Business Words

Accounting → the process of planning, analyzing, reporting, recording, categorizing, and interpreting financial data

  • Accounting system: a planned process designed to complete financial data and summarize the results in accounting records and reports

  • Account: a record that summarizes all the transactions about a single item in the accounting equation

  • Account number: the number assigned to an account

  • Accounts payable: amounts to be paid in the future (later)

  • Accounts receivable: amounts to be received in the future (later)

  • Account title: the name given to an account

  • Asset: anything of value that is owned

  • Calculator tape: unc thing with the numbers they use back then

  • Capital account: used to summarize the owner’s equity in a business

  • Chart of accounts: a list of accounts used by a business

  • Check: business form ordering a bank to pay cash from a bank account

  • Credit: amount recorded on the right side of T-account

  • Debit: amount recorded on the left side of T-account

  • Double-entry accounting: recording of debit & credit parts of a transaction

  • Entry: each transaction recorded

  • Expense: cost of goods/services used to operate a business

  • Equities: financial rights to a business → 2 types → 1. those to whom money is owed → 2. equity of the owner

  • Equity: net worth or assets - liabilities

  • Financial statements: financial reports that summarize the financial condition and operations of a business

  • GAAP: generally accepted accounting principles

  • General ledger: contains all accounts needed to prepare financial statements

  • Invoice: form describing goods/services sold, the quantity, price, and terms of sale → recording a sale on account is a sales invoice

  • Journal: form for recording transactions in chronological order

  • Journalizing: recording transactions in a journal

  • Ledger: a group of accounts

  • Liability: an amount owed

  • Memorandum: brief written message describing a transaction

  • Net worth: equity = assets- liabilities

  • Net worth statements: allow people to see their financial position (ex. taking on a loan)

  • Normal balance: the side of the account that is increased

  • Posting: transforming information from a journal entry to a ledger account

  • Receipt: written acknowledgement of cash received

  • Revenue: the increase in equity due to the sale of goods

  • Sale on account: a sale where the payment will be received later

  • Source document: business paper from which information is obtained for a journal entry

  • T-Account: an accounting device used to analyze transactions

  • Transaction: any business activity that changes assets, liabilities, or owner’s equity

  • Withdrawal: assets taken from the business for personal use by the owner

Business Law & Ethics → rules, regulations, and statutes governing the formation, operation, and dissolution of a business

  • C Corporation: business structure in which the owners or shareholders are taxed separately from the entity

  • Close corporation: a corporation whose shareholders are limited to a small group of persons, often family members

  • General partnership: a partnership in which partners share equally in both responsibility and liability

  • Limited Liability Company: a corporate structure that protects the owners from being personally pursued for repayment of the company’s debt or liabilities → combines the tax treatment of a partnership with the liability protection of a corporation.

  • Open corporation: a corporation whose stock can be bought & sold by any individual

  • S Corporation: business entity that enjoys the advantages of a traditional corporation while passing incomes, losses, deductions, and credits onto shareholders

  • Sole proprietorship: a business owned and managed by a single individual

Communication

Customer Relations

Economics

  • Economies of scale: as production increases, the cost per unit decreases

  • Cyclical stocks: sensitive to the economic cycle, do well when the economy does well

  • Defensive stocks: Provide essential goods and services, are not sensitive to the economic cycle

Emotional Intelligence

Entrepreneurship & Innovation

  • Venture capital: the funding of small companies by profit-seeking investors

Finance → managing, using, raising money

  • Compound interest: the interest paid at the original amount deposited on the original amount deposited in the bank, plus any interest that has been paid

  • Interest: the money paid back regularly at a certain rate for either delaying payment or the use of money lent

Human Resources

  • Remuneration: money paid for labor

Management

Channel Management

Information Management

Quality Management

Marketing

Marketing-Information Management

Marketing Management

Pricing

Promotion

  • Emotional Selling Proposition: ESP

  • Unique Selling Proposition: USP

Sales

Selling

Operations

Professional Development

Risk Development

  • Risk management: refers to the detailed procedures and policies for avoiding or reducing risks

  • Risk oversight: how a company’s owners govern the processes for identifying, prioritizing, and managing critical risks, and ensuring that these processes are continually reviewed

Strategy

Strategic Management

  • Business plan: a formal document that outlines the strategies for long-term growth and identifies alternative ideas and markets

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