Business Fundamentals
An unincorporated business that is owned by one individual. It is the simplest kind of business structure
Sole proprietorship
A physical object that can be perceived by touch such as a building, vehicle, gadget, or clothing.
Tangible Product
This key financial document provides a snapshot of business assets, liabilities and owner’s equity.
Balance sheet
This is the rate of interest you agree to pay on money borrowed.
Annual percentage rate (APR)
Democratic
Something essential for survival
Needs
Name for companies that make goods or provide services
Producers
Also known as your “bottom line.” It represents total revenues less total expenses.
Net profit
Money invested into a company or project by its owners.
Capital
A management style wherein one person controls all the decisions and takes very little inputs from other group members.
Autocratic
A business whereby the owner licenses its operations along with its products, branding, and knowledge in exchange for annual licensing fees.
Franchise
A place were buyers and sellers come together
Marketplace
Money owed to your company by customers.
Accounts receivable
This is any item which can be freely bought and sold. Examples include gold, food products and coffee beans.
Commodity
Refers to a leadership style that lets people do as they choose.
Laissez-faire
A tax imposed by one country on the goods and services imported from another country.
Tariff
Getting work completed in another country
Offshoring
Calculate these by dividing the profit (revenue minus costs) by the revenue
Profit margin
A person or firm that has lent your business money or to whom you owe money.
Creditor
The steps taken to ensure compliance with laws and regulations.
Due diligence
A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task
Joint venture
A business and marketing concept that helps people identify a particular company, product, or individual
Brand
The movement of money in and out of your business.
Cash flow
When new products, services, customers or markets are added to your company’s portfolio.
Diversification
A complaint brought forward by an employee about an alleged violation of law or dissatisfaction with work conditions.
Grievance