My Business Glossary
My Business Glossary
20 Business terms
My name is Justin Ghattas and I've been studying business for the last 2 years at College Lionel-Groulx.
Business is the activity of making money by producing or buying and selling products like goods and services. Recently, there is a trend in our culture where being related to business or entrepreneurship is now a cool thing, but not everyone knows and understands the vocabulary that are used in this field. So, I created this glossary, because I want to help people who are interested in this subject and would like to look more professional when they are discussing about this topic. In this glossary, I've compiled 20 business related terms that you can use casually in a discussion or that you might find in a business article. Also, I will include a defintion for each terms
- asset
- An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
- balance sheet
- A financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time.
- business plan
- A business plan is a written document that describes in detail how a business—usually a startup—defines its objectives and how it is to go about achieving its goals.
- capital
- Capital is a term for financial assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.
- cash flow
- Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.
- corporation
- A corporation is a legal entity that is separate and distinct from its owners.
- expense
- An expense is the cost of operations that a company incurs to generate revenue.
- inventory
- Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale.
- liability
- A liability is something a person or company owes, usually a sum of money.
- market
- A market is a place where two parties can gather to facilitate the exchange of goods and services.
- market research
- Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers.
- net loss
- A net loss is when expenses exceed the income or total revenue produced for a given period of time.
- net profit
- The net profit margin is equal to how much net income or profit is generated as a percentage of revenue.
- organizational structure
- An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization.
- owner’s equity
- Owner’s equity represents the amount of money that would be returned to the owner if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation.
- profit
- Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question.
- profit margin
- Profit margin gauges the degree to which a company or a business activity makes money, essentially by dividing income by revenues.
- return on investment
- Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.
- revenue
- Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise.
- shareholder
- A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company's stock.