Business Ch 14/15 terms

Blog

A website that allows a company to share information to increase customer knowledge about its products and services, and to build trust.

Business-to-business (B2B) model

A commercial structure used by firms that conduct transactions directly with other businesses.

Business-to-consumer (B2C) model

A commercial structure used by firms that focus on conducting business directly with individual consumers.

Cookie

A small piece of software sent by a website that tracks an individual's internet use.

Data mining

The practice of searching through stored records looking for useful patterns and information.

e-Business (Electronic business)

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs through facilities available on the internet.

e-Commerce

A subset of electronic business that refers specifically to buying and selling activities conducted online.

Hashtag

A word or short phrase, preceded by the pound sign (#), used to identify and categorize specific topics.

Influencer

A person established on social platforms who commands sway over a large audience of followers.

Key performance indicators (KPIs)

Quantifiable measurements that define and evaluate an organization's progress toward achieving its strategic objectives.

Malware

Software specifically designed to infiltrate, damage, or compromise a computer system without the user's consent.

Podcasts

Digital audio or video files that audiences stream or download online using computers, tablets, or smartphones.

Qualitative social media measurement

The process of assessing non-numerical opinions, attitudes, and sentiment regarding a brand.

Quantitative social media measurement

The practice of using numerical metrics, such as counting website visitors, followers, leads generated, and new clients.

Social media marketing

The utilization of digital networks, software, and online technology to promote products and services, generate revenue, and support customer relations.

Social media

Online interactive channels allowing individuals and organizations to communicate, network, and share content, ideas, and product details.

Accounting

The systematic process of collecting, recording, analyzing, and reporting financial information.

Accounting equation

The fundamental formula serving as the basis for financial reporting: $\text{Assets} = \text{Liabilities} + \text{Owners' Equity}$.

Annual report

A formal document distributed to stockholders and external stakeholders describing a corporation's operating results and financial condition over the prior year.

Assets

The economic resources and property owned by a business enterprise.

Audit

A formal examination of a company's financial statements and the underlying accounting practices that produced them.

Balance sheet (Statement of financial position)

A financial summary displaying the dollar balances of a company's assets, liabilities, and owners' equity at the close of a specific accounting period.

Certified public accountant (CPA)

An individual who has met state educational and experiential standards and successfully passed a comprehensive professional accounting exam.

Cost of goods sold (COGS)

The dollar value calculated as: $\text{Beginning Inventory} + \text{Net Purchases} - \text{Ending Inventory}$.

Current assets

Resources that can be converted into cash or consumed within one year or one normal operating cycle.

Current liabilities

Debts and obligations that are due for repayment within one year or less.

Current ratio

A liquidity metric computed by: $\frac{\text{Current Assets}}{\text{Current Liabilities}}$.

Data

Unprocessed numerical or verbal facts, figures, and descriptions resulting from observation or measurement.

Database

A centralized collection of organized data stored in a single digital location that supports organizational decision-making.

Data processing

The systematic conversion of raw figures and records into an organized, useful form for a designated purpose.

Decision-support system (DSS)

A software application that supplies relevant data and analytical tools to help employees evaluate alternatives and make business decisions.

Depreciation

The systematic apportioning of the acquisition cost of a fixed asset over its estimated useful life.

Double-entry bookkeeping system

A recording method in which every business transaction is posted into at least two accounts to maintain balance in the accounting equation.

Expert system

A computer application utilizing artificial intelligence to emulate the specialized reasoning and problem-solving abilities of a human expert.

Financial accounting

The branch of accounting focused on producing standardized financial statements and summaries for external audiences, such as investors and creditors.

Financial ratio

A mathematical relationship computed between two distinct numbers on a firm's financial statements.

Fixed assets

Permanent, tangible properties and equipment held and deployed in operations for longer than one year.

Generally accepted accounting principles (GAAPs)

The recognized framework of standards, conventions, and rules guiding U.S. financial statement preparation and reporting.

Gross profit

The net financial margin calculated as: $\text{Net Sales} - \text{Cost of Goods Sold}$.

Gross sales

The total unadjusted dollar amount of all products delivered and services performed during an accounting period.

Income statement

A financial report summarizing a firm's revenues, expenses, and net earnings or losses over a specified duration.

Information

Data that has been organized, structured, and presented in a meaningful format to guide action and choices.

Intangible assets

Non-physical business resources that carry monetary value derived from legal rights, privileges, or brand recognition.

Inventory turnover

An operational efficiency ratio computed by: $\frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}$.

Knowledge management (KM)

A company's systematic procedures for discovering, organizing, retaining, and disseminating critical operational information.

Liabilities

The legal debts, financial claims, and obligations that a company owes to outside entities.

Liquidity

The ease and rapidity with which an asset can be converted into ready cash without incurring major losses.

Long-term liabilities

Financial debts and contractual obligations that do not require full settlement within one year.

Management information system (MIS)

An integrated system that supplies supervisors and personnel with organized data required to operate and manage business tasks effectively.

Managerial accounting

The discipline dedicated to preparing internal financial reports that aid executives in operational planning, budgeting, and control.

Net income

The positive financial balance achieved when total revenues exceed total business expenses.

Net loss

The negative financial outcome that occurs when total operating costs and expenses exceed revenues.

Net profit margin (Return on sales)

A profitability metric calculated as: $\frac{\text{Net Income After Taxes}}{\text{Net Sales}}$.

Net sales

The final dollar amount earned from merchandise and service deliveries after deducting allowances, returns, and discounts.

Operating expenses

All day-to-day expenditures required to sustain business activity, excluding the direct cost of inventory sold.

Owners’ equity

The remaining monetary value of business assets once all external claims and obligations are satisfied.

Retained earnings

The cumulative accumulated profits of a firm that are reinvested into business operations rather than paid out to shareholders.

Revenues

The gross dollar inflows collected or owed to a business from selling inventory, executing services, or other commercial tasks.

Statement of cash flows

A financial report tracking how cash movements are generated and applied across operating, investing, and financing endeavors during an accounting period.

Statistic

A single numerical measure computed to summarize a specific characteristic of a broader set of numbers.