{
 "source": "https://peabody.kids/flashcards/tp-business-terms",
 "id": "tp-business-terms",
 "title": "Business Basics Vocabulary",
 "category": "test-prep",
 "subject": "Business",
 "levels": [
  "9-12",
  "college",
  "adult"
 ],
 "description": "Everyday terms for starting, running and understanding a business.",
 "tags": [
  "business",
  "management"
 ],
 "frontLabel": "Term",
 "backLabel": "Meaning",
 "cards": [
  [
   "Entrepreneur",
   "A person who starts and runs a business and takes the risk"
  ],
  [
   "Startup",
   "A young company building a new product or service"
  ],
  [
   "Business plan",
   "Written description of a business's goals and how it will reach them"
  ],
  [
   "Mission statement",
   "A short statement of a company's purpose"
  ],
  [
   "Vision statement",
   "A description of what a company hopes to become"
  ],
  [
   "SWOT analysis",
   "Reviewing strengths, weaknesses, opportunities and threats"
  ],
  [
   "Sole proprietorship",
   "A business owned and run by one person"
  ],
  [
   "Partnership",
   "A business owned by two or more people"
  ],
  [
   "Corporation",
   "A legal entity separate from its owners"
  ],
  [
   "LLC",
   "Limited liability company, protecting owners' personal assets"
  ],
  [
   "Shareholder",
   "Owner of shares in a corporation"
  ],
  [
   "Stock",
   "A share of ownership in a company"
  ],
  [
   "Dividend",
   "A payment of company profit to shareholders"
  ],
  [
   "Board of directors",
   "Group elected by shareholders to oversee a company"
  ],
  [
   "CEO",
   "Chief executive officer, the top manager"
  ],
  [
   "CFO",
   "Chief financial officer"
  ],
  [
   "Franchise",
   "A license to run a business under a larger brand"
  ],
  [
   "Nonprofit",
   "An organization whose surplus goes to its mission, not owners"
  ],
  [
   "Revenue",
   "Money a business earns from sales"
  ],
  [
   "Profit",
   "Revenue minus costs"
  ],
  [
   "Profit margin",
   "Profit as a percent of revenue"
  ],
  [
   "Overhead",
   "Ongoing costs not tied directly to a product"
  ],
  [
   "Fixed cost",
   "A cost that stays the same regardless of output"
  ],
  [
   "Variable cost",
   "A cost that changes with output"
  ],
  [
   "Break-even point",
   "Sales level where revenue equals total costs"
  ],
  [
   "Cash flow",
   "Money moving in and out of a business"
  ],
  [
   "Budget",
   "A plan for expected income and spending"
  ],
  [
   "Capital",
   "Money or assets used to run or grow a business"
  ],
  [
   "Venture capital",
   "Investment in young companies with growth potential"
  ],
  [
   "Angel investor",
   "A wealthy individual who invests in startups"
  ],
  [
   "Crowdfunding",
   "Raising small amounts from many people"
  ],
  [
   "Bootstrapping",
   "Funding a business from its own revenue or savings"
  ],
  [
   "Equity",
   "Ownership value in a company"
  ],
  [
   "Debt",
   "Money owed"
  ],
  [
   "Asset",
   "Something of value the business owns"
  ],
  [
   "Liability",
   "Something the business owes"
  ],
  [
   "Supply chain",
   "The network moving goods from producers to customers"
  ],
  [
   "Inventory",
   "Goods held for sale or production"
  ],
  [
   "Just-in-time",
   "Receiving goods only when they are needed"
  ],
  [
   "Outsourcing",
   "Hiring outside firms to do work"
  ],
  [
   "Vendor",
   "A seller of goods or services to a business"
  ],
  [
   "Wholesale",
   "Selling goods in bulk to retailers"
  ],
  [
   "Retail",
   "Selling goods directly to consumers"
  ],
  [
   "E-commerce",
   "Buying and selling online"
  ],
  [
   "Monopoly",
   "One firm controls a market"
  ],
  [
   "Competitive advantage",
   "What lets a company outperform rivals"
  ],
  [
   "Market share",
   "A company's percent of total sales in a market"
  ],
  [
   "Brand",
   "The name, look and reputation of a product or company"
  ],
  [
   "Value proposition",
   "The promise of value a customer will get"
  ],
  [
   "Niche",
   "A specialized segment of a market"
  ],
  [
   "Target market",
   "The group of customers a business aims to serve"
  ],
  [
   "Merger",
   "Two companies combining into one"
  ],
  [
   "Acquisition",
   "One company buying another"
  ],
  [
   "Initial public offering (IPO)",
   "First sale of stock to the public"
  ],
  [
   "Public company",
   "A company whose shares trade on a stock exchange"
  ],
  [
   "Private company",
   "A company whose shares are not publicly traded"
  ],
  [
   "Bankruptcy",
   "Legal process for people or firms unable to pay debts"
  ],
  [
   "Insolvency",
   "Inability to pay debts when due"
  ],
  [
   "Liquidation",
   "Selling off assets to pay debts"
  ],
  [
   "Audit",
   "Independent examination of financial records"
  ],
  [
   "Compliance",
   "Following laws and regulations"
  ],
  [
   "Ethics",
   "Principles of right and wrong in business conduct"
  ],
  [
   "Corporate social responsibility",
   "A company's duty to act for society's benefit"
  ],
  [
   "Stakeholder",
   "Anyone affected by or interested in a company"
  ],
  [
   "Human resources",
   "The function managing hiring, pay and employee matters"
  ],
  [
   "Onboarding",
   "Helping new employees join and learn their jobs"
  ],
  [
   "Performance review",
   "Evaluation of an employee's work"
  ],
  [
   "Delegation",
   "Assigning tasks to others"
  ],
  [
   "Organizational chart",
   "Diagram of who reports to whom"
  ],
  [
   "Span of control",
   "Number of people a manager directs"
  ],
  [
   "Leadership",
   "Guiding and motivating people toward goals"
  ],
  [
   "Autocratic leadership",
   "Leader makes decisions alone"
  ],
  [
   "Democratic leadership",
   "Leader involves the team in decisions"
  ],
  [
   "Motivation",
   "The drive to act toward a goal"
  ],
  [
   "Productivity",
   "Output per unit of input"
  ],
  [
   "Efficiency",
   "Producing results with little waste"
  ],
  [
   "Quality control",
   "Checking that products meet standards"
  ],
  [
   "Lean manufacturing",
   "Eliminating waste in production"
  ],
  [
   "Six Sigma",
   "A method to reduce defects and variation"
  ],
  [
   "Kaizen",
   "Continuous small improvements"
  ],
  [
   "Key performance indicator (KPI)",
   "A measurable value showing progress toward a goal"
  ],
  [
   "Return on investment (ROI)",
   "Gain from an investment relative to its cost"
  ],
  [
   "Scalability",
   "Ability to grow without a matching rise in cost"
  ],
  [
   "Pivot",
   "A major change in business strategy"
  ],
  [
   "Minimum viable product",
   "The simplest version of a product that tests an idea"
  ],
  [
   "B2B",
   "Business-to-business sales"
  ],
  [
   "B2C",
   "Business-to-consumer sales"
  ],
  [
   "Contract",
   "A legally binding agreement"
  ],
  [
   "Invoice",
   "A bill sent for goods or services provided"
  ],
  [
   "Procurement",
   "The process of buying goods or services for a business"
  ],
  [
   "Benchmarking",
   "Comparing performance to the best in the field"
  ],
  [
   "Globalization",
   "Business activity across national borders"
  ],
  [
   "Tariff",
   "A tax on imported goods"
  ],
  [
   "Exchange rate",
   "The price of one currency in another"
  ]
 ]
}