a variety of factors that are tracked and measured.


The term labor is used to describe the process of childbirth and the pain associated with it. Labor is often described as intense and painful, but it is also a natural process that leads to the birth of a baby. Labor begins when the baby’s head begins to move down the birth canal, and it ends when the baby is born.


Laggards are companies that are slow to adopt new technologies or business models. They often fall behind their competitors in terms of innovation and profitability. Laggards can be harmful to a company’s bottom line, as they may be unable to keep up with the latest trends and lose market share.

Leveraged buy out

A leveraged buy out (LBO) is a type of transaction in which a company is bought out with a significant amount of debt. The debt is often incurred through a loan from a financial institution, which is then used to purchase the company’s shares. The goal of an LBO is to increase the purchasing power of the buyers, thereby allowing them to take control of the company.


A liability is a legal obligation of an individual or entity to provide a payment or series of payments to another individual or entity. Generally, liabilities are classified into two categories: current and long-term. A company’s current liabilities are its obligations that must be paid within one year, while its long-term liabilities are those that must be paid after one year. The most common type of liability is a debt, which is an obligation to repay a specific sum of money.

Libor rate

The Libor rate is a key global benchmark interest rate that is determined through a London interbank offered rate (Libor) process. The Libor rate reflects the borrowing costs of a select group of leading London banks and it is published each morning. The Libor rate is used as a reference point for a wide range of financial products, including mortgages, corporate loans, and derivatives.

Life cycle

The life cycle of a living organism is the process that it goes through from its beginning as a single cell to its death. This process includes the growth and development of the organism, the reproduction of its cells, and the aging and eventual death of the individual. The life cycle is controlled by the organism’s genes, which determine the characteristics of the organism and how it will grow and develop.

Limited liability company

A limited liability company is a business entity that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. LLCs are popular because they offer the benefits of both structures while avoiding some of their drawbacks. For example, an LLC offers the tax advantages of a partnership or sole proprietorship, but it limits the personal liability of its owners in the event that the business is sued.

Limited liability partnership

A limited liability partnership (LLP) is a type of business entity that combines the pass-through taxation of a partnership with the limited liability of a corporation. This type of entity is popular among small business owners because it offers the benefits of both entities without many of the drawbacks. For example, an LLP offers the tax advantages of a partnership, such as the ability to deduct business losses from personal income, while also providing limited liability protection for its owners.

Liquid asset

A liquid asset is a financial asset that can be converted into cash quickly and without penalty. This includes assets such as cash, stocks, and bonds. In order to be liquid, an asset must also be tradable easily on the open market. For this reason, real estate and other illiquid assets are not typically considered liquid.


Liquidity refers to the ease with which an asset can be converted into cash. The liquidity of an asset is determined by the number of buyers who are interested in purchasing it and the availability of those buyers.assets with high liquidity are easy to sell and generally have low prices because there is a high level of competition among buyers. Assets with low liquidity are difficult to sell and often have high prices because there are fewer buyers competing for them.

Long-term assets

Long-term assets are typically considered to be assets that a company will hold onto for more than one year. These assets can include things like property, equipment, and patents. They are often considered to be more valuable than short-term assets, because they provide stability and longevity for a company. Long-term assets can be a major source of revenue for a company, and it is important to keep track of them and manage them effectively.

Long-term interest rate

The long-term interest rate is the rate of interest that lenders charge borrowers for lending money for a period of more than one year. The long-term interest rate is also known as the “real” interest rate, because it measures the amount of purchasing power that is lost by holding money over a longer period of time.

Long-term liabilities

A long-term liability is a debt or financial obligation that a company agrees to pay over an extended period of time. This might include things like bonds, mortgages, and loans. Long-term liabilities are usually listed on a company’s balance sheet as part of its liabilities section. They can be divided into two categories: fixed and floating.


Loss is the opposite of gain. It is the decrease in the value of an asset or the amount of money that is not earned. Loss can be caused by damage, theft, or natural disasters. Businesses may also suffer losses if they are not able to sell their products or services at a high enough price to cover their costs.

Loyalty programs

Loyalty programs are marketing strategies employed by companies to reward customers for their loyalty. Typically, customers earn points for each purchase that can be redeemed for discounts or other rewards. Loyalty programs can be beneficial for both customers and businesses, as they can encourage customers to return to a business and make additional purchases, and businesses can track customer spending patterns to better understand what products and services to offer.


In short, macroeconomics is the study of the economy as a whole. This includes looking at things like GDP, inflation, and unemployment. Macroeconomic analysis can help policymakers understand how changes in one part of the economy will impact other parts.

Managed fund

A managed fund is an investment vehicle that pools the money of many investors to purchase securities. The manager of the fund buys and sells securities in order to achieve the fund’s investment objectives. Managed funds can be either mutual funds or exchange-traded funds (ETFs). Mutual funds are bought and sold directly from the fund company, while ETFs are traded on stock exchanges.

Manufacturer’s agent

A manufacturer’s agent is an intermediary who represents a manufacturer in negotiations with buyers. The agent typically has knowledge of the product and the market, and can help to close deals quickly. They may also be responsible for shipping products, handling returns, and providing customer service. Some agents are exclusive to certain manufacturers, while others represent multiple brands.


A margin is a financial cushion that a company maintains to protect itself against potential losses. The margin is calculated by dividing the company’s current assets by its current liabilities. This number is then multiplied by 100 to give the company’s margin as a percentage. A higher margin indicates that a company has more financial resources available to cover potential losses.


The market is a collection of institutions and mechanisms through which buyers and sellers interact to exchange goods and services. The most common form of market is the price system, which determines how much buyers are willing to pay for goods and how much sellers are willing to sell for goods by setting prices. Other important mechanisms in markets include competition, contract enforcement, and property rights.

Market development funds

Market Development Funds (MDF) are a type of grant awarded by the federal government to states and localities to help them expand economic opportunities in low-income communities. The funds can be used for a variety of purposes, including creating or expanding businesses, supporting job training and workforce development programs, and making infrastructure improvements. MDF is intended to help promote economic growth in areas that have been traditionally underserved by the private sector.

Market development strategy

Market Development Strategy is the process of designing and executing a plan to grow a market for a product or service. This typically involves expanding the customer base and increasing sales in existing markets. A market development strategy must take into account the characteristics of the target market, the competitive environment, and the company’s strengths and weaknesses. It can be implemented through a variety of marketing activities, such as product promotion, pricing, and distribution.

Market evolution

The market evolution is the process that the market goes through to change and improve. This can include new technologies, products, or services that are being offered. It can also include changes in the way that the market is structured or the way that it operates. The market evolution is something that happens gradually over time, and it can be influenced by a variety of factors.

Market penetration strategy

A market penetration strategy is one used by a company to increase its market share in a particular industry or market. This can be done through increasing sales to current customers, attracting new customers, or stealing market share from competitors. A company may use a variety of methods to execute its market penetration strategy, such as discounts, marketing campaigns, and product innovations.

Market plan

A market plan is a comprehensive document that outlines a company’s marketing strategy and how it plans to achieve its desired results. The document should include an analysis of the company’s target market, its competitors, and the products and services it plans to offer. It should also spell out the marketing goals the company hopes to achieve and describe the strategies it will use to reach those goals. Finally, the market plan should include a budget outlining the expected costs associated with implementing the plan.

Market redefinition

The term “market redefinition” typically refers to a situation in which the fundamental nature of a given market changes, often as a result of technological advancement or regulatory intervention. This can manifest in a number of ways, such as the emergence of new products or services that are not traditionally considered part of the market, the entry of new players into the market, or a change in the way that customers interact with or perceive the market.

Market sales potential

The market sales potential is the estimated value of a product or service in the open market. This value is determined by analyzing factors such as the number of potential buyers, the competition, and the projected demand for the product. The market sales potential can help businesses determine whether a new product is worth investing in, and it can help existing businesses evaluate their current offerings.

Market segmentation

Market segmentation is the division of a market into homogeneous groups that share similar needs and wants. This can be done by geographic location, age, gender, income, or other factors. Market segmentation allows companies to target specific groups with products and services that appeal to them, which increases the chances of those products and services being successful.

Market share

Market share is the percentage of a specific market that is controlled by a given company. It is calculated by dividing the total revenue of a company by the total revenue of the entire market. This metric is used to measure a company’s success in a given industry, and can help investors determine whether or not to invest in a particular company.


Marketing is the process of creating value for a company through the creation and distribution of products or services. Marketing is about understanding customer needs and desires and then creating a unique offering that meets those needs. It involves creating a plan to reach potential customers and then executing that plan in a way that is consistent with the company’s overall strategy. Marketing must be strategic, and it must align with the other functions of the business in order to be successful.

Marketing audit

A marketing audit is an examination of a company’s marketing practices and performance. The goal of a marketing audit is to identify areas where the company can improve its marketing efforts. A marketing audit typically includes an assessment of the company’s marketing strategy, market research, target markets, product positioning, branding, pricing, and promotion.

Marketing cost analysis

Marketing cost analysis is a process that helps businesses determine the effectiveness of their marketing efforts by examining the costs associated with each activity. This information can then be used to make more informed decisions about where to allocate resources in order to achieve the most desired results. The analysis can also help identify areas where marketing spending may be excessive or ineffective.

Marketing mix

The marketing mix is a tool that helps businesses determine the best way to market their products. The mix consists of four main components: product, price, promotion, and place. Each of these components can be adjusted to create a marketing strategy that is most effective for a particular product. For example, if a company wants to increase sales of a new product, they may decide to lower the price or increase the amount of promotion.

Marketing plan

A marketing plan is a document that outlines a company’s marketing goals and strategies for the upcoming year. It includes details about how the company will reach its target market, what kinds of promotions it will run, and how it will measure success. A marketing plan should be tailored to the specific needs of your business, and should be reviewed and updated regularly to ensure that it remains relevant.


A merger is the combination of two or more companies into a single company. This can be done through acquisition, in which one company buys another company, or through a merger, in which the two companies join together to form a new company. Mergers can be helpful for companies looking to grow, as they can combine their resources and become more competitive. However, mergers can also be risky, as there is always the potential for problems when two companies merge.


Microeconomics is the study of how people use resources to satisfy their needs and wants. It looks at the decisions that people make about how to use scarce resources, such as time, money, and land. Microeconomics also looks at how those decisions impact the economy as a whole.

Mission statement

A mission statement is a declaration of the purpose of a company or organization. It is a statement of what the company or organization wants to achieve and how it plans to accomplish its goals. A good mission statement should be clear, concise, and inspiring. It should capture the essence of the company or organization and articulate its core values.

Moving weighted average

A moving weighted average (MWA) is a type of rolling average that uses a weighting factor to give more importance to recent data points. The weighted average is updated as each new data point is added, with the most recent data point given the greatest weight. This helps to smooth out the average and give a more accurate representation of the current trend.

Multiple channel system

A multiple channel system is one in which a business uses more than one advertising or marketing medium to reach its target market. This can include using television, radio, the Internet, print media, and outdoor advertising. Using multiple channels allows a business to reach a larger audience more efficiently and can often result in increased sales.

National insurance

National insurance is a system of social security in the United Kingdom. It is a compulsory contributory system, meaning that everyone who is working must pay into it. The money collected from National Insurance contributions is used to provide benefits such as unemployment benefit, incapacity benefit, and state pension.

Negative equity

Negative equity is a situation in which the owner of a property has more debt on the property than the property is worth. This can happen when the value of the property falls below the amount of the mortgage and other debts that are secured by the property, such as home equity lines of credit. Negative equity can also happen when the owner has been unable to make payments on the mortgage or other debts secured by the property.

Net asset value

Net asset value is the total market value of all a company’s assets minus the total market value of all its liabilities. This figure can be used to determine the worth of a company and to compare the valuations of different businesses. The net asset value per share is calculated by dividing this total by the number of shares outstanding.

Net cash flow

Net cash flow is the difference between a company’s cash inflows and outflows. In layman’s terms, it is the amount of cash a company has at its disposal to reinvest in the business or pay out to shareholders. The most important factor in determining a company’s net cash flow is its operating cash flow, which measures the cash generated by a company’s regular business operations. This can be affected by factors such as sales volume, prices, and costs.

Nominal interest rate

A nominal interest rate is the most basic form of interest, and simply refers to the stated interest rate on a loan or investment. For example, if you take out a loan with a 10% interest rate, your nominal interest rate is 10%. However, this doesn’t take into account compound interest, which can make a big difference over time.

Nominal values

Nominal values are those that are assigned for the sake of convenience or comparison and do not necessarily have any intrinsic numerical value. For example, when ranking students from first to last place, the nominal value of first place is greater than the nominal value of last place, but there is no inherent numerical difference between the two. Similarly, in baseball, a player’s batting average is typically expressed as a nominal value (e.g., .

Non-executive director

A non-executive director is a corporate officer who is not also an executive officer. This type of director does not have any management responsibilities and is instead tasked with providing independent oversight of the company’s operations. Non-executive directors are typically appointed to provide additional expertise or to represent the interests of certain stakeholders, such as shareholders or employees. They may also be appointed in order to provide a check on the power of the executive officers.

Obligations incurred

Obligations incurred refers to the legal and financial obligations that are created when a contract is entered into. These obligations can be monetary, such as when one party agrees to pay the other party a certain sum of money, or they can be non-monetary, such as when one party agrees to do something for the other party. The obligations incurred by each party in a contract are typically spelled out in the contract itself.


The offering is an event in which a company offers new securities to the public. The company may offer new shares of stock, or it may offer bonds or other types of securities. The purpose of the offering is to raise money for the company.

Offering mix or portfolio

An offering mix or portfolio is a collection of financial products and services that a company provides to its customers. This can include anything from bank accounts and loans to investment products and insurance policies. A company’s offering mix is typically customized to meet the specific needs of its customers, so it can be quite complex.

Offering mixes vary greatly from one company to the next, but they typically fall into one of four categories: banking, investment, insurance, and credit.

Offshore account

An offshore account is a bank account that is held in a foreign country. This type of account can be used to store money, invest in foreign securities, or to conduct business transactions in other countries. Offshore accounts are often used by individuals and businesses who want to avoid paying taxes on their income or assets.


An oligopoly is a market form in which a few firms dominate. Firms in an oligopoly typically have large market shares and face little competition. Oligopolies can be found in many industries, including the airline, automotive, and steel industries.

Firms in an oligopoly typically have large market shares and face little competition. This is because it is difficult for new firms to enter the market and compete with the dominant firms.

Operating expenditure (opex)

Operating expenditure, or opex, is the cost of running a company’s day-to-day operations. This includes things like salaries, rent, and utilities. Opex can be a significant expense for companies, and it’s important to keep it under control in order to maintain profitability. In order to do this, many companies try to keep their opex as low as possible by outsourcing certain tasks or by automating processes.

Operating expenses

Operating expenses are the costs of running a company. This includes things like salaries, rent, and utilities. Operating expenses can vary depending on the size of the company and its industry. For example, a company that manufactures products will have different operating expenses than a company that provides services.

Operating leverage

Operating leverage measures a company’s exposure to financial risks arising from its use of debt to finance its operations. The higher the company’s operating leverage, the greater the potential for losses if sales decline or interest rates rise. This is because a company with a high operating leverage will have more debt relative to its equity, and will therefore be more sensitive to changes in its operating income.

Operating profit/loss

Operating profit loss is a term used to describe a company’s financial status when it is not making a profit from its normal operations. This can be due to a number of factors, such as increased expenses or lower revenue. When a company is experiencing an operating profit loss, it may be forced to take measures such as layoffs or salary reductions in order to reduce costs and improve its financial standing.

Operations control

Operations Control is the process of ensuring that an organization’s operations are running smoothly and as effectively as possible. This includes setting and enforcing standards for quality, safety, and efficiency, as well as planning and coordinating resources to meet demand. Operations Control also involves responding to disruptions or emergencies, and making changes as necessary to keep things on track.

Opportunities versus ideas

Opportunities are what allow people to capitalize on their ideas. Ideas by themselves are not valuable, but the opportunity to implement and execute an idea can be very lucrative. For example, a person may have the idea to start a new business, but the opportunity to do so may be in the form of a Small Business Administration loan or other financial assistance. Alternatively, the opportunity may be in the form of a partnership with another business owner.

Opportunity analysis

Opportunity analysis is a process of identifying and assessing opportunities to create or improve value for a business. It includes examining potential markets, customers, and competitors; as well as understanding the needs of potential customers and how best to serve them. The goal of opportunity analysis is to identify the best opportunities for the business to pursue in order to achieve its strategic objectives.

Opportunity cost

Opportunity cost is the value of the next best alternative use of a resource. It is determined by what the individual would have received if they had not used the resource in question for its current purpose. For example, if an individual spends an hour studying for a test instead of working at their job, the opportunity cost of the hour spent studying is the wages they would have earned if they had worked instead.

Ordinary share

An ordinary share is a security that represents an ownership interest in a company. The holder of an ordinary share is entitled to vote on matters affecting the company and to receive dividends if and when they are declared. Ordinary shares typically have a par value, which is the amount per share that the company must receive if it is ever liquidated.


Outsourcing is the process of hiring a third party to provide goods or services that would traditionally be performed by in-house employees. It can be used to improve efficiency or to cut costs, and it has become increasingly popular in recent years. Outsourcing can be a controversial topic, with some people arguing that it undermines job security and hurts the economy, while others maintain that it is necessary for businesses to compete in the global market.


Overheads are the indirect costs that a company incurs when doing business. These costs can include items like rent, utilities, and depreciation on equipment. They are typically calculated as a percentage of sales or income, and can be a major expense for a company. Overheads can be managed through effective budgeting and cost-cutting measures, and can have a significant impact on a business’s profitability.

Paid-in capital

Paid-in capital is the total amount of money that has been paid by a company’s shareholders to purchase their shares of stock. This includes both the price of the shares when they were first purchased, as well as any additional payments that have been made since then. Paid-in capital is a major component of a company’s total equity, and can be used to finance new investments or cover other expenses.


A partnership is a business entity created by two or more people who agree to pool their resources for the purpose of conducting business. The partners share ownership and management of the business, and they are jointly and severally liable for its debts. A partnership can be formed for any lawful purpose, and it must file articles of organization with the state in order to become a legal entity.


A patent is a set of exclusive rights granted by a government to an inventor or their assignee for a limited period of time in exchange for detailed public disclosure of an invention. The exclusive rights granted to a patent holder include the right to prevent others from making, using, selling, or importing the invention without permission. Patent law also requires the patent holder to disclose the invention in a patent application.


A company’s payables are the amounts owed to its suppliers for goods and services that have been received by the company. The payables arise from the company’s normal business operations, and they usually represent short-term liabilities. A company will typically have a Accounts Payable department that is responsible for tracking the payables and making sure that they are paid on time.

Payback period

The payback period (PBP) is the length of time it takes for a company to earn back its investment in a project. The PBP can be calculated by dividing the total cost of the project by the annual cash flow generated by the project. This metric is used to determine whether a project is worth investing in, as it evaluates how quickly the investment will be paid back.


The PAYE (Pay As You Earn) system is a UK tax system that takes income tax from employees and employers and pays it to the government. The PAYE system is complex because it takes into account a variety of factors, including different tax rates, allowances, and deductions. It is important to understand the PAYE system because it affects how much tax you pay each year.

Payment days

A payment day is the day on which a payment is made. Payments may be made on different days depending on the type of payment and the method of payment. For example, payments for goods that have been delivered may be made immediately, while payments for services may be made on a later date.

Payment delay

A payment delay is the postponement of a scheduled payment. The most common reason for a payment delay is a lack of funds, but it can also be caused by problems with the recipient’s bank or by administrative errors. Payment delays can have serious consequences for both businesses and individuals, so it’s important to take steps to avoid them. One way to do that is to make sure you have enough cash on hand to cover your expenses in the event of a delay.


The term “payroll” typically refers to a listing of employees and their corresponding salaries. Payroll can also include other wages and benefits paid to employees, such as commissions, bonuses, and tips. Most companies use a payroll system to calculate and track employee pay. The payroll system may be housed in the company’s accounting department, or it may be a third-party service.

Payroll burden

The payroll burden is the cost of employing workers, which includes wages and salaries as well as other costs, such as Social Security, unemployment insurance, and workers’ compensation. The burden can be significant for businesses, especially small businesses, which may have to devote a large portion of their revenue to employee costs. Many factors go into calculating the payroll burden, including the state in which a business is located, the industry it operates in, and the size of the business.

Penetration pricing strategy

Penetration pricing is a marketing strategy in which a company sets a low price for its product in order to gain market share. This strategy is often used in new markets or when a company is introducing a new product. By setting a low price, the company can attract more customers and then increase the price once it has gained a larger market share.

Perceived risk

Perceived risk is the degree of uncertainty and potential harm that an individual associates with a particular activity. It can be influenced by personal factors such as age, sex, and experience, as well as environmental factors such as the severity of the hazard and the availability of information about it.

Perceptual map

A perceptual map is a two-dimensional graphical representation of how consumers perceive the relative positions of competing brands or products on a scale from most to least preferred. The placement of brands on a perceptual map is based on survey data that measures the relative appeal of each brand to consumers. The dimensions on a perceptual map can vary, but often include factors such as quality, price, and style.

Personal selling

Personal selling is the process of creating and maintaining long-term customer relationships through providing valuable information and advice about a product or service, in order to persuade potential buyers to make a purchase. It involves building trust, credibility and rapport with customers, in order to convince them that the product or service is the best option for their needs. Personal selling is often used in conjunction with other marketing techniques, such as advertising and public relations, in order to create a comprehensive marketing strategy.

Pest analysis

PEST analysis is a business tool used to assess the external environment in which a company operates. The acronym PEST stands for political, economic, social and technological factors. The analysis helps a company understand how these factors could impact its business. Political factors include government regulation and taxation. Economic factors include inflation, recession and interest rates. Social factors include demographics and changing social values. Technological factors include advances in technology and the impact of digital media.


Philanthropy is the act of donating money or time to a cause that is not associated with one’s own self-interest. This can be done through individual donations or through organized fundraising. Philanthropy is often associated with wealthy individuals or organizations who are able to donate large sums of money, but it can also be done by average citizens who donate a small amount of their time or money to a good cause.

Plant and equipment is an important part of a company’s assets. It can be used to produce goods or services that a company offers to its customers. The plant and equipment can be used to help a company grow and become more profitable. It is important for a company to have a good understanding of the plant and equipment it has and how it can be used to improve the business.

Point of Purchase (pop)

A Point of Purchase (POP) advertisement is one that is meant to be seen and interacted with by a customer immediately before or during the act of making a purchase. This type of advertisement typically takes the form of a sign or poster, and is placed near the point-of-sale in order to influence the buyer’s decision. POP advertisements are also known as “in-store” advertisements, as they are most commonly used in brick-and-mortar stores.

Point of purchase advertising

Point of purchase advertising is a type of advertising that is used to persuade customers to buy a product or service at the time of purchase. This type of advertising can be found in retail stores, and it typically consists of signage, displays, and packaging that is designed to attract attention and persuade customers to buy the product. Point of purchase advertising can be very effective in getting customers to buy products, and it can be a key factor in driving sales.


A portfolio is a collection of work that showcases an individual’s skills and achievements. It can be used for a variety of purposes, such as job applications, college applications, or professional development. A portfolio typically includes a resume, examples of work, and letters of recommendation.


Positioning is the process of designing a product or service to occupy a distinctive place in the mind of the consumer. It involves creating a unique name, image, and set of benefits that differentiates a company’s offering from its competitors. Positioning must be based on an understanding of what consumers want and how they think about products in order to be successful.


A premium is the price of an insurance policy. The price of an insurance policy is determined by the amount of coverage that is purchased, the deductible, and the company that is providing the insurance. Generally, the higher the coverage, the higher the premium will be. The deductible is the amount of money that the policy holder must pay out-of-pocket before the insurance company pays for any covered expenses. And finally, different companies charge different premiums for their policies.

Present value

The present value of a future payment is the value today of that payment discounted back to the present. The discount rate is based on the time value of money, or the idea that a dollar received today is worth more than a dollar received tomorrow. The present value calculation takes into account both the size of the payment and how far into the future it is received.

Selling approaches

There are a variety of selling approaches that can be used in order to move a product or service. The most common are the hard sell, the soft sell, and the consultative sell. The hard sell is a high-pressure approach in which the salesperson tries to force the customer to buy using a lot of verbal persuasion. The soft sell is a more relaxed approach in which the salesperson tries to build a relationship with the customer and convince them to buy through gentle persuasion.

Share index

A share index is a compilation of the stock prices of a given number of companies that are chosen to represent a particular market or sector. The purpose of a share index is to provide a measure of the performance of the companies in the index over time and to allow comparison between different markets or sectors. The most common type of share index is the stock market index, which measures the performance of stocks traded on a particular exchange.

Share options

Share options allow employees to purchase a set number of shares of the company’s stock at a fixed price. The employee can then sell the stock back to the company at the current market price. This allows the employee to benefit from any increase in the stock price without having to risk any money. Share options are a great way to motivate employees and give them a financial stake in the company’s success.

A shareholder is an individual or company that owns a share of a company’s stock. They are entitled to a portion of the company’s profits, and they have a say in how the company is run. Shareholders can be either primary or secondary shareholders. A primary shareholder is an owner of the stock who has voting rights and a say in how the company is run.

Short-term assets

Short-term assets are a company’s investments that will be turned into cash within one year. These assets can include things like accounts receivable, inventory, and short-term investments. They are important for businesses because they provide the liquidity that is necessary to cover expenses and fund operations.

Short-term liabilities

Short-term liabilities are defined as debts and other obligations that are due within one year. This can include things like accounts payable, short-term loans, and accrued expenses. The reason these liabilities are called “short-term” is because they need to be paid off within a relatively short time frame, typically within one year.

Short-term notes

Short-term notes are a type of debt security that companies can use to borrow money from investors. The company sells the note to investors, and then agrees to pay the note back over a certain period of time, typically less than a year. The company will also pay interest on the note to the investors. This type of security is often used by companies that need to borrow money quickly, or want to avoid paying interest rates on longer-term debt.

Simple linear regression

Simple linear regression is a technique used to estimate the relationship between two variables. The technique uses a line to approximate the relationship between the two variables. The line is called the regression line. The simple linear regression technique can be used to predict values for one of the variables based on the values for the other variable.

Skimming pricing strategy

When a company chooses to use a skimming pricing strategy, it is typically doing so in order to maximize its short-term profits. This strategy involves setting a high price for a product or service that is not yet well known, in the hopes that consumers who are interested in it will be willing to pay a premium. The company then lowers the price as demand for the product increases, in order to attract more customers.

Slotting allowances

Slotting allowances are a form of price inducement that manufacturers use to encourage retailers to stock their products. It is a payment, usually in the form of a cash rebate, that a manufacturer gives to a retailer in exchange for agreeing to list the manufacturer’s product in its store. The purpose of slotting allowances is to make it easier for new products to gain a foothold in the marketplace by providing retailers with an incentive to take a chance on stocking them.

Small business investment council (sbic)

The Small Business Investment Council (SBIC) is a government-sponsored program that provides financing and business advice to small businesses in the United States. The SBIC is administered by the Small Business Administration (SBA), and it consists of a network of private-sector investors who provide financing to small businesses. The SBIC also offers business counseling and mentoring services to help small businesses grow and succeed.


Small and medium-sized enterprises (SMEs) are a vital part of the global economy, accounting for more than 60% of total employment and more than half of all private sector output. SMEs play a major role in developing economies, where they account for up to 90% of all businesses. They are also a key engine of job creation, with SMEs creating up to 80% of all new jobs in many countries.

Social enterprise

A social enterprise is a business or organization that has a social mission as one of its primary goals. This can include things like improving the quality of life for people in need, helping to protect the environment, or promoting social justice. Social enterprises can be for-profit or nonprofit organizations, and they can operate in a wide variety of industries. What sets them apart from other businesses is their commitment to using their profits and resources to benefit society as a whole.

Sole proprietorship

A Sole Proprietorship is a business entity that is owned and operated by one individual. The individual is responsible for all debts and liabilities of the business and also reaps all of the profits. There is no legal distinction between the business and the owner, which means that the owner is personally liable for any legal action taken against the business. This type of business organization is very common and simple to establish.

Sole trader

A sole trader is an individual who owns and operates a business by themselves. They are responsible for all the debts and liabilities of the business, and they keep all the profits from the business. This type of business structure is simple and easy to set up, and it’s a good option for someone who wants to be their own boss. However, sole traders have limited liability, which means that they are not protected from lawsuits or debts that the business may incur.


A stock is a type of security that represents an ownership interest in a corporation. When you buy stocks, you become a shareholder in the company, and you may receive dividends if the company pays them out. Stocks can also be sold on the open market, and their prices can rise or fall depending on how investors feel about the company.

Stock market

A stock market is a collection of markets where stocks (pieces of ownership in businesses) are traded between investors. The stock market allows companies to raise money by issuing and selling shares of their company to investors. When you buy a share of a company on the stock market, you become a part of that company’s ownership structure, and you share in the company’s profits and losses. The stock market is made up of different exchanges where stocks are traded.

Stock turnover

Stock turnover is a measure of how often a company’s stock is sold over a period of time. It is calculated by dividing the company’s total sales revenue by the average number of shares outstanding during the period. This figure can be used to gauge how active the company’s investors are and how efficiently the company is using its capital.

Strategic control

Strategic control can be defined as the set of processes used by management to ensure that the organization is able to achieve its desired goals and objectives. This includes the development and implementation of strategic plans, as well as the ongoing monitoring of performance and course correction where necessary. Strategic control is essential for ensuring that the organization remains on track and is able to adapt to changes in the environment.

Strategic marketing management

Strategic marketing management is the process of developing and implementing a marketing strategy that will achieve desired organizational goals. The goal of strategic marketing management is to create a unique and differentiated offering that will appeal to customers and generate profitable growth. This involves creating a clear vision, setting objectives, developing strategies, and allocating resources to achieve desired outcomes.

Sunk cost

Sunk costs are expenses that have been incurred and cannot be recovered. For example, if a company has invested in a factory, the money spent on the factory is a sunk cost and cannot be recovered. Sunk costs can impact decisions made by companies, as they may be more likely to continue investing in a project if they have already invested a lot of money in it, even if it is not profitable.

Supply chain

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chains encompass everything from the initial procurement of materials and components to the delivery of the finished product to the end user. Inefficient supply chains can impact a company’s bottom line by increasing inventory costs and lead times, and reducing customer satisfaction.

Surplus or deficit

A surplus is when the total value of a country’s exports is greater than the total value of its imports. This means that the country has more money coming in from other countries than it pays to other countries. A deficit is when the total value of a country’s imports is greater than the total value of its exports. This means that the country has to pay more money to other countries than it receives from other countries.


Sustainability is the ability to maintain something over a long period of time. This can be done in many ways, but often refers to the ability of a system to continue functioning without damaging or exhausting its natural resources. In order to be sustainable, a system must be able to balance its inputs and outputs so that it does not use more resources than it can replace.

Switching costs

Switching costs are the costs associated with changing from one supplier to another. These costs can include the cost of researching new suppliers, the cost of switching to new service or product providers, and the cost of training employees on how to use the new products or services. Switching costs can be a major deterrent to switching suppliers, especially if the customer is happy with the current supplier.

Swot analysis

A SWOT analysis is a planning tool used to assess a business’ strengths, weaknesses, opportunities, and threats. The analysis can help businesses identify problems and areas for improvement. The SWOT analysis is typically divided into two parts: internal factors and external factors. Internal factors are those that are within the business’ control, while external factors are those that are outside of the business’ control.

Systematic innovation

Systematic innovation is the deliberate and orderly process of creating new products, services, or processes that improve organizational performance. The systematic innovation process begins with the identification of opportunities and ends with the implementation of successful innovations. Systematic innovation is a key component of sustainable competitive advantage, and organizations that excel at it are more likely to be successful in the long run.


Tactics can be broadly defined as a plan of action designed to achieve a specific goal. In the context of warfare, tactics are the maneuvers and maneuvers employed by troops in order to accomplish a given objective. They may vary depending on the terrain, the enemy, and the specific objectives of the operation. Tactics may also be modified as needed to take advantage of opportunities or to respond to changes in the battlefield.


A takeover, also known as an acquisition, is a business transaction in which one company purchases all of the shares of another company. This can be done through a hostile or friendly takeover. A hostile takeover occurs when the company that is being purchased does not want to sell its shares and the acquiring company uses aggressive tactics, such as making a higher bid, to force the sale. A friendly takeover occurs when the company being purchased agrees to sell its shares to the acquiring company.

Target market

Target market is a specific group of consumers that a company has decided to aim its products and services at. A company will typically conduct research to determine which groups of consumers are most likely to buy its products. Once it has determined this, it will then design its marketing strategy around this target market.

One reason a company might choose to focus on a specific target market is because it believes that this group is more likely to be interested in its products or services than other groups of consumers.

Target marketing

Target marketing is the process of identifying a specific group of consumers to whom a company wishes to sell a product or service, and then designing and executing a marketing plan specifically aimed at that group. The goal of target marketing is to create a connection with potential customers that is so strong that they are more likely to buy from the company than from its competitors. This can be done by understanding what motivates the target group and then creating messaging and advertising that speaks to those motivations.

Tax rate percent

The tax rate percent is the percentage of an individual’s income that will be taxed by the government. This percentage is determined by the tax bracket that individual is in. The higher the tax bracket, the higher the tax rate percent.

Taxes incurred

The taxes incurred are a result of the income earned by the individual and the corporate tax rate. The corporate tax rate is a percentage of taxable income that is paid by corporations. The individual tax rate is a percentage of taxable income that is paid by individuals. The difference between the two tax rates is the amount of taxes that are paid by the corporation.


Telemarketing is the process of marketing a product or service by telephone. It usually involves the sale of goods or services to consumers or businesses, either by live salespersons or by automated means such as recorded voice messages. Telemarketing is often used to generate leads for sales representatives, or to contact potential customers to establish interest in a product or service.

Trade balance

The trade balance is a measure of the difference between a country’s exports and imports of goods and services. A country’s exports are the goods and services that it produces domestically and sells to other countries. Its imports are the goods and services that it buys from other countries. The trade balance is a measure of how successful a country is in selling its goods and services to other countries.

Trade margin

A margin is the amount of money required to open a position in a security. Margins are set by the exchanges and vary according to the volatility and liquidity of the underlying security. For example, a margin requirement for a stock that is trading at $50 per share might be $2,000, while the margin requirement for a stock that is trading at $5 per share might be only $100.


A trademark is a word, phrase, symbol, or design that identifies and distinguishes the source of the goods of one party from those of others. A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than a product. Federal law provides for the registration of trademarks with the United States Patent and Trademark Office (USPTO).

Trading down

Trading down is a process where a team gets rid of one or more high draft picks in order to acquire more draft picks. This can be done in either the first round or later rounds of the draft. By trading down, teams hope to add players who can help them win now while also stocking up on future talent. Trading down can be a risky proposition, as it can sometimes result in teams passing on better players in order to select others who may not have as much potential.

Trading up

The term “trading up” is used to describe the process of exchanging a less expensive good or service for a more expensive one. This can be done either by purchasing a more expensive item than the one currently owned, or by selling the current item and using the proceeds to purchase a more expensive one. Trading up can provide a number of benefits, including increased satisfaction or happiness, improved quality of life, or increased status.

Triple bottom line

The triple bottom line, also know as the three-legged stool, is a business model that takes into account environmental, social, and financial performance. The goal is to create sustainable businesses that not only make a profit, but also contribute to society and protect the environment. This approach has gained popularity in recent years as more and more people become concerned about the impact of business on the world.


Turnover can be defined as the number of employees that leave an organization within a given period of time. It can also be defined as the number of employees that are hired within a given period of time. Turnover can be a good or bad thing, depending on the circumstances. A high turnover rate can be bad for an organization because it can lead to instability and chaos. A low turnover rate can be bad for an organization because it can lead to stagnation and lack of innovation.

Types of entrepreneurs

There are several different types of entrepreneurs, but the most common are the innovator, the opportunist, and the serial entrepreneur. The innovator is someone who comes up with new ideas and creates new products or services. The opportunist is someone who takes advantage of opportunities that arise, whether they create them or not. The serial entrepreneur is someone who starts multiple businesses.

Unit trust

Unit trusts are a type of collective investment scheme where investors pool their money into a fund that is managed by a professional fund manager. The fund manager then buys a selection of assets (such as shares, bonds or property) with the aim of achieving the best return for the investors. Unit trusts can be bought and sold on the stock market and offer investors a wide range of investment options.

Unit variable cost

Unit variable cost is a calculation of the cost of producing one unit of a good or service. It takes into account the cost of materials, labor, and other overhead expenses associated with producing that unit. This calculation can help companies determine whether it is more profitable to produce more or less of a particular good or service.

Units break-even

In business, units break-even is the point at which a company’s total revenue from sales of a particular product equals the total cost of producing that product. This occurs when the company’s fixed costs are divided by the unit price minus the variable cost per unit. To reach break-even, a company must sell all of its products at or above the break-even point.

Unpaid expenses

Unpaid expenses are a common business occurrence. When a company or individual incurs expenses related to business but does not immediately receive payment, the company records the expenses as an asset on its balance sheet until such time as the debt is collected. This process is referred to as “accrual accounting.” The rationale behind accrual accounting is that a company’s financial position and performance should be represented accurately, regardless of when cash payments are actually made.

Unquoted shares

Unquoted shares are simply those that are not quoted on an exchange. They may be privately held by a company or individual, or they may be held by a mutual fund or other institutional investor. Unquoted shares can be more difficult to trade, and their value may be harder to determine, than those that are listed on an exchange.


Valuation is a process that is used to determine the worth of a company or an individual’s assets. The valuation process can be used to determine the value of a company for the purpose of selling it, or to determine the value of an individual’s assets in the event of a divorce. The most common method used to value a company is to use its earnings power, which is calculated by multiplying its earnings by a factor known as the price-to-earnings ratio.


Value is a difficult concept to define. It can be described as the worth of something, but it is difficult to determine what determines that worth. One common way to value something is to consider how much someone is willing to pay for it. Another way to think of value is in terms of usefulness- something that is useful has more value than something that is not. Some people also think of things that are rare or hard to find as having more value.

Variable cost

Variable cost refers to the expenses that change in direct proportion to the amount of goods or services produced. These costs can vary depending on the level of production, and typically increase as production increases. For example, the cost of raw materials may increase as more are used in the manufacturing process. Variable costs are important for businesses to track, as they can have a large impact on profitability.


Variance is a statistical measure of the spread of a set of data. It is calculated by taking the difference of each data point from the mean, squaring them, and then dividing by the number of data points. This gives you a measure of how dispersed the data is around the mean. A high variance indicates that the data is spread out, while a low variance indicates that the data is clustered around the mean.

Venture capital

venture capital refers to the investment of money in a new or growing business with the expectation of achieving a high return on investment. venture capitalists are investors who provide this type of funding and typically seek a large share of ownership in the businesses they back. The venture capital industry has been booming in recent years as investors have sought new opportunities outside of traditional markets like stocks and bonds.

Venture capitalists

Venture capitalists are individuals or firms that provide financial backing and advice to startup companies in the hope of earning a large return on their investment. They typically invest in young companies that have high growth potential but are also risky, since there is no guarantee that the company will be successful. In order to qualify for funding from a venture capitalist, a company must typically present a well-thought-out business plan and demonstrate that it has the ability to execute that plan.

Vertical merger

A vertical merger is a type of business merger in which two companies that produce or distribute different stages of a product or service merge. For example, if Company A produces the raw materials and Company B assembles the final product, they would merge in a vertical merger. The goal of a vertical merger is usually to create efficiencies by eliminating duplication of work and reducing costs.


A wholesaler is a company that buys products from manufacturers and sells them to retailers. They typically have lower prices than retailers, because they buy in bulk. Wholesalers can be helpful for small businesses that want to buy products at lower prices than they could find at retail stores.

Without-profits policy

A without-profit policy is a policy in which a company does not make a profit. This can be done for a number of reasons, including to keep prices low for consumers, to reinvest in the company, or to donate money to charity. Without-profit policies can be difficult to maintain, as the company must find other ways to generate revenue, but they can be beneficial for the community and for the company itself.

Work-life balance

The concept of work-life balance has been around for a while, but there is no one clear definition of it. Most people would say that it means having enough time for both work and personal/family life, but there are many different ways to achieve that balance. Some people might need more time at work to feel successful, while others might need more time at home.

Working capital

Working capital is a measure of a company’s liquidity and its ability to meet short-term obligations. It is calculated by subtracting current liabilities from current assets. A company with a negative working capital is not able to meet its short-term obligations, while a company with a positive working capital has more than enough resources to do so.


The yield of a bond is the percentage of the initial investment that the bondholder will receive back at the time of maturity. The yield is also affected by the current interest rates, so if a bond has a higher yield than other bonds on the market, it may be more desirable to purchase. The higher the yield, the more money the bondholder will earn on their investment.

Zombie funds

A zombie fund is a mutual fund that has been shut down by its sponsor, yet continues to operate. This can be due to a number of reasons, such as the fund being in violation of securities laws, the sponsor not wanting to incur the administrative costs of winding down the fund, or the fund’s investors refusing to redeem their shares. Zombie funds can be a drag on a mutual fund company’s assets and earnings.

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