Business Glossary

20 terms

Business management can be very complicated because it's at the center of every financial transaction, and you always need to manage everything that you do. This glossary covers the topic of business management because there are many difficult words out there that we don't necessarily understand.

accounting
The process of recording, summarizing, and analyzing a business's financial transactions.
bank Loan
A sum of money borrowed from a bank that must be repaid with interest.
break-even
The point at which total revenue equals total costs, resulting in no profit or loss.
break-even point
The level of activity where revenue exactly covers costs, resulting in neither profit nor loss.
budget
A detailed plan of income and expenses over a specific period.
cash Flow
The movement of money in and out of a business over a given period.
debt
Money borrowed that must be repaid, often with interest.
employer
A person or business that hires employees to work in exchange for a salary.
entrepreneur
A person who starts and manages a business, taking on financial risks in hopes of making a profit.
finance
The management of money, including investment, borrowing, credit, budgeting, and savings.
franchise
A business model where an individual (franchisee) operates under the brand and system of an established company (franchisor).
free Cash Flow
The money available after covering all operating and investment expenses.
income tax
A tax imposed on individuals or businesses based on their earnings.
investment
The purchase of assets or securities with the expectation of generating income or profit.
leadership
The ability to influence, motivate, and guide a group toward a common goal.
management
The act of coordinating resources, people, and processes to achieve organizational goals.
manager
A person responsible for planning, organizing, and overseeing business operations and employees.
marketing
The process of promoting, selling, and distributing a product or service to customers.
profit
The financial gain remaining after all expenses have been deducted from revenue.
stock
A share in the ownership of a company, representing a claim on part of its assets and earnings.