FBLA Terms

Company Description

Review of the company, nature of the business and market, target market specifics, and competitive advantages.

Market Analysis

Industry description, target market information, customer characteristics, market share, pricing targets, and regulatory analysis.

Organization and Management

Company’s organizational structure, ownership details, management team profiles, and legal structure.

Service or Product Line

Specific benefits of the product/service, advantages over competitors, current stage, and R&D.

Marketing and Sales

Market strategy, penetration tactics, growth strategies, and communication plans.

Funding Request

Current and future funding needs and intended uses.

Financial Projections

Historical and prospective financial data with analyses.

Appendix

Supporting documents such as resumes, product pictures, market studies, and legal documents.

Sole Proprietorship

Business owned by one person, easy to start but involves personal liability.

Partnership

Business owned by two or more people with shared personal liability.

Limited Partnership

A partnership allowing for limited liability and limited input for some partners.

C Corporation

A legal entity with limited liability for owners, allowing capital raising but facing double taxation.

S Corporation

A corporation that offers limited liability, eliminates double taxation but has restrictions.

Limited Liability Corporation (LLC)

Combines partnership simplicity with corporate tax benefits and limited liability.

Cooperative

Business owned and controlled by its members.

Mission Statement

Statement explaining what the business is about.

SMART Goals

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

Debt Financing

Borrowing money with a repayment agreement including interest.

Equity Financing

Selling partial ownership of the business in exchange for cash.

Personal Savings

Utilizing personal funds for financing.

Friends and Family

Can provide loans or equity but should involve legal structuring.

Credit Cards

Useful for cash flow management but not intended for long-term financing.

Bank Loans

Loans varying in size, easier to obtain with collateral.

Leasing

Financing for big-ticket items like equipment.

Angel Investors

Investors who provide capital for startup companies.

Private Lending

Alternative funding when banks deny loans.

Grants

Funds received from government agencies or organizations without repayment.

Crowdfunding

Raising funds online from many people.

Venture Capitalists

Investors that provide funding to early-stage companies.

Balance Sheet

Snapshot of a company's assets, liabilities, and equity.

Income Statement

Financial results of operations over a specific period.

Cash Flow Statement

Details sources and uses of cash for evaluating bill payment ability.

Break-Even Analysis

Calculates when revenue equals costs; Break-Even Point = Fixed Costs / (Selling Price - Variable Costs).

Cash Flow Management

Strategies to meet financial obligations including budgeting and forecasting.

Sales Forecasting

Estimating future sales to inform business decisions.

Marketing Mix

The combination of product, price, place, and promotion strategies.

Target Market

Specific group of customers targeted by a business.

Advertising

Paid messages aimed at promoting products or services.

Sales Promotions

Short-term incentives to encourage purchases.

Public Relations

Building a positive public image for a business.

Digital Marketing

Promotion of products using digital channels.

Market Penetration

Extent of total public engagement with a product.

Market Share

Percentage of the market controlled by one company.

Market Segmentation

Dividing customers based on demographics, psychographics, and geography.

Customer-oriented Pricing

Pricing strategies centered around target market demands.

Broker

An individual representing clients in specialized goods or seasonal products.

Retailer

A business that sells products directly to consumers.

Mass Marketing

Old strategy used to reach a large audience with a single message.

User Benefits

Advantages of a product that meet customers' needs.

Positioning

Creating a product image in customers' minds.

Penetration Pricing

Setting a low introductory price to acquire a customer base.

Management Skills

Qualities needed to recruit high-quality team members.

Job Analysis

Systematic collection of information about job roles.

Hiring Process

Systematic method including screening, applications, and interviews.

On-the-Job Training

Training conducted at the workplace, ideal for small groups.

Incentive Pay Programs

Compensation methods including bonuses.

Task Statement

Description of the outcomes or responsibilities of a job.

Employee Recruitment

Process to find qualified candidates for job openings.

Core Competencies

Key operational strengths that aid business success.

Strategy

A roadmap to achieve company missions and goals.

Sherman Law

Legislation aimed at preventing monopolistic practices.

Clayton Law

Law prohibiting tying products.

Robinson Patman Act

Prohibits price discrimination between buyers.

Wheeler Lea Act

Aims to protect against false advertising.

Fair Labor Standards Act

Establishes minimum wage requirements.

Safety and Health Act of 1970

Mandates safe working conditions.

Employee Retirement Income Security Act

Regulates retirement and health plan benefits.

Consumer Credit Protection Act

Requires credit disclosures to loan applicants.

Patent

Exclusive right granted to make and sell a new product or process.

Trademark

Symbol, word, or letter associated with a specific company.

Trade Secret

Confidential business information kept private.

FICA Taxes

Payroll taxes for Social Security and Medicare.

Progressive Tax

Tax system where rates increase with income.

Double Taxation

Occurrence when corporate income and dividends are taxed.

Ethics

The moral principles guiding behavior and decisions.

Code of Ethics

Document outlining expected ethical standards in a business.

Social Responsibility

The obligation to positively impact society.

Utilitarianism

Ethical theory focused on outcomes and consequences.

Stakeholder Model

Assumes businesses have responsibilities to all involved parties.

Environmental Protection

Legal obligation for companies to safeguard the environment.

Risk Assessment

Identifying potential risks and planning for them.

Liability Insurance

Coverage for a company's legal responsibilities.

Speculative Risk

Risk that involves uncertainty of loss.

Innovation

The ability to create and implement new ideas.

Franchising

Business model allowing independent owners to operate under a brand.

Angel Investors

Individuals providing financial support to new ventures.

Downline

Group of people enlisted under an individual in network marketing.

Joint Venture

Partnership between businesses for a specific project.

Copyright

Legal protection for creative works.

Business Valuation

Estimate of a company's worth.

Consumer Direct Marketing

Direct marketing approach targeting consumers.

Home Based Business

Business operated primarily from the owner's residence.

Independent Contractor

Service providers who work independently.

Limited Partnership

Partnership with general and limited partners.

Line of Credit

Credit access allowing payment of interest only on utilized funds.

Financial Management

The effective management of funds to achieve financial objectives including planning, organizing, directing, and controlling financial activities.

Accounting System

A system to manage a business’s financial accounts, which can be manual, computerized, or ERP.

Manual Systems

Traditional accounting method utilizing physical records and ledgers, suitable for small businesses.

Computerized Systems

Automated accounting solutions like QuickBooks, Xero, and FreshBooks, improving efficiency and accuracy.

Enterprise Resource Planning (ERP) Systems

Comprehensive management software that integrates all facets of an operation, such as accounting, reporting, and supply chain.