business terms
what is revenue
the money you collect
skills for finance
math taking risks and decision making
what is a general partnership
a business owned by two or more people who agree to share profits, losses, and management, with each partner personally liable for all business debts and obligations
what is cogs
cost of goods sold
skills for accounting
strong attention to detail, critical thinking, problem-solving, organization, communication
what is a limited partnership
a business structure with at least one general partner (GP) who manages the business and has unlimited personal liability, and at least one limited partner (LP) who invests capital but has liability limited to their investment and does not participate in daily management, acting as a passive investor
what is a service business
providing intangible services, skills, labor, or expertise rather than physical products
skills for human resources
communication, empathy, ethics, problem-solving
what does LLC stand for
Limited liability company
what is the equation to find your profit
revenue-cogs-expenses=profit
skills for managing and consulting
analytical/technical skills (problem-solving, data analysis, strategic thinking) and interpersonal/soft skills (communication, leadership, empathy, adaptability)
what is a LLC partnership
a multi-member Limited Liability Company (LLC) is taxed by the IRS by default as a partnership, meaning profits and losses "pass-through" to the members' personal taxes, while still providing limited liability protection for all owners (members) from business debts
what is a business
a organization that sells goods or services for a profit
skills for operation and supply chain
communication, problem-solving, negotiation, leadership, adaptability
what is a corporation
a legal entity separate from its owners, acting like a "fictional person" that can own assets, enter contracts, sue, and be sued, providing owners (shareholders) with limited personal liability for business debts