Finance Acronyms
This financial metric measures a company's profitability relative to its total assets.
What is ROA (Return on Assets)?
Tasks or projects that a team or employee can easily and quickly complete before moving on to more challenging work.
What is “Low-hanging fruit”?
It's class code is FNCE 2070.
What is valuation?
The initial funding round often raised from family, friends, or early investors.
What is the seed round?
The business philosophy developed by Michael Porter focusing on cost leadership, differentiation, and focus.
What is competitive advantage?
This term refers to the net income of a company expressed as a percentage of shareholders’ equity.
What is ROE (Return on Equity)?
When a consultant is currently not assigned to a client project and is essentially between engagements.
What does it mean to be "on the beach"?
It's class code is MGMT 2110.
What is competitive strategy?
The term used when a startup reaches a billion-dollar valuation.
What is "unicorn"?
The leadership style where decision-making is distributed throughout the organization.
What is decentralized leadership?
This acronym represents the direct costs associated with producing goods sold by a company.
What is COGS (Cost of Goods Sold)?
A framework that categorizes a company’s operations into primary and support activities.
What is “Porter’s Value Chain”?
It's class code is BEPP 7080.
What is housing markets?
A concise business description used to pitch to investors or customers.
What is an elevator pitch?
The corporate strategy that involves acquiring companies in the same industry to consolidate power.
What is horizontal integration?
A set of standards for accounting practices.
What is GAAP (Generally Accepted Accounting Principles)?
A phrase used when consultants don’t have a definitive answer but want to appear insightful.
What is "it depends"?
It's class code is ACCT 7470.
What is financial disclosure analytics?
A metric that measures how much a company is spending relative to revenue generation.
What is burn rate?
The business concept where a firm competes in multiple industries or product lines.
This acronym stands for a key profitability metric that measures earnings before various deductions.
What is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)?
This consulting principle ensures that complex problems are broken down into categories that do not overlap while covering all possible scenarios.
What is the MECE (Mutually Exclusive, Collectively Exhaustive) principle?
It's class code is LGST 8050.
What is antitrust and big tech?
The term for a company that achieves significant growth with minimal outside funding.
What is a bootstrapped startup?
The term for when a company seeks to expand its control over the supply chain by acquiring suppliers.
What is vertical integration?