Business Terminology and Concepts

A comprehensive set of vocabulary flashcards based on a lecture about business terminology, covering key concepts across various topics such as marketing, finance, and corporate responsibility.

interpretation

the meaning of people read into behavior/words

confrontational

challenging someone strongly / sounding like a fight

impolite

not respectful

networking

building and maintain professional connections

proactive

take initiative without being asked, or in advance

adaptive

adjust your style to fit the person/situation

deference

showing respect to higher status

etiquette

polite 'rules' + how you address people

marketing mix

the set of tools a company uses to reach customers and sell (the "Ps")

Four Ps

Product, Price, Place, Promotion

Seven Ps

the 4Ps + People, Process, Physical evidence (especially for services)

physical evidence

the 'proof' of the service (store look, website, receipts, atmosphere)

target group

the segment you choose to focus on

differentiation

what makes your offer clearly different/better than alternatives

behavioural segmentation

grouping by usage (why/when/how often they buy/use)

demographic segmentation

grouping by age, occupation, income/social class, etc.

lifestyle segmentation

grouping by way of living (activities, interests, opinions)

psychographic segmentation

grouping by personality, values, motivations

VALS

a psychographic system (e.g., Actualizers, Strivers, Experiencers, Believers, Makers, Strugglers)

RFID tags

a tech tag that helps track products/purchases electronically (data on buying patterns)

brand equity

value of a brand to owners

brand dilution

brand gets weaker when stretched too wide

entry barriers

obstacles to entering an industry

vertical integration

acquiring or merging with suppliers or distributors to increase control over the supply chain

conglomerate

group with many owned companies

acquisition

buying another company

fragmented industry

many small firms; no dominant player

concentrated industry

dominated by few major firms

recession

two quarters of negative growth

depression

long and deep economic decline for a long time

trough

the lowest point in the cycle

prosperity

period of growth starts again

soft landing

gradual slowdown to avoid crisis

bubble / crash

prices rise unrealistically then collapse

NINJA loans

loan to someone with no income, no job, no assets

credit crunch

banks stop lending

tariff

import tax

quota

import limit

dumping

selling below cost abroad

stimulus packages

stimuleringstiltak

securities

investments in shares/bonds

stagflation

high inflation with no economic growth

accountability

responsible + open about decisions

transparent

Open and clear

stance

stated opinion on the right action

probity

complete honesty

integrity

strong moral principles

depletion

using up resources faster than they can be replaced

irreversible damage

permanent harm that cannot be undone

SDGs

UN sustainable development goals

ethical behaviour

acting in a morally correct way

professional misconduct

unethical behavior at work

CSR

company responsibility for society and environment

pollution

damaging the air, water, soil

bribes

illegal payments to influence someone

stakeholders

groups affected by a company - interests

non-polluting energy

energy that does not produce harmful emissions

financial reporting

structured information a company publishes about its finances

annual report

yearly report with key numbers + explanations for stakeholders

financial statements

the main reports: P&L, balance sheet, cash flow statement

financial year

a 12-month accounting period

preliminary results

early/full-year headline numbers before the full report

interim results

results published during the year (often after 6 months)

balance sheet

shows what a company owes and owns

cashflow statement

shows movement of money in and out of business

shareholders

owners who buy shares

shares

ownership units a company issues and trades on a stock market

share price

market value of one share (moves with expectations of future value)

bondholders

lenders who buy bonds issued by the company

bonds

long-term loans from investors to a company

interest

cost of borrowing (paid to bondholders/lenders)

principal

the original amount borrowed (repaid at maturity)

over/undervalued

when investors think a company’s shares are priced too high/low

profit and loss account

shows revenue and expenses over a period to calculate profit

accrual accounting

records income/expenses when they happen, not when cash is paid/received

revenue

money earned from selling goods/services

costs / expenses

spending needed to run the business

depreciation / amortization

accounting for assets losing value over time

operating profit

profit from core operations (before financing and tax)

interest payable

interest the company must pay on debt

profit before tax

profit after interest, before tax

exceptional items

unusual one-off gains/losses not part of normal operations

profit after tax

what remains after all costs and taxes

earnings

profit available to distribute or reinvest (often net profit)

dividend

part of profit paid out to shareholders

retained earnings

profit kept in the company to reinvest (also called reserves)

shareholder value

value created for owners through dividends + rising share price

yield (dividend yield)

dividend per share compared to the share price expressed as a percentage, indicating the return on investments from dividends

price-earnings ratio

share price relative to earnings per share; reflects growth expectations

ROI (return on investment)

how much return you get compared to what you invested

subsidiary

a company owned by another company

assets

what the company owns/controls that has value

current assets

short-term assets (cash, inventory, receivables)

Fixed tangible assets

long-term physical assets (machinery, buildings, land)

intangiable assets

non - physical value (goodwill, brand value)

liabilities

what the company owes(debt/obligations)

current liabilites

debt due lwithin one year

long-term liabilites

debt due later(loans, bonds)

shareholders equity

what’s left for owners after liabilities