Financial Fundamentals
This is the difference between a company's revenue and its cost of goods sold (COGS).
What is gross profit?
The "P" in the 4 P's of Marketing that deals with the various distribution channels.
What is Place?
The acronym for the initial period of funding when a company sells shares to the public for the first time.
What is an IPO (Initial Public Offering)?
This natural fiber is harvested from a plant and is very breathable, making it popular for summer wear.
What is cotton?
This Italian pasta shape is known for its long, thin, solid strands.
What is spaghetti?
Unlike variable costs, this type of cost, like rent, remains constant regardless of production output.
What is a fixed cost?
A detailed description of the ideal customer, often including demographics, motivations, and goals.
What is a buyer persona (or customer avatar)?
This acronym is a common strategic planning tool for analyzing internal Strengths, Weaknesses, Opportunities, and Threats.
What is SWOT?
The French word for a long scarf or wrap worn over the shoulders, often for formal events.
What is a stole (or shawl)?
A Japanese dish of bite-sized, rolled or molded vinegared rice often topped with raw fish or vegetables.
What is sushi?
This is the financial statement that summarizes a company's assets, liabilities, and owners' equity at a specific point in time.
What is a balance sheet?
The process of dividing a market into distinct groups that have common needs and characteristics.
What is market segmentation?
An individual or company that invests capital in a startup business in exchange for convertible debt or equity.
What is an angel investor (or venture capitalist)?
This synthetic, stretchy material is often blended with other fabrics to give jeans or athletic wear more give.
What is spandex (or elastane/lycra)?
This green, fleshy fruit, which has a large pit, is the main ingredient in the Mexican dip called guacamole.
What is an avocado?
A term for when a company's total revenue equals its total expenses, resulting in zero profit.
What is the break-even point?
A method of pricing where a new product is initially priced low to rapidly gain market share.
What is penetration pricing?
The legal document that defines the operating procedures and rules for a limited liability company (LLC).
What is an operating agreement?
A style of denim pants popularized in the 1970s that are narrow at the thigh and flare out dramatically below the knee.
What are bell bottoms?
This clear, distilled spirit, originally from Russia, is the base for cocktails like the Moscow Mule and the Martini.
What is vodka?
This financial ratio measures a company's ability to pay short-term obligations and is calculated as Current Assets / Current Liabilities.
What is the current ratio?
This is the concept where a product's value is determined by the maximum amount a customer is willing to pay, rather than by production costs.
What is value-based pricing?
The term for when a product or service's revenue growth slows or starts to decline, signaling the final phase of the product life cycle.
What is the decline stage?
This method of dyeing involves tying off sections of fabric before dipping it in dye to create distinct, irregular patterns.
What is tie-dye?
A dense, slow-cooked French meat stew, often featuring beef or lamb, red wine, and mushrooms.
What is boeuf bourguignon?