Business Term Glossary
A
Accrual
Method of accounting in which you match revenue with expense regardless when the cash may or may not be collected.
Alt Tags
A means for creating text for images by describing in words what a picture depicts.
B
Balance Sheet
A “point in time” snapshot listing all of your assets as well as your liabilities.
Bank Account Reconciliation
Comparing and matching your checkbook balance with your bank balance.
Business Plan
A written outline that evaluates all aspects of your business.
Business Profile
A concise definition and description of your intended business and how you plan to about it.
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C
CAM
Common area maintenance expenses which are assessed to tenants.
Capital
The funds and assets invested in a business by the owners.
Capitalization Rate
The desired return (profit) you desire to determine valuation of a business, expressed as a percentage return on your investment.
Cash Basis of Accounting
Method of accounting in which you recognize income when you receive the cash and expense when you receive the bill.
Cash Flow Control
A simple method of projecting your future needs for cash.
Category Killer
Large discount chains with powerful buying power and efficiencies of scale.
Certificate of Insurance
Your landlord will require you to furnish this as proof of your insurance coverage.
Commodity Business
A business for which you must have the lowest cost to survive.
Current Liability
A debt due in less than 12 months.
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D
Demographic Report
Population statistics based on U.S. census data.
Depreciation
A non-cash expense of doing business (such as recording that assets are going down in value over time.)
Domain Name
The unique name that identifies you to all of the other computers on the Internet. (Your website name)
Due Diligence
The overall process of evaluating a business opportunity including examination of financial records.
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E
EA
"Enrolled Agent": Type of accountant who must pass a taxation test administered by the I.R.S.
eBay
The largest of the online auction houses.
E-Commerce
The sale of products and services over the Internet.
Entrepreneur
One who organizes, operates and assumes the risk in a business.
Equity
An ownership interest in a business.
Estoppels certificate
Your lease document will provide that you agree (now and in the future) to verify the terms of your lease.
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F
FAQ
Frequently asked questions.
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H
Hollow Corporation
A business in which important elements are outsourced to subcontractors.
HR Department
Human Resources Department including payroll functions and training.
HTML
Hypertext Markup Language: the common language of the Internet.
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I
Income Statement
Also know as "profit and loss statement". Shows income and expenses and resulting profit or loss over a specified period of time.
Internal Controls
What is needed to avoid losses in the handling of funds: either cash, checks or credit cards.
IPO
Initial Public Offering (the first public issuance of stock in a company).
IRA or 401(k)
Individual Retirement Accounts: Wonderful tools for your retirement planning.
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J
Just-In-Time
The controlling of inventory so that materials are delivered just in time for assembly or manufacture.
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L
Links
Links to and from other websites help create more ways for people to arrive at your website. The World Wide Web refers to the web these links create.
Liquidity
Money in the bank: i.e., sufficient cash to pay your bills and payroll on time.
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M
Meta Tags
Information inserted into the “head area" of your web pages.
Moonlighting
Operating a business “in the moonlight”; that is, a part-time business.
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O
Outsourcing
The practice of using subcontractors rather than paid employees.
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P
Payroll Service Provider
An outside resource to take over payroll and other employee related functions.
PDA
Personal Digital assistant: handheld computers.
Percentage Rent
Rental charge that is based on a percentage of your sales.
Pilot Operation
A small scale operation to evaluate and test the merits of a business concept.
Pricing Power
Unique qualities that enables maintenance of profitable pricing.
Profit Center
A unit of a business that can be compartmentalized financially such as an individual store in a chain.
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S
SBA
The U. S. Small Business Administration.
S.C.O.R.E.
A non-profit association dedicated to entrepreneurs education and success of small business.
Search Engine Placement
Enhancement methods used to improve website rankings on search engines.
Search Engine
Search engines provide directories to help locate information on the Internet.
Secured Credit
Loans secured by the assets of your business or your personal assets or both.
Server
A computer system to provide access to information or Web sites.
Shrinkage
Loss of goods through shoplifting and other types of stealing.
Site Criteria
Factors making up the overall and objective evaluation of a location for a specific business.
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U
Unsecured Credit
Loans for which there is no collateral granted to the lender.
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V
Voice Mail
A low-cost phone answering service provided by telephone companies that is more business-like than an answering machine.
