1. ASSETS – items of value owned by a business 2. VENTURE CAPITALISTS - individuals or companies that make a living investing in start-up companies. 3. Accounting Equation - Assets = Liabilities + Owner's Equity 4. customer profile - a description of the characteristics of the person or company that is likely to purchase a product or service 5. Business Plan - a written document that describes all the steps necessary for opening and operating a successful business 6. Collateral - property that a borrower promises to give up in case of default. 7. primary data - information collected for the very first time to fit a specific purpose 8. Press Release - a written statement meant to inform the media of an event or product 9. Start Up Cost - The one-time-only expenses that are paid to establish a business 10. Royalty Fees - weekly or monthly payments made by the owner of the franchise to the seller of the franchise 11. Board of Directors - a group of persons elected by the stockholders to manage a corporation 12. Liabilities - Items that a business owes to others 13. Balance Sheet - shows the company's assets and its liabilities at a specific point in time 14. Income Statement - A financial statement that indicates how much money a business earns or loses during a particular period. 15. Revenue - The amount of cash coming in 16. Dividends - Distributions of profits to shareholders by coorperations 17. Owner's Equity - the amount remaining after the value of all liabilities is subtracted from the value of all assets; Net worth 18. Wages - payments for labor or services that are made on an hourly, daily, or per-unit basis 19. Trade Associations - organizations that promote certain types of businesses 20. Bonus - a financial reward in addition to a regular wage or salary 21. Valuator - An accountant; an expert on determining the value of a business 22. Franchise - A legal agreement that gives an individual the right to market a company's products or services in a particular area. 23. Channels of Distribution - routes that products and services take from the time they are produced to the time they are consumed 24. Direct Competition - Competition from a business that makes most of its money selling the same or similar products or services as another business 25. Sole Proprietorship - a business that is owned exclusively by one person 26. Delegate - to let other people share workloads and responsibilities 27. Employee - people who work for someone else 28. Incorporate - To set a business up as a cooperation 29. Expenses - The amount of cash going out 30. Demographics - Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, and income 31. Questionnaire/Survey - Most common type of primary market research; list of questions you would like to ask your customers to find out demographic and psycho graphic information 32. table of contents - A listing of the material included in a publication, as well as the correct page numbering to locate the materials 33. equity capital - Money invested in return for a share in the business's profits 34. Entrepreneurship - the process of running a business of one's own 35. Executive Summary - a short brief statement of a business plan, capturing the interest of it's readers to make them want to read (no longer than 1-2 pages) 36. Aptitude - the ability to learn a particular kind of job 37. Partnership - a business owned by two or more people 38. Market Segments - groups of customers that share common characteristics 39. Publicity - free promotion generated by media coverage 40. Advertising - any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor 41. self-assessment - an evaluation of your strengths and weaknesses 42. recruit - to look for people to hire 43. S corperation - A cooperation organized under sub chapter S of the internal revenue code whose income is taxed as a partnership 44. Share of stock - each unit of ownership in a corporation 45. Working Capital - The money needed to meet the day-to-day needs of a business 46. organizational structure - Shows how the various jobs relate to one another 47. market share - The percentage of a market owned by a business 48. Freelancers - People who provide services to businesses on an hourly basis or by the job 49. Public Relations - the act of establishing a favorable relationship with customers and the general public 50. shareholder/stockholder - A person who owns stock in a corporation 51. Interns - students who will work for little or no pay in order to gain experience in a particular field 52. Shoplifting - The act of knowingly stealing goods from a store without paying 53. Indirect competition - Competition by a business that makes only a small amount of money selling the same or similar products or services as another business 54. trade shows - special meetings where companies display their products 55. Cash Flow Statement - Describes how much cash comes in and goes out of a business over a period of time 56. Commission - a percentage of a sale paid to a salesperson that varies from month to month, depending on how much of a product/service is sold 57. Corporation - A business with the legal rights of a person that may be owned by many people 58. secondary data - data found in already published sources 59. market research - a system for collecting, recording, and analyzing information about customers, competitors, goods, and services 60. Job Description - a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job 61. Depreciation - The lowering of the value of an asset to reflect its current value. 62. Debt Capital - Money loaned to a business with the understanding that the money will be repaid, with interest, in a certain time period 63. Marketing Mix - The blending of four marketing elements-product, distribution, price, and promotion used to reach a target market. 64. Psychographics - Data that describes a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits. 65. business broker - A person who sales businesses for a living Acquisition Taking ownership of another business. Frequently used in conjunction with the word merger, as in mergers and acquisitions or M&As. Angel Investors Individuals who back emerging entrepreneurial ventures, usually as a bridge to get from the self-funded stage to the level of business that would both need and attract venture capital. Appraisal A formal estimate of the value of something on the open market. It also describes how the estimation and conclusion of value was made. Barter Direct exchange of merchandise and/or services between businesses. Business Incubator Provides workspace, coaching, and support services to entrepreneurs and earlystage businesses. Business Valuation An estimate of the worth of a business entity and its assets. Consumer Direct Marketing A form of Network Marketing in which the distributors are all also consumers, i.e., they must also buy the product for their personal use. Copyright Copyright is a form of protection for published and unpublished literary, scientific and artistic works that have been fixed in a tangible or material form. Downline In a Multi-Level Marketing business, the collection of all people signed up underneath an individual on which the individual receives payment on their sales. Due Diligence The inquiry process of obtaining sufficient and accurate disclosure of all material documents and other information which may influence the outcome of the transaction. Home Based Business A home based business is a business whose primary office is in the owner's home. Independent Contractor One who practices an independent trade, business, or profession in which they offer their services to the public. Intrapreneur is one who takes on entrepreneur-like ventures within a large corporate environment. Joint Venture A legal entity created by two or more businesses joining together to conduct a specific business enterprise with both parties sharing profits and losses. Limited Liability Company (LLC) A legal entity that is not taxable itself and distributes the profits to its owners, but shields personal assets from business debt like a corporation. Limited Partnership A business arrangement in which the day-to-day operations are controlled by one or more general partners and funded by limited or silent partners who are legally responsible for losses based on the amount of their investment. Line of Credit Similar to a business loan, except that the borrower only pays interest on the amount actually used. Marketing The process of researching, promoting, selling and distributing a product or service. Merger A joining together of two previously separate corporations. A true merger in the legal sense occurs when both businesses dissolve and move their assets and liabilities into a newly created entity. Multi-level Marketing (MLM) Any business in which a person receives proceeds not only from their own sales, but from the sales made by people they have signed up, and potentially people those people have signed up, and so on. Network Marketing A business in which a distributor network is needed to build the business. Usually, such businesses are also MLM. Networking Developing business contacts to form business relationships, increase your knowledge, expand your business base, or serve the community. Outsourcing Purchasing standard operational services from another business. Outsourced services typically including accounting, payroll, IT, advertising, and more. Patent A property right granted to an inventor to exclude others from making, using, offering for sale, or selling the invention for a limited time in exchange for public disclosure of the invention when the patent is granted. Planning A detailed method, formulated beforehand, for managing a business. Sales The exchange of a product or service for money. Strategic Alliance An ongoing relationship between two businesses in which they combine efforts for a specific purpose. Trademark A form of legal protection for words, names, symbols, sounds, or colors that distinguish goods and services. 1. BUSINESS FAILURE - A business that files bankruptcy and loses money for creditors, the people who lent them money, and their investors. 2. CAPITAL – The buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items. 3. DEMAND – The amount of quantity of goods and services that consumers are willing and able to buy. 4. DISCONTINUANCE – A business that is operating under a new name or a business that has been purposely discontinued. 5. ECONOMICS – The branch of social science that deals with the production and distribution and consumption of goods and services and their management. 6. ELASTIC – When a small change in price produces a large change in demand. 7. ENTERPRISE – a unit of economic organization or activity specifically a business organization. 8. FREE ENTERPRISE SYSTEM – An economic system in which people are free to operate their businesses as they see fit, with little government interference. 9. INELASTIC – When a small change in price produces little or no effect on the quantity demanded. 10. INVESTMENT – The amount of money one puts into a business as capital. 11. 66.