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Business License Exam
Terms in this set (100)
"In the Black"
If a bank account is "in the black" it means that there is some money in it. A person who is "in the black" has money and is not in debt
"In the Red"
If you or your bank account is "in the red," you owe money to the bank
A strategy to create a personal relationship with customers
A way to identify changes that increase an outcome
A Round Financing
"A round" is the name given to a company's first significant round of venture capital financing
Company's that share common characteristics
A company's advancement in a short window of time
An affluent individual who provides capitol for a business
Any accessible resource
Barriers to Entry
existence of high startup costs or other obstacles that prevent new competitors from easily entering an industry or area of business.
get (oneself or something) into or out of a situation using existing resources.
reach a point in a business venture when the profits are equal to the costs.
Brick and Mortar
a sum of money lent by a bank to cover an interval between two transactions, typically the buying of one house and the selling of another.
the rate at which an enterprise spends money, especially venture capital, in excess of income.
Business-to-Business (B-to-B or B2B)
refers to a situation where one business makes a commercial transaction with another.
Business-to-Consumer (B-to-C or B2C)
business or transactions conducted directly between a company and consumers who are the end-users of its products or services
Business Model Canvas (and its parts)
a strategic management and lean startup template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's or product's value proposition, infrastructure, customers, and finances.
Capital includes all goods that are made or created by humans and used for producing goods or services. Capital can include physical assets, such as a production plant, or financial assets, such as an re-invested capital.
the total amount of money being transferred into and out of a business, especially as affecting liquidity.
A chief executive officer (CEO) is the highest-ranking executive in a company, and their primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and corporate operations.
The Chief Financial Officer (CFO) is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management.
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
provides an edge over rivals and an ability to generate greater value for a firm and its shareholders. ... The two main types of competitive advantages are comparative advantage and differential advantage
Conflict of Interest
a situation in which the concerns or aims of two different parties are incompatible.
A Chief Operating Officer (COO) is the corporate executive who oversees ongoing business operations within the company. The COO reports to the CEO and is usually second-in-command within the company
CPM (ad clicks)
Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.
Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people
Customer acquisition cost
the CAC can be calculated by simply dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent.
To understand their customers, startups needs to define: ... customer archetypes or personas, to understand the traits of the customer; and. a clear and compelling reason why its product or service is different and worth buying.
something, typically money, that is owed or due.
statistical data relating to the population and particular groups within it.
the business of selling products or services directly to the public, e.g., by mail order or telephone selling, rather than through retailers.
reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation and amortization are subtracted, as a proxy for a company's current operating profitability
a succinct and persuasive sales pitch.
is a low-risk way of exploiting gaps between what the market demands and what it's being supplied until the spread closes
The percentage of a business owned by someone
preplanned means of extricating oneself from a situation that is likely to become
the profit a company makes after deducting the costs associated with making and selling its products
low cost marketing techniques aimed at obtaining maximum exposure for a product.
a place vailable at low rent to new small businesses.
focus is placed on influential people rather than the target market as a whole.
a invention to which one has rights and for which one may apply for a patent, copyright, trademark
how much product is made and ready to be sold
the time between the initiation and completion of a production process
an approach to business development that is based on the principles of lean production, a manufacturing methodology that values a business' ability to change quickly
Limited Liability Company (LLC)
a corporate structure where the members of the company cannot be held personally liable for the company's debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.
the availability of liquid assets to a market or company--cash and a high volume of activity in a market
the ability of a commodity to be sold or marketed or attractiveness to potential employers or clients
"a garden will increase the marketability of your property"
a method of measuring something or the results obtained from this ex: "the report provides various metrics at the class and method level"
Minimum Viable Product (MVP)
version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort
convert into the form of currency or to earn revenue from (an asset, business, etc.)
NDA (non-disclosure agreement)
a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties
the actual profit after working expenses not included in the calculation of gross profit have been paid
A niche market is the subset of the market on which a specific product is focused. The market niche defines as the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
a combination of known expenses, expected future costs, and forecasted income over the course of a year
an ongoing cost for running a product, business, or system.
a synonym for earnings before interest and taxes
the loss of potential gain from other alternatives when one alternative is chosen.
obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.
The indirect costs or fixed expenses of operating a business (that is, the costs not directly related to the manufacture of a product or delivery of a service) that range from rent to administrative costs to marketing costs . Overhead refers to all non-labor expenses required to operate your business.
an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem
for each person; in relation to people taken individually.
a familiar word in the startup world. When your first business model isn't working (and this happens more often than not), the CEO and team pivot to plan B. These are deep breath moments
is capital that is not noted on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.
a standard document, form or financial statement.
Profit and Loss (P&L) Statement
a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year.
the amount by which revenue from sales exceeds costs in a business.
a system in which the people who work for a company receive a direct share of the profits.
the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria
Proof of Concept
evidence, typically derived from an experiment or pilot project, which demonstrates that a design concept, business proposal, etc., is feasible.
a first, typical or preliminary model of something, especially a machine, from which other forms are developed or copied.
Rate of Return
the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.
Research and Development (R&D)
work directed toward the innovation, introduction, and improvement of products and processes.
Return on Investment (ROI)
the most common profitability ratio
most frequently used method is to divide net profit by total assets
Example: if your net profit is $100,000 and your total assets are $300,000, your ROI would be .33 or 33 percent.
income, especially when of a company or organization and of a substantial nature
made to the legal owner of the property, patent, copyrighted work or franchise by those who wish to make use of it for the purposes of generating revenue or other such desirable activities`
a situation in which a product has become distributed within a market
the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.
Scale / Scalability
the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
Seed Money / Capital
a form of securities offering in which an investor invests capital in exchange for an equity stake in the company.
Served/ Serviceable Available Market (SAM)
the part of the total addressable market (TAM) that can actually be reached.
the simplest business form under which one can operate a business.
refers to a person who owns the business and is personally responsible for its debts
(in gambling) an independent party with whom each of those who make a wager deposits the money or counters wagered
a person with an interest or concern in something, especially a business
Stockholder or Shareholder
an owner of shares in a company
the sequence of processes involved in the production and distribution of a commodity.
the ability to be maintained at a certain rate or level.
sweat equity is often a critical component of your negotiating leverage with co-founders, early stage employees and others who aren't paid market wages to help you grow your business
a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
Target Market / Customer
a particular group of consumers at which a product or service is aimed.
(TTM) is the length of time it takes from a product being conceived until its being available for sale.
Total Available (addressable) Market (TAM)
a term that is typically used to reference the revenue opportunity available for a product or service
user interface designers are particular about how the product is laid out. They are in charge of designing each screen or page with which a user interacts and ensuring that the UI visually communicates the path that a UX designer has laid out
A UX researcher is the champion of a user's needs. ... The goal of a researcher is to answer the twin questions of "Who are our users?" and "What do our users want?" Typically, this role entails interviewing users, researching market data, and gathering findings. Design is a process of constant iteration
a process and a set of procedures used to estimate the economic value of an owner's interest in a business
Value Add / Added
In business, the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added.
an innovation, service, or feature intended to make a company or product attractive to customers.
the selling of goods in large quantities to be retailed by others.
an image or set of images which displays the functional elements of a website or page, typically used for planning a site's structure and functionality.
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