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Business Basics Vocabulary

Everyday terms for starting, running and understanding a business.

94 cardsGrades 9–12, College, Adult#business#management

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94 cards
  • EntrepreneurTerm
    A person who starts and runs a business and takes the risk
  • StartupTerm
    A young company building a new product or service
  • Business planTerm
    Written description of a business's goals and how it will reach them
  • Mission statementTerm
    A short statement of a company's purpose
  • Vision statementTerm
    A description of what a company hopes to become
  • SWOT analysisTerm
    Reviewing strengths, weaknesses, opportunities and threats
  • Sole proprietorshipTerm
    A business owned and run by one person
  • PartnershipTerm
    A business owned by two or more people
  • CorporationTerm
    A legal entity separate from its owners
  • LLCTerm
    Limited liability company, protecting owners' personal assets
  • ShareholderTerm
    Owner of shares in a corporation
  • StockTerm
    A share of ownership in a company
  • DividendTerm
    A payment of company profit to shareholders
  • Board of directorsTerm
    Group elected by shareholders to oversee a company
  • CEOTerm
    Chief executive officer, the top manager
  • CFOTerm
    Chief financial officer
  • FranchiseTerm
    A license to run a business under a larger brand
  • NonprofitTerm
    An organization whose surplus goes to its mission, not owners
  • RevenueTerm
    Money a business earns from sales
  • ProfitTerm
    Revenue minus costs
  • Profit marginTerm
    Profit as a percent of revenue
  • OverheadTerm
    Ongoing costs not tied directly to a product
  • Fixed costTerm
    A cost that stays the same regardless of output
  • Variable costTerm
    A cost that changes with output
  • Break-even pointTerm
    Sales level where revenue equals total costs
  • Cash flowTerm
    Money moving in and out of a business
  • BudgetTerm
    A plan for expected income and spending
  • CapitalTerm
    Money or assets used to run or grow a business
  • Venture capitalTerm
    Investment in young companies with growth potential
  • Angel investorTerm
    A wealthy individual who invests in startups
  • CrowdfundingTerm
    Raising small amounts from many people
  • BootstrappingTerm
    Funding a business from its own revenue or savings
  • EquityTerm
    Ownership value in a company
  • DebtTerm
    Money owed
  • AssetTerm
    Something of value the business owns
  • LiabilityTerm
    Something the business owes
  • Supply chainTerm
    The network moving goods from producers to customers
  • InventoryTerm
    Goods held for sale or production
  • Just-in-timeTerm
    Receiving goods only when they are needed
  • OutsourcingTerm
    Hiring outside firms to do work
  • VendorTerm
    A seller of goods or services to a business
  • WholesaleTerm
    Selling goods in bulk to retailers
  • RetailTerm
    Selling goods directly to consumers
  • E-commerceTerm
    Buying and selling online
  • MonopolyTerm
    One firm controls a market
  • Competitive advantageTerm
    What lets a company outperform rivals
  • Market shareTerm
    A company's percent of total sales in a market
  • BrandTerm
    The name, look and reputation of a product or company
  • Value propositionTerm
    The promise of value a customer will get
  • NicheTerm
    A specialized segment of a market
  • Target marketTerm
    The group of customers a business aims to serve
  • MergerTerm
    Two companies combining into one
  • AcquisitionTerm
    One company buying another
  • Initial public offering (IPO)Term
    First sale of stock to the public
  • Public companyTerm
    A company whose shares trade on a stock exchange
  • Private companyTerm
    A company whose shares are not publicly traded
  • BankruptcyTerm
    Legal process for people or firms unable to pay debts
  • InsolvencyTerm
    Inability to pay debts when due
  • LiquidationTerm
    Selling off assets to pay debts
  • AuditTerm
    Independent examination of financial records
  • ComplianceTerm
    Following laws and regulations
  • EthicsTerm
    Principles of right and wrong in business conduct
  • Corporate social responsibilityTerm
    A company's duty to act for society's benefit
  • StakeholderTerm
    Anyone affected by or interested in a company
  • Human resourcesTerm
    The function managing hiring, pay and employee matters
  • OnboardingTerm
    Helping new employees join and learn their jobs
  • Performance reviewTerm
    Evaluation of an employee's work
  • DelegationTerm
    Assigning tasks to others
  • Organizational chartTerm
    Diagram of who reports to whom
  • Span of controlTerm
    Number of people a manager directs
  • LeadershipTerm
    Guiding and motivating people toward goals
  • Autocratic leadershipTerm
    Leader makes decisions alone
  • Democratic leadershipTerm
    Leader involves the team in decisions
  • MotivationTerm
    The drive to act toward a goal
  • ProductivityTerm
    Output per unit of input
  • EfficiencyTerm
    Producing results with little waste
  • Quality controlTerm
    Checking that products meet standards
  • Lean manufacturingTerm
    Eliminating waste in production
  • Six SigmaTerm
    A method to reduce defects and variation
  • KaizenTerm
    Continuous small improvements
  • Key performance indicator (KPI)Term
    A measurable value showing progress toward a goal
  • Return on investment (ROI)Term
    Gain from an investment relative to its cost
  • ScalabilityTerm
    Ability to grow without a matching rise in cost
  • PivotTerm
    A major change in business strategy
  • Minimum viable productTerm
    The simplest version of a product that tests an idea
  • B2BTerm
    Business-to-business sales
  • B2CTerm
    Business-to-consumer sales
  • ContractTerm
    A legally binding agreement
  • InvoiceTerm
    A bill sent for goods or services provided
  • ProcurementTerm
    The process of buying goods or services for a business
  • BenchmarkingTerm
    Comparing performance to the best in the field
  • GlobalizationTerm
    Business activity across national borders
  • TariffTerm
    A tax on imported goods
  • Exchange rateTerm
    The price of one currency in another

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