100 Terms Every Entrepreneur Should Know !
There is a great page on this site, where you can find a short description of many important business terms, but the page is a work in progress, meanwhile i am sharing with you the 100 terms every entrepreneur should know. If you need further clarification do not hesitate to check this page:
https://www.entrepreneurpost.com/important-business-and-entrepreneurship-terms/
Here’s 100 Terms Every Entrepreneur Should Know !
- Accounting – the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.
- Advertising – the use of various media, such as television, radio, print, or online, to promote a product or service.
- Aggregate demand – the total amount of goods and services demanded in an economy at a given overall price level and in a given time period.
- Algorithm – a set of rules used to perform a specific task, such as solving a mathematical problem or organizing information.
- Angel investor – an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity.
- Asset – anything of value that is owned by a person or business, including physical assets like buildings and equipment, as well as financial assets like stocks and bonds.
- Auditing – the process of independently verifying and assessing the accuracy and reliability of financial information and records.
- Balance sheet – a financial statement that summarizes a company’s assets, liabilities, and equity as of a specific date.
- Bankruptcy – a legal process in which a person or business that is unable to pay its debts is relieved of further liability for those debts and is granted a fresh start.
- Benchmarking – the process of comparing a company’s performance against industry standards or best practices in order to identify areas for improvement.
- Bond – a debt security that is issued by a corporation or government and promises to pay periodic interest and repay the face value at maturity.
- Branding – the process of creating a unique identity and image for a product or company in the minds of consumers.
- Business cycle – the natural and recurring fluctuation of economic activity, characterized by periods of expansion and contraction.
- Business plan – a written document that outlines a company’s goals, strategies, market analysis, and financial projections.
- Capital – resources, such as money, buildings, and equipment, that are used to produce goods and services.
- Capital budgeting – the process of evaluating and selecting long-term investments in assets, such as equipment or real estate.
- Capital structure – the way a company finances its operations and growth through a combination of debt and equity.
- Cash flow – the movement of money into and out of a business, including cash inflows from sales and cash outflows for expenses.
- Channel of distribution – the path a product takes from the manufacturer to the end consumer, including wholesalers, retailers, and other intermediaries.
- Coefficient of variation – a measure of the relative variability of a set of data, expressed as a ratio of the standard deviation to the mean.
- Collective bargaining – the process of negotiating and setting the terms of employment, such as wages and benefits, between a union and an employer.
- Competition – the rivalry between businesses for customers and market share.
- Consumer behavior – the study of how people make decisions about what they buy and why they buy it.
- Corporate culture – the values, beliefs, and practices that characterize a company and shape its interactions with employees, customers, and other stakeholders.
- Corporate strategy – the plan and actions a company takes to achieve its long-term goals and objectives.
- Cost benefit analysis – the process of evaluating the potential costs and benefits of a proposed investment or project.
- Cost of goods sold – the direct costs of producing and selling a product, including the cost of raw materials, labor, and manufacturing overhead.
- Cost structure – the way a company’s expenses are categorized and accounted for, including fixed costs, variable costs, and semi-variable costs.
- Credit rating – an assessment of a company’s ability to repay its debts, based on factors such as financial stability, revenue, and payment history.
- Crowdfunding – the practice of raising small amounts of money from a large number of people, typically via the internet, to finance a project or venture.
- Customer relationship management (CRM) – the process of managing and analyzing customer interactions and data throughout the customer life cycle, with the goal of improving customer satisfaction and loyalty.
- Debt – money owed by a person or company to another person or company.
- Debt to equity ratio – a measure of a company’s financial leverage, calculated as the ratio of total debt to total equity.
- Default – the failure to make a payment on a loan or debt when it is due.
- Deflation – a decrease in the general price level of goods and services, leading to a decline in the purchasing power of money.
- Demographic – a statistical characteristic of a population, such as age, gender, education, or income.
- Depreciation – the allocation of the cost of a long-term asset, such as a building or equipment, over its useful life.
- Direct marketing – a marketing approach that seeks to reach customers directly, without intermediaries, through methods such as telemarketing, email, or direct mail.
- Diversity – the representation of a variety of perspectives and experiences within a company or organization, including differences in race, gender, ethnicity, sexual orientation, and age.
- Dividend – a portion of a company’s earnings that is paid out to shareholders.
- Diversification – the strategy of investing in a variety of assets or businesses in order to spread risk and reduce the impact of market volatility.
- Economic indicator – a statistical measure of economic activity, such as gross domestic product (GDP), unemployment rate, or consumer price index (CPI).
- Economic system – the way in which a society organizes the production, distribution, and consumption of goods and services.
- Economies of scale – the reduction in average cost per unit that results from increased production, often achieved through specialization and efficiency.
- E-commerce – the buying and selling of goods and services over the internet.
- Elasticity – the responsiveness of demand or supply to changes in price or other economic factors.
- Employee benefits – non-wage compensation provided to employees, such as health insurance, retirement plans, or paid time off.
- Employment law – the laws and regulations governing the employment relationship, including issues such as minimum wage, overtime, safety, and discrimination.
- Entrepreneur – a person who starts and manages a new business venture, typically with the goal of making a profit.
- Equity – ownership interest in a company, represented by stocks or shares.
- Exchange rate – the value of one currency in terms of another currency, often used to convert the value of financial transactions between countries.
- Expense – the cost of goods or services incurred by a person or business.
- Externalities – the positive or negative effects of economic activity that spill over to parties not directly involved in the transaction, such as pollution or traffic congestion.
- Fair trade – a movement that seeks to ensure that producers in developing countries receive a fair price for their products, often by guaranteeing a minimum price and improving working conditions.
- Federal Reserve System – the central banking system of the United States, responsible for implementing monetary policy and regulating the supply of money and credit.
- Financial leverage – the use of borrowed money to finance the purchase of assets, with the goal of increasing returns on equity.
- Financial market – a marketplace where financial instruments, such as stocks, bonds, and currencies, are bought and sold.
- Financial statement – a record of a company’s financial activities, including its income statement, balance sheet, and cash flow statement.
- Fixed cost – a cost that does not change with the level of production or sales, such as rent or insurance.
- Flexible budget – a budget that adjusts to changes in the level of activity, such as sales or production.
- Foreign direct investment (FDI) – investment by a company or individual in a foreign country, typically through the purchase of a controlling stake in a foreign company.
- Franchise – a business model in which a company (the franchisor) grants the right to use its name and business model to another company (the franchisee) in exchange for a fee.
- Free trade – a policy that allows goods and services to be traded freely between countries, without tariffs or other trade barriers.
- Gross domestic product (GDP) – the value of all goods and services produced within a country’s borders in a given time period.
- Gross margin – the difference between revenue and cost of goods sold, expressed as a percentage of revenue.
- Hedge – an investment made to reduce the risk of adverse price movements in an asset, such as a stock or commodity.
- Human capital – the knowledge, skills, and experience of a company’s employees, considered as a valuable asset.
- Income statement – a financial statement that reports a company’s revenues and expenses over a given time period, showing the company’s net income or loss.
- Intellectual property – legal rights to creations of the mind, such as patents, trademarks, and copyrights.
- Interest rate – the cost of borrowing money, typically expressed as a percentage of the amount borrowed.
- Inventory – the stock of goods and materials held by a company for sale or production.
- Investment – the purchase of assets with the goal of generating income or capital appreciation.
- Joint venture – a business arrangement in which two or more companies pool their resources to achieve a common goal.
- Just-in-time (JIT) – a manufacturing strategy that aims to minimize inventory by producing goods only as they are needed.
- Leverage – the use of borrowed money to finance investments, with the goal of increasing returns.
- Liability – a legal obligation to repay a debt or fulfill a contract.
- Licensing – the arrangement in which one company allows another company to use its intellectual property, such as a patent or trademark, in exchange for a fee.
- Liquidity – the ability of an asset to be easily converted into cash without significant price depreciation.
- Logistics – the management of the flow of goods and materials, including transportation, storage, and delivery.
- Management – the process of planning, organizing, directing, and controlling the activities of a company or organization.
- Market capitalization – the total value of a company’s outstanding shares of stock, calculated as the share price times the number of
- shares outstanding.
- Marketing – the process of identifying and meeting the needs and wants of customers through the creation and promotion of products and services.
- Merger – the combination of two or more companies into a single entity.
- Monetary policy – the actions taken by a central bank, such as the Federal Reserve System, to influence the money supply and interest rates.
- Monopolistic competition – a market structure in which many firms offer similar products, but each has a slightly differentiated product, allowing them to charge slightly different prices.
- Mutual fund – a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of securities.
- Net income – the amount of revenue remaining after all expenses have been paid, also known as profit.
- Outsourcing – the practice of obtaining goods or services from outside suppliers, rather than producing them internally.
- Patent – a legal right granted to an inventor for a limited period of time, allowing the inventor to exclude others from making, using, or selling the invention.
- Payroll – the total amount of money paid to employees in a given time period, including salaries and benefits.
- Pension plan – a retirement savings plan sponsored by an employer, in which employees contribute a portion of their salaries and the employer may also make contributions.
- Performance management – the process of setting goals, evaluating progress, and providing feedback to employees to improve their performance.
- Portfolio – a collection of investments held by an individual or organization.
- Price elasticity of demand – the measure of how sensitive the quantity demanded of a product is to a change in its price.
- Price-to-earnings ratio (P/E ratio) – a financial ratio that compares a company’s stock price to its earnings per share, used to evaluate a company’s current and future profitability.
- Pricing strategy – the approach a company takes to setting the price for its products or services.
- Private equity – investment in unlisted companies, typically through the purchase of a controlling stake, with the goal of restructuring the company and selling it at a profit.
- Product development – the process of creating and launching new products.
- Production – the process of creating goods and services.
- Profit margin – the amount by which revenue exceeds costs, expressed as a percentage of revenue.