Business Cheat Sheet

BUSINESS CHEAT SHEET: THE MOST IMPORTANT DEFINITIONS
Business
It is a legal entity and organizational
entity that is made up of association
of people, be they legal, natural or
mixture of both sharing common
purpose as well as unite to focus their
different talents. A business can be
described as organization that
provides services and services for
human needs.
Businesses serve as the economic
activity conductors. It is prevalent in
capitalist economies, where some of
them are owned privately and give
services and goods that are allocated
through a market to customers and
consumers in exchange for other
services, money, goods and other
forms of exchange.
Gross profit
The total revenue of a company
subtracting the costs that is
associated with selling and making
its products and giving its services.
Markup
The added amount to goods price
cost. It covers profit and overheads.
Net profit
It is the total earnings of the
company subtracting all expenses
including the costs of selling and
making services or products and
administration, legal fees, sales
commissions, accounting fees and
others.
Gross profit margin
The profit that is made before
expenses on non-product that
subtracted from the revenue of the
company.
Net profit margin
The profit that was made after
expenses of business and that are
subtracted from the company
revenue.
Profit share
Is when a profits that a business
make is being put in 1 pot, divided
among the employees as well as paid
as lump sum. It is often the salary
percentage.
Overheads
It is basically the expenses that don’t
generate revenue directly.
B2B
It stands for business to business.
It means that a business sells their
products to other business.
Market share
It is the percentage or portion of a
market that an organization
controls.
SMEs
A business that is small that have
not more than 50 employees, wherein
a medium business has 50 up to 250
employees.
Accounts payable
Bills that a person need to pay
It is being considered as liabilities.
Accounts receivable
The debts that is being owed to a
person. For instance, if a person sell
his service or product to his customer
and he did not pay at the time of the
same, they money that owed is
considered as the accounts
receivable.
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BUSINESS CHEAT SHEET: THE MOST IMPORTANT DEFINITIONS
Assets
It is the property that a person owns.
It includes anything having a value,
like inventory, accounts receivables,
equipment, supplies and others.
Branding
It is being used in creating an identity
for a person service or product as
well as differentiates it from his
competition.
Business plan
It is a document detailing the
specifics about how a business should
run.
Cash flow
The process of cash flowing into and
out of business within a specified
time.
Cost of goods sold
The cost that a person pay for
supplies, labor, goods and others to
sell his product.
Commission
The money that being paid to a
certain person who sells a business
service or product to customers.
Copy (advertising)
It is the written words that used in
communicating details about a
business service or product.
Direct marketing
A method used when a customer has
direct access to a person service or
product.
E-commerce
The act of selling services or
products over internet.
Earnings
A person earnings is his profit or
income.
Equity
Equity in a business is the differences
between a person liabilities and
assets.
Inventory
The goods that a person in stock or
on hand.
Invoice
The bill that is being given to
purchaser of service or product for
money due.
Liabilities
A person liabilities is his debts.
If the debt is being repaid in less than
5 years, it is considered as a shortterm
liability. If it is longer than 5
years, it is considered as long-term
liability.
Marketing collateral
The materials that are used in
describing a person service or
product.
Profit
It is the money that a person made
from sale of his service or product
minus his expenses or costs before
tax.
Return on investment
It is a person net profit that is divided
by his total equity.
Wholesaler
A person who gives the distribution
of the inventory from manufacturer
to retailer.
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BUSINESS CHEAT SHEET: THE MOST IMPORTANT DEFINITIONS
Abandonment
It is defined as voluntary surrender
of property that can be leased or
owned without naming a successor as
tenant or owner.
ABC analysis
It is used to define a technique of
inventory categorization.
Bank regulation
A government regulation form where
banks are being subjected to
particular guidelines and rules by the
government.
Barbell strategy
It is a financial term, which means
portfolio strategy that is formed
when a trader invests in short and
long duration bonds.
Channel of distribution
A channel that is used in
transferring merchandise or goods
from a manufacturer to end user.
Commercial banks
It gives checking accounts, money
market accounts and savings
accounts as well as accepting time
controlled deposits.
Decision maker
Decision maker refers to an
individuals who choose a course of
action from some alternatives that is
based on a particular decisionmaking
processes.
Demand letter
A letter that states a legal claim
making a demand for performance of
obligation.
Easement
It gives a right to use property, which
is in possession of other person for
some purpose.
Endowment funds
It refers to investment funds that are
set up by a certain institution.
Enterprise
A business enterprise or enterprise is
a commercial undertaking that gives
services and goods involving
commercial, industrial and financial
aspects.
Fair price
Theoretical future price or fair price,
which is the equilibrium, set for a
future contract.
Financial analyst
A person who does financial
analysis by assembling spreadsheets,
gathering details, reviewing nonlegal
pertinent details and writing
reports in effort to examine
prospective deals feasibility.
References
https://en.wikipedia.org/wiki/Business
http://www.bridgewateruk.com/2017/0
3/business-terminology/
https://www.bizinaboxx.com/business
-terms-and-definitions
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