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A set of vocabulary flashcards covering key concepts in business and finance.

BATNA

Best Alternative to a Negotiated Agreement; the next best option if a deal fails.

Walk-away Points

The worst deal you’re willing to accept before leaving the negotiation.

Gross Worth

Total value of everything you own, without subtracting any debts.

Net Worth

What is left after subtracting all debts from your total value; calculated as Everything owned - Everything owed.

Liability

Something owed to someone else, typically in the form of money.

Asset

Something you own that has value and can be converted into cash.

Buffer Inventory

Keeping extra items on hand to handle delays or sudden increases in demand.

Aggregate Inventory

Assessing the total amount of all products together instead of individually.

Just-In-Time (JIT) Inventory

Only creating or ordering items as needed to eliminate storage costs.

Manufacturing Inventory

Keeping raw materials ready for production into finished products.

Purchase Requisition

An internal request to buy something, like asking for permission.

Purchase Order

An external request sent officially to buy an item after permission is granted.

Voucher

A document proving payment for an item; similar to a receipt.

Contingency Plan

A backup plan for unexpected events.

Free Cash Flow

The remaining money a company has after expenses on capital expenditures have been subtracted from cash flow.

Value Stream Mapping

A visual representation of the steps in a process, used to identify inefficiencies.

Reverse Audit

Reviewing past payments to determine if too much tax was paid, eligible for a refund.

Fishbone Diagram

A diagram used to identify the root causes of a problem by branching reasons off a central issue.

80/20 Rule (Pareto Principle)

The principle that roughly 80% of effects come from 20% of causes.

Flexible Organizational Structure

An adaptable structure allowing for changes and more employee freedom.

Formalized Organizational Structure

A rigid structure with strict rules and procedures.

External Business Correspondence

Communication efforts directed at individuals outside the organization.

Joint Venture

Collaboration between two or more companies for a specific project.

R&D Project

A project focused on discovering new knowledge or developing new products.

Breakthrough Project

A project that creates something entirely new and potentially market-changing.

Due Diligence

Careful review and background checks before making significant business decisions.

No-fault Insurance

Insurance that covers your own expenses regardless of who caused an accident.

Tort

A wrongful act causing injury or harm; legally actionable but not necessarily criminal.

Factual Strategy

An advertising method focused on providing hard facts and data.

Intermediaries

Middlemen who facilitate the transfer of products from manufacturers to consumers.

Fiscal Year

A 12-month period a company uses for budgeting, which can start at any time.

AIDA Model

A checklist for advertising that encompasses Attention, Interest, Desire, and Action.

E-tail

Online retailing; shopping done through the internet.

Facilitating Products

Supporting items necessary for providing a service but not the main product.

Embargo

A government restriction on trade with a specific country.

Nature of Product/Service Branding

Creating a brand identity for products (product branding) or services (service branding).

The Nature and Scope of the Selling Function

The entire process of selling, which includes communication and meeting customer needs.

Legally Binding Contract

A contract enforceable by law requiring an offer, acceptance, consideration, and competence.