Accounting
Everything a business owns that holds monetary value (like cash, inventory, or equipment) is known as this.
Asset
Abbreviated as UVP, this clear statement explains the unique benefit of your product and why customers should pick you over competitors.
Unique Value Proposition
On Shark Tank, if an entrepreneur asks for $100,000 in exchange for a 10% equity stake, what is the implied total valuation of the company?
$1,000,000
An LLC is one of the most common legal setups for small businesses. What does "LLC" stand for?
Limited Liability Company
Money that a business owes to outside parties, such as bank loans, unpaid bills, or debt, goes by this general term.
Liability
This four-letter framework analyzes a company's internal Strengths and Weaknesses along with external Opportunities and Threats.
SWOT analysis
When an investor asks for a percentage of your business in exchange for cash funding, they are asking for this.
Equity
This legal protection gives an inventor exclusive rights to manufacture, use, or sell a novel product for a specific period.
Patent
To calculate an individual's or business's Net Worth, you subtract total liabilities from this figure.
Total assets
This classic marketing strategy uses four core components often referred to as "The 4 Ps." Name all of them.
Product, Price, Place, Promotion
This term describes the point at which total revenues exactly equal total expenses, resulting in $0 profit and $0 loss.
Break even point
When a public company distributes a portion of its corporate profits back to its shareholders, that payment is called this.
Dividend
This basic financial metric is calculated by subtracting total expenses from total revenue.
Net income/profit
Shortened to ROI, this financial metric measures the percentage return earned on an investment relative to its cost.
Return on investment
This deal structure occurs when a Shark provides funding in exchange for a fixed percentage of every future sale until the money is paid back.
Royalty/royalty deal
While a patent protects a physical invention, this legal status protects a unique brand name, slogan, or logo.
Trademark
Abbreviated as COGS, this metric accounts for the direct costs of manufacturing or purchasing the products a company sells.
Cost of goods sold
When a business prices a product significantly lower than competitors to quickly capture market share, it is using this strategy.
Penetration Pricing
When a Shark insists that an entrepreneur secure a manufacturing or retail deal before releasing the investment funds, the offer includes this type of requirement.
Contingency/conditional offer
This legal contract, often shortened to NDA, prevents employees, partners, or investors from sharing your confidential business secrets.
Non-disclosure agreement